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Most Expensive Tweet Ever Sends $11,000 To Kenyan Water Charity Via Dogecoin

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Re: Most Expensive Tweet Ever Sends $11,000 To Kenyan Water Charity Via Dogecoin

#51

Post by aestra »

alexro wrote: post #4
sp332 wrote: post #2

Is it true that Dogecoin's value is kept artificially low?

There was a problem with multipools exploiting the 'random' block reward - which wasn't truly random - and getting more coins than they normally would. As of now this has been fixed and the price should go up a bit. Also, in about month time the block reward will halve.

Why would fixing that issue cause the price to go up? There was still the same amount of coins created.

Also - they apparently fixed it by making the block reward fixed. http://www.cryptocoinsnews.com/2014/03/13/dogecoin-forks-aga...

Re: Most Expensive Tweet Ever Sends $11,000 To Kenyan Water Charity Via Dogecoin

#53

Post by bendoernberg »

aestra wrote: post #51
alexro wrote: post #4

Earlier quoted context omitted.

There was a problem with multipools exploiting the 'random' block reward - which wasn't truly random - and getting more coins than they normally would. As of now this has been fixed and the price should go up a bit. Also, in about month time the block reward will halve.

Why would fixing that issue cause the price to go up? There was still the same amount of coins created. Also - they apparently fixed it by making the block reward fixed. http://www.cryptocoinsnews.com/2014/03/13/dogecoin-forks-aga...

Because more of the mined coins are now going to believers in the currency, rather than mercenary miners immediately selling it for Bitcoin.

Re: Most Expensive Tweet Ever Sends $11,000 To Kenyan Water Charity Via Dogecoin

#54

Post by wmf »

pkulak wrote: post #20

As a Keynesian I love that Dogecoin is the first (that I know of) crypto currency that isn't deflationary. I do wish there was a way to make the things other than mining though. I hate "mining". Such a waste of resources.

Dogecoin is only semi-inflationary by accident, so it's not exactly an example of sound economic thinking. There are several altcoins that are aiming to be explicitly inflationary but this also eliminates the incentive for early adopters to hype them to the moon.

Proof of stake has been proposed as an efficient alternative to mining but it's not clear whether it will work.

Re: Most Expensive Tweet Ever Sends $11,000 To Kenyan Water Charity Via Dogecoin

#55

Post by aestra »

dragontamer wrote: post #41
sp332 wrote: post #24

Earlier quoted context omitted.

Doge and bitcoin are very easily divisible, so that's not why they're more or less valuable. Bitcoins are rewarded at 250,000,000 satoshis/block!

Yes, but both have a practically fixed transaction fee of 0.01 BTC or 0.01 DOGE. BTC transaction fees (by default) cost $0.05 now. DOGE transaction fees are basically free. In its haste for profit-earning, the BTC community has screwed its own coin for "tipping". I ain't paying no 5% tax on $1 tips on the BTC network.

You're way off. The minimum recommended/default transaction fee is .0001 btc. This can change in the future, it is all about what the miners choose to accept, transaction fees are not fixed.

For fun I sent a transaction of about .3 btc with a fee of .0.00005 btc. It was confirmed in about a day - or so I thought, because on blockchain.info it says +9 minutes so I don't know if that is the confirmation time or not.

The transaction in question - https://blockchain.info/tx/7e2bfff207e5fb6a02890024e790c921e...

Re: Most Expensive Tweet Ever Sends $11,000 To Kenyan Water Charity Via Dogecoin

#56

Post by aestra »

bendoernberg wrote: post #53
aestra wrote: post #51

Earlier quoted context omitted.

Why would fixing that issue cause the price to go up? There was still the same amount of coins created. Also - they apparently fixed it by making the block reward fixed. http://www.cryptocoinsnews.com/2014/03/13/dogecoin-forks-aga...

Because more of the mined coins are now going to believers in the currency, rather than mercenary miners immediately selling it for Bitcoin.

But then those coins are sold on an exchange for bitcoins, then the exchange sells them back to believers. They end up in believer's hands anyways.

Re: Most Expensive Tweet Ever Sends $11,000 To Kenyan Water Charity Via Dogecoin

#57

Post by ericnakagawa »

pkulak wrote: post #20

As a Keynesian I love that Dogecoin is the first (that I know of) crypto currency that isn't deflationary. I do wish there was a way to make the things other than mining though. I hate "mining". Such a waste of resources.

The cost of mining (mainly electricity) will trend towards zero. In the future mining will run on solar power.

The larger cost is the ecological toll underlying the production of the hardware.

Re: Most Expensive Tweet Ever Sends $11,000 To Kenyan Water Charity Via Dogecoin

#58

Post by maxerickson »

ars wrote: post #45
sp332 wrote: post #37

Earlier quoted context omitted.

There is some monetary value, in transaction fees, that are collected even if there is no block reward. There will be fewer people, but hopefully it will still be above critical mass. It really doesn't take much, even a few hundred people running low-power ASICs will do just fine. We will see something similar with Doge soon. In 2015, the payout will be fixed at 5% of what it was last month. Maybe everyone will stop…

> It really doesn't take much, even a few hundred people running low-power ASICs will do just fine. That won't work - it will enable easy fraud since anyone with a moderate amount of computing power can fake the block chain. You need a lot of computing power - but without large rewards people won't be willing to do it. I don't expect any crypto currency to survive unchanged past the no-more-coins date. Instead I expe…

There's a good possibility that is still pretty optimistic.

Re: Most Expensive Tweet Ever Sends $11,000 To Kenyan Water Charity Via Dogecoin

#59

Post by trevelyan »

a-priori wrote: post #44

Dogecoin is interesting. On one hand, it's all an elaborate joke and everyone involved knows it. On the other hand, it's got a higher transaction volume than its 'serious' cousin Bitcoin, and people occasionally use it to transfer significant amounts of money (e.g. here, and the Jamaican Bobsled Team). The biggest problem a currency has to overcome is the network effect. It's damned hard to bootstrap a currency, to g…

This is a very misleading comment. Dogecoin only processes about 0.3 percent of what Bitcoin handles daily, and is far behind in total number of daily transactions:

http://bitinfocharts.com/

Re: Most Expensive Tweet Ever Sends $11,000 To Kenyan Water Charity Via Dogecoin

#60

Post by untilHellbanned »

a-priori wrote: post #44

Dogecoin is interesting. On one hand, it's all an elaborate joke and everyone involved knows it. On the other hand, it's got a higher transaction volume than its 'serious' cousin Bitcoin, and people occasionally use it to transfer significant amounts of money (e.g. here, and the Jamaican Bobsled Team). The biggest problem a currency has to overcome is the network effect. It's damned hard to bootstrap a currency, to g…

https://medium.com/business-startup-development-and-more/8e4...
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