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It really doesn't seem like crypto could ever be useful as a replacement for currency, because it's deflationary. There are a few interesting projects looking t
by tenaciousDaniel 9y ago
It really doesn't seem like crypto could ever be useful as a replacement for currency, because it's deflationary. There are a few interesting projects looking to create a stable coin on top of Ethereum.
- perl4ever 9y agoHas anybody (smarter than me) looked at the Bitcoin code and said "what if we try to change it such that transaction costs are capped rather than number of coins"? That would basically make the supply proportional to demand...or something like that.
- xorcist 9y agoIt doesn't seem to matter much if transaction costs are fixed. 0.0005 BTC paid for a transaction two years ago. It will still pay for a transaction. That doesn't seem to make many end users much happier. They would rather like to see transaction costs sharply drop to compensate for the equally sharp rise in USD/BTC value. Sadly, that's not how it works, which has led to endless drama on the Internet.
- perl4ever 9y agoI meant real transaction costs, not nominal. Which of course points vaguely to the idea that if the supply of bitcoins expanded proportional to usage maybe it wouldn't be deflationary?
- tenaciousDaniel 9y agoI've never understood why the supply needs to be fixed. So long as there's a mechanism around creating new coins.