Dogecoin Has an Inflationary Supply, Making It Ideal as a Cryptocurrency

The problem is that it's still an open-loop system. Central banks for currencies that are well-accepted internationally manage the money supply to avoid excessive deflation or inflation, and the money supply has to grow with the size of the economy. If Dogecoin is slightly inflationary that might be an improvement, but there's still no feedback.

What's fascinating about crypto, whether you are a fan of any particular coin or not, is that we get to rapidly iterate and experiment on everything from Keynesian to Austrian to MMT to Monetarism economics to varying degrees in real-time. We can afford to try all the experiments simultaneously to see which ones succeed over the long haul.

Is this another pump and dump following DOGE jump last days ?

It&#x27;s inflationary (5 billion more a year), but inflation rate drops overtime, reaching 0% on a long enough time line...<p>Compared to USD inflation rate, this is much lower volatility, and makes it rather attractive. A good complement to store-of-value Bitcoin: has the ability to act more like a currency.<p>Also, error in the article: Bitcoin supply is estimated to run out in 2140, NOT 2040.<p>Source: <a href="https:&#x2F;&#x2F;provscons.com&#x2F;is-dogecoin-capped&#x2F;" rel="nofollow">https:&#x2F;&#x2F;provscons.com&#x2F;is-dogecoin-capped&#x2F;</a>

Ideal for the few folks who hold more than 60% of it. <a href="https:&#x2F;&#x2F;bitinfocharts.com&#x2F;top-100-richest-dogecoin-addresses.html" rel="nofollow">https:&#x2F;&#x2F;bitinfocharts.com&#x2F;top-100-richest-dogecoin-addresses...</a>

This argument actually makes a lot of sense. You need an inflationary supply, otherwise why spend it? This will end up being a problem for Bitcoin.

Well, I&#x27;m guzzling Nano like cranberry juice. Here we have a currency written in C++ that inspired another group of developers to port it to Rust. That&#x27;s got to be worth something. Also one of just two currencies that use BLAKE. The other is Siacoin — which I&#x27;m also monitoring, but from my experiences in the community, I feel Nano is going to massively prevail.

I wrote about uncapped vs capped supply in<p><a href="https:&#x2F;&#x2F;john-tromp.medium.com&#x2F;a-case-for-using-soft-total-supply-1169a188d153" rel="nofollow">https:&#x2F;&#x2F;john-tromp.medium.com&#x2F;a-case-for-using-soft-total-su...</a><p>Btw, there are many cryptocurrencies with tail emission, and resulting disinflationary supply.

that&#x27;s not sufficient to make something an ideal currency

Banks want a coin with a central bank and fractional reserve. US banks want all that plus a value pegged to the dollar.<p>Fractional reserve banking allows banks to create money from nothing. Banks don&#x27;t like their money making power taken away.