In 2020, the rules of the game changed for the dollar… But the rules for Bitcoin didn’t change
During the COVID-19 crisis, the U.S. money supply expanded at a tremendous rate with exceptional interventions by the Federal Reserve to support the markets and the economy
In contrast, Bitcoin continued to operate under the same rules
Blocks are produced at a rate of approximately 10 minutes
Rewards are predetermined
with a hard cap of 21 million $BTC
There was no emergency meeting where someone could say:
“The crisis is huge… let’s increase the supply”
And this is the idea that makes Bitcoin different
Crises can change the rules of the traditional monetary system
But Bitcoin’s issuance rules are hard-coded into the protocol, and the mining reward is periodically halved until it reaches the 21 million cap
It may differ from Bitcoin in many ways
But there’s a question worth considering:
What happens when the money supply changes while the supply of the asset remains nearly constant?
Perhaps this is why some people view Bitcoin not merely as a currency but as an entirely different type of monetary asset
During the COVID-19 crisis, the U.S. money supply expanded at a tremendous rate with exceptional interventions by the Federal Reserve to support the markets and the economy
In contrast, Bitcoin continued to operate under the same rules
Blocks are produced at a rate of approximately 10 minutes
Rewards are predetermined
with a hard cap of 21 million $BTC
There was no emergency meeting where someone could say:
“The crisis is huge… let’s increase the supply”
And this is the idea that makes Bitcoin different
Crises can change the rules of the traditional monetary system
But Bitcoin’s issuance rules are hard-coded into the protocol, and the mining reward is periodically halved until it reaches the 21 million cap
It may differ from Bitcoin in many ways
But there’s a question worth considering:
What happens when the money supply changes while the supply of the asset remains nearly constant?
Perhaps this is why some people view Bitcoin not merely as a currency but as an entirely different type of monetary asset
