You’re right, a hard cap introduces new dynamics like passive rent-seeking where some benefit without contributing. But that’s not unique to Bitcoin, fiat has its own version with the Cantillon effect. The difference is Bitcoin’s version gets better over time. As the market matures and price stabilizes the free ride shrinks. People will have to innovate to earn returns not just hold. This redirects capital toward real value creation not just financialization. It’s a good thing for the system overall and for the average person even if a few lazy ones ride the wave for a while. Progress isn’t perfect but it’s directional. Bitcoin raises the bar and that’s a feature not a flaw.
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> As the market matures and price stabilizes the free ride shrinks.
How does that work out? I thought we established that as economic output goes up so must the purchasing power of a supply capped currency? The only outcome in that case is downward pressure on economic production.
It's cool to me that we can even attempt to experiment with a supply capped currency, this was impossible two decades ago, but that is not a problem you can hand waive away. The supply cap dooms bitcoin IMO, and it's not a dichotomy between hard cap and let Jerome Powell decide.
Bitcoin will do fine 50 years from now when the world is in the midst of a self induced population epidemic and the idea of positive global economic growth has been completely abandoned.
By the time the supply cap has been hit in 2140 the world will have experienced a near 50% collapse in population from peak.
But you are contributing. Helping stabilize the price by not being a lousy paper hands, becoming more invested in the network because your savings depend on it, giving credibility and social proof to the system so more risk-averse others can also make use of it in time, etc.
