Topic: Why endless supply will make Dogecoin worthless (Read 6735 times)

mBTC will become the standard within 5 years and a couple more decimal places can be used to give it a total coin cap of 2.1 Trillion with 2 decimal places to spare for "bitcents" , if this happens most coins producing over 10 billion today will never hold much value.

imo iCoin will become a contender for bitcoin in 2 years. You read it here first.

http://iCoin.pw/interview

mBTC will become the standard within 5 years and a couple more decimal places can be used to give it a total coin cap of 2.1 Trillion with 2 decimal places to spare for "bitcents" , if this happens most coins producing over 10 billion today will never hold much value.

100% agree.  

These these coins are intended to be used a a currency, not an asset to hold.  

Full Definition of CURRENCY

2a :  something (as coins, treasury notes, and banknotes) that is in circulation as a medium of exchange
b :  paper money in circulation
c :  a common article for bartering[/li][/list]

The primary role of a currency is to be *USED* for exchange.  If there is a constant deflation where something becomes more and more valuable over time then where is your incentive to ever exchange it?  If I knew that a US dollar today would buy me 30% more next year, I'd do everything I could to avoid spending it.  Thus it fails as a currency.  

A slow inflation makes people spend a currency and use it.

inflation is the best thing that could had happen to dogecoin

dogecoin will be used as a currency not an asset like all other coins

the community will continue to grow and give away dogecoin to charities, the media attention and growth will continue

trust me once we hit the 10,000 blocks theres no way you will be able to buy a dogecoin for 150 satoshi

buying in exchanges to use and donate will drive this coins price up

It's ONLY going to take 14-15 years for DOGE supply to double once the initial 100B has been mined at 5% yearly inflation. Let me say that again... 14-15 years. Now tell me again that this infinite supply actually matters?

Whoa, that's a bold statement. You got any facts saying that the supply of new gold smelted per year or new diamonds mined exceeds 5% a year?

Holy cow, silly rabbit. The inflation of doge is less than the new gold being smelted each year, and far less than the number of diamonds mined. 

Can they? Technically bitcoin dev's could change the reward to infinite like Doge but in practice they need to get everyone onboard (or over 50% of everyone onboard) maybe thats easy for doge now, but one day in the future, maybe not so much.....

There are many problems with your hypothesis.

1)  For short or mid term investment, just about every coin is inflating at a rapid pace currently.  It's the equivalent of living in Zimbabwe, and that's the nature of non-linear block reward.  Doge will actually be inflating less than many other coins for short term interval, and negligible difference for mid term.  The dogeflation will be 3% inflation in 2029.

2)  Coins lost per year in crypto is a pretty high number.  I think even NXT, which has a user base of what?  50 people? that bought an IPO managed to lose 5% already, when the thing hasn't even been out a few months.  If you gave a conservative number of 1% lost per year, then dogeflation is only at 2% in 2029, and 1% in 2045.  Things like car accidents, deaths, or natural disasters will also cause many coins to disappear from the economy.  This is a variable most people just don't comprehend, and it might even be larger than most people think.  Think about it, when a person dies and has a wallet laying on the bed, someone will eventually pick it up.  If someone dies with an encrypted wallet, that thing is going nowhere.  It's hard to believe, but it's possible the dogeflation might not even cover lost coins.

3)  Broken PoW system - If your market cap isn't high enough, you can't keep a block chain up with transaction fees only.  Doge has now placed itself in a position where it's going to exist forever even if it slips to #20 market cap, while other coins that some might consider "better", are going to fail without enough mining incentive.  I was pushing for an infinite, non-zero block reward (1%) on Vertcoin for this reason, which would probably be completely canceled out by coins lost anyway, resulting in the coin having more security through higher mining incentive, while still remaining hyper deflationary.  

4)  In general terms, a hyper deflationary currency does not create a lot of economic activity because you can just horde money to make money, rather than invest it into a business or other venture.  The Doge liquidity will now be through the roof since it has a small demurrage fee.  Increased liquidity may lead to increased adoption, which then completely negates the demurrage, increasing it's value over competitors.  It's the equivalent of AOL sending out millions of dollars in AOL CDs to everyone on the planet.  Yes, it cost them money to do so (same thing as demurrage), but they probably made money from the investment.  Doge is now the AOL of crypto.

I really could go on for days here.  As for 0% vs 1% inflation, the %1 choice has literally no downfall whatsoever, since like I said, the currency would still remain deflationary due to lost coins, and it would only increase block chain security through mining incentive, but the seemingly much larger Doge number may cause it to outperform my safe, 1% choice through some of the not so obvious means I listed.

Another guy wrote an article covering some similar, and some different points to mine here:

http://theblogchain.com/2014/02/03/dogecoin-is-not-mugabecoin-a-discussion-of-inflation/


- The dread shibe r0ach

Can they? Technically bitcoin dev's could change the reward to infinite like Doge but in practice they need to get everyone onboard (or over 50% of everyone onboard) maybe thats easy for doge now, but one day in the future, maybe not so much.....