First of all, I am concerned about the stability of a decentralized coin, what kind of method will you use to keep it stable? I guess it will not be like any other stablecoins, which makes it more useless. I appreciate your work, but instead of losing money, the majority risk losing their identity. So the importance of decentralization is not much, money is more important factor.
Bitflate is an experimental coin. There may be no market for it. I have similar concern about its price stability. It inflates at 7% and rely on the market for price. But I speculate that the market will give it a somewhat stable price. With system design, there are always tradeoffs. We have two polars: Centralized and Decentralized. There will be markets for different cryptocurrencies. When we swing in either direction, we have to make tradeoffs. This is why I think there is a market for Bitflate. It's filling a gap. I suggest to think of Bitflate as a choice. We know supply inflates at 7%. We may have Bitflate saving account that pays 3-4% interest. Its price won't fluctuate as much as Bitcoin. We can keep most of our saving in Bitcoin and use Bitflate for small transactions. The choice is ours. |
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It is a bit confusing to think about stablecoins. There are many proposed solutions. There are always constraints in every design. I think it's useful to visualize them on a spectrum. On one side, we have fiat (e.g. USD). On another side, we have Bitcoin. We're trying to bridge the gap between them. The closer we are to fiat, the more centralized we get. The close we are to Bitcoin, the more decentralized we get.
Fiat <==> Bitcoin
Centralized <==> Decentralized
I would put Tether and existing stablecoins close to Fiat and Centralized. Libra is a little more decentralized relative to Tether because it's operated by the Libra Association. I'm working on Bitflate which I think is closer to Decentralized side.
In each design, we have tradeoffs. There is no design that will satisfy all constraints. For example, we can't get both very stable 1-1 and decentralized. I think Bitflate design can get us to somewhat stable and decentralized. Here's how I would place cryptocurrencies on the spectrum.
Fiat <==> Bitcoin
Centralized <=> Pegged/Centralized Stablecoin (Tether, USDC) <=> Semi-centralized Stablecoin (Libra) <=> Decentralized Stablecoin (Bitflate) <=> Decentralized
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I'm doing a dive into differences of stablecoins. I wrote an article comparing the design of Bitflate and Libra. Different designs yield tradeoffs. Original post: https://bitflate.org/post/2019/10/22/building-stablecoin-bitflate-vs-libra.htmlBitflate is a cryptocurrency with a constant inflation of 7%. It’s designed to be a digital native and decentralized stablecoin. Price stabilization is done through inflation. Libra is a cryptocurrency backed by Facebook. It is managed and operated by the Libra Association, a membership organization of companies and organizations. In this article, I compare Bitflate and Libra. I also rate the advantages of each cryptocurrency. These ratings are my personal opinion. PermissionBitflate is a permissionless blockchain. It is a fork of Bitcoin. Bitflate uses Proof of Work. Coins are generated through mining. Anyone can download the client and verify their transactions. The software is open source and can be compatible with other open source software. Libra is a permissioned blockchain. Participants need to ratify Libra Association charter and pay membership fees. Users probably will need to go through an intermediary agency to interact with Libra. I think decentralization is a major innovation of cryptocurrency. People are in control of the currency and can independently verify the system themselves. For Permission, I rate: Bitflate wins.PriceBitflate is a decentralized blockchain. It will inflate 7% per year. The reward and schedule is fixed. We won’t be able to change the coin supply. Its price can be volatile. Although inflation will cause price drop, I predict price would become stable as demand increases. Bitflate price will not be completely stable, but somewhat stable. Libra is backed by financial assets to avoid volatility. The Libra Association will be able to control its price relative to other assets and currencies. For Price, I rate: Libra wins.Energy UseBitflate makes use of Proof of Work. So it will consume energy through mining. Libra is governed by the Libra Association. So it will not need mining and consume energy. For Energy Use, I rate: Libra wins.DecentralizationBitflate is decentralized. Blocks are produced every 2.5 minutes. Rewards are known ahead of time. The Libra Association is a consortium of companies and organizations. It is a central authority of Libra. But it is somewhat decentralized as members can vote through its charter. So Libra is somewhat decentralized. I call this model semi-decentralized. For Decentralization, I rate: Bitflate wins.Regulatory RisksBitflate is decentralized and digital native. It is governed by consensus similar to Bitcoin. There is no central authority. It can work across border. It is accessible to users anywhere. The Libra Association is the central authority of Libra. It is founded and headquartered in Switzerland. I think its backers understand regulatory risks. They are sorting through these mundane issues. Governments in Europe and the United States already applied regulatory pressure on the Libra Association. For Regulatory Risks, I rate: Bitflate wins.Mainnet (as of October 2019)Bitflate is live on mainnet. Miners have been producing blocks and processing transactions. The network expects to reach 50k blocks and 2.5 million coin supply. You can buy Bitflate on exchange. Libra is facing regulatory pressure. On October 15, 2019, 21 initial members signed the Libra Association charter. But this is only the first step. Libra mainnet launch is not going to happen in the near future. For Mainnet, I rate: Bitflate wins.ConclusionI think Bitflate and Libra are two categories of stablecoins. Each comes with their own advantages and disadvantages. However, they can both be beneficial to users. I hope both will succeed. I am optimistic and look forward to being able to use these currencies in the future. |
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I think that you are doing a good job but you need more widespread for your coins and let me tell you a very easy way to reach more people,start a signature campaign and pay participants by Bitcoin (equal in Bitflate) so if you pay Full Members 0.002 btc weekly you will pay them the equivalent in bitflate.The reason I say to pay in Bitcoin equivalent is to get more people to join your signature.
