PivX is inflationary so why shuld you buy it?

[_Arnold_]

Hi

I wonder why people want to buy PivX when this crypto is inflationary?

I think the inflation rate was something like 5% a year or so.

The whole idea with a cryptocurrency is to have a limited amount so why would anyone buy PivX?

Also, what are some good exchanges, if I want to buy this currency? (secure and trustworthy)

[bathrobehero]

Hi

I wonder why people want to buy PivX when this crypto is inflationary?

I think the inflation rate was something like 5% a year or so.

The whole idea with a cryptocurrency is to have a limited amount so why would anyone buy PivX?

Also, what are some good exchanges, if I want to buy this currency? (secure and trustworthy)

5% yearly is nothing in crypto. Most coins swing that much in a day.

And even without fluctuations the 5% inflation would be offset by 5% more investors and it's safe to say that investors are growing much faster than that.

[_Arnold_]

Ok, fair enough.

But why don't they just do it like Dash, or BitCoin, and keep a limited supply over time?

I mean it is possible to split it and then not loose value and at the same time let new investors in.

Also, can someone explain what a mesternode is and what staking is in really easy terms.

I have heard that a masternode is a computer. So if I buy the right amount of Dash or PivX is that going to get me a masternode? Am I(and my computer) then the masternode, or do I just pay for someone to act as a masternode somewhere else?

And when I have a masternode do I have to do anything? I am not very keen on doing something with my computer. I just want to hold the coins and do nothing. Not mine it or anything. Just hold it and look at the chart once in a while.

[Fantum]

Ok, fair enough.

But why don't they just do it like Dash, or BitCoin, and keep a limited supply over time?

I mean it is possible to split it and then not loose value and at the same time let new investors in.

Also, can someone explain what a mesternode is and what staking is in really easy terms.

I have heard that a masternode is a computer. So if I buy the right amount of Dash or PivX is that going to get me a masternode? Am I(and my computer) then the masternode, or do I just pay for someone to act as a masternode somewhere else?

And when I have a masternode do I have to do anything? I am not very keen on doing something with my computer. I just want to hold the coins and do nothing. Not mine it or anything. Just hold it and look at the chart once in a while.

Probably increasing supply to stablize the price over time, so new users will still want to get in, the coins is still useable for everyday transactions.  There is probably a maximum supply which will be reached in like 20-50 years. Usually the staking rewards go down over time.

When you have a determined amount of coins in your wallet, open all the time, it is connected to the network. Every time sends a coin they pay a fee, your masternode confirms the transaction and gets the fees as reward. You don't have to do anything other than have your wallet open all the time. You can still get rewards for having less coins than a masternode, but is very small.

[bathrobehero]

Ok, fair enough.

But why don't they just do it like Dash, or BitCoin, and keep a limited supply over time?

I mean it is possible to split it and then not loose value and at the same time let new investors in.

Also, can someone explain what a mesternode is and what staking is in really easy terms.

I have heard that a masternode is a computer. So if I buy the right amount of Dash or PivX is that going to get me a masternode? Am I(and my computer) then the masternode, or do I just pay for someone to act as a masternode somewhere else?

And when I have a masternode do I have to do anything? I am not very keen on doing something with my computer. I just want to hold the coins and do nothing. Not mine it or anything. Just hold it and look at the chart once in a while.

The great thing about PIVX is that anyone can submit proposals to the network and PIVX owners can vote on said proposals and so far every winning proposal have been developed by the dev team. So, in essence you could propose to eliminate the inflation but chances are it won't be voted in - at this time. Or, who knows.

And yes, masternodes are very simplistically speaking are like staking wallets but with more rewards than simple staking wallets. But then again, you can only have 10000 PIVX per masternode (no more, no less) unlike staking, where you can stake any number of coins.

[_Arnold_]

Okay

What do you guys mean by keeping the wallet open all the time? Can I still turn of my computer when I do this?

Or what do you mean by that? If a masternode costs me 10000 PivX and I buy one.. I then have to have my wallet "open" all the time? What happens if I close it? And what do I have to do to close it?

And what is staking? I mean, I just want to hold coins and see them appreciate in value. I don't want to do anything painful that smarter computer-guys are able to do.

What happens if I only buy coins to keep it in my wallet. Is this called "staking" also? or is that just called "holding" your coins or something?

I am confused over these terms.

