XMR baghodler reporting in- the uncensored version

[iCEBREAKER]

XMR holders have now had the briefest of splashes with cold water, becoming bagholders for just a couple of months max has already shocked them to the core.

Yes, everyone talks about how they're going to hold for 2+ years when times are good. They promptly starts panicking on a downtrend and come up with various rationalizations for various schemes. It will pass; churn in the markets is a good thing.

The rollercoaster of crypto drama is famous for the mania of its highs and depression of its lows.  Monero is not an exception.   

[iCEBREAKER]

I don't get all the fuzz. How can the (very normal) inflation curve of XMR be considered a major, major problem. Only because price has been grinding lower and lower and some whales showing their love by asking for a reduced inflation rate?

This tech is brand new. There is no real world adoption yet with devs honing the code on a continuing basis. Awareness is growing but the market, together with the entire altcoin market, is grinding lower.

Look, the inflating curve was known from the start. If your early adopter investment disappoints,  sell and leave or just hold and go with the program. A negative development of a few people's investment should never be a reason to fork. The current price is just what the market dictates. The loss of the early adopter is gain of the new investor. There is no 'right' price for XMR other than the market price.

The issue could be price development. Well, start contributing to things that benefit development then. Only this will bring XMR further. Just limiting coin issue only because a whale perceives it beneficial for its investment will do more damage than good. I think the devs and community understand this perfectly well.

These are all excellent points!  Please note this latest round of inflation curve drama is solely the result of the self-appointed MEW and its wannabe King Whale, who is well known for personifying the mania of crypto's irrationally exuberant highs and its correspondingly depressive lows.

[Quicken]

These are all excellent points!  Please note this latest round of inflation curve drama is solely the result of the self-appointed MEW and its wannabe King Whale, who is well known for personifying the mania of crypto's irrationally exuberant highs and its correspondingly depressive lows.

What do you mean by self-appointed MEW? It is a group of XMR holders and supporters who each contributed XMR to the group (half of which goes directly to the Dev's).

I do agree the drama about the emission schedule seems to have followed from the price decline, which has happened during a general crypto bear market. Everyone needs to remember that post hoc ergo propter hoc is a logical fallacy. There is no evidence that the 'fast' emission schedule has caused the price decline since September (even as the emission rate falls).

I don't believe it is necessary but, if the emission rate were to be reduced, I think ArticMine's suggestion of gradually increasing the block time would probably be the best way.

As for bagholder, I have been buying more XMR in every month since June, and I am sanguine about holding.
Q

[Hueristic]

Had to google "sanguine"!

[iCEBREAKER]

What do you mean by self-appointed MEW? It is a group of XMR holders and supporters who each contributed XMR to the group (half of which goes directly to the Dev's).

I do agree the drama about the emission schedule seems to have followed from the price decline, which has happened during a general crypto bear market. Everyone needs to remember that post hoc ergo propter hoc is a logical fallacy. There is no evidence that the 'fast' emission schedule has caused the price decline since September (even as the emission rate falls).

I know what/who the MEW is/are and how it was formed.

By "self-appointed" I  mean its presumed authority to proclaim what is best for Monero.

The real MEW is the free market, inclusive of all participants regardless of paying membership dues.

The free market understands correlation does not imply causation, and it's pathetic that the Official MEW doesn't.  Also pathetic is their belief that goofing around speculating about ideal emission rates is real work equivalent to actual coding on important milestones like the GUI, DB, etc.

The MEW was supposed to accomplish great things for the XMR economy, but the price has tanked since it was created.

Having convinced others to hold bags of now-devalued XMR, they really need to look busy and seem effective at this point.  Hence their insistence that Somebody Do Something^TM!

[smooth]

By "self-appointed" I  mean its presumed authority to proclaim what is best for Monero.

You are straw manning.

It is explicitly stated that that MEW has the authority to proclaim only the opinion of the organization. I know this because I insisted that the scope of this authority be made explicit when the group was formed. If some greater authority were claimed, I would not have joined.

The real MEW is the free market, inclusive of all participants regardless of paying membership dues.

Well no. The (real) MEW is an organization and if you don't join you aren't a participant in that organization. That doesn't disqualify you from stating an opinion of course.

