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I am of an opinion that deflationary crypto (like Bitcoin) can not be used as currency. It should absolutely be used as a store of value (kind of like gold) and
by rllearneratwork 5y ago
I am of an opinion that deflationary crypto (like Bitcoin) can not be used as currency. It should absolutely be used as a store of value (kind of like gold) and as a way to transfer value.
ETH is not deflationary and it is a good candidate to be used as currency.
- fredfoobar 5y ago> ETH is not deflationary and it is a good candidate to be used as currency. I'm guessing you're opposing EIP1559 then
- rllearneratwork 5y agoI am fine with EIP1559. If ETH becomes deflationary, it would still have other uses and something else can fill in the "currency" use. Intuitively (have no idea how to do this), it would be interesting to have Country's coin supply grow (approx.) with its GPD/productivity.
- fredfoobar 5y agoWhat happens when eth switches to PoS? everyone will be incentivized to hoard and stake to become a validator, what will incentivize spending?
- batduck 5y agoAPY on stacking won't be as good as today. I am not sure everyone will stake once ETH2 rewards will be around 1-2%. ETH2 won't be deflationary because such things is nearly impossible in a PoS network. You need issuance to rewards validators. It can't be network fees because if network fees are high, the network is doom to fail.
- minsc__and__boo 5y agoEventually. Probably. The characteristics that make Bitcoin unsuitable as a currency right now isn't is deflationary printing, it's that it's unregulated, uncontrolled, and subject to tragedy of the commons (as is seen with the multiple rejected block size increases).