Bitcoin Forum
May 04, 2024, 11:54:14 AM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Exist any blockchain technology that fight the devaluation nature of crypto?  (Read 211 times)
Binarch00 (OP)
Newbie
*
Offline Offline

Activity: 3
Merit: 0


View Profile
March 25, 2019, 07:26:32 PM
 #1

The blockchain technology use block rewards for miners, masternodes or coin holders PoS.
Usually hundreds of thousands of coins are generated in short time, few months due to block rewards.

This make many coins and blockchain technology have an internal nature trending more to coins devaluation.
Exist any blockchain technology that fight against block rewards and prevent the devaluation problems while at same time don't relax the blockchain decentralization and security?
"The nature of Bitcoin is such that once version 0.1 was released, the core design was set in stone for the rest of its lifetime." -- Satoshi
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
1714823654
Hero Member
*
Offline Offline

Posts: 1714823654

View Profile Personal Message (Offline)

Ignore
1714823654
Reply with quote  #2

1714823654
Report to moderator
1714823654
Hero Member
*
Offline Offline

Posts: 1714823654

View Profile Personal Message (Offline)

Ignore
1714823654
Reply with quote  #2

1714823654
Report to moderator
Kopyleft
Member
**
Offline Offline

Activity: 168
Merit: 15

Future of Security Tokens


View Profile
March 25, 2019, 07:49:10 PM
 #2

I wouldn't say there is any "internal nature trending more coins to devalue", rather it us a very competitive and growing market and within it are lots of poorly executed projects, which are bound to fail due to huge competition, but if you have a well organized and relevant project, there is no inherent limitation to it's success

SoLo^_^
Newbie
*
Offline Offline

Activity: 4
Merit: 0


View Profile
March 25, 2019, 07:50:02 PM
 #3

This can be minimized
By reducing the number of currencies produced per block
And do not forget that the digital currency community is increasing and not decreasing Even humans are growing day by day
So if the prize number is reduced for each block With an increasing number of expatriates who want to obtain it
and The price is always rising and demand is increasing more than the pieces produced from the blocks
Bitcoin_Arena
Copper Member
Legendary
*
Offline Offline

Activity: 2030
Merit: 1787


฿itcoin for all, All for ฿itcoin.


View Profile
March 25, 2019, 08:07:50 PM
 #4

I think there is no blockchain solution to devaluation.
Demand plays a major role to the value of a coin/token. Without demand however go the coin maybe, it will lose value.
As we have already seen many projects have tried very many ways to increase the value of their coins/tokens like
- Token burn
- Rewarding token holders
- Reduced token circulating suppy
- Token Buy back from circulating suppy

But none has worked in fighting devaluation effectively to this date if the token/coin demand falls.

.BEST..CHANGE.███████████████
██
██
██
██
██
██
██
██
██
██
██
██
██
██
██
██
██
██
██
██
██
██
██
██
███████████████
..BUY/ SELL CRYPTO..
joniboini
Legendary
*
Offline Offline

Activity: 2184
Merit: 1789



View Profile WWW
March 26, 2019, 03:12:03 AM
 #5

Devaluation can only be solved with high demand. So the question is, is there exist a blockchain/project that can have continuous or increasing demand the longer they grow? I believe it's still too early to name projects other than Bitcoin, but I believe there are some potential projects that's still lurking in the market.

███████████████████████████
███████▄████████████▄██████
████████▄████████▄████████
███▀█████▀▄███▄▀█████▀███
█████▀█▀▄██▀▀▀██▄▀█▀█████
███████▄███████████▄███████
███████████████████████████
███████▀███████████▀███████
████▄██▄▀██▄▄▄██▀▄██▄████
████▄████▄▀███▀▄████▄████
██▄███▀▀█▀██████▀█▀███▄███
██▀█▀████████████████▀█▀███
███████████████████████████
.
.Duelbits.
..........UNLEASH..........
THE ULTIMATE
GAMING EXPERIENCE
DUELBITS
FANTASY
SPORTS
████▄▄█████▄▄
░▄████
███████████▄
▐███
███████████████▄
███
████████████████
███
████████████████▌
███
██████████████████
████████████████▀▀▀
███████████████▌
███████████████▌
████████████████
████████████████
████████████████
████▀▀███████▀▀
.
▬▬
VS
▬▬
████▄▄▄█████▄▄▄
░▄████████████████▄
▐██████████████████▄
████████████████████
████████████████████▌
█████████████████████
███████████████████
███████████████▌
███████████████▌
████████████████
████████████████
████████████████
████▀▀███████▀▀
/// PLAY FOR  FREE  ///
WIN FOR REAL
..PLAY NOW..
jseverson
Hero Member
*****
Offline Offline

Activity: 1834
Merit: 759


View Profile
March 26, 2019, 05:13:59 AM
 #6

Exist any blockchain technology that fight against block rewards and prevent the devaluation problems while at same time don't relax the blockchain decentralization and security?

No. The market always boils down to supply and demand, so unless a crypto manages to implement a system that can properly regulate its supply based on the current demand (and that might even be impossible), market mechanics will dictate prices.

The closest thing to what you're describing are probably stablecoins though. Some are pegged to some currencies, while others try to implement clever workarounds. Try reading up on those.

