Currently, the issuance of Bitcoin (BTC) is limited to 21 million units, but there are those who think that should change. As a result, Peter Todd believes that unlimited Bitcoin issuance would be beneficial to the network. By making mining more sustainable.
«Reason to oppose unlimited issuance is impact on censorship resistance, not price».
By the way, one of the most curious properties of Bitcoin (BTC) is that the maximum number of coins that can be created is defined: 21 million Bitcoins. This is so because the original creator(s) of Bitcoin (under the pseudonym Satoshi Nakamoto) decided to create a deflationary currency.
Now, for Peter Todd, adding an inflation in Bitcoin of, say, 0.1% per year, would not be a catastrophe. «If you can’t afford to spend 0.1% of your savings to make sure it’s safe, what are you doing with your life?».
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Peter Todd Explains Why He Advocates Unlimited Bitcoin Issuance
In reality, Bitcoin Core developer Peter Todd is one of the smartest and most valuable people in Bitcoin. In fact, he is convinced that it would be beneficial for the network if the amount of Bitcoin (BTC) to be issued was not limited to 21 million.
Specifically, on the Bitcoin Takeover podcast, with Vlad Costea, Peter Todd stated: “An infinite emission or tail emission would make Bitcoin mining a more sustainable industry».
Now, Vlad Costea asked Peter Todd if he doesn’t think such a proposal goes against the postulates of the Austrian School of Economics, which many bitcoiners defend. But Todd denied such accusations.
«Cola issuance also implies a fixed supply. I intend to have a fixed inflation rate, so that the actual number of coins produced per block is known to increase slightly over time. This is also a fixed supply».
Furthermore, he added: “All these things are completely compatible with the Austrian economy».
«What Austrian economics is all about is removing government control over the money supply. Austrian economics is not about saying what exactly that money supply is».
Finally, according to Peter Todd, if this change were to be carried out, it could be done through a soft Hard Fork, in such a way that it would not produce major complications in the network.
I say goodbye with this phrase from Daniel Vogel: «Do not invest in Bitcoin if you are not willing to lose».