Can a finite supply (like IOTA) deal with a growing (m2m/p2m/p2p) economy? Because you might end up in a situation where everyone is hoarding. There is nothing wrong with a bit of speculation but primarily IOTA should fulfill its transactional role. So I wonder what would be the best monetary policy or won't the finite supply pose any problems?

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    Hoarding is a problem even with fiat currency. The ones who need to spend money will spend money. So the aim of IOTA would be to make using its utilities more beneficial than hoarding. – Bayequentist May 3 '18 at 0:32

Once m2m economy requires more fine-granular payments (even less than 1 iota maybe) the founders stated that the supply would be increased proportionally to the owners' stake. They wanted to avoid having comma-values in iota ever since. Also Integer values are easier to handle by low-range iot devices than floating point calculation

Surely there is a point in time where the value will stabilize around real market value. Currently all crypto assets are highly speculative.

  • imo adjusting the supply has nothing to do with the hoarding vs spending topic. – GJEEE Jun 9 at 17:01

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