• itsmect
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      1 year ago

      The more the better for security, the upper practical limit is golds inflation rate, the lower practical limit is the percentage of coins that become lost or inaccessible. That puts the viable range to 1.5-0.2%, roughly. To be clear, I’m not worried about bitcoins current rate, but rather that it will drop further and further.

      • explodicle@local106.com
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        1 year ago

        Would I be correct to assume gold sets the upper limit because any higher and people would just store value in gold instead?

        Why does the security budget need to be higher than the rate of lost coins?

        • itsmect
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          1 year ago

          The goal is to create attractive market conditions. Positioning yourself between the historic store of value and the minimum to avoid deflation seems like a good target.