Topic: UPDATE (Read 596 times)

unlimited supply cryptocurrencies means you will have to deal with inflation because you making a huge amount of money so your money is kinda worthless. It takes more to buy something you want. On the other hand limited supply cryptocurrencies has its own problem which is deflation. Deflation makes people selfish because everyone wants to hold the bag and the price fluctuates really really fast as everyone want to make profit from it. Neither are better theoratically I think

ofc that both have their advantages and disadvantages, but if you ask me directly i will go for a limited supply currency, deflation money.

Why? because IMHO, i really think that is better to have a limit with the supply, that way we can calculate which it is the value with more precision than with unlimited supply.

That depends from the economy you want to build. If you want a deflationary economy you will like bitcoin. If you will want to build an inflationary economy you will want dogecoin. Normally the second choice would be better if not it will abused with the amount of money which will introduced in the economy. If the the overall amount of money in a given moment will be the needed one calculated considering all the factors which determine it plus an amount equal with the needed or wanted inflation then this can be called ideal economy. It is superior with the deflationary economy even from the only fact that the development of an economy need always more new monetary value which must correspond to this development. In the deflationary economy this can be solved with the revaluation of the money (being the amount limited and not have possibilities to increase the amount of those in economy). But practically this monetary policy have limits. The deflationary economy mean have more with the same amount of money. Or to buy the same amount of goods with few money. But the few have limits. For example with bitcoin cannot go under 1 satoshi. So when it will be the moment to needed to buy some good with few with 1 satoshi the system may go in collapse (if cannot be invented an unity fewer than 1 satoshi.

Anyhow the above examples take as money a digital coin money. And are totally theory. The practice is another. Because the actual produced/created/stamped money are in the money and depends totally from the human will. Which is easily corruptible.

Anyhow, if we may considering removable the human factor from the above process (the input and the existence of the overall amount of money in one economy) and want to know and compare the deflationary economy and the inflationary one (with the kind of existent money) I am giving below two links which explain in fully both of those:

https://en.wikipedia.org/wiki/Deflation

https://en.wikipedia.org/wiki/Inflation

They both have their advantages and disadvantages. That being said, I would opt in for a limited supply currency, just to see how it will work out. That's why Bitcoin is an exciting experiment and we will all see what will this turn into.

I mean majority of the currencies so far have been deflationary so this is the only thing we are used to and know how it works!

they said that none is better, because the deflationary one, make people not spending their money, so the economy remain stuck there, because everyone want to become rich by holding like bitcoin

with infalzionary you spend too much because your money are worthless, what about a neutral regime were infaltion is zero per year, but there is no deflation?

It change, that since Bitcoin is deflation money, no one will want to sped it. Since next year, next month and tomorrow will be worth more then today. You will think twice, should i buy new car today or should i rather buy it next week or month or year. If country use deflation currency it influence  on spending and economy. But another question is, maybe overspending as we know in last decades is not really what we want and need.

UPDATE