In theory PPCoin is inflationary (at 1%), but at the same time it encourages holding currency (which is deflationary).
I would argue that, right now, cryptocurrencies as a whole are extremely inflationary, in the sense that new alt coins are created continuously and seem to become tradeable without much trouble. Bitcoin is acting as the reserve currency, like the dollar to all the other currencies, and most business is denominated in it, but as long as for example PPC is tradeable I could agree to pay anyone in PPC and it would count as a chunk of inflated liquidity. So it's largely irrelevant which/if any cryptocurrency is inflationary. For now the whole system fluctuates depending on what happens faster, more crypto coins created or more new goods competing for them, but once all goods could be bought with cryptocoins they all would inflate as hard as people was willing to accept new chains.
I would argue that, right now, cryptocurrencies as a whole are extremely inflationary, in the sense that new alt coins are created continuously and seem to become tradeable without much trouble. Bitcoin is acting as the reserve currency, like the dollar to all the other currencies, and most business is denominated in it, but as long as for example PPC is tradeable I could agree to pay anyone in PPC and it would count as a chunk of inflated liquidity. So it's largely irrelevant which/if any cryptocurrency is inflationary. For now the whole system fluctuates depending on what happens faster, more crypto coins created or more new goods competing for them, but once all goods could be bought with cryptocoins they all would inflate as hard as people was willing to accept new chains.
I think all the new alt coins back my point more than anything.
If you are not there from the moment it starts, you get substantially less reward for the equivalent effort. Missed a new launch by a week? Too bad, you'll be lucky to get 1% the amount per day as you would have if you were there at the start.
Why do you think there are so many alt coins? Whether people will openly admit it or not, it's because they want to be the first one in with the hope that they can eventually cash out a value disproportionate to the amount of effort they invested.
The plan works because the new members prop up the value and if they made any kind of investment it's extremely hard for them to step out since they feel obligated to make a return or at least break even. How do they eventually break even or make a return? By hoping people join later than them and are willing to invest more than they did. The newest adopters are always the ones taking all the risk, not the early adopters. All early adopters have more than made a return on their investment. If it all disappeared today, the guys suffering will be the newest not the oldest users.
It really blows my mind how so many people around here profess the concentration of money/power in the hands of a few is a huge problem yet at the same time perpetuate the exact same setup. Only difference is who's on top.
