Hi,
i’m going to create another video about the importance of grin monetary policy which explaining all things that I collected about grin (with Grok help) for beginners. Here is the script in english, could someone skim it quick to find any mistakes or misunderstandings in this script or add more info? ( My video will be in my local language)
Thanks.
Grin Coin Series - Part 2: Grin’s Monetary Policy and the Power of Time
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Introduction (1.5 minutes)
Hello everyone! Welcome back to my Grin Coin series on my channel. I’m [Your Name], and in the first episode, I briefly talked about the mysterious history of Grin Coin and its founders. Today, in part 2, I’ll dive into the evolution of monetary policy, from the gold standard to Bitcoin, Dogecoin, and meme coins like Pepe, Shiba Inu, and Pi Coin. Most importantly, I’ll explain why Grin Coin is uniquely special in the crypto world with its “time-based currency” policy, balancing value storage and spending incentives. This series includes some academic and technical concepts that might seem dry, but I’ll do my best to break them down for beginners. This video is not investment advice, and you’re responsible for your own decisions. If you’re curious, watch until the end and hit like and subscribe to support me!
First, let me quickly explain how inflation is calculated to clarify the difference between inflation for USD and for a cryptocurrency.
• USD Inflation (%) = [(CPI this year - CPI last year) / CPI last year] × 100. For example, if the CPI rises from 100 to 103, inflation is 3%.
• Crypto Inflation = (New coins issued / Total supply mined/staked) × 100, minus burned coins (if any).
There are also a few inflation-related terms that people often mix up:
• Inflation: The rate at which prices increase.
• Disinflationary: When the inflation rate decreases but remains positive (prices still rise, just more slowly). For example, if inflation drops from 5% to 2%, that’s disinflation.
• Deflationary: When inflation is negative (<0%), meaning prices of goods and services decrease, increasing the purchasing power of money or coins. For example, a 2% annual price drop is deflation, making the coin more valuable relative to goods/services. -
The Evolution of Monetary Policy: From Gold Standard to Meme Coins (3 minutes)
Monetary policy determines how a currency is issued and impacts its value. Let’s walk through this journey:
• Gold Standard: Before 1971, under the Bretton Woods Agreement (1944), the USD was pegged to gold at $35 per ounce, and other currencies were pegged to the USD, creating a fixed exchange rate system. The USD supply was limited by U.S. gold reserves, ensuring stability but restricting flexibility. If a country ran out of gold, it couldn’t print more money, slowing the economy. The gold standard favored value storage but didn’t encourage spending due to limited gold supply. After 1971, the gold standard ended, and the Federal Reserve (FED) used monetary tools to control inflation (withdrawing or injecting money). Decisions were made by the FED chairman, Board of Governors, and the Federal Open Market Committee (FOMC), influenced by human factors like politics, government, and investors—somewhat transparent but not automatic.
• Bitcoin (2009): Bitcoin introduced a fixed supply of 21 million coins, with inflation reduced via halving every 4 years. In 2019, Bitcoin’s inflation was ~3.7%, dropping to ~0.8% by 2025. This makes Bitcoin like digital gold, ideal for storing value but less practical for daily transactions due to scarcity and high prices.
• Dogecoin (2013): In contrast, Dogecoin was created to encourage spending. It issues 10,000 coins per minute, with high inflation (~5-10% in 2019), promoting spending but reducing long-term value. Dogecoin became a symbol of “tipping” culture and fun transactions.
• Ethereum (ETH): Initially Proof-of-Work (PoW) with no fixed supply, Ethereum switched to Proof-of-Stake (PoS) in September 2022. Users stake at least 32 ETH to become validators, locking their ETH as collateral. The system randomly selects validators to create blocks or confirm transactions based on their staked ETH and duration. Those with more ETH have a higher chance of being chosen, centralizing power to wealthier holders. As of July 2025, ETH’s total supply is ~120.7 million. Since August 2021, EIP-1559 burns a portion of transaction fees (base fee). High network usage can burn more ETH than issued, reducing supply (making it deflationary). The more people use Ethereum, the scarcer it becomes, favoring validators with the most ETH.