I mean, maybe I lose out on some big reward by not masternoding/staking and if it is not too much work I want those services as well. But maybe it involves a lot of complexities? And then I just want to hold the coins and forget about them for a while.

[bathrobehero]

Okay

What do you guys mean by keeping the wallet open all the time? Can I still turn of my computer when I do this?

Or what do you mean by that? If a masternode costs me 10000 PivX and I buy one.. I then have to have my wallet "open" all the time? What happens if I close it? And what do I have to do to close it?

And what is staking? I mean, I just want to hold coins and see them appreciate in value. I don't want to do anything painful that smarter computer-guys are able to do.

What happens if I only buy coins to keep it in my wallet. Is this called "staking" also? or is that just called "holding" your coins or something?

I am confused over these terms.

I mean, maybe I lose out on some big reward by not masternoding/staking and if it is not too much work I want those services as well. But maybe it involves a lot of complexities? And then I just want to hold the coins and forget about them for a while.

Holding is just basically not selling your coins, long term investing.

Staking is when you have any amount of coins in your wallet which you're running 0-24h and get rewarded for it for currently ~2 PIVX per staking reward. The frequency of these rewards depends on the amount of PIVX you have in your wallet. If you close the wallet or turn off your computer you stop staking (and stop getting rewards).

Masternodes are very similar but they have to have a set amount of PIVX but since they're not just simple nodes (=running wallets) they earn a bit more than staking.

Masternodes are usually hosted on servers designed just for this purpose so that you don't have to run your computer 0-24h. You just run your local wallet to control the remote masternode. You can (and should) run masternodes safely, meaning that if the server were to get hacked you don't lose your coins.

As far as I know you can't stake coins like that remotely so it would be risky to stake them on a remote server so people tend to stake on their own computer or an old laptop running 0-24h, etc.

[_Arnold_]

Okay

So staking is really when you have pivX-core up and running on your computer?

What happens if you turn off the computer and thereby PivX-core? Will that shut you off from staking forever? Or will you automatically begin staking again the next time you turn on your computer and turn on the PivX-core-application?

Also, I am new to this whole idea of encrypting a wallet-application. If I encrypt my wallet-application does that mean I am no longer able to stake or does it stake even though it is encrypted, as long as it is running on the computer?

How do I know if I am staking? Can I see that in the application or something? Is it a certain amount of coins I need to be able to stake and does the staking then begin automatically, after I have gotten that amount?

Also, with PivX, could you say that the private key is really the password you use to encrypt your wallet application? Since you cannot open the private key(backup dat-file) without the password? So really the private key is the password, or the most important thing to not forget?

[_Arnold_]

Also. I heard PivX has solved a few problems that Dash was wrestling with. Could someone explain what problems they have solved that is different from Dash?

[Logan.Amber913]

Also. I heard PivX has solved a few problems that Dash was wrestling with. Could someone explain what problems they have solved that is different from Dash?

This is a great question and I'll do my best to answer it here.

Dash uses Masternode system which has grown to become quite expesnive. These leads to voting power being held by those with the most money which is truly a libertarian nightmare. In steps PivX to change this up with a simply yet awesome algorithm. PivX essentially incentives those with the biggest master nodes and most voting power incentives to give up their coins thus diversifying power. They also do not have a supply cap on their coin production which has been a critique of bitcoin for some time.

[B1tUnl0ck3r]

Probably increasing supply to stablize the price over time, so new users will still want to get in, the coins is still useable for everyday transactions. 

Thanks for this great post!

First don't forget that the new coin supply is constant while the total stock of currency is growing with the new coin supply. Which means that the rate of new coin supply decrease relative to the total supply overtime.

Simply put the percentage of new coin decrease logarithmically with time relative to the coin supply.

Then this increase in coin is absorbed by some :

1. stakers, who keep their staking rewards to compound their staking power.
2. same for masternode users
3. the budget coin (10%) of the supply can be kept too.

to compare btc supply increase of 12.5 btc every 10 min, 1800 per day. @6000$ it means 10800000$ needs to buy it per day to maintain price.

pivx has 5 pivx every 1 min, 7200 pivx per day @3.5$ it means 25000$ needs to buy it per day, but as you understand that most of the new supply is kept by the stakers and masternoders it means that way less is available each day to buy. 

Then don't forget the energy/asics expenditure... pos is way more efficient to run.