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Sanchez__Erick
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Bullish
What does Elon Musk mean when he says he likes the idea of flat inflation $DOGE ? Let's take a look behind the scenes together!
Every minute, 10,000 new dogecoin is generated, so this is inflation; it's flat because it's a fixed number. Elon, in response to Shibetoshi Nakamoto, the creator of dogecoin, said he likes this idea and sees it as a feature, not a bug. But what's good about it?
First, let's see how long it will take to double the amount of dogecoin with this approach. Currently, we have over 400 billion dogecoin. About 5 billion new dogecoin will appear each year, so it will take 80 years to double the amount of dogecoin. The value of $DOGE will, in the worst case, halve in 80 years. And what about the dollar? How many years will it take to double its value? In fact, on average over the last century, it takes 20 years!
And guess how long it takes for doge to become one-fourth? That's right, over 300 years; we are already far ahead!
So, in fact, the dollar is 2^4=16 times more inflationary than doge over 100 years and 30,000 times worse over ~300 years!
But why is this inflation good, and does it really halve its value in 80 years $DOGE ?
Every minute, 10,000 new dogecoin is generated, so this is inflation; it's flat because it's a fixed number. Elon, in response to Shibetoshi Nakamoto, the creator of dogecoin, said he likes this idea and sees it as a feature, not a bug. But what's good about it?
First, let's see how long it will take to double the amount of dogecoin with this approach. Currently, we have over 400 billion dogecoin. About 5 billion new dogecoin will appear each year, so it will take 80 years to double the amount of dogecoin. The value of $DOGE will, in the worst case, halve in 80 years. And what about the dollar? How many years will it take to double its value? In fact, on average over the last century, it takes 20 years!
And guess how long it takes for doge to become one-fourth? That's right, over 300 years; we are already far ahead!
So, in fact, the dollar is 2^4=16 times more inflationary than doge over 100 years and 30,000 times worse over ~300 years!
But why is this inflation good, and does it really halve its value in 80 years $DOGE ?
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