Allow me to state my opinion about CB one last time. Please don't get me wrong, I really like the ideas behind CGB (scarcity, exclusivity, etc...); basic idea was RIGHT on. But it really seems like certain computer whizs and certain big egos make poor economists.
Please hear me out this last time, I really would like my CB holding to come back to a decent value.
1) I really do not understand the rational thinking behind CB admins hating mining so much. I have been owning some CGB for a long while, and most reward halving events were met with a price drop (and further loss of interest from community, eg: Memory coin, Dogecoin, etc...). I have seen this in many other Cryptos as well; it turns out reward halving of CGB was poorly designed and I suggest to bring mining back.
2) Now this PoS reward that CGB has, IMO, could easily be doubled, as it is way too low to stir any interest whatsoever, and "doubling" the PoS would still bring CGB nowhere near anything that would affect CB market price negatively.
Main thing however is not to lose track of the basic purpose of a currency: to buy things! I know this one is the hardest to tackle (the other two are just computer variables to adjust and a client update - no big deal), but people have to learn about CB and accept CB for goods and services. The first step in fixing this current undesireable situation is to bring the community back to this coin, by applying the hereby suggested first two steps.
So, I suggest bringing mining rewards back to competitive levels, and raising PoS reward as well; for God's sake bring back some excitement to this coin, it deserves it!
+1
IMO stake reward needs to be 100% pa at least for a year. Can be tapered after that , down to a 'normal' inflation level after say, 5 years.
So lets say we put PoS to 100%. In one year, everyone has double the number of CGB and the price is half. Shouldn't there be some other mechanism in play here to actually bring new holders into the currency? How does doubling everyone's existing wallet size accomplish this? Simply the value will halve (all other things being equal).
If we were to go the PoW route, even doubling the current reward will not bring it anywhere close to the level of activity seen in the first pumps (which every currency goes through). This would also really tick off anyone who held the line at .001BTC as a volume of almost the entire currency supply changed hands. Do we tell them "sorry your coins are about to be diluted massively?"
This isn't about CGB admins allowing or not allowing something, don't forget that a hard fork has to be supported by the community or it will fall flat on its face. The economics are sound, but as you say, the understanding is limited. Rational discussion rules this ship, and ego has nothing to do with it. From the start this coin has been represented as a digital version of the fundamentals of gold. We cannot create gold out of thin air or mine it any faster than what its fundamentals allow, and therefore it makes little sense to take us drastically off course just to attract the pump and dump scene again. What will we do when this pump is over and we are right back where we started, discussing adding yet another mining phase? It doesn't seem like an actual solution.
CGB's utility will be in its fundamental properties which allow it to act as a more stable store of wealth as compared to other currencies. The fact that the awareness and actual use of cryptocurrencies doesn't yet exist to demand such a coin is the problem. We are actively pursuing real solutions to this by jump starting the use of cryptos such as CGB, on the ground. Real, organic, *USE* is what we can reasonably expect, will create the demand for not only CGB but other cryptos as well. This non-partisan approach is what will allow full cryptosphere participation.
Two things: backup one minute to the very misuderstood concept of inflation in cryptocurrencies.
" In one year, everyone has double the number of CGB and the price is half."
this is what I mean by poor economics; Inflation, my fellow cryptocurrency friends, is the outcome of more currency being added than new physical value being created.
We are products of our generation: we are so scared of inflation, having listened to (and misunderstood) Allan Greenspan in our childhoods that we see inflation in places where it isnt. Let's take the hypothesis that CGB's PoS reward goes to 100% (not what I am recommending BTW);
IF this 100% PoS suddenly creates a wave of interest for CGB, and naturally more products and services will be added in the CGB economy along the way, then as a result of this the amount of CGB in existence will indeed double AND price will also GO UP (not down).
This is not inflation, as CGB has PLENTY of room to expand in our economy (200 000.$ vs trillions); its when it has no more room to expand while more CGB are created that will trigger inflation (unwanted loss of value or purchasing power of the indivudual unit).
I think, an acceptance has to be made that CGB is not yet failed, but is failing. If we keep things the same way,
it will fail; so let's accept the fact that things have to change for success to happen.
Thanks for the clarification VonSpass, and I believe I know exactly what you are saying. This is why I put the qualifier "all other things being equal" in there. What you are getting at is that value has to be created to balance the monetary base expansion or inflation will be felt. This still does not explain how expanding the monetary base will attract newcomers. Buying a coin at the start of its life (and holding) is almost always a losing proposition as your investment is "inflated away" unless boatloads of cash continue to sail in to counter the creation of new units. The wave of interest you are talking about is investors who plan to get in early and dump out before the rest. That's interest, sure, but how does it build lasting value?
