Post
Topic
Board Announcements (Altcoins)
Re: Nxt :: descendant of Bitcoin - Updated Information
by
laowai80
on 12/12/2013, 13:28:19 UTC
eMunie is not inflationary. If there is a demand on the free market for 10% more coins, 10% new coins are created, but stakeholders receive free coins, so their assets value stays the same.

So how is that not inflationary.
Ok, stakeholders' assets absolute value remains the same, but the total money supply increases with demand, most importantly, it increases at an unpredictable rate. Money supply increases at a large unpredictable rate, you have prices of products and services nominated in that currency also increase proportionately => more coins chasing the same number of products and services issue. Exactly the same we see in the real world of fiat currencies, so what's the difference?