This is a good project but alone you can’t go very far no matter how good you are.
Thanks for the suggestion. Running a decentralized blockchain makes me realize how little we can control the world. I made the software, started the chain. But I only have a minor amount of the coin supply. Miners and others are holding most of the coin supply. It's difficult to align incentives. So far, I have been able to ask for donation for exchange listing fees. Currently, I see some miners want to sell their coins at good price (> 10 sats per BFL coin). There may be a way to get them to pay you BFL coins in exchange for signature. Feel free to join Bitflate Discord channel to advertise your service: https://discord.gg/utnEyp8 |
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Thanks. I sure need a lot of luck.  Yes, Bitflate is an experimental coin. I pitch Bitflate as Bitcoin with constant inflation. I think it is a good candidate for a digital native stablecoin. It has a 7% supply inflation after 4 years of halving. By design, Bitflate coin bag will devalue over time. Bitflate is not digital gold. It's not for HODL. Everyone will dump Bitflate at some point. Bitflate is, by common definition, a shitcoin. It is probably the ultimate shitcoin. It is the opposite of Bitcoin. But maybe, this is why it has a chance of succeeding. Although the chain inflates at 7%, we should be able to compensate depreciation with interest. Bitflate could become a coin for transactions. It's year 2019. I'm trying to fork Bitcoin. Forking has been done so many times and pretty much all failed. I'm aware of this. Running Bitflate has been a humbling experience. But I think cryptocurrency market needs a coin like this. With Bitflate, there's no limited supply, no Austrian Economics, no programmable blockchain, no world computer. Inflation encourages people to spend their coins. No trick, no gimmick, just plain old Proof of Work cryptocurrency.You can buy BFL on Unnamed Exchange. Use with caution. https://www.unnamed.exchange/Exchange?market=BFL_BTCJoin our discord community: https://discord.gg/utnEyp8 |
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actually bitcoin's limited supply is not about its price and the deflationary characteristic that it creates is more of a side product rather than being the main thing.
the real reason for a limited supply, as the name suggests, is to keep the supply "limited" or in other words in check. so that (unlike fiat) it can not be printed out of thin air and every time someone wishes! that keeps a clear plan and expected outlook for the supply.
I think your interpretation of Bitcoin limited supply is a bit light. Bitcoin really has a final limited supply. But I speculate that Bitcoin eventually will add some low inflation rate to its supply, maybe, 1%. I think gold supply inflation is 1.5%. By that definition, Bitflate constant inflation is also considered limited supply. It generates 7% more coins every year using Proof of Work. It's not printed out of thin air. Reward 0 - 50 1 - 25 2 - 12.5 3 - 6.25 (end of halving) 4 - 6.56 (start of inflation 7%) 5 - 7.02 6 - 7.51 7 - 8.04 8 - 8.60 9 - 9.20 10 - 9.85 ... 30 - 38.11 New Coins 0 - 10500000 1 - 5250000 2 - 2625000 3 - 1312500 4 - 1378125 5 - 1474594 6 - 1577815 7 - 1688262 8 - 1806441 9 - 1932892 10 - 2068194 ... 30 - 8003258 Bitflate Inflation Table: https://docs.google.com/spreadsheets/d/e/2PACX-1vQueAgcI5ZyqkeFe6qcx7kaAsXJxZD-iZF2eLgduvlkwSl60qB0vN8-VlF2PJ-JFgvRZlUVzBdk8qSO/pubhtml |
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Bitcoin was initially designed to be both.
But thanks to the wisdom of blockstream and their small block 'theory' it's become a settlement layer.
