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Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

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Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#31

Post by saalweachter »

ck2 wrote: post #28
saalweachter wrote: post #25

Oh god, they really are master trolls. The hilarious thing to note here is that -- over the short term -- this is barely different than Bitcoin's inflation rate. Bitcoin halves its inflation rate every 4 years, but 4 years is a long time in internet time. Here, let's lay them out side by side: INFLATION RATE BY YEAR YEAR BITCOIN DOGECOIN 1 inf% inf% 2 100% 100% 3 50% 50% 4 33.3% 33.3% 5 12.5% 25% 6 11.1% 20% 7 10% 16…

Hmm. Interesting chart but could you explain how you are calculating inflation? Dogecoin reward halves every other month until mid 2015

Sorry; I was just working off the "5 billion coins a year" title.

I am just taking the number of new coins created in a year, and dividing it by the number of coins already in the money supply. So if Bitcoin was creating X bitcoins per year for the first four years, the inflation rate for year four was X / 3X = 33%. In year 5, they halved the reward rate, so the inflation rate for year 5 was X/2 / 4X = 12.5%, and for year 6 it was X/2 / (4X + X/2) = 11.1%.

If Dogecoin were minting a constant 5 billion coins per year, then the inflation rate is much simpler: it is always (100/N)%, which is the well-known harmonic series.

Accounting for the initial money supply of 100 billion Dogecoins, it basically just starts further down the harmonic series, and Dogecoin's inflation rate would be 100/(20+X)%, which looks like 5%, 4.8%, 4.5%, 4.3%, 4.2%...

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#32

Post by aestra »

colanderman wrote: post #13
ck2 wrote: post #9

Earlier quoted context omitted.

Why would you trade it? You can just mine more as you need it? You aren't going to sell any goods for it because the value today is likely worth less tomorrow unless you can "cash it out" immediately.

Why would you trade it? You can just mine more as you need it? Mining is resource-intensive. the value today is likely worth less tomorrow unless you can "cash it out" immediately. Exactly! Not only is this like almost every other good on the planet , it encourages trade.

Mining hasn't been AS expensive as I thought it was going to be. Costs me about $1 a day in electricity.

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#33

Post by ye »

saalweachter wrote: post #25

Oh god, they really are master trolls. The hilarious thing to note here is that -- over the short term -- this is barely different than Bitcoin's inflation rate. Bitcoin halves its inflation rate every 4 years, but 4 years is a long time in internet time. Here, let's lay them out side by side: INFLATION RATE BY YEAR YEAR BITCOIN DOGECOIN 1 inf% inf% 2 100% 100% 3 50% 50% 4 33.3% 33.3% 5 12.5% 25% 6 11.1% 20% 7 10% 16…

Oh, but you conveniently omitted what happens after. 10, 20, 50 years.

The truly important difference is that Bitcoin has an absolute upper limit, but Doge doesn't anymore. It matters. Scarcity is an important factor for holding value.

Bitcoin will eventually become deflationary, and sooner than you think due to loss of bitcoins.

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#35

Post by ck2 »

girvo wrote: post #24

Man, I really feel like those who are upset about this truly wanted it to be "their Bitcoin" -- the cryptocurrency they got on the ground floor for and were hoping would turn out like BTC has. And to be fair, it sorted started looking that way. But now, as it's been decided to be "inflationary" (like the USD currently), they feel that the party is over. And I get it. That sucks. Personally, I think it's a great thing…

Does "to the moon" mean $1 per coin?

If so, how is dogecoin going to create five billion USD per year via coin buyers to pay for its inflation?

Unless it means something else and I am missing the point?

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#36

Post by girvo »

ck2 wrote: post #35
girvo wrote: post #24

Man, I really feel like those who are upset about this truly wanted it to be "their Bitcoin" -- the cryptocurrency they got on the ground floor for and were hoping would turn out like BTC has. And to be fair, it sorted started looking that way. But now, as it's been decided to be "inflationary" (like the USD currently), they feel that the party is over. And I get it. That sucks. Personally, I think it's a great thing…

Does "to the moon" mean $1 per coin? If so, how is dogecoin going to create five billion USD per year via coin buyers to pay for its inflation? Unless it means something else and I am missing the point?

Who cares! That's the point ;)

Also, "to the moon" is a dogecoin reddit joke, it doesn't mean anything in particular

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#37

Post by colanderman »

ck2 wrote: post #23
colanderman wrote: post #17

Earlier quoted context omitted.

why sell goods for it if the value will keep dropping? You know the USD is inflationary, right? I don't see people having had a problem selling goods in the US since 1970. You don't sell goods to get money to hold on to for the rest of your life. You sell goods so you can, with the profit, immediately purchase other goods that you need (either to live or to invest in).

Does the USD lose 5% value each year? FIVE percent. Think about that. I am hoping it is a zero to 10k block reward which would change all this. But looking at the code I think it is 10k fixed.

More like 2-4%: http://www.usinflationcalculator.com/inflation/historical-in...

I'll grant 5% is a tad high, but it's the right order of magnitude.

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#38

Post by [deleted] »

saalweachter wrote: post #25

Oh god, they really are master trolls. The hilarious thing to note here is that -- over the short term -- this is barely different than Bitcoin's inflation rate. Bitcoin halves its inflation rate every 4 years, but 4 years is a long time in internet time. Here, let's lay them out side by side: INFLATION RATE BY YEAR YEAR BITCOIN DOGECOIN 1 inf% inf% 2 100% 100% 3 50% 50% 4 33.3% 33.3% 5 12.5% 25% 6 11.1% 20% 7 10% 16…

[deleted]

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#39

Post by furyofantares »

ck2 wrote: post #23
colanderman wrote: post #17

Earlier quoted context omitted.

why sell goods for it if the value will keep dropping? You know the USD is inflationary, right? I don't see people having had a problem selling goods in the US since 1970. You don't sell goods to get money to hold on to for the rest of your life. You sell goods so you can, with the profit, immediately purchase other goods that you need (either to live or to invest in).

Does the USD lose 5% value each year? FIVE percent. Think about that. I am hoping it is a zero to 10k block reward which would change all this. But looking at the code I think it is 10k fixed.

Bitcoin went from 10.7M to 12.3M in the last year. That's 15%. But of course it deflated quite a lot in that time due to rising demand.

Doge will add 5% to the total supply in the first year, but that will be less every year -- it's a fixed number, not a fixed percent, assuming the title of the your OP is correct. (Not sure about this.)

Of course, that doesn't account for lost coins. Given how doge is used, I am sure a lot of the new coins will actually be replacing lost coins.

Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever

#40

Post by ck2 »

doodyhead wrote: post #30

This is the one feature that will uniquely distinguish Dogecoin from other cryptocurrencies: - It makes the currency much more democratic -- missed the first few months of mining? jump in any time you like and still reap the benefits! - It neatly circumvents the issue of lost coins -- Bitcoins will keep dwindling over time and there will be no way to keep a consistent number of coins in circulation - Inflation puts t…

I was trying to think of positives to this and the "democratic" concept is also something I hit upon, good point.

I just kinda worry 5 Billion is too much.

Maybe zero to 10k random would be better like the zero to million it started with.

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