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,...
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 ...
18
votes
6answers
721 views

Will forks and alternative block chains cause hyper-inflation of decentralized digital money?

Great effort has been put into Bitcoin's concept of money supply and that there will never be more than 21 million units. However, it's relatively easy to fork it and create alternate block chains. ...
16
votes
2answers
18k views

Why is Bitcoin defined as having 8 decimal places?

At the protocol level bitcoins don't actually exists, but rather base units (recently called “satoshis”). Bitcoins are defined as 108 base units, meaning that for a 50 BTC mining reward, you are ...
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 ...
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 ...
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 ...
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 ...
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?
12
votes
3answers
26k views

What happens when the 21 million cap is reached? [duplicate]

I've just recently gotten into bitcoin, but I'm a bit confused about this 21 million bitcoin cap. From what I've read, computers on the bitcoin network validate transactions, which confirms the ...
11
votes
2answers
6k views

Exactly how does one calculate how many BTC they will get a certain hashrate?

I am curious on how many estimated BTC I will earn at any hash rate since, I don't really think I'm really earning any BTC at 600 Mhash/s.
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"?
11
votes
1answer
1k views

Does Ripple allow one to issue their own currency?

Does Ripple allow one to issue their own currency, similar to how ripples (XRP) were created at the system's inception?
9
votes
3answers
5k views

Is it possible for more than 21 million bitcoins to exist if 51% agree?

One of the commonly cited advantages of bitcoin is that there's guaranteed to be only 21 million bitcoins. However, my understanding is that the bitcoin protocol is patched by an opensource community,...
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 ...
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 ...
6
votes
1answer
2k views

How divisible are ripples?

How divisible are ripples (XRP)? With 100 billion of the currency units being created at system inception one could assume that they are akin to satoshis, but during the operation of the system I ...
5
votes
2answers
1k views

Why bitcoin cash supply is currently 100k more than bitcoin on coinmarketcap (as of Oct 17)

Is it a mistake or is there a significant difference in coins generated?
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 "...
5
votes
2answers
1k views

Who added the 21 million limit to Bitcoin?

After reading the white paper of Satoshi Nakamoto. The white paper does not mention anything about a limit of money supply. I think I have read somewhere mentioned the name, but unfortunately I cannot ...
5
votes
3answers
808 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 ...
5
votes
1answer
322 views

Can Ripple exist without ripples?

Can a system like Ripple exist without a currency like ripples? As they are not used to pay the peers in the system, and their supply / fee ratio is so large they do not appear to be stopping the ...
4
votes
3answers
499 views

How to calculate coin supply at each block height from all transactions?

We are working on a small project and imported all block information to mongoDB. Right now we're aiming to calculate the coin supply regarding to the block number. My plan is to loop through all ...
4
votes
3answers
543 views

Bitcoin inflation in 9/12 doesn't seem to have been corrected. Why not and will it be fixed?

I'm looking at the Total Bitcoins in Circulation graph and don't understand why there is a spike of coins being generated in Sept '12. What caused this to happen? Also, since there is a fixed number ...
4
votes
3answers
395 views

What prevents miners from mining more bitcoin after 21million btc?

What prevents miners from mining more bitcoin after 21million btc was mined?
4
votes
1answer
534 views

How does one get money into the Ripple system?

How does one get money into the Ripple system? There appear to be ways how one can lend various currencies in the system, but how does one get non-debt money into Ripple?
4
votes
1answer
634 views

How can a X-coin market cap go down while its value goes up?

Quoting Wikipedia, Market cap is given by the formula MC = N × P where N is the number of shares outstanding, and P is the closing price per share. In the specific case of a crypto currency, one ...
4
votes
2answers
313 views

Can anyone point to flaws in my counter-arguments of bitcoin critiques? [closed]

Regarding the granularity problem: Here is a worst case scenario: M2 Monetary Supply is 66 trillion. If it all moved to BitCoin, each coin would be worth 3.1 million dollars. Math: 66000000000000/...
4
votes
1answer
2k views

Dash Supply Cap? [closed]

A while back, a friend told me dash had the same supply limit that bitcoin had of 21 mil. I read on wiki recently that it's now 19 mil. Estimated 19 million coins maximum, with a 7,1% decrease in ...
4
votes
1answer
310 views

How are Ripple transaction fees “destroyed?”

