Post
Topic
Board Speculation (Altcoins)
Re: [XMR] Monero Speculation
by
TrueCryptonaire
on 30/05/2015, 21:06:09 UTC
Also, I know Monero has adaptive block size. I was commenting that Monero still needs to hard fork to implement permanent inflation rewards, and that maybe MP will be bellyache/troll similar to how he has over increasing bitcoin block size. It's kind of a scarcity issue along the same lines I think.

Interestingly enough here's your answer: http://log.bitcoin-assets.com/?date=27-05-2015#1146160

Worth quoting because I agree with his monetary view. However, I think he is wrong with respect to a proof-of-work cryptocurrency which is not only a financial system but also a device that has the function in a certain way including mining incentives. For the later, a positive rate of inflation is superior.

Quote from: MP
fixed inflation is not fundamentally different from zero inflation just as long as the inflation is known

Fiat money has more or less fixed inflation which is done by the European Central Bank inflation targetting.
If there is an inflation rate, it really doesn't differ from fiat money (unless you do not consider a distribution mechanism which is different in crypto and the modern type of fiat money which is created in two ways: 1) by central bank the initial money supply 2) Commercial banks by credit expansion - the latter being more significiant factor).