Hard Supply cap causes inflation in a different way

A hard supply cap like in Bitcoin will favor institutions over people. It favors hoarding. It favors old money. As more people enter Bitcoin, the whales become more and more monstrous. The whales become leviathans.

To me, this seems like inflation of a different kind. We could call it Soft Inflation. Inflation on the cost to move classes. Inflation on the cost of being born poor.

Hard Inflation (as in Grin) is when your savings slightly loses value over time for the sake of the greater good.

Soft Inflation (as in Bitcoin) is when your savings account slightly gains value over time in spite of the greater good.

Idk if this idea has any validity to it. But theoretically, Grin’s inflation (hard inflation), should incentivize the wealthy to re-invest in the overall economy as opposed to hoarding, which helps the lower classes and creates more opportunity for upward mobility.


I agree with the sentiment although I think the term soft inflation for Bitcoin is not really suitable since it is a deflationary coin (coin loss will outpace coin supply).
Bitcoin is IMO:

short term distribution and deflationary = unfair distribution and for hodling.

Grin is:

inflationary, long term distribution = fair and good for economic activity.