I suspect this may be what they want: to keep it basically worthless so people keep using it to tip people large amounts and have fun with it, and to drive away investors and people looking to profit.
Holy shit, you mean it's a currency that will encourage trading rather than hoarding? The horror!
You aren't going to sell any goods for it because the value today is likely worth less tomorrow unless you can "cash it out" immediately.
Mining is resource-intensive.
the value today is likely worth less tomorrow unless you can "cash it out" immediately.
Exactly! Not only is this like almost every other good on the planet, it encourages trade.
Eventually, the government will see bitcoin as a true currency, regulate the hell out of it, and all of these things like having no transaction fees will be non-existent.
We should be on 3rd or 4th generation asic scrypt miners by then which maybe means you'll be able to get a $20 usb stick that makes you 10k coins a month with a single kilowatt of power per month.
You know the USD is inflationary, right? I don't see people having had a problem selling goods in the US since 1970.
You don't sell goods to get money to hold on to for the rest of your life.
You sell goods so you can, with the profit, immediately purchase other goods that you need (either to live or to invest in).
FIVE percent. Think about that.
I am hoping it is a zero to 10k block reward which would change all this. But looking at the code I think it is 10k fixed.
I'll grant 5% is a tad high, but it's the right order of magnitude.
Probably even closer when you consider that cryptocoins suffer much more "loss" than USD does. People lose wallets, get hard drives wiped, etc., which are deflationary events that partly counter any built-in monetary inflation. Whereas losses of USD due to things like setting bills on fire or losing them in a lake amount to a miniscule portion of total USD outstanding.
Imo it's even plausible that Dogecoin's current loss rate is >5%, in which case the currency would still be deflationary even with the new coins being added.
The Bureau of Engraving and Printing redeems partially destroyed or badly damaged currency as a free public service.
Every year the U.S. Treasury handles approximately 30,000 claims and redeems mutilated currency valued at over $30 million.
That's the "rule" I was always taught anyways.
some years it has been over double 5% a year.
http://www.usinflationcalculator.com/inflation/historical-in...
We have been lucky to have low inflation for the last several years. My mom was trying to establish her adult life during the double digit inflation of the late 70s early 80s and talks about how hard it was and how high the interest rates were.
Doge will add 5% to the total supply in the first year, but that will be less every year -- it's a fixed number, not a fixed percent, assuming the title of the your OP is correct. (Not sure about this.)
Of course, that doesn't account for lost coins. Given how doge is used, I am sure a lot of the new coins will actually be replacing lost coins.
The people who like BTC for having a fixed cap on the amount of coins in existence are probably the same people who would like the gold standard back, because they don't understand the economic consequences.
As far as the economic effects, I think we'll be much better at managing a deflationary economy in 2030 than we were in 1930. We have more knowledge, better statistics, and better communication. At its core, the sticky wages problem is a communication problem.
In this forum, I would expect that to be a significant issue.
Right and it is indeed a great sign that this drives out the hoarders. Makes for a much more healthy community.