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Why is it a good thing to make ETH deflationary? Don't you want people to spend it?
by omginternets 6y ago
Why is it a good thing to make ETH deflationary? Don't you want people to spend it?
- tom_mellior 6y ago[removed incorrect post, thanks for the correction]
- rawtxapp 6y agoI think you're confusing deflationary with depreciation. Deflationary currency means over time, there's less of it, so if the demand stays stable, you'd expect the price to go up.
- Sargos 6y agoPeople are never going to be using ETH as a currency. They would use stablecoins like DAI pegged to USD or a basket of assets. A high price of ETH as an asset creates a higher security level for Ethereum the blockchain. The ecosystem of projects, apps, protocols, organizations, etc on Ethereum is healthier when the blockchain is guaranteed secure and stable for everyone to use.
- hanniabu 6y agoIt's not about making it deflationary, that's just a side effect of needing to burn the fees for the fee stabilization mechanism. I forget the details exactly, but if you don't burn them then miners can still do funny business.
- meowkit 6y agoOne of the biggest mistakes of cryptocurrency was calling it cryptocurrency. Distributed Ledgers have multitudes of use cases. One of them is as a currency, but you don't need the base layer to be a currency. ETH doesn't need to be spent as much as its needed to act as a quantitative measure of ownership and buy in. You can build a currency on the second layer, which has been done.
- omginternets 6y agoCan you elaborate on this a bit more? Doesn’t ETH on some level have to change hands for work to get done?
- deleted 6y ago[deleted]