[bootsnixon]

Originally Posted by afc wimbledon

If you have a potato that feeds one person and five hungry people they will bid on that potato and the price goes up, but if that one potato can be magically divided to feed as many people as you want it no longer has the properties or scarcity of one potato, it has the same property and scarcity of a whole field, region of potato's which is a good thing for the people but not for the farmer, the potato is no longer scarce even though you only have one.

In ancient times people would cut the edges of gold coins to debase the currancy, it was called clipping, but the physical reality of a coin limits how much smaller it can be made before it ceases to exist effectively, bitcoin doesnt have that limit, it can always be divided up, because of that it is effectivelt the same as printing as much as you like, it doesnt matter how much a coin's value goes up if you can just use smaller and smaller portions, it is effectively no different from fiat inflation.

I think the analogy breaks down if the potato is magically divided to feed as many people as you want. The potato is finite. If it magically feeds multiple people then you are inflating the size of the potato.