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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

#141

Post by fbags »

drewblaisdell wrote: post #70
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…

> discourage hoarding Is there compelling evidence that inflation discourages hoarding? I don't think anyone would agree that USD-centric societies discourage hoarding, unless you think something like investing in mutual funds doesn't fit the term.

Mutual funds are an investment. Hoarding is savings.

One is productive, one isn't. That's the key difference.

The difference is even more glaringly obvious if you think about the difference between equity in a productive company, loans to productive organizations, and simply doing nothing.

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

#142

Post by iwwr »

wmf wrote: post #130
fnordfnordfnord wrote: post #62

Earlier quoted context omitted.

It's not so bad in theory, at least it counters the deflationary-currencies-are-evil-and-stupid argument. The real worry is that now some entity has been entrusted with the ability to manipulate the value of the currency, and that the entity may violate that trust by later deciding to further inflate the currency.

now some entity has been entrusted with the ability to manipulate the value of the currency Not really; inflation is built into the code and getting everyone to "upgrade" would be difficult.

The inflation rate over time will actually tend to zero, since each additional 5bn coins represents a smaller proportion of the total amount. A constant quantity over time translates into a decreasing rate of inflation.

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

#143

Post by mcguire »

aestra wrote: post #56
colanderman wrote: post #37

Earlier quoted context omitted.

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.

>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. The Bureau of Engraving and Printing redeems partially destroyed or badly damaged currency as a free public service. Every year the U.S. Treasury handles approximately 30,000 claims and redeems mutilated currency valued at over $30 million. http://www.moneyfactory.gov/uscurr…

You need >50% of a bill for them to redeem it, though.

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

#145

Post by mcguire »

natrius wrote: post #111
this_user wrote: post #58

Earlier quoted context omitted.

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'…

Isn't Bitcoin's success as a currency orthogonal from the negative effects it might have on the economy? If individuals think holding Bitcoin is better for them than holding dollars, they will do it as long as it's legal. As far as the economic effects, I think we'll be much better at managing a deflationary economy in 2030 than we were in 1930. We have more knowledge, better statistics, and better communication. At…

Holding Bitcoin does not make it available for capital investment.

In this forum, I would expect that to be a significant issue.

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

#146

Post by anonymoushn »

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…

Much like Bitcoin, the rate of inflation of Dogecoin converges to zero. So maybe it's not a big deal :)

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

#147

Post by boyter »

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…

The thing is its actually less inflation then Bitcoin or Litecoin at least for the next few years anyway. See the following (taken from reddit thread) which shows the inflation amount over the next 5 year period.

        Dogecoin Bitcoin Litecoin
  2015	5.26%	 10%	 33.33%
  2016	5% 	 9.09%	 12.5%
  2017	4.76%	 4.1%	 11.11%
  2018	4.54%	 4%	 10%
  2019	4.35%	 3.85%	 9.09%
  2020	4.2%	 3.7%	 4.1%
People need to keep in mind that dogecoin's inflation is set at 10,000 coins per block forever once mined out. As such the inflation amount will reduce each year as more coins exist, unless of course people manage to loose about 5 billion coins a year. The other thing to remember is dogecoin currently has about 5% inflation a week, so anyone dumping it over this news is a bad speculator.

EDIT before someone jumps down my throat I am checking the numbers now and the bitcoin one looks to be slightly off, please take this as close, but not exact please. If you have the exact numbers pass them on and I will update.

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

#148

Post by aninhumer »

marvin wrote: post #137
judk wrote: post #90

Earlier quoted context omitted.

That would require destroying coins during a recession.

Bitcoin/Dogecoin is basically a public ledger. Couldn't the system be set up so that this system of rules did destroy coins during a recession by reducing everybody's balance? It could probably be gamed very easily by speculators going in and out of the cryptocurrency, but there shouldn't be a technical reason why it can't be done. This is in sharp contrast to traditional currencies: You can't send in the police to c…

If you reduce everyone's balance at once, it doesn't really have any effect on the money supply, all you're really doing is changing the numbers people use.

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

#149

Post by aninhumer »

Glyptodon wrote: post #52

I'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…

I've been thinking a lot about this, but the problem you run up against is that it's difficult to distinguish real economic activity from one person shuffling money around, and similarly, it's easy to hide activity by keeping a private ledger. That said, it's possible the inertia of the real market would stop anyone manipulating inflation in this way. I'd really like to see an experiment on these lines.

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

#150

Post by natrius »

mcguire wrote: post #145
natrius wrote: post #111

Earlier quoted context omitted.

Isn't Bitcoin's success as a currency orthogonal from the negative effects it might have on the economy? If individuals think holding Bitcoin is better for them than holding dollars, they will do it as long as it's legal. As far as the economic effects, I think we'll be much better at managing a deflationary economy in 2030 than we were in 1930. We have more knowledge, better statistics, and better communication. At…

Holding Bitcoin does not make it available for capital investment. In this forum, I would expect that to be a significant issue.

In a world where Bitcoin has already been adopted by the masses, holding Bitcoin would make almost as little sense as holding dollars does today. Sure, its value will go up, but not as much as investing money in companies that make more money would.
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