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RE: Running Economies Off a Fixed Currency Supply Is a Terrible Idea, Here’s Why
What if you had a currency completely community controlled. Where as it was would deflate but over a very long period of time. Let's say 1000+ years. I has a hard cap in the billions of coins so in theory it has a limited large supply to reach a global user base. As the years go by the community could decide to adopt a new model of inflation maybe increasing the supply slightly spread distribution of the coin. Like a self evolution over time. Not just where miners have all power and say. Would not something like that be the coin of the future?
That would still mean that the single coin gets more valuable year by year, because production goes up.
In fact "fixed" is not really the bad part, its the part where the monetary inflation is smaller then the good's "inflation". Of course fixed money amount makes it all additionally hard, because other things add to that, like the simple fact that money can get lost. How do you make sure you really have a fixed money amount when it is impossible to know how much money is lost? (Just think of all the money relatives of death people find to their surprised stuffed into something. Or not and throw it away and it gets burned.)
Its likely some algo will figure it out in the future. Maybe its something like what Maker DAO is trying to do. The problem is though investors don't wanna invest in cash. If there was a crypto that was stable its not a good investment for returns. This is why the swings up and down is actually beneficial longterm for self evolving growth of the entire eco-system. Once we get past $5 trillion or so in market cap it should start to stablize where the swings are 10-20% a year and not 200%. Bad news for Investors though since stablization means lower returns and overall less innovation due to lower speculation capital.