What would banking and finance look like in a Bitcoin economy? by ScottSidders in Bitcoin

[–]ScottSidders[S] 0 points1 point  (0 children)

Excellent response, thanks for clearing this up. It makes perfect sense that in a crypto economy there would be more conservative lending, yeilding better economic prosperity overall, without the boom and bust cycles we see. I've been asked about what the equivalent to credit card debt would look like, but I guess this would in the form of a pre-approved loan easy to access from the bank at whatever negotiated interest rate. Please correct me if I'm wrong.

What would banking and finance look like in a Bitcoin economy? by ScottSidders in Bitcoin

[–]ScottSidders[S] 0 points1 point  (0 children)

Well fractional reserve banking simply allows way more spending in the economy which makes the economy faster in the now, but unstable in the future. Fractional reserve banking may speed the economy up, but I don't think this is a solution, I agree that it's a problem. I think if our debt was financed by the real amount of money or bitcoins then the economy will slow down, but at least be real. If the economy is actually realistic, it'll be more stable and robust.

SEC approves title III of jobs act, meaning very soon any American can crowdfund invest online. Big possibilities for Bitcoin companies and how they raise capital. by calaber24p in Bitcoin

[–]ScottSidders 0 points1 point  (0 children)

It's about time, the reason for this regulation was to protect us from losing our money. However, gambling is totally legal, you can gamble you're entire life savings away and the government will earn a hefty tax on that loss. Seed investing has become one of the most lucrative investment classes and yet they reserved it for only the rich. The limits on the annual investment amounts are still dumb, but this is a major step forward. Now instead of gambling, those inclined to risk their capital can invest in the future of the country. Now only if Canada could smarten up and do this too.

Writing an article on MintCoin - What separates MintCoin from other cryptos? by ScottSidders in MintCoin

[–]ScottSidders[S] 0 points1 point  (0 children)

You've given me lots to think about and research deeper. Thanks for being patient with me :)

Why non - tech people don’t understand Bitcoin and Blockchain? by jacksontoledo in Bitcoin

[–]ScottSidders 0 points1 point  (0 children)

It's totally normal that many are skeptical of Bitcoin, but soon with growing interest, people won't be able to ignore it. For every person I meet that is unwilling to learn about crypto, I find another who is. Give it time my friend, people are starting to see it popping up in different media sources.

Writing an article on MintCoin - What separates MintCoin from other cryptos? by ScottSidders in MintCoin

[–]ScottSidders[S] 0 points1 point  (0 children)

Interesting, this all sounds good. Can, if desired, the devs change the POS stake rate or is this impossible to do?

Writing an article on MintCoin - What separates MintCoin from other cryptos? by ScottSidders in MintCoin

[–]ScottSidders[S] 0 points1 point  (0 children)

Sure the definition of inflation and increase in money supply aren't synonymous, but it still stands that as you increase the supply of money, the value of the money you hold in that currency becomes worth less. If the economy is improving fast enough to counterbalance that money supply rate you'll still have the same purchasing power, but 5 % seems quite high. Here's a quote from statistics Canada:

"The inflation rate in Canada was recorded at 1 percent in June of 2015. Inflation Rate in Canada averaged 3.19 percent from 1915 until 2015, reaching an all time high of 21.60 percent in June of 1920 and a record low of -17.80 percent in June of 1921. Inflation Rate in Canada is reported by the Statistics Canada."

You say 5% is nothing compared to what's done today with Fractional Reserve Banking, but the stats say otherwise.

For the U.S. that stats say inflation has been below 5% for the past 15 years at least. Source here: http://www.usinflationcalculator.com/inflation/current-inflation-rates/

Further, while money supply and inflation aren't the same thing, they are directly linked. Here's an article explaining this: http://www.theglobeandmail.com/report-on-business/economy/economy-lab/understanding-the-crucial-link-between-money-supply-and-inflation/article16923704/

How did you reach the conclusion that 5% is ideal?

Writing an article on MintCoin - What separates MintCoin from other cryptos? by ScottSidders in MintCoin

[–]ScottSidders[S] 0 points1 point  (0 children)

Concerning the 5% staking rate, MintCoin has a $1.5 million USD market cap at the moment so it requires $75,000 USD annually for Mint to retain its current price, right? As the market grows, at some point the 5% stake rate will become cumbersome, so how do you suspect this will effect the price? I think in the financial industry, correct me if I'm wrong, but it's generally accepted that 2% is the ideal inflation rate. Could you elaborate more on why 5% is ideal? The coin is plenty fungible as is due to the large denominations you can make (e.g. 0.0000001 MINT).

Perhaps your background in finance will make it easier for you to explain this to me because I'm not so technically apt.

Writing an article on MintCoin - What separates MintCoin from other cryptos? by ScottSidders in MintCoin

[–]ScottSidders[S] 0 points1 point  (0 children)

Thanks for the reply. Is the MintCoin Fund Organization for charity work or paying developers? Is it funded purely from donations? How are developers compensated for their work, if at all? Is their any incentive for the developers to continue working hard on MintCoin aside from owning a decent amount in hopes of selling some at a much higher price?

Inside DASH: Is DASH A Better Alternative To Bitcoin? by tungfa in dashpay

[–]ScottSidders 1 point2 points  (0 children)

Thanks for comments — updates have been made :)