Has anyone proposed a coin that adjusts its supply to stabilize prices?

[timhuge]

I expected to find that some of the alternative crypto-currencies would address the issues with price volatility that come from a fixed supply, but I haven't found any.

[SamuelSG]

I expected to find that some of the alternative crypto-currencies would address the issues with price volatility that come from a fixed supply, but I haven't found any.

LMAO

sorry...

But you mean...a USD clone?

 

Just would not be any different than USD, an in fact, as I know it, the whole point of a crypto-currency is how hard it is to make... thus sorta inflation-proof as a function of supply.

[tehace]

The difficulty is that it would need to introduce a trust in a party to provide the price. No one has really found a way to get around that.

[timhuge]

Well, the difference would be that the monetary policy rule would be automatic and implemented in a decentralized way. So there's no central authority setting the supply.

[tehace]

How would you do it without a central authority?

[timhuge]

I'm considering writing up my idea for it, but I wanted to see if anyone would be interested other than as a fun joke. (:

[SamuelSG]

As I see it, the price is only fluctuating so wildly because of it being treated mostly as a speculative investment at this point, and so many uneducated newb investors thinking they will make it big.

If one looks at it, in some ways the early US Dollar market was wildly fluctuating, mainly in that you couldn't use it many places, or everywhere valued it differently due to its newness and lack of trust (sound familiar?). It wasn't until the government stepped in and made it illegal to NOT accept it that it gained forced usage, thus evening out its value, and gaining it some (imo undeserved) trust. So a larger force stepped in to stomp the speculation, and look what we have now. Once that power is given, it cant just be taken away, and you cant trust in some all-powerful entity to ever not abuse their power eventually.

[kokjo]

always 50 coins per block, would be a good sulotion:

that coin would reach stability, when there are 50 coins lost per 10 minutes, and 50 coins generated per 10 minutes.

[timhuge]

What if the value of 1 coin were pegged to the real cost of computing a certain number of hashes?

[kokjo]

What if the value of 1 coin were pegged to the real cost of computing a certain number of hashes?

lol, how would you determent that? you stupid?

[pheaonix]

What if the value of 1 coin were pegged to the real cost of computing a certain number of hashes?

lol, how would you determent that? you stupid?

it isn't that bad of an idea. btc was tied to electricity costs a while back, remember?

[timhuge]

btc was tied to electricity costs a while back, remember?

When? How did that work?

[pheaonix]

btc was tied to electricity costs a while back, remember?

When? How did that work?

back in the early days when btc was like 2$ a btc, it was held at that minimum price because all the miners refused to sell for any lower because then they would be losing money for electricity.

its not like i know how to work this mathematically within a cryptocoin ;P

[SamuelSG]

Still, almost impossible to determine the cost, due to the wide variance in electricity costs, the costs of the miner itself, and the efficiency of any given mining rig.
Plus, the avenue for the production cost being reported into the distributed system would still have to be a single source, which would be easily manipulated, if not directly controllable by said source, or hackers who manipulate the data transfer.

[kokjo]

What if the value of 1 coin were pegged to the real cost of computing a certain number of hashes?

lol, how would you determent that? you stupid?

it isn't that bad of an idea. btc was tied to electricity costs a while back, remember?

no one have tied btc to electricity, it was just the natural limit.

[timhuge]

What would the best forum be to discuss whether my detailed plan would work?

[SamuelSG]

probably here.

[kokjo]

What would the best forum be to discuss whether my detailed plan would work?

the SolidCoin forums.

[greyhawk]

Current lower limit has been calculated at 40 bucks something /btc now due to the rising investment cost. Doesn't mean it won't go lower still when the paniOMG SELL

[timhuge]

Current lower limit has been calculated at 40 bucks something /btc now due to the rising investment cost.

But if the USD exchange rate went lower, wouldn't less efficient miners just drop out, with the difficulty being lowered as needed?