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Comment by ye | Hacker News Reader

Oh, but you conveniently omitted what happens after. 10, 20, 50 years.

The truly important difference is that Bitcoin has an absolute upper limit, but Doge doesn't anymore. It matters. Scarcity is an important factor for holding value.

Bitcoin will eventually become deflationary, and sooner than you think due to loss of bitcoins.

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You must be speaking strictly in terms of monetary deflation. I could see dogecoin being deflationary as well, but in a "price deflation" sense.

Dogecoin could also become deflationary. If 6 billion dogecoins worth of value is created in a year and only 5 billion coins to match that increase in value, the economic value of goods created surpases that of the coins created. As a result, you have more goods chasing (relatively) fewer coins, increasing the value of the coin. In other words, less dogecoin gets you more stuff so you actually have (price) deflation.

In the US, during the stupidly-named "long depression" of the late 19th century, prices slowly dropped to about 60-65% of what they were at the start of the period while the total supply of money grew. That's because more goods were chasing (relatively) fewer gold-backed dollars. Monetary inflation coupled with price deflation.

I would also point out that Dogecoin's stated purpose in this move is to stabilize the currency at 100 billion coins. They believe that 5 billion coins fall out of circulation each year; therefore they intend to mint 5 billion new coins to keep the money supply constant at 100 billion coins.

Therefore the Dogecoin money supply after 2015 will be constant: the number of coins in circulation will remain approximately 100 billion, and the value will only increase or decrease as the demand for the currency moves.

Except that the price of doge was driven up by individuals believing they weren't buying into an inflatable currency. The fact that this article got upvotes and the comments around indicate that people are gonna pull out.

Your explanation doesn't make sense. If you actually do look at what happened with the inflationary dollar since the "late 19th century", it lost 96-97% of its purchasing power due to the monetary inflation.

Which means that if your grandma stored her wealth in dollars and wanted to pass it onto you, you can only enjoy 3-4% of what's left.

http://4.bp.blogspot.com/-YTyPGaEsBcw/T0Kd1nS9zJI/AAAAAAAABQ...

I was talking about the late 19th century. From 1860 to 1890, the USD gained roughly 50% in terms of purchasing power. Since the federal reserve got involved in open market operations in 1922 the USD has lost about 95% of its value.

Your explanation makes no sense.

Since 1928, the S&P has risen 5506%[1]. Over the same period, the dollar has lost 93% of its purchasing power. If you put a dollar on the market in 1928, it would be worth $808 (1928 dollars). A dollar under the mattress is instead worth $0.07 (1928 dollars). Investing had a return 11500-fold greater than hoarding cash.

[1]http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/...

[2]http://www.usinflationcalculator.com/

In 50 years, the Dogecoin-supply will be increasing at a rate of 1.4%.

In 2011, the gold supply increased at a rate of 1.6%.

Do you think gold is too inflationary to be used at a store of value?

I actually do feel that gold is too inflationary to store value. Many people simply don't realize at what scale it's being mined and how much of gold there's in the universe (hint: more than enough to build gold toilets for every human on the planet and not even scratch the surface).

I'm sure you have a financially viable scheme for importing gold from other galaxies far-far away, but you're keeping it for us to figure out, right?

Because gold exists only on our planet and in other galaxies far-far away?

Even importing gold from other parts of our own solar system is a long way from financial viability.

You're right. We should be building bitcoin toilets for every human on the planet instead.

frankly, gold is "lost" all the time

I agree. people will prize a capped currency more than an infinite one even if the infinite currency "inflates" less over the next few years than the capped currency. at this point, it seems the only thing doge has over a traditional fiat currency is a cool and cute theme that is sure to be fleeting. the novelty of doge will get stale. I mean really, does anybody really think doge talk or the coin will be cool a couple of years from now? or that it will be serious? in the interim, the masses could send doge much higher only to have grade school "traders" get burned out of lunch money profits or grandmas lose bingo money. a good deal of the doge appeal is its inviting "my first coin" theme. litecoin and other "deflationary" crypto have the incentive to hold because the coin is ultimately capped and the usage and number of holders vastly outpaces the short term rise in coins. doge coin investor dynamics, however, are dependent on an ever expanding pie of unsophisticated crypto neophytes and an up sloping chart. Doge's demographic seems like a race to the bottom from my experience.

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