Questions tagged [money-supply]

Questions about the supply side of crypto-currencies including the rate and mechanisms by which coins are made available or unavailable in the economy and the affect of the money supply on the value and usefulness of currencies.

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93
votes
15answers
22k views

Does hoarding really hurt Bitcoin?

Some people believe that hoarding hurts the Bitcoin economy. But are they really right? As long as corresponding goods vendors and services will be here to stay and reinforce people's faith in Bitcoin,...
8
votes
3answers
3k views

How does the mining process support the currency?

Why is mining Bitcoins necessary? Is it essentially a distribution mechanism to ensure Bitcoins are not held by a few (wealthy) individuals from the get-go who might just hoard Bitcoins rather than be ...
11
votes
6answers
6k views

What is the rationale behind Bitcoin mining?

I don't understand the logic of "mining", if bitcoins are a digital currency, why do we need a GPU to "make 'em"?
15
votes
3answers
1k views

What happens once mining speed gets close to zero?

According to Wikipedia The number of Bitcoins created per block is never more than 50 BTC, and the awards are programmed to decrease over time towards zero, such that no more than 21 million will ...
26
votes
3answers
5k views

Will all 21 million units be completely mined one day?

It is written that the supply of Bitcoin units is limited to 21 million and that this limit will approximately have been reached around the year 2030. But is there an actual "last Bitcoin" (or "last ...
15
votes
3answers
6k views

Could there be hyperinflation in Bitcoin?

Currently the creation of new coins is fixed at a certain rate which halves every few years and will at some point in the future drop to zero. As I understand it, this is by consensus, i.e. all the ...
7
votes
1answer
2k views

Where, in the code, in the Satoshi client is 21 million cap implemented?

Which fragment of the Satoshi client is verifying if announced block has a valid reward? I mean, we now live in the 25 BTC reward period. I guess client after receiving a newly minted block, does ...
12
votes
5answers
13k views

How to overcome the 21M limit of Bitcoins as adoption increases?

Are there any ways to increase the Bitcoin maximum coin limit, as a wider adoption would mean there would be a lot of real money chasing fewer number of coins? Also can one hold a fraction of a coin?
13
votes
6answers
1k views

What keeps a dominant Bitcoin client vendor with the majority of the market share from unilaterally changing the protocol?

I've been asking this in the comments, but I'll be more direct. If a third-party Bitcoin client, say "iBitcoin" (for example), becomes the dominant client by acquiring most of the market share, what ...
2
votes
2answers
751 views

How does the network adjust the rate at which the coins are created?

Who runs the Bitcoin network, and how do they adjust the rate at which the coins are created?
3
votes
3answers
12k views

How many bitcoins are there currently in circulation?

Where do I find the total number of bitcoins currently out there?
0
votes
1answer
70 views

Number of bitcoins mined algorithm

Is there a library to know the number of bitcoin mined at a given block number ?
5
votes
3answers
518 views

From a legel perspective, are Bitcoins “created” by a miner or the Bitcoin Protocol?

The recent FinCEN announcement said explicitly that virtual currency isn't a "currency" by the standard sense of the word, and shouldn't be regarded as such. Should Bitcoin ever be considered a "...
3
votes
6answers
8k views

Who issues bitcoins and how?

I can't find information on who actually issues the bitcoins. I understand that miners generate new bitcoins but what party is responsible for issuance?
15
votes
1answer
284 views

Why are the mining rewards set to reduce in such dramatic steps?

The mining rewards are scheduled to drop from 50btc to 25btc. The next drop again will be from 25 to 12.5btc. In each of the steps into a new "era" the mining reward is reduced by 50%. This seems ...
5
votes
3answers
810 views

Why is the supply of Bitcoin not pegged to its demand?

If it's supposed to be a decentralized currency, then why is it set to be capped at 21 million? What if that demand for Bitcoins exceeds 21 million but all of them are already purchased? Wouldn't it ...
4
votes
1answer
431 views

What use are ripples?

In the Ripple system we have two types of currencies - ripples and all other currencies useful for transacting with people in your web of trust. Ripples are the only currency in the system that can be ...
3
votes
1answer
810 views

Are there estimates on the geographical distribution of the bitcoin supply?

There are two similar question on the site: Is there data on the geographic distribution of bitcoin users? I am eager to know details about distribution of bitcoin The first is asking where the ...
1
vote
1answer
216 views

Possible to temporarily reduce the supply of a cryptocurrency?

Does a cryptocurrency that can have its supply be reduced based on some factor currently exist? If not, is this possible? If so, how?
1
vote
1answer
368 views

How to create more ripples?

What is the exact procedure for creating more Ripple currency units (XRP) in excess of the default 100 billion that already exist?