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This is actually a really critical observation of BTC. The system works just as well regardless of the price of BTC. Because this is the case, IMO it would be d

This is actually a really critical observation of BTC. The system works just as well regardless of the price of BTC. Because this is the case, IMO it would be desirable to have the cryptocurrency not produce a distribution of coins that benefits early adopters and harms late entrants. But it would be nearly impossible to introduce such a change because BTC-as-investment is such a huge part of its ideology nowadays.

vmception 5y ago
People have tried many distribution models under proof of work, so far they have all broken the economics of why the networks work: if miners aren't desperately competing to pay off their capital expenditure, then they abuse their market position much more quickly, finding another way to assume control over the production on the network, which discourages anyone else from competing so of all the major working consensus models it has either boiled down to either capital for miners or capital for coins that limit this abuse/control, spurring enough confidence in the network to bring on other participants (whether you or any one person personally agrees with it) keep searching for improvements and alternatives though
maccam912 5y ago
Agreed. Currency was the worst thing to happen to blockchains. Maybe someone needs to purposely create a hyperinflationary cryptocurrency.
- vmception 5y ago
  many people have tried that turns out that speculation drives innovation, which really translates into any interest at all without the competitive pressure, people put their time and resources on other things with high supply creation experiments in the crypto space, the demand never catches up as nobody wants to earn the currency or buy the currency
tootie 5y ago
The network won't fail but the price will fluctuate. BTC was always intended to be an alternate currency, not an investment asset so now it's suffering from competing agendas.
pibechorro 5y ago
its been a decade for people to buy in, at this point not having done so was a concious choice not a missed oportunity. besides, the people who benefit the most from crypro (central and south America, Africa, etc) dont care about your investments, they only care it works.
- UncleMeat 5y ago
  Compare to something like Dogecoin, which does not have a cap. Or imagine a linear mining curve rather than a logarithmic one. "You had plenty of time to be an early adopter, enjoy being poor" isn't exactly the sort of governance of monetary policy that fills me with confidence.
  - vmception 5y ago
    People say that now because everyone already had a decade to find their own confidence, or at least not miss all of the alpha from either their own capital at risk or building a product to extract value Still doing research™
  - dcolkitt 5y ago
    > "You had plenty of time to be an early adopter, enjoy being poor" This is literally how every asset works. Early investors earn huge appreciation. Those speculative profits drive innovation. It's why we have a $500 billion venture capital industry that exists for the sole purpose of getting resources into the hands of innovators so they can grow new products and businesses.
    - UncleMeat 5y ago
      It doesn't appear to be how dollars work.
  - tromp 5y ago
    Dogecoin still suffers some wealth concentration by having a 20x larger emission in the first year. Only one coin has tried a purely linear emission (one coin per second forever).

vmception 5y ago

People have tried many distribution models under proof of work, so far they have all broken the economics of why the networks work: if miners aren't desperately competing to pay off their capital expenditure, then they abuse their market position much more quickly, finding another way to assume control over the production on the network, which discourages anyone else from competing so of all the major working consensus models it has either boiled down to either capital for miners or capital for coins that limit this abuse/control, spurring enough confidence in the network to bring on other participants (whether you or any one person personally agrees with it) keep searching for improvements and alternatives though

maccam912 5y ago

Agreed. Currency was the worst thing to happen to blockchains. Maybe someone needs to purposely create a hyperinflationary cryptocurrency.

vmception 5y ago
many people have tried that turns out that speculation drives innovation, which really translates into any interest at all without the competitive pressure, people put their time and resources on other things with high supply creation experiments in the crypto space, the demand never catches up as nobody wants to earn the currency or buy the currency

tootie 5y ago

The network won't fail but the price will fluctuate. BTC was always intended to be an alternate currency, not an investment asset so now it's suffering from competing agendas.

pibechorro 5y ago

its been a decade for people to buy in, at this point not having done so was a concious choice not a missed oportunity. besides, the people who benefit the most from crypro (central and south America, Africa, etc) dont care about your investments, they only care it works.

UncleMeat 5y ago
Compare to something like Dogecoin, which does not have a cap. Or imagine a linear mining curve rather than a logarithmic one. "You had plenty of time to be an early adopter, enjoy being poor" isn't exactly the sort of governance of monetary policy that fills me with confidence.
- vmception 5y ago
  People say that now because everyone already had a decade to find their own confidence, or at least not miss all of the alpha from either their own capital at risk or building a product to extract value Still doing research™
- dcolkitt 5y ago
  > "You had plenty of time to be an early adopter, enjoy being poor" This is literally how every asset works. Early investors earn huge appreciation. Those speculative profits drive innovation. It's why we have a $500 billion venture capital industry that exists for the sole purpose of getting resources into the hands of innovators so they can grow new products and businesses.
  - UncleMeat 5y ago
    It doesn't appear to be how dollars work.
- tromp 5y ago
  Dogecoin still suffers some wealth concentration by having a 20x larger emission in the first year. Only one coin has tried a purely linear emission (one coin per second forever).