Viewing a response to: @steemrollin/re-tshering-tamang-re-steemrollin-steem-where-does-the-money-come-from-20160613t220816522z
Does bitcoin create new currency? That wasn't my noob understanding that bitcoin "farming" is really just processing bitcoin transactions, and the bitcoin "farmed" is really just a processing fee. The number of bitcoin is finite, and no new bitcoin are produced in farming. If this is true, this is why bitcoin is a good store for wealth. It doesnt suffer inflation or "quantitative easings" like governmental currencies. That being said, I'm still curious about steem creating new currency. Mathematically, wouldn't this devalue currency at the same rate its created?
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| author | judebulera |
| permlink | re-steemrollin-re-tshering-tamang-re-steemrollin-steem-where-does-the-money-come-from-20170414t125725699z |
| category | steem |
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Yes miners process transactions and put them into blocks, but they are rewarded a new supply of Bitcoin with each block that is mined. The supply for each block is halved every four years. It started with 50 new bitcoin per block and currently is 12.5. Hence the inflation decreases over time. I have to double check what Steem inflation is, but it may be in the same ball park as Bitcoin.
| post_id | 2,395,886 |
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| author | steemrollin |
| permlink | re-judebulera-re-steemrollin-re-tshering-tamang-re-steemrollin-steem-where-does-the-money-come-from-20170414t214226186z |
| category | steem |
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