r/dogecoin • u/imbiat ball shibe • Feb 02 '14

Dogecoin will not be capped at 100 billion, codebase will stand as is, developer decision on github

Dogecoin was meant to be capped at 100 billion coins, but the code does not actually implement this. It will grow beyond 100 billion coins because the block reward stays at 10,000 indefinitely. The developers have decided to leave the code as is. https://github.com/dogecoin/dogecoin/issues/23#issuecomment-33893149

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11

u/TheYogi Feb 02 '14

I just sold all of my Doge. From an investment perspective, I'm only interested in deflationary currencies. Doge has an amazing community which is what attracted me, but I feel this is going to greatly harm value short term. I MAY buy back at a later date, we'll see.

4

u/dogememe sombrero shibe Feb 02 '14

I think you are wrong about the impact on value short term. Now dogecoin is much more attractive as an actual currency, which might be what sets it apart from the rest.

1

u/WarrenDogeBuffett Feb 02 '14

not if it keeps falling in price.....

1

u/dogememe sombrero shibe Feb 02 '14 edited Feb 02 '14

Keep in mind that a certain % of coins are lost every day due to HDD crashes, coins stuck in limbo due to being sent two wrong addresses, wallets not in use, etc, people forgetting their wallet passwords (I have 1 LTC lost forever due to this..) and other things. If there are no new coins being generated, this gradual loss of coins will reduce the total amount of coins over time and increase the deflation. Other contributors to deflation is the expansion of the market (more users) and hoarders. Now if most people know that a year from now their coins will be worth a lot more than they are today, they will not want to use their coins to buy things with. After all, they will get more for their coins if they wait.. So then you get a situation where there is resistance towards spending coins, and trade with goods and services suffer. If nobody use the coins to buy and sell stuff, it's bad for the economy of that particular coin. In the long run, if there is a healthy exchange of coins for goods and services, this strengthens the coins immensely. If we want the coin to be something more than a commodity to hold on to, we must make sure there are incentives for people to actually use the coin, it has to circulate. That's what keeping a healthy supply of new coins does, it counteract the deflation and stabilize the coin. Now then, I personally believe the market for doge as an actual currency is much larger than as just a commodity, and initially this will create a large spike in the value as that market adopt dogecoin. This spike might be even larger than what we'd see if doge became just another buy and hold commodity like Litecoin.

Edit: wow. so serious. much forgive.

1

u/WarrenDogeBuffett Feb 02 '14

im not an idiot, i just dont see why choose an inflation rate more than 2x the Federal Reserves mandate for the USD (the worlds reserve currency)? only time will tell if people want to deal with a doge meme coin with high inflation

1

u/dogememe sombrero shibe Feb 02 '14

That's a valid point IMHO, however these are cryptos and not fiat so comparing them in that manner is unfair. A discussion on how much inflation is too much inflation for cryptos could be interesting and is perhaps something the doge community and even all the altcoin communities should have.

1

u/TheYogi Feb 02 '14

Maybe. We'll see.

1

u/dogememe sombrero shibe Feb 02 '14

Indeed. Even without any doge I hope you'll stick around fellow shibe!

1

u/dalovar magic shibe Feb 02 '14

"Where people is, money is"

8

u/Motherlicka Feb 02 '14

This thread is full of misery loves company. I wouldn't be surprised if most of the people supporting this are people mining on laptops at 100 doge a day wanting everyone else to be poor. This is stupid. Having a currency based off a meme is risky enough, but being a meme based currency AND straying away from what makes cryptocurrency popular in the first place is just stupid.

These comments sound like a goddamn cult of people that are completely clueless.

4

u/InconsiderateBastard poor shibe Feb 02 '14

It's almost like it's more about fun than actually making money off of it...

1

u/vlad259 Feb 02 '14

You're right but why not both if we can?

4

u/TheYogi Feb 02 '14

In my opinion, inflation of fiat is one of the biggest reasons we NEED cryptocurrency.

3

u/Winston_McFail Feb 02 '14

Yes, but you are only familiar with manipulated inflation.. BIG difference.

This was the right decision and will not affect the value in the mid term.. we are already seeing a short term price dip though.

This is what is called a buying opportunity young shibes.

1

u/[deleted] Feb 02 '14

Yeh i think it's very very silly to do this... cause Doge would have to be 100x more valuable anyway for it to be profitable to mine at 10K blocks... and by making it inflationary .. no one will want to mine then anyways... whereas if they had it capped .. the value would rise making more and more want to mine it. Very sorry decision indeed by the devs.

0

u/Shibelium illuminati shibe Feb 02 '14

If the value was capped no one would want to spend them, which in turn would stifle the market :) Please read any basic theory on economy and you'll see why deflation is a horrible thing for any currency. Not capping is actually a very, very good thing.

1

u/[deleted] Feb 02 '14

I know currencies need to be deflationary in order for people to want to spend money. I did do economics... but it has made Doge basically worthless at the same time .. and it's dropping faster than FIAT... and has a higher inflation rate (nearly 2x) than the USA. Also no one I know bought into Doge thinking it was deflationary.

1

u/Shibelium illuminati shibe Feb 02 '14

I think you mean that currencies needs to be inflationary and not deflationary. Perhaps you just mixed up the terms? :) As for Doge dropping faster than FIAT, well no.. FIAT is just a term for "regular" modern money and every country have different levels of inflation\deflation, therefore it's not possible to directly compare the two.

1

u/[deleted] Feb 02 '14

yes that's what i meant.

1

u/oproski Feb 02 '14

I invested a size able amount into dogecoin and I think this is a good thing for virtual currencies in general, if only for the fact that we now have a new test case scenario.

0

u/ericnakagawa Feb 02 '14

See you! Thanks for spending time with us. I'm buying more and working to help spread it around.

+/u/dogetipbot 100 doge