Quote from: cAPSLOCK on July 17, 2014, 10:31:15 PM

Quote from: AnonyMint on July 17, 2014, 10:04:10 PM

Rpietila has shown that 5400% annual Debasement (1.1% per DAY) is working to distribute the coin via the normal expected power law distribution of money[3].

Part of the reason it is working is the fact we all understand the emission rate is currently as high as it EVER will be and drops off in an exponential-like curve.

1.1% per day... works for TODAY. If it were going to be that forever no one would touch this with a 10 foot pole.

And investors accept it because they understand distribution is necessary to gain adoption and make it worth something via Metcalf's Law.

Coins that stop distribution die (Bitcoin will either die or be morphed with debasement when the G20 government coordination takes it over via the 1 or 2 pools that control it). Gold with its very low rate of distribution has never been used a currency (without additional debasement), not even in Byzantine.

The reason is very simple and due to the power law distribution of money[1]. Investors don't redistribute to spenders because they only spend a small fraction of their net worth. Thus government must step in and redistribute it. Crypto-currency offers the option of decentralized redistribution (that can't be gamed by the power vacuum of democracy). That is the reason I would prefer to go to 5% than 3%, but the investors here are ignorant. That is why I am teaching now.

Naive investors don't understand that there is a symbiosis between investing and spending, you can't have one without the other. Warren Buffet understands this.

Btw, Monero appears to have a very serious fatal flaw (another reason I didn't bother to develop for it, nor buy it). With the distribution rate being so high, it is impossible to bring it down without causing the miners to leave for another coin[2]. If I designed a currency, never would I make the initial distribution so much higher than the long-term. (do you really believe the core developers are so unselfish as they try to paint themselves, of course not!...why did they set the initial debasement rate so high...to get more coins!)

[1] A. Dragulescu and V. Yakovenko. Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States.

[2] https://bitcointalk.org/index.php?topic=600436.0