I said that a no cap coin could be successful. I didn't call for a massively inflationary coin. You can look at inflation in two ways. There's the overall number of currency units, and there's the number of currency units per person using the currency. As long as the number of grows slower than the number of currency users, you have an increase in the overall money supply but a decrease per capita.
Here's the thing lots of people don't grasp. Excessive DEFLATION can be just as bad as excessive inflation. An economy needs the money to move around, be passed from person to person. The more this happens, the more an economy tends to grow. If your money goes up in value just from you holding it, you're less likely to spend it on something. The Great Depression in the U.S. during the '30s was a result of deflation. There wasn't enough money to go around, and so lots of people didn't have any.
And that's the crux of it. Yeah, sure, you can make a currency divisible up to x units, however many you want that too be. And in the pure mathematical theory of it, yeah, sure, that could totally work, even on a worldwide scale. The problem you run into with that is that people are trained to view fractions of the base currency unit as being not worth much at all. Because, almost universally, they aren't. I can buy a gumball with a quarter. I'm not aware of anything I can buy with a dime, nickel, or penny.
Over the last week or however long that I've been reading and posting in this thread, I've been getting a very distinct vibe along the lines of "we're gonna get in first, and we'll be rich. And then all the other people can go screw themselves. And while they're doing that, they'll also use this currency, because it's so awesome. While they're off screwing themselves"
That sounds amazingly like what I would expect major banks to say, except about quantitative easing aka government/tax funded bailouts instead of about getting there first.
Also, and this is what really bothers me, if there's a small number of coins overall, it's a lot easier for an enthusiastic early adopter to grab a huge amount of them, and then walk in front of a bus while he congratulates himself on how awesome he is. At this stage in the game, it's fairly unlikely that anyone who knows what crypto currency is will find his wallet, so, hey, there goes 30 percent of the money supply
The Great Depression was not caused by "not enough money" moving around. The Great Depression was seeded with the Federal Reserve's inflation policy and ignited by the policies of the New Deal. If you want to learn what really happened, read David Stockman's "The Great Deformation" and
http://wiki.mises.org/wiki/Great_Depression.
Deflation encourages saving and investment, whereas inflation encourages consumption. If a currency with a relatively fixed supply (given that hybrid PoS PoW currencies need to have minimal inflation in order to work) based on the free market appreciates by 400% annually from a beginning market capitalization of a few million current US dollars to a market capitalization of a fraction of the total market capitalization of all fiat currencies and of gold, or that is to something like 20 trillion current US dollars, then the holder of such a currency is called a saver, and such a saver will also want to invest part of his or her profit while the currency is appreciating, and a significant percentage of his or her total profit once the currency has reached its true market capitalization.
Therefore, the saver is also called an "investor". This is something that people who believe in Keynesianism and Monetarism don't understand, that savers are investors.
It is really important for the developers of Netcoin and its initial users to understand the economics behind currencies well, otherwise they are going to make severe mistakes in Netcoin's development.
To learn economics, read
http://library.mises.org/books/Gene%20Callahan/Economics%20for%20Real%20People.pdf, David Stockman's "The Great Deformation", and
https://mises.org/journals/qjae/pdf/qjae14_3_3.pdf.
The only flaws in Austrian economics are Mises' Regression Theorem and the reliance on anarcho-capitalism.
Both types of coins are going to make early adopters rich, but I think part of the success of Bitcoin is you can look at it now and you can know if it reaches 0.5-1% of the global economy it's going to be worth $70,000-100,000 each coin. This is actually desirable, what I'm saying is it's a good thing for Netcoin if those people who hold it are encouraged to hold it for years in hopes that each Netcoin could be worth millions. This turns people into long term stake holders and proof of stake encourages this even further. If Netcoin produced 11 million instead of 21 million then we would know that at some point if it's technology really is better than Bitcoin it's going to go head to head with Bitcoin. It's not going to aim for 2nd place like Litecoin, but instead aim for 1st place.
