By definition, if there is no hard cap and people are generating, then a peg can’t be maintained to another currency with a hard cap—basic Pigeonhole Principle. Can’t uniquely match n+m items to just n slots. I’m not really seeing what you’re asking after.
Ah yes, I see. I didn’t think carefully about how a peg would actually be maintained.
Suppose the new currency does have a hard cap—suppose I copy the Bitcoin scheme and create Cyan-coin, of which there will eventually be 21 million. Even if I don’t personally maintain reserves of the two currencies to keep the exchange rate pegged, didn’t I just double the supply of e-money, thereby halving the purchasing power of an e-coin?
Only if people use it and make plans on it. You could make a trillion different Cyan-coin currencies, and if they never left your computer, would they affect anything at all? Of course not.
The purchasing power of a random bitcoin only halves if people run out and start using Cyan-coin in exactly the same quantities as Bitcoin. Otherwise, the actual purchasing power is much less, set by the exchange rate—obviously Cyan-coin is not equal to a Bitcoin in PPP if the exchange rate is 100:1.
I imagine that early uptake of a Bitcoin clone would be facilitated if people thought that the hard cap on Bitcoins proper would cause the scheme to have undesirable properties as a currency.
Although many will not see this, I want to compliment you expressly on these posts. You surely had a very eminent expectation and understanding of the community at the time and what could be expected. I think there is a general lack of the central issue that lead many to move to btc: distrust in the governments in general. I would love if you would perhaps do a retrospective on your memories and predilections of what you thought you knew, whether you did know it, what you weren’t aware of but suspected, and things you were wrong on.
I wouldn’t blame you for deleting all the posts either. I’m sitting here watching numbers go up and I remember 2011 when it became mainstream-ish, and frankly, I still agree with you and most of the posters here. I thought it was stupid and wouldn’t pan out. I was young then, too, so it’s not like I had money- and even worse, I didn’t know shit about computers at all.
By definition, if there is no hard cap and people are generating, then a peg can’t be maintained to another currency with a hard cap—basic Pigeonhole Principle. Can’t uniquely match n+m items to just n slots. I’m not really seeing what you’re asking after.
Ah yes, I see. I didn’t think carefully about how a peg would actually be maintained.
Suppose the new currency does have a hard cap—suppose I copy the Bitcoin scheme and create Cyan-coin, of which there will eventually be 21 million. Even if I don’t personally maintain reserves of the two currencies to keep the exchange rate pegged, didn’t I just double the supply of e-money, thereby halving the purchasing power of an e-coin?
Only if people use it and make plans on it. You could make a trillion different Cyan-coin currencies, and if they never left your computer, would they affect anything at all? Of course not.
The purchasing power of a random bitcoin only halves if people run out and start using Cyan-coin in exactly the same quantities as Bitcoin. Otherwise, the actual purchasing power is much less, set by the exchange rate—obviously Cyan-coin is not equal to a Bitcoin in PPP if the exchange rate is 100:1.
I imagine that early uptake of a Bitcoin clone would be facilitated if people thought that the hard cap on Bitcoins proper would cause the scheme to have undesirable properties as a currency.
Surely. But that’s not the case, as people think the presence of a hard cap is one of the valuable traits of Bitcoin.
Although many will not see this, I want to compliment you expressly on these posts. You surely had a very eminent expectation and understanding of the community at the time and what could be expected. I think there is a general lack of the central issue that lead many to move to btc: distrust in the governments in general. I would love if you would perhaps do a retrospective on your memories and predilections of what you thought you knew, whether you did know it, what you weren’t aware of but suspected, and things you were wrong on.
I wouldn’t blame you for deleting all the posts either. I’m sitting here watching numbers go up and I remember 2011 when it became mainstream-ish, and frankly, I still agree with you and most of the posters here. I thought it was stupid and wouldn’t pan out. I was young then, too, so it’s not like I had money- and even worse, I didn’t know shit about computers at all.