Topic: http://ripplescam.org/ - page 2. (Read 6499 times)

What variables would need to taken in?

For example take a look at Bitcoin mining with the massive resources being put towards it. This is clearly a case of huge monetary demand, would the perfect algorithm increase or decrease the supply based on that demand? Would it be better to disallow mining altogether and use another variable, perhaps unique transaction info? In that case only transactions between aged unique wallets might allow for a input to allow for inflation or deflation. (aged wallets that are only transferring between other unique wallets that do not have too many connections to determine that they do not belong to the same person)

Yes and it would have the potential to eliminate inflation and deflation altogether as well as the need for a central bank.

not a scam if u believe it

A solution to a hard problem like this may very well allow a crypto coin to overtake Bitcoin, do you agree?

It can't be done with self-referential code alone. Something needs to be able to observe changes in external demand for the coin. Inputting the "market price and depth" as it changes is one possibility. However, that initiates a cascade of design questions. Which market? Who inputs the data? How often? What if the dominant market changes? Who decides when to change markets and who inputs that data...

Ripple makes this closer to a possibility since trading happens INTERNAL to the Ripple system. However, there are still lots of other issues to consider.

The magic number would be correlated with long term real economic growth rate.  Trying to set the money supply growth constant at 2% is likely closer than setting it to 0% yet it has the same flaw that if your number is lower than the observed monetary demand, you will get deflation, if your number is higher you will have built in inflation.

The fractional reserve system allows banks to react to deviations from equilibrium as numbers are observed

If the algo to set money supply growth rate can take in real values of what is transacted on a regular basis then it would solve the problem completely.  Not sure if this is feasible.

Lets assume getting the code to simulate correct inflation amounts based on various factors is either too difficult or if controlled by third parties, becomes too easy to gain. What would you prefer as a chosen inflation amount, a fixed number that cannot be gamed?

If you had to chose, 1%, 2%, 3% or even more percents a year? If the only option was to hard code an inflation figure in. Or do you believe that to be pointless and as bad as the current model of 0% in the Bitcoin world.

I encourage you to create a thread with your ideas on 3a. I'd love to hear them. If you do please put [StableCoin] somewhere in the title so I will notice it when I search for new concepts.

Look!... I deleted all the stuff irreverent to my following comment and left only the link for those who care to look up it's context. 


I totally agree with you're logic. Been thinking about this problem for almost 4 years. That is what the [StableCoin] topic is all about.

Your "(b) is likely a naïve suggestion" is probably true in terms of fiat currencies and the world at large.

However, I do believe it is possible in a Coin based ecosystem. In fact, I think I have a stable & practical solution to "(b)" (in terms of an alt-coin) worked out.

I actually trust the market to eventually be an accurate predictor.  Hence the best cryptocurrency should be popular (and stable) if it addresses all the obvious issues the people bring up.  Obviously I'm just rationalizing my laziness because the cryptocurrency competitive marketplace is not perfectly efficient which allows for hidden gems...

Anyway, took a quick glimpse now ONLY at PPC's supply description (I ignored all the other sections.)  "For many years annual inflation of gold is around 1-3%. In ppcoin there are two types of minting, proof-of-work and proof-of-stake. The proof-of-work minting rate is regulated by Moore's Law, which dictates that our ability in proof-of-work grows exponentially. We are aware that Moore's Law eventually has to end, but by that time inflation in ppcoin is likely already approaching gold's level. The proof-of-stake minting introduces at most 1% annual inflation. Meanwhile ppcoin's transaction fees are destroyed to counterbalance these inflationary forces. So overall ppcoin's minting design is still a very low future-inflation design comparable to Bitcoin. "

My thoughts are as follows:

1) predefining a number by which to increase money supply is arbitrary.  The challenge is to match money supply with money demand.  This is how monetary value is stabilized.  In the past and now, a centralized entity, the Fed, manages this delicate balance.  IMO, they are doing a decent job (except being slightly biased toward the stimulative side.)
2) no algorithm can easily predict the monetary demand.  If somebody is smart enough to create an algorithm to reflect this and incorporate into the supply algorithm, they solve what is likely impossible and also become the most important person in monetary history ever (even more than Satoshi.)
3) in the absence of #2, the only solutions are to either
   a) have a competitive marketplace where external parties modify the money supply by lending in a fractional reserve system
   b) have a competitive marketplace to control the monetary velocity of the currency, ie. the rate at which transactions can be conducted.  ((b) is likely a naïve suggestion because, it assumes that people's desire and timing to conduct a monetary transaction can be controlled at the aggregate level.)