• Meme Coins (Pepe, Shiba Inu, Pi Coin): Meme coins like Pepe (2023), Shiba Inu (2020), and Pi Coin (2019-2025) follow Dogecoin’s trend, focusing on community and transactions. Pepe and Shiba Inu often have fixed supplies or burn mechanisms, but their value depends on early speculators or exchanges pumping the price. Pi Coin, with billions of coins from mobile mining, has high inflation (estimated 50-100% in its early years), encouraging usage but lacking scarcity. People used to mock Pi Coin as “rainwater and bird droppings,” but its listing on exchanges and conversion to cash strengthened belief in community-driven, accessible coins. Anyone with a smartphone can join, even latecomers, at low cost.
Each system has pros and cons: the gold standard and Bitcoin favor storage, while Dogecoin and meme coins prioritize spending. So, where does Grin Coin fit in?
Here’s a visual (b-roll) I’ve compiled showing Grin’s central position among these monetary policies.
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Grin Coin: Time-Based Currency – Balancing Storage and Spending (3 minutes)
Grin Coin, launched in 2019, has a unique monetary policy: a “time-based currency.” Grin issues 1 coin per second (31.536 million coins per year), consistently forever, independent of markets or miners. This makes Grin neutral:
• Value Storage: Inflation decreases over time (100% in 2019, ~12% in 2025, ~4% in 2044) as the total supply grows, making new coins a smaller fraction. Lost coins (from forgotten or broken wallets) further reduce effective inflation, boosting long-term value storage potential.
• Spending Incentive: A steady supply ensures Grin is always available for transactions, making it suitable as a medium of exchange, unlike Bitcoin’s extreme scarcity.
Compared to Bitcoin (too scarce) or Dogecoin/Pi Coin (high inflation), Grin balances both, thanks to its reliance on something special: time. -
Unique Characteristics of Time in Grin’s Monetary Policy (2.5 minutes)
Time is Grin’s unique anchor, setting it apart in the crypto world. Here are the characteristics of time that prove Grin’s distinctiveness:
• Fair and Immutable: Time is the only resource no one can manipulate. Grin issues 1 coin per second, and no one—not developers, miners, or anyone—can change this rate. Unlike USD (controlled by the FED’s discretionary printing), Ethereum (burning coins centralizes power to validators), or Pepe (market makers manipulate prices), Grin is transparent and fair.
• Predictable: The fixed issuance schedule (31.5 million coins/year) lets everyone know exactly how many Grin coins will exist in the future. For example, in 2040, the total supply will be ~630 million, with ~5% inflation. Unlike Pi Coin, with its unclear supply, Grin enables long-term planning.
• Eternally Sustainable: Time never stops, so Grin always has new coins, ensuring liquidity for centuries. This contrasts with Bitcoin (supply ends in 2140) or the gold standard (limited by reserves).
• Natural as a Universal Law: Time is a natural constant, independent of humans or organizations. Grin’s reliance on time is like the Earth orbiting the Sun, creating a sense of stability and reliability, unlike meme coins driven by community hype.
Thanks to time, Grin is both scarce (decreasing inflation) and liquid (steady new coins), making it a “neutral digital gold” in crypto. If you’re curious about the importance of time, I recommend checking out this video by the CD Team, which explains its significance in life. When Grin is backed by time, the saying “time is money” reinforces its value compared to gold and silver.
Initially, Grin’s development sparked debates about why Ignotus Peverell, the anonymous lead developer who disappeared in 2019 after completing Grin’s code and legacy, chose time as the foundation. At the time, the trend was coins with fixed supplies like Zcash or Monero. Personally, I believe this was a visionary move for long-term sustainability, though it caused pain in the early years due to high inflation, leading investors and speculators to overlook Grin. -
Conclusion (1 minute)
Grin Coin, with its “time-based currency” policy, is a unique project that balances value storage and spending. From the gold standard to Bitcoin, Dogecoin, and meme coins like Pepe, Shiba Inu, and Pi Coin, Grin stands out by using time—a fair, predictable, and sustainable resource for both early adopters and newcomers. With a price of just $0.03-$0.06 USD in July 2025, Grin is a great opportunity for beginners to explore this special coin. In the next episode, I’ll cover Grin’s privacy features, how to buy, use wallets, and store coins. This is not investment advice, and you’re responsible for your decisions! Thanks for watching—please comment, like, share, and subscribe to follow this series! See you next time!
