What is the advatages and disadavanteges?
Considering a equal market cap for (examples) dogecoin and bitcoin, which solution is better?
That depends from the economy you want to build. If you want a deflationary economy you will like bitcoin. If you will want to build an inflationary economy you will want dogecoin. Normally the second choice would be better if not it will abused with the amount of money which will introduced in the economy. If the the overall amount of money in a given moment will be the needed one calculated considering all the factors which determine it plus an amount equal with the needed or wanted inflation then this can be called ideal economy. It is superior with the deflationary economy even from the only fact that the development of an economy need always more new monetary value which must correspond to this development. In the deflationary economy this can be solved with the revaluation of the money (being the amount limited and not have possibilities to increase the amount of those in economy). But practically this monetary policy have limits. The deflationary economy mean have more with the same amount of money. Or to buy the same amount of goods with few money. But the few have limits. For example with bitcoin cannot go under 1 satoshi. So when it will be the moment to needed to buy some good with few with 1 satoshi the system may go in collapse (if cannot be invented an unity fewer than 1 satoshi.
Anyhow the above examples take as money a digital coin money. And are totally theory. The practice is another. Because the actual produced/created/stamped money are in the money and depends totally from the human will. Which is easily corruptible.
Anyhow, if we may considering removable the human factor from the above process (the input and the existence of the overall amount of money in one economy) and want to know and compare the deflationary economy and the inflationary one (with the kind of existent money) I am giving below two links which explain in fully both of those:
https://en.wikipedia.org/wiki/Deflation https://en.wikipedia.org/wiki/Inflation
