- If the interest rate is too low, people will go to some other coin, where it is higher.
Well, I think there are other factors that exhibit positive feedback - things like ubiquity of valid tender and popularity as a currency AND store of wealth. For example, for most BTC users the effective rate of interest is 0% But we all use it! However in this current time and stage of ALT POS you are right.
- If it's too high, the coin will die at some point.
Indeed!
