19 Jan '13, 7pm

Are there studies about a Bitcoin-like economy with inflation?: Assume, we create an alternative cryptocurrency

Assume, we create an alternative cryptocurrency ("InflationCoin") based on the bitcoin software with one change to the protocol: The Block reward is constant, e.g. 50 InflationCoin Technically this would work just like Bitcoin while avoiding one of Bitcoin's most discussed characteristic, namely built-in deflation. The supply of InflationCoin would grow constantly, possibly leading to a controlled and predictable inflation if the InflationCoin economy does not grow as fast the supply of InflationCoins. Transactions are always cheap and therefore encouraged. Hoarding is dangerous due to the risk of inflation. Since, both unsing Bitcoin and InflationCoin is voluntary, they could coexist and possibly attract different users or usage scenarios.

Full article: http://bitcoin.stackexchange.com/questions/7179/are-there...

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