What is the exact process by which the transaction fees are "destroyed?" Are they sent to a special account, or simply erased from the ledger?
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 ...
4
votes
0answers
111 views

Zcash proposal to use checkpoints to verify monetary supply [closed]

Based on concerns about the trusted setup not being able to conclusively disprove the ability to create hidden inflation, Zooko recently described an idea to institute checkpoints to verify the total ...
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?
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?
3
votes
4answers
2k views

How is hoarding to be prevented?

If all humans used bitcoins now (Jan 2013) for most of their transactions, then a dollar would be worth about a billionth of a bitcoin (1/10 Satoshi). If bitcoins take ten years to catch on that ...
3
votes
4answers
614 views

Why doesn't BTC depreciate in value as its supply increases?

The popular intuition is that that greater supply = less demand. I've looked around and haven't found a counter-argument. Why is the BTC gaining value as its quantity increases?
3
votes
2answers
718 views

When the last bitcoin is mined will everyone know it?

The total number of possible bitcoins is limited. This means that at some point the last bitcoin is mined and no more bitcoins will be mined after that moment. When this happens will we notice it and ...
3
votes
2answers
301 views

Does the Bitcoin Core API support high-precision balance display?

I am currently working with a number of altcoins and and I need to support deposits and withdrawals in currencies with very large coin number cap like Dogecoin. I am wondering whether the Bitcoin Core ...
3
votes
4answers
273 views

If anyone can mine how does inflation not occur?

If you can mine money whenever you want how does the price of every bitcoin not diminish?
3
votes
1answer
148 views

What percent of recently mined coins being actively traded vs saved?

I'm trying to understand the recent increase in BTC value in relation to mining. I am trying to answer the question Are miners (with powerful ASIC hardware) saving the BTC, and not selling them, ...
3
votes
5answers
913 views

Mining = Printing money

Recently I got in a discussion with my brother over what bitcoin is and what mining is. He had never heard of it so I had to do my best to explain it all from the beginning. I had trouble explaining ...
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 ...
3
votes
3answers
360 views

What are the problems with normal currency that may be solved by using Bitcoins?

I've watched the video on weusecoins.com and read some of the FAQ, read information about wallets etc, but I still can't find any information about why we should use Bitcoins? What are the issues with ...
2
votes
1answer
205 views

What percentage of newly created bitcoins have never been moved?

As of today, what number of coinbases, what number of coins, and therefore what percentage of the newly created coins have never been moved?
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?
2
votes
2answers
443 views

What if someone owns 51% of all bitcoins?

Would it be possible to manipulate the exchange rate of Bitcoin, if a single entity controlled the majority of all available currency? http://en.wikipedia.org/wiki/Currency_intervention http://www....
2
votes
2answers
119 views

Has anyone patched the code to experiment with the currency supply model?

Since the supply model of a currency is a key factor in it's economic properties, I think it would be interesting to experiment with supply models that could be changed easily. It could perhaps then ...
2
votes
1answer
137 views

How can I verify the BTC supply with my own node?

With all the supply talk going on I wanted to verify the active supply on my new node I got. What is the best way to "run the numbers" I am running a raspiblitz node.
2
votes
1answer
4k views

Why the total number of bitcoin is limited? [duplicate]

Why the total number of bitcoin is limited? Is there a protocol in the block or somewhere so that the participants can't violate the rule? The first one who find the block can receive the bitcoin for ...
2
votes
2answers
79 views

Can wider acceptance cause the value to fall?

I've noticed lately that more vendors/companies are accepting Bitcoin: Microsoft being one of the latest and largest. As far as I can tell, though, these companies seem to (mostly) immediately ...