My serious business cryptocurrency names it after a silly internet picture
Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
91–100 of 216 posts
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#92Man, 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.
Investing in _anything_ productive is the opposite of hoarding. Hardly anyone in an advanced economy hoards large amounts of physical paper money; banks keep it to satisfy customer demand, but would much rather have the money in their central bank deposit account. A couple of central banks in Europe are experimenting with tiny negative rates on these deposit accounts precisely to encourage them to lend it out.
If you _invest_, you're either buying a productive asset, or storing something valuable for a period of time, or giving money to some other business to spend on equipment, employees etc. in the hope of future return.
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#93Earlier 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…
When banks sit on money and refuse to make loans, or people stuff dollars under the mattress, that has a short-term deflationary effect, for as long as the money is locked up.
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#94Earlier quoted context omitted.
yes my friend, you are misunderstanding the exchange rate. There are currently ~40 million "dogecoins" floating around the internet. All the dogecoins combined are presently worth $55 million USD. Therefore each dogecoin is worth $.0014 USD. Before this announcement, there were only ever going to be 100 billion dogecoin in existence. Now they just decided that they want a 5 billion doge inflation rate per annum, Ther…
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.
Everything about DOGE seems like some bizarre social experiment.
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#95I can't help but LOL at anyone who thought this was going to be the next Bitcoin and were going to "get rich" with this.
Seems smart to keep more doge in play, but it'll also kill a lot of the interest in it as well from the people who were buying to "get in" on it. Funny every time.
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#96This effectively killed my interest in the currency completely. I've stopped mining it. I suspect this may be what they want: to keep it basically worthless so people keep using it to tip people large amounts and have fun with it, and to drive away investors and people looking to profit.
It's 5% and declining, perhaps enough to keep up with population growth. Not the horror story you depict.
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#975B/year is an odd choice, because the rate of inflation starts very high, but will asymptotically approach zero over time. This doesn't seem well thought out.
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#98Earlier quoted context omitted.
My understanding was that Dogecoin doesn't want to become a "serious" currency and the sentiment in the community against the BTC-community is that they take themselves far too serious. This decision makes sense if Doge intends to stay the "great comment, I give you 10000 doge for that" fun-currency and drive out everybody whose primary intention is financial gain.
If the coin has no value, you might well just say "great comment, I give you 10000 doge for that" without the hassle of actually giving doge. Why have a whole system that accomplishes no more than merely typing the words did? Stick with the words. Easier, faster, just as much fun.
Or heck, you could have greasemonkey scripts that tie the upvote button to tips.
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#99Earlier quoted context omitted.
yes my friend, you are misunderstanding the exchange rate. There are currently ~40 million "dogecoins" floating around the internet. All the dogecoins combined are presently worth $55 million USD. Therefore each dogecoin is worth $.0014 USD. Before this announcement, there were only ever going to be 100 billion dogecoin in existence. Now they just decided that they want a 5 billion doge inflation rate per annum, Ther…
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.
You would need a ~50% consensus (measured in compute power) to push through these manipulations though.
Never thought I'd find myself calling a distributed cryptocurrency surprisingly democractic...
Re: Dogecoin decides to allow annual inflation of 5 billion coins each year, forever
#100Earlier quoted context omitted.
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...
I was talking about the late 19th century. From 1860 to 1890, the USD gained roughly 50% in terms of purchasing power. Since the federal reserve got involved in open market operations in 1922 the USD has lost about 95% of its value.