Why the monetary models of cryptocurrencies are flawed!

[Aleksander Wishman]

...if they are to be used for REAL WORLD money transfer and usage!!! Simply the fact that they operate with a limited supply, makes it so... Do you know any fiat-currencies with a limited money supply? No, because that would be just too stupid, right? Well guess what, that's what 99% of the crypto"currencies" use.


A friend of mine has written a piece about how an alternative model may look. Help spread the idea.


https://medium.com/@svein2122/work-backed-blockchain-money-and-decentralised-money-creation-e76886b90c3b

[sensimilia]

I didn't read the article to be honest.

We have 1,000,000 bits in 1 bitcoin which can be divided up to 8 decimal places (more if needed)
So you see there is no issue at all.

[mrtryonebiggums]

I tried but the math was beyond my level of comprehension but I will say this to your remarks why does there need to be inflation for an economy to succeed? And why do people think having crypto means that fiat money will never exist? I think they will work side by side with each other, but I have no clue which will be the dominating currencies.

[webtricks]

You think limited money concept is flawed? Well, it is best model to adopt for currency operation in the country.
Currently all countries using unlimited money concept where currency is fully/partially/minimum backed by securities like Gold or pegged by Government reserves. But in practice, most of the money drained from economy in the form of Bad Debts because there isn't any scarcity of money. But cryptocurrencies can remove this deficiency and enhance country's situation because every unit is easily accountable and credit situations can easily evaluated.