Binarch00 (OP)
Newbie
*
Offline Offline

Activity: 3
Merit: 0


View Profile
March 26, 2019, 07:37:08 PM
Last edit: March 26, 2019, 08:33:35 PM by Binarch00
 #7

I wouldn't say there is any "internal nature trending more coins to devalue", rather it us a very competitive and growing market and within it are lots of poorly executed projects, which are bound to fail due to huge competition, but if you have a well organized and relevant project, there is no inherent limitation to it's success

You can understand better the devaluation problem size, calculating the rewards worth in new generated coins each 24 hours.
For BTC today in past 24 hours block rewards generate 1,788+33 BTC ($7,174,734.06 USD), this means a 7 millions USD added each day and 2.5 billion USD per year, a yearly value higher than amount printed in USD by FED.

For ETH today in past 24 hours block rewards generate 12,692+448.83+29.69+763.25 ETH ($1,868,314.54 USD), this means a 1.8 millions USD added each day and 0.6 billion USD per year.

This calculations show that if tomorrow BTC price reach x10 times the value 40,000 USD, the BTC network will be generating 70 millions USD each day, and 25 billions USD per year. Same for x100 times te price, if BTC price reach 400,000 USD tomorrow, the BTC network will be generating by rewards 700 millions USD each day, and 250 billions USD per year. This calculations show one of the reasons that make the BTC price almost impossible to reach big price values while the block rewards remains high.

This devaluation problem is repeated in most part of the coins an newer projects with smaller communities are more affected.
Could be interesting know projects based in block-chain that solve this devaluation problem attached to the original core design of block-chain.
Anyone know a good stable coin project that effectively solve this problem not affecting the decentralization?
magneto
Hero Member
*****
Offline Offline

Activity: 1666
Merit: 753


View Profile
March 29, 2019, 11:01:52 PM
 #8

The blockchain technology use block rewards for miners, masternodes or coin holders PoS.
Usually hundreds of thousands of coins are generated in short time, few months due to block rewards.

This make many coins and blockchain technology have an internal nature trending more to coins devaluation.
Exist any blockchain technology that fight against block rewards and prevent the devaluation problems while at same time don't relax the blockchain decentralization and security?

Is there really a problem with having block reward though? It's essentially an incentive for the miners to keep the network going.

You seem to be extremely concerned with the inflation that these brings by, and I can assure you that it has minimal impact. Firstly, the percentage that the currency base is growing is very controlled, and much less than a lot of what the fiat currencies around the world is measuring in at, especially when you consider the fact that coins are being lost on a daily basis that will never be recovered (unless through brute force, which is very unlikely).

Furthermore, short term pricing have more to do with demand than the supply. The value of BTC will reflect the sentiment of the market, more so than the supply of coins. In the long run, there is a cap on the amount of BTC that can ever be mined, which makes it in fact a better store of value than fiat currencies.

It's really a non-issue if you ask me. And it certainly doesn't warrant centralised intervention, when you consider that this emission system was designed to be here in the first place.
Velkro
Legendary
*
Offline Offline

Activity: 2296
Merit: 1014



View Profile
March 29, 2019, 11:49:55 PM
 #9

This make many coins and blockchain technology have an internal nature trending more to coins devaluation.

There are crypto projects that fight this or makes exactly opposite enforcing it even more. This is not about blockchain technology itself, but rules that are set on blockchain/crypto project.
There is no fixed things here Smiley, its very elastic.
pooya87
Legendary
*
Offline Offline

Activity: 3444
Merit: 10546



View Profile
March 30, 2019, 04:42:10 AM
 #10

you should either post this topic in an investment oriented board like the speculation boards or trading discussion so that it makes sense or at least when you post it here you should not use the term "exit the blockchain technology"! because the "technology" has nothing to do with what you just said. you are only talking about it purely from an investment standpoint and it is correct with that view.

but technology-wise it makes sense sometimes to have that kind of supply distribution design. for example it makes perfect sense for Ether to have unlimited supply because it is not a currency, it is "fuel" for smart contracts and it having value doesn't make much sense. and the fact that it will lose its value over time should not matter because it is supposed to work like that.

but from an "investment" standpoint, a coin like that is not a good long term investment but also that is not the only thing you should consider. you should also consider the fact that coins like these are mostly pump and dumps so that pattern mostly controls their prices.

.
.BLACKJACK ♠ FUN.
█████████
██████████████
████████████
█████████████████
████████████████▄▄
░█████████████▀░▀▀
██████████████████
░██████████████
████████████████
░██████████████
████████████
███████████████░██
██████████
CRYPTO CASINO &
SPORTS BETTING
▄▄███████▄▄
▄███████████████▄
███████████████████
█████████████████████
███████████████████████
█████████████████████████
█████████████████████████
█████████████████████████
███████████████████████
█████████████████████
███████████████████
▀███████████████▀
█████████
.
r1s2g3
Sr. Member
****
Offline Offline

Activity: 742
Merit: 395


I am alive but in hibernation.


View Profile
April 01, 2019, 12:57:52 PM
 #11

it simply means that you have to growth rate will be equal to expansion of the project. Just thinking will the reverse block rewards methodology will be  good? Low rewards at the beginning of blockchain and gradually increasing it to the constant value.

I am alive
BrewMaster
Legendary
*
Offline Offline

Activity: 2114
Merit: 1292


There is trouble abrewing


View Profile
April 01, 2019, 02:18:18 PM
 #12

This make many coins and blockchain technology have an internal nature trending more to coins devaluation.

that is not what leads to the devaluation of a cryptocurrency.
for some reason people only see half of the very popular basic economic concept called "supply and demand". but it is two forces working against each other. what you are talking about here is only the supply part and because all those altcoins have 0 demand (they are useless) the forces against the supply are nonexistent so the price of them keeps going down.

so how to fight this?
simple. create useful cryptocurrency and then set the supply of it in a way that can match that demand.

There is a FOMO brewing...
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!