I had a thought this morning and I'm wondering what anyone thinks. The thought was
"What happens in a cryptocurrency where the block reward continuously increases per block found?"
Perhaps on a slow exponential curve, something like doubling the reward every 1000 or 10000 blocks? And say, with difficulty targetting to aim at a doubling of reward every week or month or so?
So obviously it inflates prices quickly, and isn't particularly useful FOR anything.
BUT given the current trend of a bunch of people jumping on the bandwagon of any new coin to try and make money, what would happen if it was made? Early miners don't get any particular reward over those joining after a while - I haven't done the maths, but I imagine there would be an initial individual profitability (by which I mean it's easy for someone to get a bunch of coins) before difficulty jumps up, and a dip for a while, but then as difficulty stabilises and block reward increases, ability to get coins increases again (sorry my vocab for this topic isn't great, I'm sure there's a better word than "ability to get coins".
I wonder what people would do? They would try and set a price in LTC using Google Docs, this seems to be the way the past few coins have worked, but then what? It's strange economics (as far as my very rudimentary supply and demand economics understanding goes) as there is increasing supply and the only demand is for speculation and offloading, but holding for any long time is pointless as the coin devalues.
I'm not even sure if I have a question that I'm asking, just some thoughts.
"What happens in a cryptocurrency where the block reward continuously increases per block found?"
Perhaps on a slow exponential curve, something like doubling the reward every 1000 or 10000 blocks? And say, with difficulty targetting to aim at a doubling of reward every week or month or so?
So obviously it inflates prices quickly, and isn't particularly useful FOR anything.
BUT given the current trend of a bunch of people jumping on the bandwagon of any new coin to try and make money, what would happen if it was made? Early miners don't get any particular reward over those joining after a while - I haven't done the maths, but I imagine there would be an initial individual profitability (by which I mean it's easy for someone to get a bunch of coins) before difficulty jumps up, and a dip for a while, but then as difficulty stabilises and block reward increases, ability to get coins increases again (sorry my vocab for this topic isn't great, I'm sure there's a better word than "ability to get coins".
I wonder what people would do? They would try and set a price in LTC using Google Docs, this seems to be the way the past few coins have worked, but then what? It's strange economics (as far as my very rudimentary supply and demand economics understanding goes) as there is increasing supply and the only demand is for speculation and offloading, but holding for any long time is pointless as the coin devalues.
I'm not even sure if I have a question that I'm asking, just some thoughts.
This is how the current fiat system is wired already. Inflationary currencies punish hoarding but reward spending. We currently live in a consumer based society so its only right that we have a consumer based currency.
