What about the idea of an inflationary bitcoin?

[tmobileguy]

Curious to see what people thought of this idea...

Instead of capping bitcoin at 21mil, what about the idea that after all the bitcoins were mined (we'll all be long dead), of releasing 1% of the current bitcoin total into the public for that year...meaning that the first year after all the bitcoins were mined, bitcoin would release 210,000 more bitcoins into the market at same intervals it is currently releasing BTC (every 10 min) and make them available for people to mine....

I see multiple pro's of a system like this....a few being....

-Bitcoins would continue to be mined and thus the network would be secure indefinitely
-Lost bitcoins would essentially be put back into the market and thus we would not be on a track to lose bitcoins in the system indefinitely
-Inflation would be just under 1% (bitcoins released minus the bitcoins that were lost in the system) which I think would be a solid stable economic number to promote responsible spending...

The 1% number could be adjusted to whatever you thought would be an appropriate amount....

And as always, constructive criticism is always welcome and in the end will make us all learn more at the end of the day, just please don't call me an 'idiot' or a 'moron' if you disagree with the idea, but i don't mind if you call my idea 'idiotic' or 'moronic', just as long as you state your case and the reason why you think that...

Fire away----

[yayayo]

I think you should think first about why bitcoin is valuable. (Hint: It's not because bitcoin is being managed like fiat by central banks.) Then you should think again about your idea.

Also, you don't seem to understand some basic concepts: The network is secured even without mining.

ya.ya.yo!

[tmobileguy]

I think you should think first about why bitcoin is valuable. (Hint: It's not because bitcoin is being managed like fiat by central banks.) Then you should think again about your idea.

Also, you don't seem to understand some basic concepts: The network is secured even without mining.

ya.ya.yo!

the miners are the ones that process all the transactions right? If there are no miners, then nobody is processing bitcoin transactions...thats what I mean't by securing the network...

And I am going to guess you are going to say that bitcoins are valuable because there are a finite amount of them? Does that change if there is a certain amount released every year that is a specific controlled amount every year? Is bitcoin not valuable to you now? Because that is exactly what is happening right now....bitcoin releases a certain amount every year to be mined...Does the 21mil amount really matter to you when that number takes effect 125yrs from now?

[Erdogan]

If the inflation is mathematically defined, it will only make it more difficult to calculate. There is no point in it.

[tmobileguy]

If the inflation is mathematically defined, it will only make it more difficult to calculate. There is no point in it.

Why would it be difficult to calculate...

Year 1 - 21,000,000 + 210,000 (1%) = 21,210,000BTC
Year 2 - 21,210,000 + 212,100 (1%) = 21,422,100BTC
Year 3 - 21,422,100 + 214,221 (1%) = 21,636,321BTC

And I just did that brilliant math without a calculator

[Erdogan]

If the inflation is mathematically defined, it will only make it more difficult to calculate. There is no point in it.

Why would it be difficult to calculate...

Year 1 - 21,000,000 + 210,000 (1%) = 21,210,000BTC
Year 2 - 21,210,000 + 212,100 (1%) = 21,422,100BTC
Year 3 - 21,422,100 + 214,221 (1%) = 21,636,321BTC

And I just did that brilliant math without a calculator

Isn't this even simpler:

Year 1 - 21,000,000 + 0 (0%) = 21,000,000BTC
Year 2 - 21,000,000 + 0 (0%) = 21,000,000BTC
Year 3 - 21,000,000 + 0 (0%) = 21,000,000BTC

[twiifm]

Thats similar to Milton Friedmans idea.  He wanted a computer to set the inflation at a constant 3%

[Este Nuno]

There are altcoins that are Proof of Stake which give interest on held coins that is similar to inflation. 2-3% per year given in stake forging rewards. That seems to be a big trend in the altcoin market.

[SirChiko]

There are altcoins that are Proof of Stake which give interest on held coins that is similar to inflation. 2-3% per year given in stake forging rewards. That seems to be a big trend in the altcoin market.

Trend =/= value and success in any way. It's just an popular experiment.

[Este Nuno]

There are altcoins that are Proof of Stake which give interest on held coins that is similar to inflation. 2-3% per year given in stake forging rewards. That seems to be a big trend in the altcoin market.

Trend =/= value and success in any way. It's just an popular experiment.

Some of them seem pretty valuable and successful so far. Just from looking at their market caps anyway. I don't own any altcoins at the moment.

[SirChiko]

There are altcoins that are Proof of Stake which give interest on held coins that is similar to inflation. 2-3% per year given in stake forging rewards. That seems to be a big trend in the altcoin market.

Trend =/= value and success in any way. It's just an popular experiment.

Some of them seem pretty valuable and successful so far. Just from looking at their market caps anyway. I don't own any altcoins at the moment.

By my opinion 98% of their value is fake as they have no real value or purpose sadly, developers are only trying get-rich-fast scheme or some scam ones.