The free market understands correlation does not imply causation, and it's pathetic that the Official MEW doesn't.  Also pathetic is their belief that goofing around speculating about ideal emission rates is real work equivalent to actual coding on important milestones like the GUI, DB, etc.

The MEW has not expressed any opinion yet. The matter was simply brought up for discussion. No vote has been taken as yet.

The MEW was supposed to accomplish great things for the XMR economy, but the price has tanked since it was created.

PHEPH dude.

[iCEBREAKER]

You are straw manning.

It is explicitly stated that that MEW has the authority to proclaim only the opinion of the organization. I know this because I insisted that the scope of this authority be made explicit when the group was formed. If some greater authority were claimed, I would not have joined.

The (real) MEW is an organization and if you don't join you aren't a participant in that organization. That doesn't disqualify you from stating an opinion of course.

I'm "straw manning?"  Oh rly?

The MEW is the organ of voting exactly for the reason that here people like you who have no stake at all in the game (except perhaps on the other side of the table) can speak however much you want and be taken (about) as seriously as any anonymous person with a bit longer forum history.

It is called "put up or shut up principle" 

How could you possibly miss the palpable self-aggrandizement in the above quote?

I trust you sent a PM to RP in which you scolded him for indulging in ad hom attacks by accusing me of 1) not having a stake and 2) shorting XMR, despite all indications to the contrary... 

/yah right; as if   

[smooth]

I trust you sent a PM to RP in which you scolded him for indulging in ad hom attacks by accusing me of 1) not having a stake and 2) shorting XMR, despite all indications to the contrary... 

Realize, this is the new monero-free-for-all thread...

[iCEBREAKER]

I trust you sent a PM to RP in which you scolded him for indulging in ad hom attacks by accusing me of 1) not having a stake and 2) shorting XMR, despite all indications to the contrary... 

Realize, this is the new monero-free-for-all thread...

Oh goody, the last one was a lot of funz!   

[devphp]

What else did you guys expect of Monero, most PoW cryptos are inflationary.

Whatever coin is able to curb inflation sooner than others, especially in a bear market we're in now which is to go on another 12 months, can ensure the demand stays equal to or above supply, providing support to the price.

The other PoW coins will keep sinking, and by next November many that had prospects in 2014 will be forgotten.

Out of all PoW coins the only one that curbs its inflation rate sooner than others is Dogecoin (in 2 months to be exact), but don't believe me, check the inflation figures.

I could understand if you guys started to invest in Monero 7-8 months ago when the bear market hadn't been confirmed yet, and optimism was high, but how can anyone still not see what's coming is truely beyond my understanding.

I know cryptos are hard to predict, but when the trend is confirmed, your common sense should prevail or you risk losing your shirt.

[Este Nuno]

What else did you guys expect of Monero, most PoW cryptos are inflationary.

Yeah, the 'Bitcoin is deflationary' meme that's been around since the start has really bugged me and I think it's mislead a lot of people.

Bitcoin's money supply is inflationary. Bitcoin is price deflationary if and only if demand outstrips supply. Nothing about those two true statements imply that Bitcoin is inherently a deflationary currency.

People talk about distribution as if it's the most important thing. Personally I think people just want to know that the money that they buy is not going to lose value. Whether that's the rationally correct move in the long run I don' t know, but show people a pretty chart and some math showing that demand is increasing and money supply is not and I bet the vast majority of people couldn't care less if a few people hold the majority of the money supply. They'll just rationalize it by coming to the conclusion that since the money itself is price deflationary, it wouldn't be rational for big holders to divest anything more than the bare minimum they need to to support themselves. Similar to how it's not rational for an organization like Ghash to double spend, or attack the network in someway.

From the start I thought the Monero emission was insane. Especially when considering that to reach even the short term prices that some of the true believers were talking about you would be looking at close to six figures USD of XMR being mined daily. Even Bitcoin can't support it's relatively low inflation(to XMR, 10% is still huge) most of the time.

Monero could end up getting some big adoption, but I don't see any point in actually buying some until there's clearly enough demand to outstrip the massive amount of supply being produced. But it's also a chicken and egg thing, people want an anonymous currency, but they also want one that's going to hold value and have what they perceive as the best economic arrangement. XMR has like 3-4 years until this could actually happen from what I can tell. During that time a competitor could easily swoop in and capture the market. Another CN coin, or even one with inferior tech. It just has to be 'good enough'. If I see real Monero adoption I'll be the first one in line to buy some, the optimal strategy from my point of view is to put your money towards high demand, low to zero inflationary instruments until the time is right.

