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The goal is ~1% inflation, which is less than cash, and better than Bitcoin for many years (until ~2025 it's above 1%). So with lower fees, lower inflation, an

by dahdum 9y ago

The goal is ~1% inflation, which is less than cash, and better than Bitcoin for many years (until ~2025 it's above 1%). So with lower fees, lower inflation, and higher throughput the velocity is more likely to grow significantly than decrease.

brighton36 9y ago
Bitcoin inflation changes constantly, and by a lot more than 1%. Inflation is a measure of purchasing power. Not the issuance rates.
- rothbardrand 9y ago
  Inflation is a measure of the growth in supply of money. Using purchasing power (or more specifically an artificially constructed and highly manipulated bag of goods measure called the CPI in the USA) is a switch to obscure the rate of inflation, as if it couldn't be measured directly. But Inflation always has been issuance, not purchasing power. Pretending otherwise isa tactic used by people who engage in inflation to try and obscure its effects (because purchasing power is affected by things like growth in productivity.)
beaner 9y ago
Then there isn't very much incentive to stake.
- drcode 9y ago
  The reward is targeted based on participation- If too few or too many people stake, the reward adjusts to return the chain to the targeted participation rate. Economic models so far, however, suggest the reward needs to only be a tenth of POW reward.
Analemma_ 9y ago
This post makes no sense. "Inflation" is an increase in the price of goods; this definition is both prescreptive and how inflation is actually measured. Since all the goods you can buy with cryptocurrency peg their prices to fiat, it's meaningless to talk about BTC/ETH inflation as a thing distinct from their exchange rates with the dollar, and that will continue to be true until a cryptocurrency economy develops that is not pegged to the dollar.
- rothbardrand 9y ago
  False. Inflation is as an economic term, the issuance of currency. Pretending like it's a measure of the price of goods is a political (not economics) tactic used by governments to obscure it-- because the price of goods are affected by other things--like increases in productivity, lower cost goods from overseas and the like.
  - bpicolo 9y ago
    > In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. Currency issuance is related. Is not the same thing

by dahdum 9y ago

brighton36 9y ago

Bitcoin inflation changes constantly, and by a lot more than 1%. Inflation is a measure of purchasing power. Not the issuance rates.

rothbardrand 9y ago
Inflation is a measure of the growth in supply of money. Using purchasing power (or more specifically an artificially constructed and highly manipulated bag of goods measure called the CPI in the USA) is a switch to obscure the rate of inflation, as if it couldn't be measured directly. But Inflation always has been issuance, not purchasing power. Pretending otherwise isa tactic used by people who engage in inflation to try and obscure its effects (because purchasing power is affected by things like growth in productivity.)

beaner 9y ago

Then there isn't very much incentive to stake.

drcode 9y ago
The reward is targeted based on participation- If too few or too many people stake, the reward adjusts to return the chain to the targeted participation rate. Economic models so far, however, suggest the reward needs to only be a tenth of POW reward.

Analemma_ 9y ago

This post makes no sense. "Inflation" is an increase in the price of goods; this definition is both prescreptive and how inflation is actually measured. Since all the goods you can buy with cryptocurrency peg their prices to fiat, it's meaningless to talk about BTC/ETH inflation as a thing distinct from their exchange rates with the dollar, and that will continue to be true until a cryptocurrency economy develops that is not pegged to the dollar.

rothbardrand 9y ago
False. Inflation is as an economic term, the issuance of currency. Pretending like it's a measure of the price of goods is a political (not economics) tactic used by governments to obscure it-- because the price of goods are affected by other things--like increases in productivity, lower cost goods from overseas and the like.
- bpicolo 9y ago
  > In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. Currency issuance is related. Is not the same thing