As a first time poster I wanted to start by saying how impressed I am with Algorand and it’s proposed solution to the blockchain trilemma.
However, since I wasn’t able to find this information on my own, I also wanted to ask what was the though process and reasoning behind the decision to limit the max supply of Algo to 10 billion (or to any fixed number for that matter)?
Or was it due to some technical limitation of the Algorand protocol, that doesn’t allow unlimited supply?
As someone who experimented with trading Bitcoin ~10 years ago (when it’s price was less than $5/BTC), I always thought that Bitcoin’s biggest flaw (economic, not technical) was it’s intentionally deflationary design with the number of bitcoins capped at 21 million. If intended to be a currency of the future that people use for actual economic activity (rather than just for investment or short term speculation), this is the wrong way to go in my opinion.
Some other competing cryptocurrency/smart contract protocols, such as Ethereum for example, do not cap the maximum number of Ether that can exist.
So, while I prefer Algorand for it’s more advanced mathematical and technical solutions compared to other cryptocurrencies, I’m also betting that cryptocurrencies with inflationary (rather than deflationary) designs will prevail in the long run.
Is there any way to reconcile these two? A protocol with Algorand’s Pure Proof of Stake combined with an inflationary economic design?
EDIT: Fixed typos.