If demand for currency is larger than supply, modest inflation turns into deflation. If you check inflation rates for BTC and LTC for the next few years, they are comparable to DOGE's 5%.

The correlation with BTC price is not 100% with different cryptos, we can observe that in the xxx/btc exchange rates.

Personally I converted all my LTC to DOGE.

Technically (scrypt algo) both are the same, but DOGE has 2 big advantages: a) fast growing community with a friendly attitude towards newbies, resulting in a credible and friendly face of DOGE crypto to an average joe user; b) large number of coins, which makes users of DOGE spend them easier than LTC, which in turn puts DOGEs into the hands of even more users, who generate more useful services and websites that accept DOGEs and this cycle repeats again and again, as a result community on reddit will soon reach the number of bitcoin reddit users.

One thing you should keep in mind, in 2014 cryptos' development and adoption rate is becoming X times faster, what took 2-3 years for LTC to develop in terms of network and community DOGE did in 2-3 months.

5% inflation rate after all 100 bln DOGEs are mined is nothing, because adoption rate can generate too much demand to care about that modest inflation. Just look at the price appreciation now, when DOGE has 5% a week inflation rate! Besides, if you check the inflation rates for LTC and BTC for the next few years, those are comparable to DOGE.

LTC was a buying opportunity while the going was good back in October-November, but now DOGE is the new scrypt coin in terms of maximum appreciation potential. DOGE could be replaced by something else, who knows, can't predict anything in cryptos for more than a few weeks, months at most, just look at what happened to BTC in the past week with all the FUD going on, can't make plans for years, it's all new technology and leaders become losers very quickly.

Oh, and emotional attachment to any investment leads to losses. So if you hold an investment and it has lost 50%, it's time to re-assess your initial decision to invest in it.

PhantomPhreak,

can a matched order in 'awaiting payment' status be canceled without waiting for payment to be released?



I've also noticed a nuisance bug - Insufficient bitcoins at address, when making an order, 0.0003172 BTC is needed, but there is 0.001 in the wallet.

counterpartyd balances xxxxxxxxxxxxxxxxxx    reports 0.0 BTC.
Shouldn't it be more precise in reporting and calculating balance?

Can a matched order in 'awaiting payment' status be canceled without waiting for payment to be released?



I've also noticed a nuisance bug - Insufficient bitcoins at address, when making an order, 0.0003172 BTC is needed, but there is 0.001 in the wallet.

counterpartyd balances xxxxxxxxxxxxxxxxxx    reports 0.0 BTC.
Shouldn't it be more precise in reporting and calculating balance?

That's what I am talking about. If there is no solution, all these apps and promotions is a waste of time.

If it's a problem, and there is no solution, sooner rather than later this will be used by competition to shut down NXT network. Alias and AM features should be disabled until solution is found.

I know what the initial discussion was about. But there are other aspects to it, and I chose to discuss those that were not yet discussed, which you happily replied to and now you suggest we don't go on with that? Sure, I don't mind, we can quit right here, if you're out of arguments.

BTC is also backed by nothing, that's true, but BTC has no liabilities behind it, and that's a big difference. However, BTC has other disadvantages, which I won't mention here. I agree that governments wil try to tax trades done in BTC, no reason for them not to.

If you live on the same planet as me, reserve currency (the one that international trade is settled in) of this planet is still USD (although there's been steps by other countries in the last 2 years, especially China, to move away from USD), which is a fiat currency. We don't need to theorize here of what reserve currency can or cannot be. We're talking about what it is now. USD, which is a reserve currency of this planet, is fiat now, backed by nothing, unless you count aircraft carriers, of course.

By the way, I didn't say what you quote me to say, it was someone else. And I never said everyone will use BTC only to trade, because that'd be utter nonsense to say. Cryptos will have their place as supplementary currencies, but I don't believe they will ever be universally accepted, or even by any significant number of people.


For all practical purposes depreciation of reserve currency that other fiats are pegged to in one way or another = price inflation of goods, both in that reserve currency and pegged local fiats. Again, if you ever did groceries, especially over the past 2-3 years, you'd notice either higher prices or smaller packages per serving for the same price.

That would be one super duper episode, been watching South Park since 1999, never get tired of it.

So far in history we've only witnessed cases of certain countries' currencies going to dustbin and resurrected with the loans from international financial organizations willing to provide those loans to countries, but what I am talking about in my previous post is the situation when the reserve currency itself is going to dustbin, who would back up other countries' currencies then? That's when your fiat wouldn't buy you a cabbage, actually you might even get your face punched for offering to pay in fiat for that cabbage

I don't even want to comment on your 'responsible central banks' phrase, it's too funny, I wouldn't know where to start.


It's actually been decades now that the reserve currency has been depreciating in real purchase power terms, since Nixon canceled the Bretton Woods system in 1971. Since then all currencies have been living on borrowed time.

When I said 'a few years', I meant the final accelerating hyperinflation period, when hyperflation becomes noticeable to everyone, who goes shopping for groceries.

You're right, but only up to a point where fiat currency becomes worthless that nobody cares about it any more. This takes a few years usually when one country is involved. How long it'll take when the whole world is printing like crazy, who knows, but it'll be epic, especially since now the reserve currency (USD) is suffering from this disease. Hopefully by then cryptos have become an established alternative to save in. There'll be few sellers then who will be accepting fiat for their cabbage or potatoes, and each day they'll want more of that fiat. Not all of them will accept cryptos either, by the way.

History shows that debt problem is almost always solved through printing of fiat on a massive scale or, sometimes, with defaulting on debt obligations, both solutions are fatal for fiat. That's when you won't buy any cabbage for fiat. It'll be a slow and gradual process to that point though, enough time to re-group and re-adjust saving and spending habits.

There is a great novel - The Black Obelisk, that gives a picture of what can be expected when hyperinflation hits. Fascinating read, doesn't matter it's an account of an almost a century ago past events, it shows how money dies, day by day, when potatoes or cigarettes are a better currency than fiat paper.

Yep, Litecoin dead, Bitcoin dead too.

To paraphrase Zerohedge, on a (not so) long enough timeline the survival (hash) rate for every Proof-of-Work coin drops to zero. Life support will be too costly to exercise.

Just look at bitcoin/litecoin difficulty chart and see the future.
If you still don't, check out this site:
http://bitcarbon.org/introduction.html

With the difficulty rising almost exponentially, and more devices being set up for mining every day, even though they are manufactured with power savings ideas in mind, it won't be long before electricity usage of PoW mining becomes noticeable to governments. First, they will ban industrial mining. They can't ban household mining, true, but they can use graded pricing to restrict that.

For example, an average household electricity usage per month is 100-300 kW, they will charge N dollars per kW within that range. Everything above that is luxury, and will be charged twice or more x N dollars per kW. Mining becomes unprofitable overnight, and requires much higher price for bitcoin/litecoin to be sustainable.

Miners will either be out of business or switch to altcoins that are still cheap. But as bitcoin's destiny is known to miners and everyone, litecoin and other PoW altcoins will soon follow bitcoin's path. Because you just can't waste limited resources of the planet for something that can be done at a fraction of the PoW mining cost. What I mean is PoS coins.

Thus, 2014 will be the year when people realize that PoW is, after 5 years of running, a dying concept that paved the way for PoS coins. New era of crypto currencies begins. In 2015 PoW cryptos will be a thing of the past, history, but not something to regret about, as it was a great run, but things change.

Just in bitcoin or other cryptocurrencies as well you're asking? It makes sense to diversify, there are other alternatives in the cryptos world. As for alternatives in the real world right now, I don't see many. But don't invest all in cryptos, that'd be stupid too.