Will this tend to discourage dogecoin market manipulation like that discussed here about a week ago:
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
#102Oh 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…
Assuming this move doesn't completely kill the interest in Dogecoin, and that Dogecoin continues to thrive after this, then I doubt there will be any sort of "inflation effect". Yes, in theory both Bitcoin and Dogecoin should have inflation until they reach their maximum number of coins, with or without any sort of "built-in" inflation rate. In practice, however, they are both highly deflationary, because they haven'…
This isn't a "move" - it's how dogecoin worked from the start. The devs just didn't understand the code they wrote.
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#103This 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…
"uniquely distinguish"? Know your history. This is the founding principle of Freicoin:
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#104Earlier quoted context omitted.
It will encourage tipping (giving it away in large numbers), not real trading. As mentioned elsewhere, why sell goods for it if the value will keep dropping?
Why would you buy any goods if the value ouf your "currency" keeps going up? BTC is DOA because of its inherently deflationary properties. There will never be a consistently expanding BTC economy as hoarding makes more sense than actually spending it. The people who like BTC for having a fixed cap on the amount of coins in existence are probably the same people who would like the gold standard back, because they don'…
Or because they have ASICs and a vault full of gold bars...
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#105Earlier quoted context omitted.
I'm sure you'll get voted up because the HN crowd loves to hate things, but I'm honestly curious why anyone would think this is objectively a better economic policy. Regardless of the inflation vs. deflation debate, the same exact thing could happen in bitcoin if it is what the community wants.
Ideally, the money supply grows at the same rate as the economy. In this case "the economy" is the segment using Dogecoin. If you can't get it right, most people consider it better to have a bit of inflation rather than deflation. This may just be a consequence of people being more used to inflation and able to deal with it. For example, people don't mind prices going up as much as they mind their income going down.
Low, steady inflation is better for an economy than the alternatives humanity has experienced thus far. However, if people had the choice between holding a currency they expected to slowly decrease in value like today's central bank currencies and a currency they expected to slowly increase in value like Bitcoin in a post-adoption world, why would anyone pick the former?
Central banks have only had the ability to steer the economy because they controlled the best currencies available in the eyes of consumers. Dollars are much easier to deal with than gold, so people use them even though they know the dollars will be worth less than the equivalent gold in a year or two.
When Bitcoin is as easy to use for trade as dollars are, people won't choose dollars, nor will they chose inflationary altcoins.
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#106Oh 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.
In 50 years, the Dogecoin-supply will be increasing at a rate of 1.4%.
In 2011, the gold supply increased at a rate of 1.6%.
Do you think gold is too inflationary to be used at a store of value?
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#107I'm surprised that there isn't a cryptocurrency that uses much more complex rules to determine the number of coins mined in each subsequent block. It seems like the blockchain could be used to evaluate the health of currency's ecosystem in a way similar to taking a look at the system monitor or result or cat/proc/loadavg on your desktop. Heck, the blockchain could even be used to store 'extra' system state informatio…
In a world with competing currencies, people will choose currencies they can understand. A dynamic currency fails this test.
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#108I'm surprised that there isn't a cryptocurrency that uses much more complex rules to determine the number of coins mined in each subsequent block. It seems like the blockchain could be used to evaluate the health of currency's ecosystem in a way similar to taking a look at the system monitor or result or cat/proc/loadavg on your desktop. Heck, the blockchain could even be used to store 'extra' system state informatio…
This could easily be manipulated.
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#109Earlier quoted context omitted.
It's an important blockchain lesson, that there are no rules, only a combination of concentrated technical leadership and majority sentiment. If the blockchain this happened on was serious business you would probably see mass abandonment.
>It's an important blockchain lesson, that there are no rules, only a combination of concentrated technical leadership and majority sentiment. Yeah. >If the blockchain this happened on was serious business you would probably see mass abandonment. The hard-currency fanatics would run. But where would they go?
They would just fork the code base and take their existing doge stash down a different path.
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#110This 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…
On the point of "democracy" ... my understanding of Cryptocoins in general is that a miner's majority of 50%+1 could effectively take control of the block chain if such a group were organized
EDIT: What I'm trying to say is that "they" could reverse the decision if they wanted to.