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 Originally Posted by oskar
What I find confusing is that the "market cap" of crypto seems to be a major draw, and it's a common criticism crypto guys have of fiat currencies is that world banks control the amount in circulation, but I don't understand how a currency is supposed to be adopted that has a market cap. Deflation is super bad for a currency because why trade something that increases in value?
When you have a market cap and your currency gets slowly adopted, it will naturally deflate, which in turn makes it unattractive as a currency.
Gold has a market cap, as does the dollar. It isn't a limit. The word "cap" is short for capitalisation. That is, it's the total value of the market, not the limit. Market cap grows as the price of each coin increases due to demand outweighing supply. Market cap for dollars goes up when they print more money.
idk about deflation, but if BTC is ever the world's leading currency, then it kinda becomes meaningless to say it's increasing or decreasing in value, instead you compare other currencies to it, like we currently compare everything to the dollar (or perhaps your own nation's currency). A dollar is worth a dollar. One day we'll simply say 1 BTC is worth 1 BTC.
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