Gold has value by itself as its used to do stuff and so its value is derived by the fact it has value by itself and its limited amount, bitcoin have value because people believe (because of its features, like half of the remaining coins being mined every 4 years) that it will have monetary value.

The main idea of bitcoin is that it doenst believe at the "print enough money and spend it to make sure we are always 100% sure price inflation is happening" OR "make a tax everyone must pay to make sure they always lose money (instead of value like the previous idea) if they save it", that makes society shitty by not allowing people to save (unless they are ultra rich)

Without that bitcoin is bullshit, the idea was not electronic cash, its just a thing needed to make the previous happen.

The block size and reward would be reduced by 2x (or multiplied by 0.5), and halving time amount of blocks (to halving still happen every 4 years, despise faster blocks), this to not increase the speed the blockchain increases and not change the reward dinamics.

What would be the implications of reducing blocktime to 5m, while also reducing the size and reward by 2x.
The amount of blocks needed to have the halving would be increased by 2x, so they still happen every 4 years at average.

As I explained before, you could also allow users to send coins to some place that will be given back miners as fee, but this would require replacing proof of work with that (or using it together with proof of work).

TX is send to the system (at all coins or almost all coins, back to next miner) not to the wallet of the person you send the coin.


I dont really understood it, this means it works like proof of burn, or it means you can "send the transaction fee", without actually sending a transaction and so its basically proof of burn that instead of being frozen the coin goes back to the next miner?

Does fracional reserve banking alone, enought to cause with 100% certainty, price inflation?

Because if yes, just printing X coins per Y minutes and halving this reward after Z year/months (or premining and distributing like NXT), is not enought to make sure price inflation not happen with 100% certainty like it happens with the state.

Normal currencies are inflationary in a way there 100% chance of price inflation to happen, this is not true with bitcon.

This would also not work (assuming other people still leave their money at exchanges), this because fractional reserve bank sort of create new money of thin air, inflating the currency, and so mess with even those without money at banks or exchanges.

Are you talking about the fact their chivo wallet is fractional reserve banking? The fact, they use bitcoin they dont have to give those starter 30 dollars to people?

This can be tested with el salvador, since they use bitcoin.

They are giving I Owe You papers not numbers, this "I Owe You" paper MUST be paid if requested, the thing is that by losing money they because of demurrage, they lose the power of give people their "I Owe You" .
If you put 10kg of gold at someone hand and he give a 10kg gold IOU, if you go there with this paper and they give you back this 10KG IOU, they WILL give to give 10KG gold back to you.

Also, you wouldn't do it with already existing coins, and if wanted to be done with already existing coin you could do some fork of a existing coin you want to implement this feature at.

By having demurrage, X% of all coins go back to be mined each block, and at each block each wallet give back to be mined Y% of X% of all coins (rounded up always) where Y% is based at the percentage of the total coins the wallet have.

Maybe this would make harder for a company or bank to do fractional reserve stuff, because their wallet would have tons of coins and so have a huge percent of the total coins and so their value of Y will be big and they will lose tons of coins over time.

By losing tons of coins over time, they reduce the amount of real coins they have to give back to people. Fractional reserve banking usually works, because the amount of people wanting their money back is usually just a small percentage of the total real money they have, but with this demurrage idea as they continue to lose money this amount of people that want their money back at a given time will become a bigger and bigger percentage of the bank total real money.



This idea has just one problem, you now have demurrage, a thing that, like printing enought money to make sure price inflaiton has 100% chance to happen (the monetary inflation done by the state), is a HELLISH thing.

Those two arent the only ideologies that exist.

Some type of anarco primivism, there is no state everything is done by yourself for yourself, without trade, selling, buying, sharing, renting, working for someone else, lending, stealing.....
This one would not work too. Dont ask me how births would happen here.

There is also anarco tribalism, there is not state and everything is done by the tribe for the tribe, without trade, selling, buying....... between tribes, BUT you can leave a tribe with someone else to create your own tribe somewhere else. Or leave the tribe alone to create a one person tribe.
This one wouldnt works too. It would be impossible to make a tribe not trade with other tribe, or give something to another tribe for free, or steal from another tribe, or wage war with another tribe...... without having to mess with those tribes to stop them from not being ultra isolationist.

There is another ideology where you have no state, and everything you do you can keep yourself or send to a place X, if you send to this place you receive labour checks, those are like money with those changes, the amount of labour check you receive is ONLY based at the amount of time you spend creating the item, this labour check can only be used once and can only be used by yourself. You must buy stuff from this place X and the cost of it, is the amount of price someone used to make the thing.

The last one I will post about here is like the previous one, but means of prodution are collectively shared.


I am not saying any of those ideologies works, I am just posting them to show that communism and capitalism arent the only two economical ideologies that were proposed by people, you dont need to have communism to be able to not have capitalism or have capitalism to not have communism.

Isnt el salvador chivo wallet, fractional reserve style wallet as long you are trading from chivo wallet to chivo wallet?
If that is true (the fractional reserve stuff would be used to give people their 30 dollars in BTC at chivo wallet, they are giving people to make sure they try it), people already accepted fractional reserve.

The bank or whateaver lose money (like everyone else) with the demurrage and reduce the amount of money they have with itself to give back to people when they request "their money" back.

Fractional reserve banking type of things can be done with fungible items. Is there any change to bitcoin (or bitcoin style crypto) that would make fractional reserve banking or something else, impossible or harder to exist?

As some example, would Demurrage make it harder to happen?

EDIT: Reposted the question from wikipedia ( https://en.wikipedia.org/wiki/Wikipedia:Reference_desk/Humanities ) because I saw it would be a better place to ask those questions.~~~~

A JOKE solution is quickly get your money and spend everything into food and eat this food you brought.

Imagine a bag full of popcorn, this bag full of popcorn has a price, now imagine magical bag that has popcorn inside it, and as you eat this popcorn new popcorn start to magically appear inside this bag. This second bag have will be more expensive.

This means that the price of a non-magical bag full of popcorn already take into the fact that this item is a consumable.

By spending all your money into food and quickly eating it, you make sure you dont lose value by your money losing value, because you throwed this money at someone else lap, and the thing you brought dont lose value because its a consumable and the price of the thing is already influenced by it.

The reason is simple, ALL (or 99% of) state economists believe (or say they believe) that making sure people can't save money is the right thing to do and they print enought money (and use it) to make sure price inflation WILL happen (this is called monetary inflation) or create a tax everyone with the money will NEED to pay (this is called demurrage).

Almost every single altcoin dont have both ideas, with few exceptions like freicoin that has demurrage or stablecoins that are stable based at a monetary inflation fiat coin and so will have the same problems at the fiat itself.

Tons of people hate the previous ideas and since crypto dont have it they go for crypto, they are ok with even losing their privacy to not use a coin with previous features.

Countries make 100% sure price inflation happen by printing enought money and using it, but price inflation can happen without government help. NXT a 100% premined coin has inflation when compared with dollar despise no new coin being printed. Not only that, dollar already have price inflation because of previous said things at this post, so not the inflation is even bigger at NXT.