A Different Approach to Grin’s Inflation and Supply

I published “A Different Approach to $Grin’s Inflation and Supply” article.
Good reading.

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Perfecto :ok_hand: Perfecto :ok_hand: Perfecto :ok_hand:

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Really well done, thank you for writing it and sharing with us. I would really like to see more such articles… I am glad ツ gets the attention it deserves!

A shattering article. I liked the comparison between Grin and Bitcoin. I think that every investor should think about it.

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The whole article hinges on the axiom that owning a percentage of supply is “injustice” or “centralization”. How is that conclusion drawn?

Also, point #3 is confusing because it mentions “Even if Bitcoin is useless, its price can be inflated with its unlimited supply.” This is untrue. Assuming this was an error, the argument made is moot still. Adoption is another way of saying an increase in demand; an investor always wants to see price go up; more an increase in the demand/supply ratio will increase price; with Bitcoin supply is more constrained than in Grin which makes it less appealing as an investment instrument; part of demand is investor demand; having investor demand adds to demand/adoption. In summary, no matter what the supply schedule is, it is always ideal for demand to meet the supply at the very least because that’ll result in price stability. Grin’s price will continue to drop until it discovers market demand.

Comments on #4: “Fair” isn’t defined here even though it is used as a rhetorical argument against profiteering. An individual will always choose to place their value in instruments that benefit them the most (they act out of self-interest). “Fairness” is only a valid argument if it leads to some Nash equilibrium which can be postulated. So far, all this paragraph states is that Grin is not as good of an investment instrument as Bitcoin and that is more “fair” without going on to saying how more “fair” is desirable to the individual.

In conclusion, it’s clear that Grin is succeeding by its design. It was designed to be less desirable of an store of value than Bitcoin for a very long time in order to maintain a very long distribution period for the sake of “fairness”. Grin’s supply schedule is not a strength when evaluating demand, so look else where. Grin’s demand strong-points will be fungibility and scalability utilities in the market. The market isn’t yet demanding fungibility (look at NFTs), but this may change soon.

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Here’s an approach: 1btc = 380,000grin :face_with_diagonal_mouth:

Here’s an another approach too: 1 $ = 1.309,03 BTC
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