The equation I am basing my opinion on is here: http://en.wikipedia.org/wiki/Quantity_theory_of_money

http://en.wikipedia.org/wiki/Bagholder

If your willing to accept very low or zero risk then what you say is true, get your money out of crypto!

However I am taking a risk that I am ok with. Bitcoin has first mover advantage so it seems like a good bet. I admit its a bet and a gamble but I am at peace with this reality.


You state that a cryptocurrency with a  inflation mechanism could be more viable than Bitcoin, and you dismiss the only serious cryptocurrency that has inflation just because its not beating Bitcoin at this moment? If you really thought that a cryptocurrency with inflation would be a better option then wouldn't PPC overtake Bitcoin eventually?

PPC is a market leader, its the leading inflation based cryptocurrency.

Apart from adoption, what do you think of PPC?

That means you should sell out of all cryptocurrencies until it's solved.  That is my position.  Think about what complaints your girlfriend and all your future girlfriends would have with it that are not solvable without an upgrade.


Don't want to waste any time on non market leaders.

Unfortunately this is hard to do and I can understand why ripple's switch being flipped is being delayed. Updating the protocol once the cat is out of the bag is rather hard, especially for Bitcoin.


What do you think of PPC?

It's funny how the Ripple developers and shills on this board refuse to tout Ripple as a competitor to Bitcoin and say they are supposed to complement each other but in the news press lately people high up in the company are being quoted as positioning Ripple to be a Bitcoin competitor.

I encourage everyone that is anti-Ripple to make comments in any news articles mentioning Ripple about that 80 billion XRP the ripple foundation has awarded itself (80% of the entire coin supply).

Thanks! Just posted the same question in the "let's test it" thread. Oops.

It seems that you cannot delete an account. At least, not yet. I am not sure about whether they plan it, I've suggested it in their forum not so long ago.

@joelkatz, I have a friend trying to active his wallet. I sent him 250 XRP but he says his Ripple client is reporting "Offline". He sent me his secret key and I can open the wallet from my machine.

Any idea what that might mean?

EDIT

How do I send the entire balance to another account and close that ledger entry? The wallet is not useful anymore now that two people have the "secret" right?

We have no mechanism to stop people from creating accounts. An account is created automatically when it receives XRP. Theoretically, we could disable creating a new wallet in the client, but we've already publicly released a version of the client that allows wallet creation so that wouldn't do anything. I suppose we could ask Payward to stop allowing new wallets to be created, but storing a wallet at Payward is not necessary to use Ripple. You can store your wallet locally or, if you're a coder, use the account directly through the Javascript library without a wallet or using any language that can exchange JSON objects over a Websocket connection. The "blob vault" source is also public, so anyone could create their own wallet provider.

https://ripple.com/client/
Push "Create a wallet"

While the network is centralized, we could add mechanisms to prevent accounts from being created, delete accounts, freeze or adjust balances, remove trust lines, and so on. But we have never had any need for any of these mechanisms and so they currently do not exist. And, more importantly, we would prefer not having to having them. (And, as other people mentioned, once the server source code is released, any such mechanisms would just destroy our credibility and be removed by the community anyway.)

Were we to delete an account, change a balance, remove a trust line, or anything like that, there would be one ledger before this change and one after, both signed by us. Each ledger contains the transactions that justify the changes between the previous ledger and that ledger, signed by the account holder, along with precise descriptions of what ledger changes each transaction made. Every account state change is justified by a transaction on the other side of the ledger. If we were to tamper with any ledger entries, we wouldn't have a signed transaction from the account holder justifying that change, and this could be provably shown to everyone. (Though this wouldn't stop us from freezing an account by just not processing its transactions, though if we did that, presumably the account owner would complain loudly.)

That is another possibility, but Ripple allows you to do this with people you know and trust, and it is accessible 24/7.