Post
Topic
Board Economics
Re: What is the ideal inflation rate in an inflationary PoW currency?
by
EggShells
on 13/11/2015, 21:49:40 UTC
 
 
Everyone who came to decry the idea of protocol level inflation is failing to understand is that a cryptocurrency network only exists due to miners.  If miners stop mining (due to the block reward getting too small and transaction fees not keeping up), the network rapidly loses strength (leading to loss of value).  The problem with this collapse is it compounds on itself as less valuable tokens translate to even less incentive for mining. 
 

Sorry, I don't understand.  Why do miners matter to the currency value?  If they all stop mining, why should it have an adverse effect on the bitcoins in existence?