Bitcoiners’ greatest fear – certainly in recent months – revolves around supply issues. What happens to bitcoin (BTC) when there is nothing (or very little) left to mine. How will the world’s biggest token respond?
Well, one expert says that “concerns about bitcoin’s long-term supply credibility are overblown,” but argues that his reasoning might surprise some people.
In a blog post, Castle Island Ventures co-founder Nic Carter, stated that people who argue that BTC will be “forced to add inflation in excess of the rate ordained by Satoshi [Nakamoto]” because of falling mining profitability were “plainly wrong.”
He claimed that arguments about the inevitability of BTC inflation were logically flawed, and wrote,
“It is false to assert that bitcoin contains the embedded assumption by users that a change to the rate of issuance is either possible or necessary. While Satoshi’s bitcoin may yet fail, it cannot deviate from its supply schedule, because any deviation would entail the creation of an entirely new and distinct asset.”
In fact, Carter argued that Bitcoiners are so familiar with the 21 million-unit cap spelled out in Nakamoto‘s 2008 Bitcoin White Paper that they have accepted it as gospel – a fact that would seem to make “BTC inflation” a near impossibility.
“The thing that we call ‘bitcoin’ cannot suffer an alteration to its supply schedule, because the supply schedule is intrinsic to the protocol, asset and system.”
“Bitcoin’s supply schedule cannot change, because bitcoin is the supply schedule.”
And even if BTC doom-mongers are proved correct, Carter claimed token-holders would still have safeguards.
“Bitcoiners are [not] fated to fritter away on a doomed chain if BTC should suffer some fatal flaw. If Satoshi bitcoin indeed falls out of favor, any worthy successor will be one which is allocated to all bitcoin holders. […] Thus, Bitcoiners need not worry.”
As Cryptonews.com previously reported, attempts to increase Bitcoin’s supply would end up with another “Bitcoin.”