So, if I just keep money in this coin, they burn up?
Why not just keep them in dollars then ? :p
Hi Lolcust, your GG is really crazy!
While, It depend on how you think. We need coins to use, not gold for collect.
At the beginning, the coins do not have any purchasing power(because there is only little diffculty to minning all of them out). You will lose nothing even you have 4.3% of your coins disappeared every year, since you get them nearly free. And speculator may not like to buy them for the same reason. The price of the coin will increase more gentlly. When people geting to use them, the value of the coins will increase, you still will not lose any thing if the purchasing power increases over 4.3% per year.
The value increase period will last very long for public to accept it. As long as the purchasing power increase of the coins over 4.3% per year, no one will suffer from losing money and if the purchasing power increase of the coins do not over 4.3% too much, we wont suffer much from speculating either.
If this coin succeed someday in the future and every one getting to use it, and it becomes to be the main currency in the world, with the productivity growth of the whole society, you can alway buy more with less coins and do not feel losing money. But the circulating of the coins by transaction fee can fulfill the large requirement of the coins in the market and it will always keep active, which will still a good thing.
This idea is tend to prevent speculation and disproportion earn of early adopter, which are two of most blames of Bitcoin and other coins in public.
For Bitcoin, early adopters that more like to see it succes other than earn millions of dollors him/herself will give out their coins for free to make it spread, while greedy speculators will keep all of their coins as long as the price is increasing, unfair, isn't it? Why don't we use everyone's coin to make it spread and stablize the market?