Cryptocurrency users are often fascinated with the idea of monetary supply deflation and monetary supply scarcity (low coin/token supply). When we consider the Social Psychology in this Scarcity Principle, consumers tend to place a higher value on goods that are scarce than on goods that are abundant. Psychologists also note that when a good or service is perceived to be scarce, people want it more. However, it must also be noted that when a product is scarce, consumers are more likely to conduct their own cost-benefit analysis. A low supply yet highly valued token is more likely to be evaluated for its cost-benefits rather than generate market demands blindly. Particularly for a product (token) which does not carry any intrinsic value nor have any ‘qualities’. Additionally, the law of demand states that as the price of a commodity increases, demand decreases, provided other factors remain constant. Also, as the price decreases, demand increases.
Therefore, to permanently ‘increase the value of a product (money/coin/token)’ through scarcity, a growth in demand is necessary. Otherwise, markets will always only see temporary effects of the ‘artificial scarcity’ we collectively create through increasing deflationary rates.
So how is the inflation/deflation of a monetary supply managed in the world we are living in today?
- Federal Bank Reserves
- Government
All nations around the world (at least capitalistic ones) have a federal bank or a central bank which overlooks the nation's currency and its overall monetary supply inflation/deflation rates. Many factors such as national debts, wars, disasters, economic depression, trade deals, and so on... will have an impact on the central bank's decisions to print out more money (inflation).
But what if... instead of having central authorities and external factors controlling monetary supply, we could use the power of collective wisdom (crowd intelligence) to reach a consensus and manage/control the overall inflation and deflation?
WE HAVE CREATED A SOCIAL TOKENOMICS EXPERIMENT TO TEST.... JUST THAT!
We wanted to see if the crowd (people) can actually effectively manage and control the inflation/deflation of an economy (well, in our case, a tokenomy). If you need more information on how to join (we are just distributing all tokens for free via airdrops for maximum decentralized results), please read our ANN thread here: https://bitcointalk.org/index.php?action=post;msg=51782698
NOTE: We currently have over 25,000+ holders who have participated in the airdrop.
I think crowd control can only control to only an extent because of the governmental problems , they are the ones having the power over everyone thus you know it is hard for the general public to gain that much success...Therefore, to permanently ‘increase the value of a product (money/coin/token)’ through scarcity, a growth in demand is necessary. Otherwise, markets will always only see temporary effects of the ‘artificial scarcity’ we collectively create through increasing deflationary rates.
So how is the inflation/deflation of a monetary supply managed in the world we are living in today?
- Federal Bank Reserves
- Government
All nations around the world (at least capitalistic ones) have a federal bank or a central bank which overlooks the nation's currency and its overall monetary supply inflation/deflation rates. Many factors such as national debts, wars, disasters, economic depression, trade deals, and so on... will have an impact on the central bank's decisions to print out more money (inflation).
But what if... instead of having central authorities and external factors controlling monetary supply, we could use the power of collective wisdom (crowd intelligence) to reach a consensus and manage/control the overall inflation and deflation?
WE HAVE CREATED A SOCIAL TOKENOMICS EXPERIMENT TO TEST.... JUST THAT!
We wanted to see if the crowd (people) can actually effectively manage and control the inflation/deflation of an economy (well, in our case, a tokenomy). If you need more information on how to join (we are just distributing all tokens for free via airdrops for maximum decentralized results), please read our ANN thread here: https://bitcointalk.org/index.php?action=post;msg=51782698
NOTE: We currently have over 25,000+ holders who have participated in the airdrop.
Also the problem with the crowd control is , the thinking of each and every individual also at the same time everyone's life is different therefore not everyone can manage to go through it.
This experiment does not involve governments.
