41–50 of 216 posts
and on another note, inflation (or at least lack of deflation) will increase spending of that currency. In other words, it would help Dogecoins be used more, as opposed to hoarding like bitcoins.
It's a small constant creation that will converge towards 0% inflation over time, and will stabilize with coins lost and destroyed.
Great idea IMO.
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?
Before this announcement, there were only ever going to be 100 billion dogecoin in existence. Now they just decided that they want a 5 billion doge inflation rate per annum, Thereby decreasing the the value of each dogecoin.
Its somewhat similar to the way that the federal reserve pumps money into the market to increase the flow of capital, the dogecoin foundation wants to increase the flow of dogecoin by increasing the supply and access and decreasing the incentive to hoard.
edit the code was already written to be inflationary. The plan was to implement a 100 billion cap in some future version. They scrapped that plan.
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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.
That's the "rule" I was always taught anyways.
some years it has been over double 5% a year.
http://www.usinflationcalculator.com/inflation/historical-in...
We have been lucky to have low inflation for the last several years. My mom was trying to establish her adult life during the double digit inflation of the late 70s early 80s and talks about how hard it was and how high the interest rates were.
Earlier quoted context omitted.
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
To the moon is simultaneously the moon and the path to the moon.
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My understanding was that Dogecoin doesn't want to become a "serious" currency and the sentiment in the community against the BTC-community is that they take themselves far too serious. This decision makes sense if Doge intends to stay the "great comment, I give you 10000 doge for that" fun-currency and drive out everybody whose primary intention is financial gain.
If the coin has no value, you might well just say "great comment, I give you 10000 doge for that" without the hassle of actually giving doge. Why have a whole system that accomplishes no more than merely typing the words did? Stick with the words. Easier, faster, just as much fun.
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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.
In 2015 it won't be resource intensive. We should be on 3rd or 4th generation asic scrypt miners by then which maybe means you'll be able to get a $20 usb stick that makes you 10k coins a month with a single kilowatt of power per month.
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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.
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.
Dogecoin could also become deflationary. If 6 billion dogecoins worth of value is created in a year and only 5 billion coins to match that increase in value, the economic value of goods created surpases that of the coins created. As a result, you have more goods chasing (relatively) fewer coins, increasing the value of the coin. In other words, less dogecoin gets you more stuff so you actually have (price) deflation.
In the US, during the stupidly-named "long depression" of the late 19th century, prices slowly dropped to about 60-65% of what they were at the start of the period while the total supply of money grew. That's because more goods were chasing (relatively) fewer gold-backed dollars. Monetary inflation coupled with price deflation.
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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.
Probably even closer when you consider that cryptocoins suffer much more "loss" than USD does. People lose wallets, get hard drives wiped, etc., which are deflationary events that partly counter any built-in monetary inflation. Whereas losses of USD due to things like setting bills on fire or losing them in a lake amount to a miniscule portion of total USD outstanding.
Imo it's even plausible that Dogecoin's current loss rate is >5%, in which case the currency would still be deflationary even with the new coins being added.