Topic: . - page 3. (Read 6728 times)

That rate of inflation is CONSTANTLY CHANGING for BOTH COINS.  It's just a matter of how far down the mining curve it is.  LTC started Oct 2011 making it 22 months old.  It has the same inflation rate as BTC had 22 months after it's launch.  Any side by side comparison will always show that LTC has a higher inflation rate then BTC but that ratio is just coincidentally around 4 right now, it has nothing to do with the 4 times greater nominal block rates.

The day LTC started it had a million times the inflation rate as BTC had on that day back in 2011, as time goes on the rates for both coins will decline and the gap both in absolute and relative terms will decline.  Years from now BTC will be growing at 1% a year and LTC at 1.1% an insignificant difference.  chodpaba has ignorantly concluded (or at least implied) that LTC ALWAYS has a 4x higher inflation rate, and any conclusion drawn from that is going to be flawed.  As for what a fair valuation for LTC is I have no comment but at least get your basic terminology right before you post your speculations.

someone should come up with a cryptocurrency inflation index, which combines market cap + block rewards of all known cryptocurriencies.

Interesting thoughts. I agree that as a speculative scarce asset bitcoins will always fluctuate in value, but in time the growth phase will be over and it will settle in a place where the value is not driven purely by speculation anymore. How long this will take, that I don't know. I'd say that if Bitcoin is still up and running and useful, this will happen during the next decade. This decade is all about the growth phase, which might reach its peak around 2020.

When the intensive growth phase is over and we reach a sort of semi long term top (if we still have inflating paper monies at the time, we would eventually go over that top too in relation to those paper monies) and make a correction down, which is when the volatility of Bitcoin starts to go down in general. Bitcoin would be more like gold but gold on steroids (as it's actually useful and convenient as a medium of exchange).

Obviously this is all thin ice speculation since we simply don't know if anyone uses Bitcoin in 2020 anymore. But as long as there isn't a clear cryptocurrency replacement for Bitcoin, or a reason for one, I see no reason to assume that people wouldn't use Bitcoin in 2020. What I do know is that cryptocurrencies will be there, and they will play a larger and larger role in world economies, that is pretty much guaranteed.

Later this century we will see gold & silver largely devalued as asteroid mining comes into play (trust me, sooner or later it is coming) which will be the time when cryptocurrencies are actually the only scarce monetary assets in existence, which will put them in a very respected position. That is the final seal that guarantees cryptocurrency domination.

Just wondering do you trade Litecoins?

35, FWIW. With any kind of luck they have 40 good years left, and maybe 20 less good after that.

"Inflation rate" is relative to the number of coins in existence. You said it yourself: growth in monetary base.

LTC's current inflation rate is over 5x that of BTC. See here: https://bitcointalksearch.org/topic/inflation-rate-coin-supply-growth-of-major-alt-coins-updated-2013-06-26-227395 .

That's not true.

Yes moron cause "inflation" (actually growth in monetary base) is relative to the number of coins already created and which will ever be created.  At the end of 4 years BTC was at half of all coins and when LTC hits it's first halving event in a few years or so it will be at half of all LTC.  Thus each chain produces 12.5% of all coins per year the first 4 years, the same inflation rate.  The only difference is LTC chain was started later and is still in an earlier part of the curve.

Same coins per block, blocks mined 4x faster.

Same inflation rate? Really??

Wait a sec, LTC has exactly the same inflation rate as BTC as its just a strait copy-paste of the BTC mining scheduled but at 4 blocks in a 10 minute period rather then one.  It has the same coins per block and the same 4 year period between the rewards being halved as BTC, it's just started later in time so its still in the first leg of higher inflation equivalent to what BTC was doing back in around 2012.  So it is as good or as bad as the economics behind BTC.

If your looking for flawed economics look at the fact that both are designed to be deflationary and derive all their valuation from speculation, that's the real weakness.

Um, I can't really see altcoins as a Bitcoin substitute. Their valuation is a subset of Bitcoin they function merly as a Bitcoin derivative.

ETF approval

I wonder what the Winklevoss are waiting for.  How old are they?

now you took away the punchline everyone was set up for.
there is one drawback, though. eventually Bitcoin settles in its niche and something else continues to innovate. then it would converge to a non-zero stable value, maybe even driven by - fundamentals.

Can and must.

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