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This effectively killed my interest in the currency completely. I've stopped mining it. I suspect this may be what they want: to keep it basically worthless so

This effectively killed my interest in the currency completely. I've stopped mining it. I suspect this may be what they want: to keep it basically worthless so people keep using it to tip people large amounts and have fun with it, and to drive away investors and people looking to profit.

colanderman 13y ago
to drive away investors and people looking to profit. Holy shit, you mean it's a currency that will encourage trading rather than hoarding? The horror!
- ck2 13y ago
  Why would you trade it? You can just mine more as you need it? You aren't going to sell any goods for it because the value today is likely worth less tomorrow unless you can "cash it out" immediately.
  - colanderman 13y ago
    Why would you trade it? You can just mine more as you need it? Mining is resource-intensive. the value today is likely worth less tomorrow unless you can "cash it out" immediately. Exactly! Not only is this like almost every other good on the planet, it encourages trade.
    - ck2 13y ago
      In 2015 it won't be resource intensive. We should be on 3rd or 4th generation asic scrypt miners by then which maybe means you'll be able to get a $20 usb stick that makes you 10k coins a month with a single kilowatt of power per month.
      - benmanns 13y ago
        But when everyone has a $20 USB stick capable of mining 10k coins a month on today's difficulty, that difficulty will go up dramatically. Mining will always be expensive to everyone but those with early access to next generation hardware.
      - driverdan 13y ago
        That's not how mining works. More miners = higher difficulty = lower rewards. Plus 4th gen ASIC scrypt in 2015 when there's only one now and no more coming for many months? Unlikely.
    - aestra 13y ago
      Mining hasn't been AS expensive as I thought it was going to be. Costs me about $1 a day in electricity.
    - paulhauggis 13y ago
      If this is the case, why not just use the US dollar? At least banks are secure enough to not get robbed every few weeks (or have a security system by a 15 year old php developer). Eventually, the government will see bitcoin as a true currency, regulate the hell out of it, and all of these things like having no transaction fees will be non-existent.
  - fnordfnordfnord 13y ago
    5% inflation does not a Weimar Repulic make.
- LoganCale 13y ago
  It will encourage tipping (giving it away in large numbers), not real trading. As mentioned elsewhere, why sell goods for it if the value will keep dropping?
  - colanderman 13y ago
    why sell goods for it if the value will keep dropping? You know the USD is inflationary, right? I don't see people having had a problem selling goods in the US since 1970. You don't sell goods to get money to hold on to for the rest of your life. You sell goods so you can, with the profit, immediately purchase other goods that you need (either to live or to invest in).
    - ck2 13y ago
      Does the USD lose 5% value each year? FIVE percent. Think about that. I am hoping it is a zero to 10k block reward which would change all this. But looking at the code I think it is 10k fixed.
      - colanderman 13y ago
        More like 2-4%: http://www.usinflationcalculator.com/inflation/historical-inflation-rates/ http://www.usinflationcalculator.com/inflation/historical-in... I'll grant 5% is a tad high, but it's the right order of magnitude.
        _delirium 13y ago
        > it's the right order of magnitude Probably even closer when you consider that cryptocoins suffer much more "loss" than USD does. People lose wallets, get hard drives wiped, etc., which are deflationary events that partly counter any built-in monetary inflation. Whereas losses of USD due to things like setting bills on fire or losing them in a lake amount to a miniscule portion of total USD outstanding. Imo it's even plausible that Dogecoin's current loss rate is >5%, in which case the currency would still be deflationary even with the new coins being added.
pbreit 13y ago
It's 5% and declining, perhaps enough to keep up with population growth. Not the horror story you depict.
iSnow 13y ago
>I suspect this may be what they want: to keep it basically worthless so people keep using it to tip people large amounts and have fun with it, and to drive away investors and people looking to profit. Right and it is indeed a great sign that this drives out the hoarders. Makes for a much more healthy community.
path411 13y ago
Well on the other hand, this is actually good news for mining because you will always be able to mine. It means that they don't have to worry about incentivising "mining" after all the coins are gone.

