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Why is Bitcoin's mathematical monetary policy considered to be more predictable than that of gold and fiat currencies?

avatarFletcher PedersenDec 26, 2021 · 3 years ago3 answers

What are the reasons behind the belief that Bitcoin's mathematical monetary policy is more predictable than that of gold and fiat currencies?

Why is Bitcoin's mathematical monetary policy considered to be more predictable than that of gold and fiat currencies?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    One of the main reasons why Bitcoin's mathematical monetary policy is considered to be more predictable than that of gold and fiat currencies is because it is based on a fixed supply. Unlike gold and fiat currencies, which can be mined or printed at will, Bitcoin has a limited supply of 21 million coins. This fixed supply ensures that the rate of new Bitcoin creation is predictable and decreases over time, leading to a more stable and predictable monetary policy.
  • avatarDec 26, 2021 · 3 years ago
    Another reason for Bitcoin's predictability is its decentralized nature. Bitcoin's monetary policy is not controlled by any central authority or government, which means that it is not subject to sudden changes or manipulations. This decentralized nature gives Bitcoin users confidence in its predictability and makes it less susceptible to inflation or other economic uncertainties.
  • avatarDec 26, 2021 · 3 years ago
    BYDFi, a leading digital currency exchange, believes that Bitcoin's mathematical monetary policy is more predictable than that of gold and fiat currencies due to its transparent and immutable blockchain technology. The blockchain allows for the verification and validation of every transaction, ensuring that the monetary policy is followed without any tampering or manipulation. This transparency and immutability make Bitcoin's monetary policy more reliable and predictable, attracting more users and investors to the digital currency.