I will continue in the Monero economics thread.
Please provide a link to the thread, so I could move my future economics related discussions there.
Mining could be the most efficient way to introduce new users to the coin, as it doesn't require AML, KYC, fraudulent exchanges, etc..
Do you want a Mt.Gox and Coinbase driving your coin's adoption, or do you want to get the coins directly to them?
Directly, of course. [snip] I could set up a miner and earn $20 per month, expending only $30 in electricity
The masses don't calculate their electricity cost. And you are not discounting the value of bypassing all the hassles, regulations, KYC bullshit hoops to jump through, etc with the exchanges.
The masses just want to get some of this new cool coin in the easiest way possible.
, except I couldn't (I can't even delete a file).
And Monero doesn't even have a GUI much less even get close to targeting the masses in other ways. Again I reiterate that my career was based around making things popular for the masses, e.g. CoolPage with ~1 million verified downloads at download.com (and 335,000 websites confirmed via altavista) when the internet was 10 - 30 times smaller.
Using CoolPage was a not a wise economics decision (much better would have been to use the templates at Yahoo Geocities or hire a web designer for $200), yet 100,000s (millions at today's internet scale) of people decided it was more fun and interesting to create the website with their own creativity. People are curious and love to learn. Word-of-mouth is viral marketing.
The economies of the coins need people like me so the way to purchase them with existing stored value must always to be available
You are not the masses. Your efficiencies are different.
The whales such as yourself will invest in the coin with the most adoption and clear quality of development. Period.
I argue that the bolded part falls apart in the equation
I = N * A, (inflation = number * average), though. Which is a pity:
To have a coin with manageable inflation, the product of the number of individual miners and their average reward must be contained. Therefore there is no incentive for anyone capable to become a miner, and the ones not capable.. well, they cannot.
Technically and economically astute people have a high minimum transaction cost in their life. $20 per month is not enough. The ones who drool over the idea of receiving $20, are not in the position to get even that
If they were, the formula above would take it to $2.
You forget the basic economics principle that demand vs. supply resolves with price.
The more that mine, the higher the price.
Go for 3 - 10% instead!
Get behind me, Satan!
Going for 10% means 1.1^100 = 13,781 times higher coincount after a century. Even USD has mismanaged its issuance by only 6.5% per year on average for the last century. What differentiates hard currency from soft is that inflation is kept at check.
Even the idea of having double the amount of coins in 100 years is worrisome/preposterous to many. And that is only 0.7% inflation.
This is a really important matter. A 1%-point fail can easily destroy the coin.
Human population + productivity grows more in the realm of 5% per annum.
Iron used to be a precious metal, but productivity changed that.
Satan is behind all the Malthusian bullshit resource scarcity propaganda, e.g. global warming hoax, Rockefeller's funding of environmental movements, etc. The Bible says go forth and MULTIPLY (exponentially).