colanderman 13y ago

to drive away investors and people looking to profit. Holy shit, you mean it's a currency that will encourage trading rather than hoarding? The horror!

ck2 13y ago
Why would you trade it? You can just mine more as you need it? You aren't going to sell any goods for it because the value today is likely worth less tomorrow unless you can "cash it out" immediately.
- colanderman 13y ago
  Why would you trade it? You can just mine more as you need it? Mining is resource-intensive. the value today is likely worth less tomorrow unless you can "cash it out" immediately. Exactly! Not only is this like almost every other good on the planet, it encourages trade.
  - ck2 13y ago
    In 2015 it won't be resource intensive. We should be on 3rd or 4th generation asic scrypt miners by then which maybe means you'll be able to get a $20 usb stick that makes you 10k coins a month with a single kilowatt of power per month.
    - benmanns 13y ago
      But when everyone has a $20 USB stick capable of mining 10k coins a month on today's difficulty, that difficulty will go up dramatically. Mining will always be expensive to everyone but those with early access to next generation hardware.
    - driverdan 13y ago
      That's not how mining works. More miners = higher difficulty = lower rewards. Plus 4th gen ASIC scrypt in 2015 when there's only one now and no more coming for many months? Unlikely.
  - aestra 13y ago
    Mining hasn't been AS expensive as I thought it was going to be. Costs me about $1 a day in electricity.
  - paulhauggis 13y ago
    If this is the case, why not just use the US dollar? At least banks are secure enough to not get robbed every few weeks (or have a security system by a 15 year old php developer). Eventually, the government will see bitcoin as a true currency, regulate the hell out of it, and all of these things like having no transaction fees will be non-existent.
- fnordfnordfnord 13y ago
  5% inflation does not a Weimar Repulic make.
LoganCale 13y ago
It will encourage tipping (giving it away in large numbers), not real trading. As mentioned elsewhere, why sell goods for it if the value will keep dropping?
- colanderman 13y ago
  why sell goods for it if the value will keep dropping? You know the USD is inflationary, right? I don't see people having had a problem selling goods in the US since 1970. You don't sell goods to get money to hold on to for the rest of your life. You sell goods so you can, with the profit, immediately purchase other goods that you need (either to live or to invest in).
  - ck2 13y ago
    Does the USD lose 5% value each year? FIVE percent. Think about that. I am hoping it is a zero to 10k block reward which would change all this. But looking at the code I think it is 10k fixed.
    - colanderman 13y ago
      More like 2-4%: http://www.usinflationcalculator.com/inflation/historical-inflation-rates/ http://www.usinflationcalculator.com/inflation/historical-in... I'll grant 5% is a tad high, but it's the right order of magnitude.
      - _delirium 13y ago
        > it's the right order of magnitude Probably even closer when you consider that cryptocoins suffer much more "loss" than USD does. People lose wallets, get hard drives wiped, etc., which are deflationary events that partly counter any built-in monetary inflation. Whereas losses of USD due to things like setting bills on fire or losing them in a lake amount to a miniscule portion of total USD outstanding. Imo it's even plausible that Dogecoin's current loss rate is >5%, in which case the currency would still be deflationary even with the new coins being added.

pbreit 13y ago

It's 5% and declining, perhaps enough to keep up with population growth. Not the horror story you depict.

iSnow 13y ago

>I suspect this may be what they want: to keep it basically worthless so people keep using it to tip people large amounts and have fun with it, and to drive away investors and people looking to profit. Right and it is indeed a great sign that this drives out the hoarders. Makes for a much more healthy community.

path411 13y ago

Well on the other hand, this is actually good news for mining because you will always be able to mine. It means that they don't have to worry about incentivising "mining" after all the coins are gone.