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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

#71

Post by ye »

skylan_q wrote: post #49
ye wrote: post #33

Earlier quoted context omitted.

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.

You must be speaking strictly in terms of monetary deflation. I could see dogecoin being deflationary as well, but in a "price deflation" sense. 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 (rel…

Your explanation doesn't make sense. If you actually do look at what happened with the inflationary dollar since the "late 19th century", it lost 96-97% of its purchasing power due to the monetary inflation.

Which means that if your grandma stored her wealth in dollars and wanted to pass it onto you, you can only enjoy 3-4% of what's left.

http://4.bp.blogspot.com/-YTyPGaEsBcw/T0Kd1nS9zJI/AAAAAAAABQ...

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

#72

Post by maxerickson »

fnordfnordfnord wrote: post #65
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…

It agree that might turn out very well, but people have a right to be upset when the rules are changed mid-game.

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.

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

#73

Post by fnordfnordfnord »

ck2 wrote: post #9
colanderman wrote: post #7

Earlier quoted context omitted.

to drive away investors and people looking to profit. Holy shit, you mean it's a currency that will encourage trading rather than hoarding? The horror!

Why would you trade it? You can just mine more as you need it? You aren't going to sell any goods for it because the value today is likely worth less tomorrow unless you can "cash it out" immediately.

5% inflation does not a Weimar Repulic make.

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

#76

Post by uniclaude »

somewhatjustin wrote: post #3
ck2 wrote: post #2

"ummjackson" has appeared on HN before so perhaps they will comment here as to how dogecoin could ever exceed 1000 satoshi with this decision. That is several new coins for every active person on the internet, every year. Also, the blockchain might require terabytes after a decade. ps. if you do show up, please clarify if it is going to be a zero to 10k reward which is a different situation, or actually 10k fixed per…

I don't see how they plan on keeping any sort of stable price with this inflation.

Are you assuming that fixed supply leads to price stability? If so, please expand.

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

#77

Post by LoganCale »

norswap wrote: post #69

Am I the only one puzzled by the fact that the title sounds like something has changed when the linked status says: "Thanks for contributing to this discussion. Based on everyone’s feedback, we’ve decided to leave the Dogecoin code base as it was originally released, and not implement a change." Which means that in fact, nothing has changed and it was always like this.

It was advertised as being capped and it turned out they hadn't coded a cap into it. If you read the entire thread, the developers appear to just realize this as well after the issue is reported. They then later decide to keep it as it is, which is a change to what was advertised.

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

#78

Post by michaelt »

gwern wrote: post #55
lettergram wrote: post #41

If they can add inflation they can take it away... 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.

> If they can add inflation they can take it away... The longer a coin runs, the harder it gets. And if I'm reading this bug report correctly, it's not that they're 'adding inflation', it's that they're declining to change an erroneous setting and maintaining the status quo. The more clients that come out, the more that setting will get locked in...

How are settings like this updated? Is it like the blockchain fork, where the settings are hardcoded into the client, so the longest chain uses whatever settings are in the client most popular with miners?

For example, if someone with a lot of resources wanted to adjust the inflation settings for bitcoin, how would they go about it?

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

#79

Post by soup10 »

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.

Absolutely, mutual funds and all investments assume some level of risk because to keep it in cash means losing money to inflation. There would be way smaller and more risk averse pool of investment capital if the dollar were deflationary. For example many portfolios whose goal is wealth preservation buy municipal bonds which fund public works projects(and certainly have a non-zero risk of default).

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

#80

Post by mesozoic »

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.

Traditional economic theory says that inflation discourages hoarding. Inflation forces those with large amounts of capital to put that capital to work through investments to overcome the rate of inflation, or see their wealth decline.

Whether this will hold with dogecoin remains to be seen but is somewhat logical.

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