How Dogecoin changed my perspective on cryptocurrency

Post by lmm » Sun, Dec 22, 2013, 2:10 PM UTC

woah wrote: post #84

Houshalter wrote: post #61

Earlier quoted context omitted.

Well we could always make a new worthless currency. And set it so it intentionally inflates infinitely so that this can't happen. Zimbabwe-coin maybe.

Dogecoin actually will inflate indefinitely by 5% a year. Mining will never stop.

Post by minimax » Sun, Dec 22, 2013, 2:12 PM UTC

lectrick wrote: post #161

minimax wrote: post #83

Here we have more evidence of the miraculous ability of crypto currencies to turn unassuming computer programmers into economics experts. Let's take a look at some choice quotes. There’s no inherent reason that a piece of paper has a certain amount of value. There is a subjective reason, though: namely, that a large enough number of people agree that USD is a worthwhile commodity. They believe that for a number of re…

> Currencies aren't like some weird subset of commodities. I have a chart that is just begging to disagree with you: https://www.google.com/search?q=usd+vs.+euro To wit, "Currencies! So stability! Wowe!" A mere 25% fluctuation over the past 5 years! And at the scale of the Euro and the USD, no less! Also, if currencies were as magically stable as you presume, then "currency trader" wouldn't be a thing. This also woul…

Post by Kalium » Sun, Dec 22, 2013, 5:20 PM UTC

grey-area wrote: post #154

amark wrote: post #57

Earlier quoted context omitted.

I disagree. Dogecoin has the backing of one of the strongest communities on the internet. It's quite feasible to see it as a virtual currency used to pay for online goods, such as karma, games, or media. It's friendliness means it may be adopted by the majority of consumers, who are scared off by the volatility and high price of bitcoins. What needs to happen? First, it needs to distance itself from the meme part of…

Dogecoin is a joke, not a currency (a good joke, but a joke nonetheless), it is not the official reddit currency, that would be reddit gold.

Post by kordless » Sun, Dec 22, 2013, 7:36 PM UTC

minimax wrote: post #141

kordless wrote: post #87

Earlier quoted context omitted.

I'd argue that cryptocurrencies have a fair amount of commodity worth to them. The security of the coin is enabled by work put into the system by miners. Hypothetically there is some value in linking a commodity compute operation to crypto coin value. BTW, I looked to see if there was a correlation between oil commodity and USD, and here's what I found: http://en.wikipedia.org/wiki/Petrocurrency Note the bit about oi…

I spend a bunch of money buying electricity to run my electric kettle but that doesn't mean there's a huge market for selling hot water.

Post by throwaway_yy2Di » Sun, Dec 22, 2013, 11:54 PM UTC

kordless wrote: post #167

throwaway_yy2Di wrote: post #102

Earlier quoted context omitted.

" I'd argue that cryptocurrencies have a fair amount of commodity worth to them. The security of the coin is enabled by work put into the system by miners. Hypothetically there is some value in linking a commodity compute operation to crypto coin value. " You got causality backwards. Intrinsic value is what you can get out of a commodity, not what you spent putting into it. I can spend $100,000 cooking a hotdog over…

A cryptographically secure currency network is infinitely more valuable than a warm hotdog. Via Wikipedia: causality is the relation between an event (the cause) and a second event (the effect), where the second event is understood as a consequence of the first. In this example, the consequence of proof-of-work (mining and transaction validation) gives way to a distributed trust effect (crypto currency). i.e. work pu…