We have plenty of room to expand into the economy of course; cryptocurrencies are hardly known and yet badly needed. This expansion is exactly what the CryptoTown project is about. Creating new facets of the economy for CGB to be held in, new demand created through consultancy and advocacy. I am not convinced that printing more money will affect demand except to get the pump and dumpers back in the game for a little while. Change is important; I think we can all agree that adaptation is what will keep the ship afloat.
Sorry for putting you on the spot with my quote, Papersheepdog; I really appreciate your posts, they are always interesting, well phrased and intelligent. It's just that I see this inflation argument (without all other things being equal, mentioned) and I think
it is this very fear that in the end will bring CGB down (if nothing is done about it).
What I am saying here is somehow people have to start beleiving in CGB, and investing in it.
Let's face it - the Reddit forum didnt help, the new website didnt help, the bimonthly meetings and updates (sometimes very light in actual content I must say) - all this did nothing to bring CGB up.
I would attack this on two fronts: 1) work hard at adding goods and services you can buy with CGB - and only CGB. these can be virtual (but prized nonetheless) assets. Create an online game, etc...
2) since talk doesnt help, let's bring back miners on board, this will help renew interest for CGB,
I would be interested to explore this option to its fullest. Lets talk PoW target expansion rate and change over time. ie. How long will it last? Let's ignore for now the potential to get our existing community and investors up in arms and try to focus on how this will bring more miners in and what this will do for us. As Killiz mentioned above, the miners would like to make a profit and usually do so by selling what they mine. This mining and selling will certainly bring attention to CGB, how much depends on how extreme the mining incentive is I would imagine.
Note that as soon as we do this we may trigger a race to the bottom where many investors see the incoming inflation and wish to get out and back in at a lower price. The miner who sells last in this environment might be selling at the lowest price. This game of chicken may quickly prove itself true as the first people start selling off. So how do we balance this out? By promoting CGB and having it accepted at multiple places. This is playing the role of a daily currency, which CGB may not do so well at. The idea is price stability for such a coin and its monetary base expansion should be countered by the adoption rate to maintain steady prices. In the case of CGB, however, we may need to totally take it from a "hard asset" into an inflationary coin to do so, assuming we can muster up the demand with the help of the mining frenzy.
The question in my mind would be, why don't we just create the demand? Without monetary base expansion, even the smallest bumps in demand may have a better chance at a real and sustained reflection in the price. Why is it necessary to give out more CGB to miners to accomplish this? I am having difficulty in translating monetary base expansion into adoption. If we can figure out how exactly, step by step, cause and effect, this happens, then we might be able to really consider such an action. We need details.
By all means, I do not want to make this coin an "inflationary one" as elambert suggested I was describing here. But we now know from experience that the current setup does not work... we need to change
something.
Let's go back to the
initial idea behind CGB: the bottom line PoW reward we are seeing in CGB today
was actually meant to still be worth a significant amount of value; because CGB's (dollar) value would have evolved and gone up so much. But here we are and this did not happen; big part of the blame for this goes to the multiple new altcoins that were created, and maybe the fact that CGB really did not really bring that much else new to the table when compared to say, the Litecoin. I'll get to PoS in a minute.
I suggest a
flexible PoW baseline, adjusting according to market conditions rather than a fixed reward halving schedule. A flexible PoW that would supply the smallest possible amount of CGB possible while still making sure mining value competitiveness is maintained. As an example this flexible mining reward would presently be much higher because CGB is so low, but it would come down as CGB's price rebounded.
Bringing more miners back to CGB will create more people involved with it, evangilized, preaching about it; CGB gets its community back.
Now yes, some miners will dump the coin; but not so fast Papersheepdog!
There is an incentive to keeping the coin and that's PoS. At 1.3% however, there is NO incentive; but let's find a rate just high enough that would reward people enough so they would not dump CGB upon mining. This higher PoS would actually create a market demand for CGB;
must I remind you that this demand is inexistant at this time.
This higher PoS, in fact, would finally allow CGB to achieve its main initial goal of 2013: to be an investor's coin, something to be treasured. That's what I liked about CGB.
I think a lot of coins are being effectively tossed aside from the overall market correction.
