Solves inflation but distorts distribution, makes it more likely more forks will be added on a whim (zero long-term trust), used to justify pump & dumps, lines early buyers with easy profit at expense of long-term potential (if any), alienates late and newcomers, makes it easier longer-term for distribution criticism which scares away 'investors', doesn't address the real problem: demand. Not a popular opinion, but that sums it up for me.
Let's say you put out 7500000 coins a day at 20 satoshi, that's a supply excess (daily coin maintenance) of 1.5BTC. Too many coins? People want to cut supply? OK, we'll do that. Cut by 50%. We're now at 3750000. Problem solved? No. After the initial hype (if any these days since halving rarely works), pumping and dumping, the coin settles and we'll assume it survives. We can't really be sure of final realistic price, but let's say it's doubled because you've halved the amount of coins added (if we go the maths route and genuine supply/demand doesn't change after the initial 'euphoria'). What's the excess supply (daily coin maintenance) now? 1.5BTC.
Topic: Forking a coin to drastically reduce coin supply (Read 613 times)
Well I think the coin would fail but for a reason not listed: Why would people mine it?
So with so much supply already out there and little reward for mining what's the point in mining anymore right?
Well I think the coin would fail but for a reason not listed: Why would people mine it?
The problem with too many coins is you saturate the demand. So the price can fall below 1 satoshi which means the coin has effectively delisted itself.
Maybe it survives anyway and swaps to ltc but really you are shooting yourself in the foot. Why keep anything that will have twice as much available in a month.
A fork is fine if improves previous mistakes
Maybe it survives anyway and swaps to ltc but really you are shooting yourself in the foot. Why keep anything that will have twice as much available in a month.
A fork is fine if improves previous mistakes
FlappyCoin did this.
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So what is everyone's opinion on this? We seem to have some folks that want a coin forked to change block reward thinking it will help the coin. My opinion is that it won't help at all and will breed more distrust for the coin, but I thought I'd put it in the open to ask for more opinions on this matter. If you have any coin examples that did things like this and the results feel free to share as well.
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