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/biz/ - Business & Finance

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9497120 No.9497120 [Reply] [Original]

Why should the supply of a cryptocurrency be artificially capped?

It makes no sense to have a digital asset that is supposed to be decentralized, that excludes new players and/or concentrates mining power in the hands of a few companies by implementing methods of artificial scarcity (increased mining requirements and/or a hard currency cap).

The only thing I can figure is that the design is to privilege early adopters, hence crypto is a borderline ponzi scheme.

Bonus question. Are there any currencies with either a stable mining mechanism (in terms of constant energy etc. needed), or an infinite amount of mineable tokens, or both? If I understand Monero correctly, there no limit to the amount of XMR that can be created.

>> No.9497125

True, why don't we allow everyone to print more money? Money shouldn't be hardcapped.

>> No.9497126

>>9497120
enjoy your inflationary cryptos, kek

>> No.9497130

There's nothing borderline about this ponzi scheme

>> No.9497136

>>9497125
Inflation is a property of the value of money, which is related to the supply but not the same thing. It is possible for the money supply to grow and yet have no inflation (indeed, deflation).

>> No.9497189

>>9497136
I know.
And the point of crypto is to be deflationary to start the golden bullrun.
Real world value increases, money supply stays the same > deflation and happiness all over except at the Rothschild office.

>> No.9497197

>baby's first foray into economics
read more

>> No.9497215
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9497215

>Deerrrr what is incentives? Why would someone run a node for free?

>> No.9497234

crypto is tactical bagholding

>> No.9497317

>>9497120
If it was a ponzi scheme then a bunch of people would endlessly shill it trying to find bigger idiots.

>> No.9497322

Decentralized curency is incompatible with current financial systems for good reason. It is made to imitate precious metal, but also to remove ownership of money from centralized agencies back to individuals. Ask yourself.. if gold serves as a store of monetory value as it has done for a very long time, and it has only ever gotten more scarce, and the world population has only ever increased...then why is our money decreasing in value?
The collective we have been the slow boiling frog for many generations. Even our economies are designed around the fact that our moneycan be diluted again and again to the benefit if an elite few. Theese agencies don't like something, they simply outlaw it. They want to rob you blind, they simply make it legal and there is nothing you can do about it because your money does not belong to you.
This is not okay, man. Inflation is only the property of money because that is how this cow can continued to be milked.
It should be either deflationary in value or relatively stationary, neither of which is compatible with current economic ideals. Big things are coming if the decentralized crypto ideal does not die. What a time to be alive.

>> No.9497343

XLM has infinite supply in essence, since every year 1% will be added to total supply (as "inflation")

>> No.9497371

>>9497322
Gold has continued to be mined at like 1% inflation per year. Gold can continue to be mined out of the oceans or produced in expensive nuclear reactions if it becomes expensive enough. Bitcoin is nothing like gold with respect to supply.

>> No.9497445

>>9497120
There is a limit to the amount of Monero that can be created. There will only ever be a certain amount created per period of time. The rate is known and predictable and cant be gamed by jews. Hyperinflation is impossible.

>> No.9497477
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9497477

>>9497317
>what is /biz/

>> No.9497497

>>9497317
people ARE endlessly shilling it trying to find bigger idiots. just like the stock market

doesn't make it a ponzi scheme though

>> No.9497508

>>9497343
Who gets that 1%? Every wallet in existence?

>> No.9497528

>>9497234
>crypto is tactical bagholding
underrated

>> No.9497544

Stocks are similarly limited. There's presales and all the jews get first picks at cheapest prices to later dump on you.
This isn't that different.

>> No.9497557

>>9497508
Yes, including over 80 billion token not yet distributed (originally there's only 100B XLM, now there's nearly 104B XLM)

>> No.9498272

>>9497136
>Inflation is a property of the value of money
AHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

>> No.9498548

>>9497120
monero has a very slow linear increase after some point. I don't want go into details, but a stable currency should not be deflationary.

>> No.9498572

>>9498272
I can always tell someone is retarded when they just reply with an exaggerated, condescending laugh instead of explaining what they believe to be the correct answer

>> No.9498630

>>9497136
All else being equal, expanding the money supply leads to inflation. That’s literally one of the core theories behind monetary policy.

>> No.9499770

>>9498630
All things are not equal in real life. If the value of goods and services grows faster than the money supply, deflation occurs.
>>9497120
“Cryptocurrency” is a misnomer. The reality is it very unlikely any crypto existing today will be used as a means of exchange. If they were, yes, you don’t want a hard capped supply. However, the real value and future use cases of these monopoly monies would be better termed “crypto assets” as they serve a purpose of incentivizing participation in a network, and ownership represents ownership of a piece of that network. In other words, the crypto that still have value 10 years from now are all fucking securities. So let’s stop playing this game of being afraid whether they are or not, they just fucking are

>> No.9500707

>>9497120
>using a straw to drink out of a water bottle

>> No.9500735

>>9497120
ur dumb

>> No.9501572

>>9497120
>Why should the supply of a cryptocurrency be artificially capped?
So the Ponzi always goes up?

>> No.9501592

>>9498630
The supply of money needs to be expanded proportionally to economic growth for a currency to be stable and usable.

>> No.9502266

>>9497317
>If it was a ponzi scheme then a bunch of people would endlessly shill it trying to find bigger idiots.
Keep thinking anon, you are on the right path