The inflation is now 118% pa, or 10% per month, not counting POS.
The inflation decreases over time as the number of mined coins over time becomes a smaller and smaller amount relative to the overall number of coins in existence. Look at what it will be a few years down the road.
There is no guarantee that mined coins will decrease. I hope YAC is till there in a few years. One and one miner can 51% any day. More about security below.
Again, I think your enthusiasm is admirable. It seems to me though that you are very focused on the price of YACoin per Bitcoin? I suggest you look into mining as it is a great way to acquire YACoins, especially if you aren't minting very many through PoS. You have the best people here to assist you with that.
You make some good points. I think you should look at inflation differently. Inflation is a term we are using to describe the increase of money supply. There is one problem with that assumption: YACoin has not been accepted as a form of money by any means, not even close. We are in an adoption phase. I mean even Bitcoin is in an adoption phase that is designed to last for over a hundred years before reaching it's inflation rate of 0.
People will speculate based on future inflation rate more so than the current inflation rate. WindMaster made the point that inflation is a ratio of new coins being created versus coins already in existence. If block reward was a constant 100 forever, PoW inflation rate would decrease over time because the ratio gets smaller and smaller as coins in existence increases. Someone who is pessimistic about the high block reward should wait to enter the market at a price where they think even the 100 block reward limit won't theoretically result in a huge change in price from everyone mining and dumping.
I understand the term of inflation in cryptocurrency world. I can agree with you and WM on the bold part above. It will take another 2.5 years to increase money supply at today's rate before capping at 100 will only cause 50% inflation. If the actual inflation gets lower because more miner mine, the max-inf=50% moment will come later. What a paradox.
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The current parameters favors late miners.
Isn't that actually a good thing in terms of favoring late investors?? A low price would also favor late investors, right? You want to enter a market when it is at the bottom, yes?
Well I guess this not the bottom. The bottom and destiny will be in the 10 satoshi range when only a few die hard miners are left and nothing happen to YAC years after years. Existing investors value will be wiped out by perpetual new comers.
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Also, don't overlook PoS. As times moves forward, the amount of coins created through PoS will rise in comparison to coins created through PoW. Theoretically, the price and amount of existing coins could reach a point where it is guaranteed that buying YAC with fiat/bitcoin would be more cost effective than buying the most efficient mining rig because the amount of coins you would create through PoS minting would be more than you could ever hope for with PoW to get return on investment.
Funny you should mention POS. I am interested in YAC because it is one of the major POS coins in my mind. My first POS block was mined in YAC. I am posting about POW here because I don't want hyperinflation to kill YAC. Mine-and-sell backed by high reward drives down prices which brings higher reward. The number of miners will be fewer and fewer. The network becomes less and less secure. If the a top miner does a 51% attack to cryptsy, YAC's reputation as a serious cryptocurrency is over. Or YAC will be a pure hobbist coin.
It will take 33 years to increase money supply at today's rate before capping at 100 will only cause 5% inflation (POS rate)
There will be almost one billion YACs. If you buy and hold and mint POS today, you are looking at loosing 90% of the value. Even YAC price reaches 1 satoshi it might be still fun to play with for me on the technical part. But not all in the community agree with that.