() was created in the wake of the 2008 financial crisis and was planned to solve the problems created by lax monetary policies. The creator of the cryptocurrency, Satoshi Nakamoto, said in late 2008 that the supply of the cryptocurrency increases “by a planned amount” that “does not necessarily result in inflation.”
The cryptocurrency’s inflation rate has been fixed and its circulating supply is capped at 21 million coins, which are expected to be fully mined by 2140. By then, BTC’s inflation rate will drop to zero. In contrast, fiat currencies do not have a finite supply and can be printed to adjust monetary policy.
- Blockchains should move towards standards for interoperable asset transfers
An expansionary monetary policy, like the one that most countries around the world have followed in recent years, aims to expand the money supply by lowering interest rates and engaging central banks in quantitative easing.
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