Delta Charlie on Nostr: The reason for mining anything is because it is profitable...under the current fiat ...

The reason for mining anything is because it is profitable...under the current fiat system. In our theoretical story, we are under a hard money standard.

In the distant past, I would guess, that mining wasn't an industry. No technology, and also no reason to mine. Gold and silver was circulated as money. It crossed borders and the economies adjusted accordingly with prices. Let us assume no inflation(on a worldwide scale) because there is no mining. The only way inflation could happen would be at the local level.

For example, if one wealthy family moved into a small town, then the supply of gold and silver would increase(inflate) causing higher prices. The wealthy family would open businesses, probably pay some taxes, and generally contribute to the economy, making everyone more prosperous. Prices would rise and fall to the appropriate level without external interference like a currency printer. If the wealthy family moved out of town 10 years later, you might call that deflation because now a significant part of the money supply is gone, so prices wold adjust accordingly.

You are right about fiat currency inflation being massive. I disagree that it is centralized and unpredictable.

Literally all central banks inflate their currency, so if all do it, I would not call it centralized. Because we know they all do it, and have always done it, and will always do it, I wouldn't call it unpredictable, this makes it very predictable.