Ninjastic
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Board Bitcoin Discussion
Re: Proof of stake mining of bicoin
by
cbeast
on 27/12/2014, 08:29:12 UTC
Quote from: LeChatNoir on December 27, 2014, 08:26:25 AM
Quote from: cbeast on December 27, 2014, 08:02:14 AM
Quote from: Come-from-Beyond on December 26, 2014, 04:36:13 PM
Quote from: cbeast on December 26, 2014, 04:29:50 PM
You are moving goalposts. Inflation is not problematic because it is mathematically fixed at a known predictable rate. Price is baked in.

Number of Bitcoins today = 13'646'425
Number of Bitcoin 365 days ago = 12'177'500
Inflation = (13'646'425 - 12'177'500) / 13'646'425 = 10.76%

Price of 1 BTC today = 324 USD
Price of 1 BTC 365 days ago = 734 USD

Aye, the price is indeed baked in.
Right and PoS always goes up in price, right? Notice that the average yearly price goes up substantially every year.

The value of a coin that is inflating at 10% is pushed down 10% per year against a coin who has 0% inflation, this is done by speculators.
In reality some years the inflationary coin will go down 30% some other years it might gain 10%, but on average the 10% yearly inflated coin will always go down 10% per year against a coin who has no inflation.
That's why bitcoin block rewards halve every four years.