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Title: Could a dynamic coin ever be invented? Post by: blade87 on December 09, 2013, 11:19:10 PM I thought about a coin based off two needs :
1) One that could be treated forever as the "loose change", like pennies, nickels, dimes and quarters. 2) Stability relative to fiat in the crypto market. My belief is that such a coin could only exist if it could dynamically "update itself". There would be no limit to how much of this coin that could be mined in total, but instead an algorithm that determines how much of this coin is allowed to be released into at any given interval of time. This amount could be based off the BTC and LTC market caps in USD value. Like right now for example, if this coin were to exist, tons of them would be getting pumped into the market by miners to prevent them from going parabolic or even experiencing a pump and dump. Even though they wouldn't be able to rise in value relative to fiat, miners would still be profiting because they'd be obtaining more of them. Think of it like "reverse difficulty". To expand on points 1 and 2, whole purpose of such a coin wouldn't be about "claiming bronze" after BitCoin (gold) and LiteCoin (silver). It would be about creating the absolute lowest denominator of the crypto market, and having it stay that way. This way it could turn into the stable link between fiat and crypto currency. So that people could transfer into crypto currency and hold their position there without worrying much about price movements. I call it... "UnitCoin". And the symbol is simply a "1". :D What do you all think? Sorry if something like this exists or is in the works. Outside of mining LTC for a few months I'm still a noob to the crypto market. Title: Re: Could a dynamic coin ever be invented? Post by: weisoq on December 09, 2013, 11:30:09 PM Would work brilliantly, until I come along willing to trade at +/- 1 the rate because I think value != price and you have a market, or a blackmarket and the algorithm is perpetually chasing shadows.
Title: Re: Could a dynamic coin ever be invented? Post by: GameKyuubi on December 09, 2013, 11:31:29 PM That would be extremely difficult, as the only thing that drives the price between fiat and crypto is how much someone is willing to pay. If you want to force a price on a coin, the implementation of that would be in the exchange where it's traded, not in the coin itself. It doesn't seem possible without centralizing it.
Title: Re: Could a dynamic coin ever be invented? Post by: halvoraarud on December 15, 2013, 06:33:45 PM You can't force a price, that is true. However it is possible to control the rate of the all coins, so that you inflate all coin holdings in order to keep the value down. Take a look at:
https://docs.google.com/document/d/1302Fb5BpgTRS2P-snN4ys5JR3l8QU2QhpncldAYaXfM/edit#heading=h.egoezr18ldj9 Let me know if you wanna discuss it further. HA |