[Este Nuno]

There are altcoins that are Proof of Stake which give interest on held coins that is similar to inflation. 2-3% per year given in stake forging rewards. That seems to be a big trend in the altcoin market.

Trend =/= value and success in any way. It's just an popular experiment.

Some of them seem pretty valuable and successful so far. Just from looking at their market caps anyway. I don't own any altcoins at the moment.

By my opinion 98% of their value is fake as they have no real value or purpose sadly, developers are only trying get-rich-fast scheme or some scam ones.

Sure there are tons and tons of bad coins and scam coins, but the ones that have worth a lot are worth a lot precisely because the devs aren't just trying to get rich fast and dump them.

[silversurfer1958]

Why would you want a coin that loses purchasing power over time.
Surely a deflationary coin, like Bitcoin is best because it increases in purchasing power over time.

[SirChiko]

There are altcoins that are Proof of Stake which give interest on held coins that is similar to inflation. 2-3% per year given in stake forging rewards. That seems to be a big trend in the altcoin market.

Trend =/= value and success in any way. It's just an popular experiment.

Some of them seem pretty valuable and successful so far. Just from looking at their market caps anyway. I don't own any altcoins at the moment.

By my opinion 98% of their value is fake as they have no real value or purpose sadly, developers are only trying get-rich-fast scheme or some scam ones.

Sure there are tons and tons of bad coins and scam coins, but the ones that have worth a lot are worth a lot precisely because the devs aren't just trying to get rich fast and dump them.

I agree that few of them really look promising, but you never know what may happen and after reaching nice price dev gets his hidden wallet out and dumps milions worth of coins...and ta-daaa game over.

[Este Nuno]

There are altcoins that are Proof of Stake which give interest on held coins that is similar to inflation. 2-3% per year given in stake forging rewards. That seems to be a big trend in the altcoin market.

Trend =/= value and success in any way. It's just an popular experiment.

Some of them seem pretty valuable and successful so far. Just from looking at their market caps anyway. I don't own any altcoins at the moment.

By my opinion 98% of their value is fake as they have no real value or purpose sadly, developers are only trying get-rich-fast scheme or some scam ones.

Sure there are tons and tons of bad coins and scam coins, but the ones that have worth a lot are worth a lot precisely because the devs aren't just trying to get rich fast and dump them.

I agree that few of them really look promising, but you never know what may happen and after reaching nice price dev gets his hidden wallet out and dumps milions worth of coins...and ta-daaa game over.

I think these days people are pretty meticulous when their analysing the code base to find any little surprises like that the dev might have left in. Although it definitely happens. Even the exchanges themselves are looking over the codebase before listing coins these days.

[SirChiko]

There are altcoins that are Proof of Stake which give interest on held coins that is similar to inflation. 2-3% per year given in stake forging rewards. That seems to be a big trend in the altcoin market.

Trend =/= value and success in any way. It's just an popular experiment.

Some of them seem pretty valuable and successful so far. Just from looking at their market caps anyway. I don't own any altcoins at the moment.

By my opinion 98% of their value is fake as they have no real value or purpose sadly, developers are only trying get-rich-fast scheme or some scam ones.

Sure there are tons and tons of bad coins and scam coins, but the ones that have worth a lot are worth a lot precisely because the devs aren't just trying to get rich fast and dump them.

I agree that few of them really look promising, but you never know what may happen and after reaching nice price dev gets his hidden wallet out and dumps milions worth of coins...and ta-daaa game over.

I think these days people are pretty meticulous when their analysing the code base to find any little surprises like that the dev might have left in. Although it definitely happens. Even the exchanges themselves are looking over the codebase before listing coins these days.

It isn't just about the code as the coin may get instamined as i've heard about darkcoin for example.

[silversurfer1958]

Even though most are scam coins, if they have money in them, they are worth mining and selling.

[devphp]

Bitcoin will be a heck of inflationary for the next 5 years as is.

it's interesting that many people think short-term (what the price in fiat USD will be next month, next year at most), but at the same time look many years ahead to a far-away cap of 21 million, forgetting that Bitcoin has a double-digit yearly inflation right now and will continue to have it for the next 5 years. The brain conveniently suggests ideas to believe that they can be most comfortable with.

[EternalWingsofGod]

Bitcoin will be a heck of inflationary for the next 5 years as is.

it's interesting that many people think short-term (what the price in fiat USD will be next month, next year at most), but at the same time look many years ahead to a far-away cap of 21 million, forgetting that Bitcoin has a double-digit yearly inflation right now and will continue to have it for the next 5 years. The brain conveniently suggests ideas to believe that they can be most comfortable with.

This is true bitcoin is very inflationary
For a few more halvings at least
https://en.bitcoin.it/wiki/Controlled_supply

[Justine]

The value increasing 1% a month is same as adding the money supply 1% a month.