right.
it didn't fail.
even with a annual supply inflation of 1.5-2.5%.
a supply cap isnt a requirement of hard money.
in fact, its bad monetary policy.
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Replies (5)
lol, because it takes actual work to produce Gold at that inflation rate. RandomX algorithm requires very little work at all to produce more XMR. And as we learn from basic supply and demand, prices fall to the marginal cost of production.
If it cost nothing to make it, it’ll cost nothing to own it, making it worthless over time.
lol
tell me you dont understand the difficulty adjustment
without telling me you dont understand the difficulty adjustment 👍
since you can only ask questions
and not answer any,
here.
right.
it didn't fail.
even with a annual supply inflation of 1.5-2.5%.
a supply cap isnt a requirement of hard money.
in fact, its bad monetary policy.
View quoted note →
That's an interesting point.
Monero Difficulty Adjustment
Yes, Monero (XMR) has a difficulty adjustment mechanism. The difficulty adjusts with each block, examining the block times of the previous 720 blocks, excluding the 60 highest and lowest block times, which leaves 600 blocks for analysis. The average block time is then used to adjust the difficulty proportionally to target a 120-second block time.
The adjustment algorithm is designed to ensure that the network difficulty is appropriate for the current hashrate, maintaining a consistent block time despite fluctuations in mining power. This helps to stabilize the network and prevent sudden changes in difficulty that could disrupt mining operations.
It's pretty sad how bitcoiners, or some of them at least, seems to try to make up history or economics concepts as they go along.