I am new, and I had a question about the infinite coins possible.
if you have an infinite coin possible (no hard cap) and can make it at any time to raise the cap, doesn’t that make the coin infinite and therefor valueless?
like fiat currency vs gold
Gold has it’s intrinsic value because there is a limited supply of it. You can’t just go make more gold.
A: There is no hard cap other than a 2 billion coin max put into the code for now. But that should not be interpreted as an approachable cap, as it might never get anywhere close to that. It should not be considered a hard cap either as it may get lifted but that's likely not needed in a very very long time. Due to the nature of the mint rate design it's not possible to predict a final limit as it depends heavily on market participation, as well as the influences between proof-of-stake minting and fee destruction (there may not even be a mathematical limit if minting continues to outpace fee destruction). What we do know is that the proof-of-work minting would slow down exponentially according to Moore's Law (we are aware that Moore's Law eventually would stop to apply), and proof-of-stake minting introduces at most 1% annual inflation. So generally speaking it is still a very low future-inflation design comparable to Bitcoin.
In 0.2 release a ‘moneysupply’ stat is included in the getinfo output so everyone can see how many coins are in the market.
You’re forgetting about how everytime a peercoin moves, and costs a transaction fee, that peercoin transaction fee gets destroyed, and is never used again.
We’re losing peercoins by the second, on purpose. It makes it more rare. The PoW block reward also gets smaller and smaller over time. That makes it more rare.
Finally, this post covers a lot:
[quote=“saeveritt, post:3, topic:3939”][…]
Peercoin is already proving to be stable and hold its value against USD for over a year now from a low of $0.21 to about $0.40 today. Perhaps pegging to a currency that is continually declining at a significant rate against Bitcoin is too difficult to maintain.
What is interesting is that Peercoin’s annual inflation is already as low as %3.6 :omg:
Total coin supply Jun 15th 2015: 22,409,361
Total coin supply June 15th, 2016: 23,232,083.
It seems that the destroyed PPC from transaction fees, 0.01 PPC/kb, is also helping by mitigating the inflation from Proof of Work block reward. We are now seeing an incredibly low annual inflation and significantly lower rate from which PPC endured for the past few years. In the future (possibly near future) we could even see negative inflation and the coin could really start gaining value naturally. It’s becoming increasingly apparent that this coin is designed with foresight. Stability will be acheived and growth against World GDP will be the subsequent outcome due to the beauty of digital scarcity.
Perspective: After the block reward halving Bitcoin’s annual inflation will start at 4.17% and work down towards 3.70% by 2020. PPC is the long term champion. Projects like PeerAssets will make the network more valuable due to destroyed fees for every transaction on the network.[/quote]
Gold has inflation, just like Peercoin. Gold has no “hard cap”.
Each year, approximately 2500 tons of gold were mined throughout the world. South Africa leads the world in gold mining, and the U.S., Russia, Canada, and Australia are also major producers. Gold is distributed widely over the earth, and gold mining is pursued in most countries with some success.
Good comment [member=30983]peerchemist[/member]
History teaches us, that when Bitcoin was worth 25 cents, people were mining it and selling it as fast as they could accumulate it.
When Bitcoin was worth $1.00 people went nuts, selling half their Bitcoin stash, figuring the price would never get to $1.00 again.
Peercoin is in a similar phase right now. A very large amount of people are mining it with old asic’s, with the idea that peercoin will never be worth more than 50 cents.
Give it time. One day many of them will wake up and go “gee! all those peercoins I mined and sold!! I should have kept them.”
That’s one real guarantee we have. History always repeats itself.
Informative replies and interesting information. Thanks!
At a high enough price, more gold can always be obtained.
In fact, we haven’t even scratched the surface of the Earth’s own gold which is near the core. (All we use now is what happened to smash into the planet from asteroids.)
According to this “there are enough precious metals in the core to cover the entire surface of Earth with a four-metre thick layer.”