What I'm saying is you're not going to have any long term holders of a coin like Feathercoin, Chinacoin, or any of those coins with billions of coins being created or trillions of coins being created because there is no incentive to save these coins. And as far as spending goes, you don't have to give people an incentive to spend money. When the infrastructure exists to make it easy for people to get exactly what they want the moment they want it with these coins then people will start spending them.
We don't need to have a billion coins and be tricked into feeling rich when we can have millions of coins and actually live rich. The dollar already has trillions, and there will be no reason why we should make it cheap for billionaires and millionaires to buy into these reserved slots. 11 million coins will make it twice as expensive to buy into these reserved slots as before which would mean you'd still have the potential that some billionaire could buy a bunch of coins while they are cheap, but I don't see why we should make that easy. I see it where you have a limited supply you have limited slots, just like not everyone can have a billion dollars, and no one has a trillion dollars, not everyone should have a Bitcoin or a Netcoin. If we let everyone have one then the value of each wont be as high because a millionaire isn't going to pay a million dollars a coin when we'll give him a coin for 10 cent.
These opinions are mine only, anyone is free to disagree and now is the time to debate. I've made my position known, I do not support the Chinacoin/Feathercoin/Litecoin (cheapcoin) model. I support the idea of diversity where you have some cheap coins for certain purposes such as pump and dump but then you have some coins where we might want to save them for 10 years because they are so rare, and then some coins which are in the middle. Bitcoin is the center of the bellcurve and is the normal coin and normal is 21 million. Rare would be less than 21 million, and inflationary would be more than 21 million and despite the sentiments of others on this forum when I see a coin based on Litecoin with greater than 21 million total, the higher the total number of coins and the faster the generation of these coins the less likely I am to buy them and the more likely I am to see it as a pure speculation sport coin for pump and dumps or a coin so miners who premined or who got in early can make a quick profit.
Your argument is based on the position that there is psychological benefit to a currency's supply being limited so that one whole number unit is worth hundreds if not millions of US dollars.
This is a flawed argument as there is marginal, if any, psychological benefit. The average user is not going to care if one whole number unit of his currency is worth 1 current US dollar or 100,000 current US dollars, as he or she is going to simply hold 100,000 times the amount of the former if the latter's scenario is the case.
A currency's worth is derived from its supply being relatively stable, and durable, portable, and divisible.
The divisible part is where current cryptocurrencies are flawed. If Bitcoin were to reach a 20 trillion current US dollar market capitalization, its smallest unit would still be worth a significant amount of current US dollars, not making it satisfy the divisibility property.
I believe that the supply for the perfect cryptocurrency needs to be 10 trillion units, divisible to 8 decimal places. This would allow its smallest unit to be usable to round off the smallest transactions even if market capitalization for the currency was greater than 70 trillion current US dollars.
Remember that a significant portion of the world still needs to industrialize, and that further productivity gains are still possible, from making free markets actually work to technology improvements. This increases the total market capitalization of all possible currencies from 70 trillion current US dollars.
@tacotime
With all due respect for your engineering
efforts, there are simpler way to make
PoW ASIC-proof :
http://hal.archives-ouvertes.fr/docs/00/56/31/13/PDF/bg10_ij.pdfMaybe this (or similar) hash , embedded
into Scrypt (instead of SHA256) can do the trick.
You ( as a HW expert) can judge, which
classes (and there are more than plenty of them) of chaotic hash-functions are HW-proof.
For ex. : the paper referred above has
sisters, descr. 3 - 4 similar functions
by the same authors.
Chaotic hashes was excluded from SHA3 competition, namely because they are BAD in HW.
There are completely another types Xaos-based
hashes :
http://www.academicjournals.org/ijps/PDF/pdf2011/9Oct/Qing.pdfTaco, what do you think of this chaotic hash? ASICs and FPGAs might be defeatable, even if the problem is that the efficiency of energy consumption takes a hit.
