...maybe someone has already implemented it.
Yes, this is the harsh reality of the bitcoin -- it would be a true deflationary commodity if difficulty were able to not go back down over time with relation to the number of people mining it, but since it does it is neither a deflationary nor inflationary commodity but both depending on the direction of the difficulty and the hash rate.
An ideal digital, actual deflationary digital commodity would have variable block sizes based on hash rates (to ensure that even if network hash rate went down, transactions would still go through), would start at a very high difficulty, and would increase in difficulty based on the amount of it mined but never decrease in difficulty. It would also have an infinite supply, but the difficulty in obtaining more of that supply should accelerate with the speed of computing. As soon as someone implements this, I'll stop mining bitcoin and start mining that because I think such a currency would hold its value over time much better than bitcoin.
That's basically how I see bitcoin now, as inflating in the short term because of the decreasing hash rate... but is it possible for someone to program something like the above, to ensure that the supply of the digital currency is
always shrinking over time? Do you think this is a good idea?
I would hazard a nickname of "Aurums", after gold and its limited supply on Earth and dropping the -coin suffix because I would rather it be thought of as a commodity.
Disregarding the fact that Bitcoin will be deflationary because it has a limited supply, what does difficulty/hash rate have to do with making a currency deflationary? And what does variable block sizes have to do with making a currency deflationary?
Please please pretty please, x-coins can neither be truly deflationary nor truly inflationary because they are all essentially infinitely divisible and can undergo infinite denomination at a drop of a hat.
Now, a CC where diff only goes up is a fun idea (but in a bad way)
Inflation
noun
1.
Economics . a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency.
Deflation
noun
1.
Economics . a fall in the general price level or a contraction of credit and available money.
So what does divisibility have to do with anything?
