Topic: bitcoin vs solidcoin - page 5. (Read 19345 times)

I wasn't suggesting that extreme of a rate... Freicoin is going to be 1% a year. I think the rate should be small enough so that it's not extreme like you say, and large enough to still have a psychological impact on consumers and investors alike.

Free money sounds like a SCAM to investors, and that's exactly what Bitcoin will be if adoption is ever to become a reality.

I've discussed this topic in the past, and since Bitcoin is intended to model gold's resource extraction curve (and the secure storage of gold is demurrage) I don't have issues with the concept.  However, in the past I couldn't imagine (and neither could anyone else IMHO) a ruleset that could be added to Bitcoin (or to an alt currency) that would introduce a mild, market based demurrage without significant risks of unintended consequences.  I had argued that demurrage would not really encourage spending so much as 'churn', but that would also be a good thing for bitcoin because a demurrage based upon the age of a transaction (not it's value) would encourage users who didn't need anominity to consolodate holdings into fewer & newer transactions; thus not only maintaing the profitability of miners (and thus helping to pay for security on savings as well as transactions, increasing the security level in general) and 'rotting' lost coins back into the pool, but also serving to incentive the consolidation of the blockchain itself.  Allowing pruning to be more effective, but efforts towards anonimity less effective or more costly.  The problem was how do you do it?  The system is a set of simple rules that interact.  How do we impliment demurrage such as this?  Solidcoin actually forces this issue, by permitting the old blocks to actually die, however the time period is much too short, and can't be relative to the age of the transaction, as it's either good and free or just gone.  The demurrage model for bitcoin, to be effective without becoming a damaging factor, would have to occur over decades.  No gold storage vault would ever charge the user so much for storage that the balance was gone after a year or two.

Which ones?  You, incorrectly, assume that economists agree that the deflationary model is universally bad.  That is not the case, and only Keynesians agree with one another on this point, and Monetarist depending upon conditions.  Austrians, almost never.  The gold standard was, due to rising population rates, generally deflationary over long stretches of time, and only inflationary for short stretches and in regions with close economic ties to the new found sources of gold.  A gentle, predictable deflation is at least as economicly benign as a gentle, predictable inflationary currency.  Currently, Bitcoin is neither, as it's highly inflationary (of it's monetary base) whilst also being incrediblely predictable.  Bitcoin's value has increased over the past year, as much as it has, only because the size of the bitcoin user base (and thus it's aggregate demand) has increased by several orders of magnitude since I discovered it in April of 2010.  The high (but declining) inflation is somewhat contradicted by it's predictability, which helps to assure early adopters and speculators (same thing, mostly) that the currency will have value in the distant future, once the inflation rate levels off.

That said, Solidcoin is not a better choice here either, using a much steeper inflationary model followed by a sudden stop.  Solidcoin might prove to have it's place in the market, but not as a direct competitor to Bitcoin.  Namecoin has a nitche.  A localized version of bitcoin might as well.  Solidcoin doesn't seem to have a nitche as far as I can tell.  The sudden stop nature of solidcoin could also prove it's undoing, as the geometric halving of Bitcoin's block reward (potentially) serves the function of weaning a growing market economy off of a subsidy.  If Solidcoin has any success at all at 2022, the sudden stop in block rewards is as likely as not to be a major disruption in the system.  If the market is weak, such a disruption would likely kill it off, even with it's own high degree of predictability.  The reward system in Bitcoin, as well as it's interval, are certainly arbitrary; but they are well considered.

Hello,
I noticed that someone suggested early on in this thread that GPU farming should somehow be eliminated.  How are you going to make it impossible to farm with GPUs?  Because you can't just "get rid of it" by changing the algorithm.  Anything that works by checking millions of hashes a second is much faster on a GPU than on a CPU and there is no working around that.  It is impossible to get rid of GPU mining without doing something like just throttling the hash rate of any individual PC, or something, and I think that can be circumvented.

This economic model will never work, because we will never get enough people to adopt to it.

Trust me I LOVE Bitcoin technology, but we need to start taking some of the economists that come around here a bit more serious...

Indeed you are. Well.. go ahead than and do this deflation thing if you want.

Actually I've been here longer than you. So, are you going to make an argument or are you just going to act like a cultist and pretend the economic model does not deserve further discussion?

You have not been here for long, have you?

Why not? Afraid your arguments will not be good enough?

I'm scared, papa!

DEAD CAT?!? WHERE?!?! *GRRRR*

you got it dude

not the deflation argument again please....

Surprised nobody has tried to refute this. I guess we are all in agreement about the inviability of the current economic model and that we should go back to the drawing board then?

How many solidcoins do you hold currently?

Hmm I could do that too right, but with my little hashing power that's like winning the lottery twice in a row.


But it could even be best if we ignore those forks. They pretty much destroy themself by being only profitable if the resulting exchange value is above 1 which is becoming more and more unlikely over time since the value is decreasing and in order to stay profitable hashing power has to go down.

I do not know what it is but it sounds tasty

Solidcoin value on bitparking exchange went from 0.015btc to 0.0045 btc in 24 hours. It is doing a dead cat bounce pattern formation.

 

If it is paid off then no he could care less about the future.