3 ms·

How is this different from Federal reserve notes, aside from blockchain? Hoarding is a good thing. If I have a currency and someone hoards, my currency goes up

How is this different from Federal reserve notes, aside from blockchain? Hoarding is a good thing. If I have a currency and someone hoards, my currency goes up in value based on supply and demand. Hoarding also benefits anyone who wants to make a capital investment. You have to hoard first before you can purchase something. Why would I want to have something that is guaranteed to be worth less at a later date? The only reason I hold FED notes is because the government forces me to do so.

gnaritas 7y ago
> If I have a currency and someone hoards, my currency goes up in value based on supply and demand. Not a desired trait in a useful currency, the purpose of currency is to be spent, not saved; it's a mechanism to exchange wealth, not store it. Good currency has a predictable long term value, it is not subject to the wild swings of supply and demand. The world abandoned the type of currency you want long ago as it was found wanting. > The only reason I hold FED notes is because the government forces me to do so. As it should be. Money isn't wealth, money is the tool we use to exchange wealth.
dnprock 7y ago
The difference is the supply inflates exactly at 7% per year. Nobody can change its issuance rate. It's a fair game for everyone. I design a reward schedule that benefits early adopters: 0: 50 1: 25 2: 12.5 3: 6.25 (end of halving) 4: 6.56 (start of inflation 7%) 5: 7.02 6: 7.51 7: 8.04 8: 8.60 9: 9.20 10: 9.85 While the supply is unlimited in the long-term, it is limited in the short-term by the inflation rate. The reason you want to hold it is speculation. With Bitcoin, people speculate on a Store of Value. With Bitflate, people speculate on a Medium of Exchange. There's a field of trading for currency. The market can adopt the coin faster or slower than the issuance rate. I wrote a post on the incentives: https://bitflate.org/post/2019/11/01/economic-incentives-for-inflating-cryptocurrency.html https://bitflate.org/post/2019/11/01/economic-incentives-for...

gnaritas 7y ago

> If I have a currency and someone hoards, my currency goes up in value based on supply and demand. Not a desired trait in a useful currency, the purpose of currency is to be spent, not saved; it's a mechanism to exchange wealth, not store it. Good currency has a predictable long term value, it is not subject to the wild swings of supply and demand. The world abandoned the type of currency you want long ago as it was found wanting. > The only reason I hold FED notes is because the government forces me to do so. As it should be. Money isn't wealth, money is the tool we use to exchange wealth.

dnprock 7y ago

The difference is the supply inflates exactly at 7% per year. Nobody can change its issuance rate. It's a fair game for everyone. I design a reward schedule that benefits early adopters: 0: 50 1: 25 2: 12.5 3: 6.25 (end of halving) 4: 6.56 (start of inflation 7%) 5: 7.02 6: 7.51 7: 8.04 8: 8.60 9: 9.20 10: 9.85 While the supply is unlimited in the long-term, it is limited in the short-term by the inflation rate. The reason you want to hold it is speculation. With Bitcoin, people speculate on a Store of Value. With Bitflate, people speculate on a Medium of Exchange. There's a field of trading for currency. The market can adopt the coin faster or slower than the issuance rate. I wrote a post on the incentives: https://bitflate.org/post/2019/11/01/economic-incentives-for-inflating-cryptocurrency.html https://bitflate.org/post/2019/11/01/economic-incentives-for...