Bitcoin may not inflate vertically, but thanks to artificial intelligence the inflation might happen horizontally

Yes, the increasing complexity for the calculation of new crypto currency units (may that be Bitcoin or others) is limited and will stay limited. At least as long the technological progress is slower than the increase of complexity of the calculations. And that remains just a theoretic possibility that this might change.

A classic inflation - defined as the creation of over-proportionally more currency units than are needed to keep the prices stable - is therefore impossible.

What is not impossible on the other hand is the forking of digital currencies, as we have seen it with Bitcoin. Both new Bitcoin currencies are still there and they have a value of more than zero. If the original Bitcoin still existed, its value would be the sum of the two new ones. Which means that we have just recently experienced a phenomenon that I would call horizontal inflation.

Today as it looks like this horizontal inflation may not occur too often since it is not really necessary and also too costly. But there is no guarantee that this will be so in the future.

Especially the fact that both Bitcoins are still having a value indicates the profitability of more forkings. Another new Bitcoin currency does not necessarily need much value, it's enough to cover the forking costs plus profit margin plus the currency's administration for enough time to sell enough units to refinance the forking . It is undoubtedly possible to meet all those requirements.

In terms of necessity it may currently look like as if Bitcoin's adaption with a larger stack may be sufficient for the upcoming time. But what if the crypoto currency market goes on winning new users? And what if those users are high volume AIs? On todays stock markets the high frequency trading computers are already dominating everything with a volume of millions of transactions per seconds. With improved technology this will only increase. The question is: What will Bitcoin do, when this point has been reached?

The current number of transaction still is quite limited and that is the reason, why it will have to change its programming again and possibly fork once more.

If you now combine the above elements

1. of the possibility for forkings generally
2. of marginal profits when creating a new crypto currency
3. of AI systems capable of millions of transactions per second
4. of the necessity for future forkings

... you end up with the conclusion that at one point - since you can make a profit with it - there will be a horizontal inflation of digital currencies and that means, Bitcoin too will inflate. It's just not going to be in the classic way. The result on the other hand will be the same as always: The stored value in crypto currencies will thin out over time.

So, what do you think? Could horizontal inflation be a long-term problem for crypto-currencies as value storage? Let me know in the comments and don't forget to vote up and resteem!!!