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    Author Topic: Bitcoin QE  (Read 1815 times)
    camem (OP)
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    August 16, 2012, 09:45:25 PM
    Last edit: August 16, 2012, 10:50:02 PM by camem
     #1

    The 21m limit is by reasonably unanimous agreement between the existing users. That is, more than 50% of clients would have to decide to fork and run a different client to change it.

    Let's say that the existing users are a small proportion of the people that will use bitcoin over the years. About 1%, if you will.

    By and large, existing Keynesian economic policies use expansion of the money supply during lean times to devalue everything a little bit now and in the future, to get a lot right now, in order to "prime the economy", save/create employment, see us through the bad times, pay bankers bonuses etc etc. By and large, democratic countries at least do this because it wins votes right now, putting the burden on those who will vote later.

    In a world where the 'other 99%' have started using bitcoin, but have less money than today's average user and don't use bitcoin as a savings vehicle (let's say price is largely stable so there are better investment opportunities elsewhere) why shouldn't they get together via a grassroots campaign during a global crisis, to move to a client that has a larger money supply ? The argument would be that the bitcoins are unfairly distributed and the rich have too many of them anyway. The regulation/cartels/barriers-to-entry/institutions that protect the super rich today from this happening more often are less likely to exist in bitcoin. In effect a majority agreement to apply a type of QE into the bitcoin economy. Would this be justifiable ? Would it have the desired effect on the worth of the newly issued bitcoins in people's pockets ? Would it stimulate anything, or make anything more equal ? Is there a technical reason why it couldn't happen in practice ? And what about going the other way ? While bitcoins are still being issued, is there any tipping point where users might want to make the block reward asymptote at less than 21m ?
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