6 ms·
Dogecoin Has an Inflationary Supply, Making It Ideal as a Cryptocurrency
- jgalvez 5y agoWell, I'm guzzling Nano like cranberry juice. Here we have a currency written in C++ that inspired another group of developers to port it to Rust. That's got to be worth something. Also one of just two currencies that use BLAKE. The other is Siacoin — which I'm also monitoring, but from my experiences in the community, I feel Nano is going to massively prevail.
- washedup 5y agoIt's inflationary (5 billion more a year), but inflation rate drops overtime, reaching 0% on a long enough time line... Compared to USD inflation rate, this is much lower volatility, and makes it rather attractive. A good complement to store-of-value Bitcoin: has the ability to act more like a currency. Also, error in the article: Bitcoin supply is estimated to run out in 2140, NOT 2040. Source: https://provscons.com/is-dogecoin-capped/ https://provscons.com/is-dogecoin-capped/
- orwin 5y agoIn the end, what will happen if a crypto is ever accepted and non-deflationnary, is that actor with enough credit/trust (banks, states) will start according loans, creating more money that the initial creator wanted, creating inflation.
- Faaak 5y agoIs this another pump and dump following DOGE jump last days ?
- dole 5y agoAsk Elon after Saturday Night Live this weekend.
- 29athrowaway 5y agoBanks want a coin with a central bank and fractional reserve. US banks want all that plus a value pegged to the dollar. Fractional reserve banking allows banks to create money from nothing. Banks don't like their money making power taken away.
- pjc50 5y agoIronically, crypto currency is nothing but private money creation. Including Tether, which allows private creation of dollars!
- not2b 5y agoWe already had private money creation; every time a bank makes a loan, money is created. Governments don't directly control the money supply, they only do so indirectly.
- 29athrowaway 5y agoAlso known as fractional reserve banking (the money can make loan more money than it has in its reserve). If someone tries to do a bank run the fed will supply the bank with missing money, in part, because the fed was created by private banks to counter bank runs.
- Smashure 5y agoBanks loan from their availabile capital no? They don’t just make up money for loans.
- elzbardico 5y agoClient A = 100 dollars client B = 0 dollars Bank passive = 100 dollars bank actives = 100 client b makes a loan of 70 dollars client A = 100 dollars client B = 70 dollars Bank passives = 170 bank actives = 170 Now client C needs a 100 dollars loan. 100 < 170. Bank actives 270 bank passives 270 …
- 5y ago
- blueprint 5y agothat's not sufficient to make something an ideal currency
- frankblizzard 5y agoIdeal for the few folks who hold more than 60% of it. https://bitinfocharts.com/top-100-richest-dogecoin-addresses.html https://bitinfocharts.com/top-100-richest-dogecoin-addresses...
- rvz 5y agoAnd are waiting for $1 and above for a gigantic sell off. Making the late comers hodling the bag when the DOGE price goes through the floor.
- xtracto 5y ago>And are waiting for $1 and above for a gigantic sell off That's not really how those things work. If someone like say, Satoshi, or Vitalik or another "whale" tried to massively sell their coins, the slippage would quickly deprecate the price. Sure, the first .1% they'd be able to sell at $1, but most likely they would make the price crash.
- rvz 5y agoIt is now. (The DOGE clones that is) While DOGE is not directly affected (which is still down), the clones suffered a rapid price drop due to Vitalik taking >$1B worth of dogecoin inspired clone coins; causing the prices to crash. [0] Even before dogecoin reached $1, much worse than expected. Again its not good news for the late dogecoin (and the clones) baghodlers. Oh dear. [0] https://www.coindesk.com/vitaliks-regift-of-unsolicited-doge-knockoffs-sends-memecoin-prices-plunging https://www.coindesk.com/vitaliks-regift-of-unsolicited-doge...
- not2b 5y agoThe problem is that it's still an open-loop system. Central banks for currencies that are well-accepted internationally manage the money supply to avoid excessive deflation or inflation, and the money supply has to grow with the size of the economy. If Dogecoin is slightly inflationary that might be an improvement, but there's still no feedback.
- chrisco255 5y agoWhat's fascinating about crypto, whether you are a fan of any particular coin or not, is that we get to rapidly iterate and experiment on everything from Keynesian to Austrian to MMT to Monetarism economics to varying degrees in real-time. We can afford to try all the experiments simultaneously to see which ones succeed over the long haul.
- bitcoinmonger 5y agoWhilst simultaneously boiling the oceans.
- quotha 5y agoThis argument actually makes a lot of sense. You need an inflationary supply, otherwise why spend it? This will end up being a problem for Bitcoin.
- tromp 5y agoI wrote about uncapped vs capped supply in https://john-tromp.medium.com/a-case-for-using-soft-total-supply-1169a188d153 https://john-tromp.medium.com/a-case-for-using-soft-total-su... Btw, there are many cryptocurrencies with tail emission, and resulting disinflationary supply.