Inflation sucks, the only problem that needs to be solved is incentivizing people to secure the network. Both in PoW and PoS. Hard problem to solve, no one really knows if transaction fees is ever going to be sufficient. If they are then if some non-inflationary currency ends up getting some adoption it's going to look like a pretty attractive investment.

[TrueCryptonaire]

What else did you guys expect of Monero, most PoW cryptos are inflationary.

Yeah, the 'Bitcoin is deflationary' meme that's been around since the start has really bugged me and I think it's mislead a lot of people.

Bitcoin's money supply is inflationary. Bitcoin is price deflationary if and only if demand outstrips supply. Nothing about those two true statements imply that Bitcoin is inherently a deflationary currency.

People talk about distribution as if it's the most important thing. Personally I think people just want to know that the money that they buy is not going to lose value. Whether that's the rationally correct move in the long run I don' t know, but show people a pretty chart and some math showing that demand is increasing and money supply is not and I bet the vast majority of people couldn't care less if a few people hold the majority of the money supply. They'll just rationalize it by coming to the conclusion that since the money itself is price deflationary, it wouldn't be rational for big holders to divest anything more than the bare minimum they need to to support themselves. Similar to how it's not rational for an organization like Ghash to double spend, or attack the network in someway.

From the start I thought the Monero emission was insane. Especially when considering that to reach even the short term prices that some of the true believers were talking about you would be looking at close to six figures USD of XMR being mined daily. Even Bitcoin can't support it's relatively low inflation(to XMR, 10% is still huge) most of the time.

Monero could end up getting some big adoption, but I don't see any point in actually buying some until there's clearly enough demand to outstrip the massive amount of supply being produced. But it's also a chicken and egg thing, people want an anonymous currency, but they also want one that's going to hold value and have what they perceive as the best economic arrangement. XMR has like 3-4 years until this could actually happen from what I can tell. During that time a competitor could easily swoop in and capture the market. Another CN coin, or even one with inferior tech. It just has to be 'good enough'. If I see real Monero adoption I'll be the first one in line to buy some, the optimal strategy from my point of view is to put your money towards high demand, low to zero inflationary instruments until the time is right.

Inflation sucks, the only problem that needs to be solved is incentivizing people to secure the network. Both in PoW and PoS. Hard problem to solve, no one really knows if transaction fees is ever going to be sufficient. If they are then if some non-inflationary currency ends up getting some adoption it's going to look like a pretty attractive investment.

Thank you!
Very analytical and smart writing.
I couldn't more agree with you in every point you made.

[iCEBREAKER]

People talk about distribution as if it's the most important thing.

From the start I thought the Monero emission was insane. Especially when considering that to reach even the short term prices that some of the true believers were talking about you would be looking at close to six figures USD of XMR being mined daily. Even Bitcoin can't support it's relatively low inflation(to XMR, 10% is still huge) most of the time.

Distribution is the most important thing, because Metcalfe's law.  Bitcoin and XMR are still in their distribution phases, but BTC has a 5 year head start and first mover advantage.  BTC benefited from 'near death experiences' as they fed its antifragility adversity to transmute into strength.  Enough people expect XMR ontogeny to recapitulate its BTC phylogeny sufficient for it to enjoy a Top 10 (minable) coin market cap, even at this early beta point of development.

the only problem that needs to be solved is incentivizing people to secure the network.

Securing the network is only one problem, the other key issue is building services which facilitate that secure network providing value.

All of us hloding cheap early distribution phase XMR/BTC have incentive to flesh out those platforms, in order to increase the price of our stacks.

Experiments with faster and slower Cryptonote emission are being conducted by Darknote and Boolberry; we clearly see the market prefers XMR's middle path.

[Johnny Mnemonic]

Experiments with faster and slower Cryptonote emission are being conducted by Darknote and Boolberry; we clearly see the market prefers XMR's middle path.

The market's preference of XMR as a whole tells us nothing of the success of an emission strategy. By that logic we should abandon crypto altogether, as the market clearly prefers fiat.