That's the insanity of this crypto bull market, that a cryptocurrency which started pretty much 'for fun', has no actual purpose - and worse still, has no theoretical supply limit - traded at a recent high of $0.45. For the last 7 years since release, it barely managed $0.003.
With no supply limit, it kinda reminds me of this quote from HHG2TG:
"But we have also," continued the management consultant, "run into a small inflation problem on account of the high level of leaf availability, which means that, I gather, the current going rate has something like three deciduous forests buying on ship's peanut."
Sort of like any modern inflationary economy. Weird.
You're missing something when comparing the two. Modern inflationary economies absolutely have a limit, and that limit is determined by policy through central banking systems and manipulated to adjust inflation rates to keep markets stable.... Except for say the few markets where the central banks are run by idiots such as Zimbabwe.
That is very different from the uncontrolled inflation that is possible in decentralised system which has no limits in place.
Car analogy: Just because it's good to drive a pickup truck on a farm doesn't mean it's good to drive a pickup truck in a European inner city.
More to the point, some inflation is a good thing. It encourages spending vs. saving, encourages investment, and slowly reduces the effective value of debt.
There's many different factors involved in an economy that balance off against each other, and left to their own devices, they're prone to wild swings, and always have been throughout history. People go to college for years to understand all of the nuance to economics. Non-inflationary unmanaged cryptocurrencies based on the notion of "if nobody manage
There's so many factors converging towards a potential cryptocurrency crackdown, too. For example, just a random one: the Biden administration is really concerned about the major silicon shortage right now. Well, if you crash demand for ASICs and GPUs for mining, you do a lot to relieve the supply crunch.
You think the central bankers who brought us the Great Recession aren't idiots? Now they brag about printing infinite money, which is something Zimbabwe never dared. They no longer control inflation and can't raise interest rates, if the currency starts to collapse the plan is to introduce a new currency, just like Zimbabwe, where the central bankers are probably doing great.
And more to the point: the highest rate of inflation on the dollar in the past three decades is ~4%, and the highest ever was ~21%. Bitcoin frequently makes swings that wild. The dollar is a massive beacon of stability and predictability in comparison to cryptocurrencies, even when you look at its least stable times.
There's a reason why even crypto advocates like Musk still price their products in dollars even when you buy them in cryptocurrencies, and you only get a briefly-valid exchange rate on your pu
Except for say the few markets where the central banks are run by idiots such as Zimbabwe.
People love to say this, but every economy that's experienced hyperinflation has already been in deep shit for other reasons. Printing money is just a way of holding on for a little longer.
That's the insanity of this crypto bull market, that a cryptocurrency which started pretty much 'for fun', has no actual purpose - and worse still, has no theoretical supply limit - traded at a recent high of $0.45.
The supply of Dogecoin will increase by 4% this year. The supply of Bitcoin will increase by 1.76% thus year. There doesn't seem to be a meaningful difference.
All cryptocurrency scarcity is artificial. That's entirely why Dogecoin's developers made the satirical choice to turn the coins per block mined value to the moon.
I was gonna say, Cardano actually has some merit. Granted it has gained a lot over the last year! Just not as much market cap as Dogecoin. Haven't looked at Dogecoin's actual volume though, so it may be a paper . . . doge?
Seen on a button at an SF Convention:
Veteran of the Bermuda Triangle Expeditionary Force. 1990-1951.
No supply limit - what could possibly go wrong? (Score:5, Insightful)
That's the insanity of this crypto bull market, that a cryptocurrency which started pretty much 'for fun', has no actual purpose - and worse still, has no theoretical supply limit - traded at a recent high of $0.45.
For the last 7 years since release, it barely managed $0.003.
With no supply limit, it kinda reminds me of this quote from HHG2TG:
Douglas Adams.
Re: (Score:2, Insightful)
and worse still, has no theoretical supply limit
Sort of like any modern inflationary economy. Weird.
Re:No supply limit - what could possibly go wrong? (Score:5, Informative)
Sort of like any modern inflationary economy. Weird.
You're missing something when comparing the two. Modern inflationary economies absolutely have a limit, and that limit is determined by policy through central banking systems and manipulated to adjust inflation rates to keep markets stable. ... Except for say the few markets where the central banks are run by idiots such as Zimbabwe.
That is very different from the uncontrolled inflation that is possible in decentralised system which has no limits in place.
Car analogy: Just because it's good to drive a pickup truck on a farm doesn't mean it's good to drive a pickup truck in a European inner city.
Re: (Score:2)
More to the point, some inflation is a good thing. It encourages spending vs. saving, encourages investment, and slowly reduces the effective value of debt.
There's many different factors involved in an economy that balance off against each other, and left to their own devices, they're prone to wild swings, and always have been throughout history. People go to college for years to understand all of the nuance to economics. Non-inflationary unmanaged cryptocurrencies based on the notion of "if nobody manage
Re: (Score:2)
There's so many factors converging towards a potential cryptocurrency crackdown, too. For example, just a random one: the Biden administration is really concerned about the major silicon shortage right now. Well, if you crash demand for ASICs and GPUs for mining, you do a lot to relieve the supply crunch.
Re: (Score:1)
Re: (Score:2)
And more to the point: the highest rate of inflation on the dollar in the past three decades is ~4%, and the highest ever was ~21%. Bitcoin frequently makes swings that wild. The dollar is a massive beacon of stability and predictability in comparison to cryptocurrencies, even when you look at its least stable times.
There's a reason why even crypto advocates like Musk still price their products in dollars even when you buy them in cryptocurrencies, and you only get a briefly-valid exchange rate on your pu
Re: (Score:2)
People love to say this, but every economy that's experienced hyperinflation has already been in deep shit for other reasons. Printing money is just a way of holding on for a little longer.
Please (Score:2)
The supply of Dogecoin will increase by 4% this year. The supply of Bitcoin will increase by 1.76% thus year. There doesn't seem to be a meaningful difference.
Re: (Score:1)
and worse still, has no theoretical supply limit
All cryptocurrency scarcity is artificial. That's entirely why Dogecoin's developers made the satirical choice to turn the coins per block mined value to the moon.
Re: (Score:2)
Oh for God's sake, just shut up. You're so awful that we have an AC calling you out as the first post on every cryptocurrency story on Slashdot.
Re: (Score:2)
All you need is something else to do with your life. You're a broken record by this point.
Re: (Score:2)
I was gonna say, Cardano actually has some merit. Granted it has gained a lot over the last year! Just not as much market cap as Dogecoin. Haven't looked at Dogecoin's actual volume though, so it may be a paper . . . doge?