Replies (6)

Joe Bloggs's avatar
Joe Bloggs 1 year ago
Because there is only so much Pure Human Empathy to be exchanged and Satoshi's can cope with that. However, if the number of decimal places need increasing, beyond Satoshi's to Finney's or beyond, then that's an easy fix within Bitcoin at it's Core
Den Yellek's avatar
Den Yellek 1 year ago
Inflation is caused by an increase in the money supply. With bitcoin the money supply is fixed. In your example you have kept satoshi to apple conversion the same. In reality the price of everything will drop over time when measured in bitcoin.
You have a key fundamental flaw in your reasoning. If Bitcoin goes from $100k to $200k the price of the apple in sats will be cut in half. Unless the seller of the apple leaves the price of his apple the same in sats. However, because prices fall to the marginal cost of production, that apple seller will rapidly be starved out of the market by all other apple sellers who adjusted their prices downward accordingly. I could price my house at 8 Bitcoin forever, but no one would buy my house when the price of Bitcoin went up. They’d find a different home seller that repriced their home accordingly. Bottom line, priced in sats, the cost of items go down because we become better at producing them and there is a finite supply (21 million) of the money that everything will be priced in.