It's easy to blame. We have BCH and other chains with big blocks. They can do as many transactions as we want. We've been focusing on the wrong problems. When you have limited supply and SoV, people hodl. Join Bitflate community: https://discord.gg/utnEyp8 |
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I posted this article in Altcoin Discussion. It's related to this discussion. Original post: https://bitflate.org/post/2019/10/10/the-next-big-thing-in-crypto-using-inflation-to-create-stablecoin.htmlThis is my view of the next big thing in crypto. Bitcoin is digital gold. It has a limited supply of 21 million coins. Therefore, its price fluctuates. Stablecoins are cryptocurrencies designed to avoid price volatility. Existing stablecoins are issued by centralized authorities. This mechanism defeats the ethos of cryptocurrency. In order to access decentralized cryptocurrency, we need to rely on centralized authorities to issue digital stablecoins. A New Look at InflationCryptocurrency has started and become successful by embracing Austrian Economics. Bitcoin’s limited supply means every person on planet Earth can only own a small fraction of a bitcoin. When Bitcoin reward reaches 0 around year 2140, there will be no coin. If there is still demand for Bitcoin, its price will be: buyer demand / supply = infinite. How do we address this conundrum? There is currently no easy way. For cryptocurrency to gain adoption, we can’t have a money system with limited supply. That is not how the world works. Even our universe inflates. To solve this paradox, we need to explore the role of inflation. People lament about inflation robbing your purchasing power. But historically, economies tend to grow with currency inflation. It is hard to find past record of economies thriving with deflation. Inflation is bad when it is high and/or when money is printed without people’s knowledge and approval. Otherwise, it can be a force for growth. With cryptocurrency, we can design a currency with a known and deterministic inflation rate. Deflationary versus InflationaryEconomies always have deflationary and inflationary assets. People often overlook this. Gold, real estate, moat, competitive advantages are some examples of deflationary assets. Inflationary currencies serve as a medium of exchange. They are used for transactions. Bitcoin was created in response to the 2008 economic crisis. It exists and thrives because of quantitative easing, a type of inflating monetary policy. Existing stablecoins are inflationary digital currencies. They are pegged to fiat currencies. In the future, there will be two kinds of cryptocurrencies: deflationary and inflationary. For cryptocurrency to gain more adoption, we need a better kind of inflationary digital currency. Bitflate - Digital Native Decentralized StablecoinBitflate is a new kind of cryptocurrency. It is a Bitcoin fork with an inflation rate of 7% per year. In its first four halvings, Bitflate blockchain will create 19.3 million coins. After that, its supply will inflate at 7% per year. Here’s the block reward schedule for the first 10 halvings: 0: 50 1: 25 2: 12.5 3: 6.25 (end of halving) 4: 6.65 (start of inflation 7%) 5: 7.02 6: 7.51 7: 8.04 8: 8.60 9: 9.20 10: 9.85 With inflation, there will not be a pressure to push price up too high. Bitflate blockchain uses Proof of Work. It issues a deterministic and limited number of new coins. Therefore, price will not drop too low. The goal of Bitflate is to create a digital token that people can use for transactions. Bitflate price will not be as stable as pegged stablecoins. It has significant advantages: digital native and decentralized. Bitflate will be more suitable for transactions than deflationary cryptocurrencies. It opens a new gateway to financial possibilities. In this future, we, the people, are in control. PS: Bitflate is now trading on Unnamed Exchange ( https://bitflate.org/exchange/). Join our discord community ( https://discord.gg/utnEyp8) for update. |
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bitflate is the opposite side of other cryptocurrency, if another cryptocurrency is deflation, then bitflate is the inflation, complementary to balance,
This explains the idea of Bitflate well. We've only looked at one side, deflationary. There's another side, inflationary. We need better inflationary tokens. Join our Bitflate community: https://discord.gg/utnEyp8 |
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appropriate inflation for fiat money is needed,as more value created.
So if all fiat money converted to crypto asset stable tokens,inflation is obvious.
Cryptocurrencies do inflate. The first generation of cryptocurrencies inflated by hard forks. From the original Bitcoin chain/codebase, there are numerous forks. These forks increase the supply of cryptocurrencies. But hard forks have drawbacks: community building, scam, cost of security. It takes a lot of work to build up a community and secure a blockchain. It's time for us to rethink limited supply and bake inflation into the blockchain. Bitflate is a hard fork. But I didn't see another way to implement the idea. Hopefully, it'll spark the second generation of cryptocurrencies. Join our Bitflate community: https://discord.gg/utnEyp8 |
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Inflation will only push the price to the bottom if there will be no enough demand to buy
We often think of inflation in context of fiat currencies. In these systems, inflation happens for some opaque reasons. If the rate is known, we can devise ways to mitigate value loss. Bitflate reward system will inflate at 7%. Even with this high rate, it'll take almost 30 years to reach 100 million coins. If there is demand, I don't think 100 million is enough. I did read about efforts to create stablecoin using peg on crypto currencies. But I think they are too complicated. They are unlikely to work as intended. Instead of trying to engineer finance, I think we should go with a simple system: supply inflates at 7% per year. That is the base layer. We can engineer the finance on top of this base layer. |
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