Moorescoin - solving volatility

So... Cryptocurrencies have got the "crypto" down, but forgot the "currency" part buried under a pile of to the moon, pump n dump, ponzi and austrian psuedoscience. I'm basically going to reiterate something I initially thought of in 2013.

Remember: MV = PQ

----

Moore'sCoin is named after Moore's Law, the approximation that the number of transistors on an integrated circuit doubles every two years.
Moore'sCoin will be designed specifically to combat several extremely common criticisms levied against Bitcoins and its various existing Altcoins. Early adopters are rewarded to such excessive levels that it can often appear to be (or some would claim truly is) a pump and dump scheme. Additionally, Moore'sCoin will be capable of maintaining much more long-term stability as the production rate of Moore'sCoin is roughly tied to the amount spent on new hardware in the past 5 or so years for mining the coins. Instead of the coin rising in value at extremely high rates, it will instead be much more stable. Moore'sCoin is not a coin for the speculator; it is a coin for the rest of us.Although a lot of Bitcoin supporters will dispute this, the rapid deflation of Bitcoin is very hostile to its ability to function as a currency.
I don't need to go into specifics, all I need to say is that Moore'sCoin would also prevent much of this deflation.

At a basic level, the algorithm for deciding how many coins are mined is set up as follows:
For all use of $ in this example, the value of the $ is fixed at some arbitrary point as opposed to changing. Imagine person A purchases a mining rig for $1,000 on this day in 2014. They then mine for 1 hour and recieve X coins. Person B purchases a mining rig for $1,000 exactly 2 years later, and also mines for 1 hour. Although the mining rig is twice as fast as a result of Moore's Law, they also receive X coins.
Hence, Coins mined per second per value of investment is constant. Early adopters and late adopters are awarded equally.

Other urls found in this thread:

mathsisfun.com/sets/function.html
twitter.com/NSFWRedditImage

Now onto the algorithm itself:

1 Block every 1 min
Difficulty adjustment every 60 blocks
Hashing Algorithm : Whatever
Coin Supply : No Limit
Reward for Block (The important bit) = (2×Difficulty)/2^(1+Y/2) where Y = years since first block was mined.

To put this into perspective:
When Y = 0 (the first block), the reward is = Difficulty.
When Y = 2, the reward = 1/2 Difficulty
When Y = 4, the reward = 1/4 Difficulty
When Y =9.21, the reward = 0.04109 * Difficulty
However, as Reward per difficulty decreases, the cost of equivalent hash/s hardware decreases at roughly the same rate, resulting in the constant coins mined per second per value of investment.

The precise multiplication of 2*Difficulty will need to be adjusted to produce a suitable rate of coin production to give numbers that are easy to handle. The ideal situation would probably be what initially provides 3 coins per day per $1,000 (at current value) hardware invested. Additionally, the precise division of Y/2 will need to be adjusted for optimal correlation with Moore's Law using hash/s instead of transistor count, or the algorithm could be adjusted to take into account predicted deceleration of Moore's Law.
I am not a programmer; I am not an expert on all things cryptocurrency. Most of this was typed out in an hour following another hour staring at the wall and pondering solutions. However, I believe that what's already here is a starting point for addressing criticisms against Bitcoin and existing Altcoins being adopted as a general purpose currency. Low number of transactions processed per second is also considered a major obstacle preventing widespread adoption, but work on that problem is already being done, whereas work on the volatility end of the adoption issue is a lot weaker.

A brief explanation of how this limits speculation potential:

Speculation in Bitcoin is based upon a single principle which has generally held true for several years now: It is much cheaper to mine a bitcoin now than it will be in a month. This applies to both the cost of the mining equipment and that of electricity.
Hence speculators are running on the idea that over time the cost associated with mining a bitcoin increases exponentially, which so far it has. Good for the speculators. Annoying as fuck for anyone trying to use it as a currency.
Moore'sCoin would eliminate that principle. Instead, it would be "It's approximately equally expensive to mine a Moore'sCoin now as it would be in 1 month's time". It achieves this by using Moore's Law to make a very accurate estimate on how many times more powerful a device of the same cost will be that 1 month later, 1 year later etc, and then adjusting the ratio between Difficulty and Coins per Block based on this estimate.
If there is no major changes in the cost of mining 1 Moore'sCoin, then that eliminates most of the driving force behind speculation. A few spaces for speculation remain, such as use of the currency growing faster than the mining of the currency, but these are minuscule compared to the ridiculous levels currently associated with Bitcoin.

And lastly for this infodump: What if we don't want to risk trying to predict moore's law? Yes, we can actually chop out the Moore's law depreciator, if you wanted.

Reward for Block (The important bit) = (2×Difficulty)

In this scenario, if moore's law continued to hold, we'd expect it would take ~40% less effort to mine a coin one year in the future than what it currently takes, and hence something like 40% inflation per year. This is moderately severe inflation, but still a thousandfold improvement for usability over current volatility.

>Moore'sCoin will be capable of maintaining much more long-term stability
>Instead of the coin rising in value at extremely high rates, it will instead be much more stable
Mining doesn't dictate price, retard. Plenty of mineless coins (100% initial supply) have been released and they're just as volatile as anything else
>Moore'sCoin is not a coin for the speculator
You don't get to decide that on an open market retard
>person A purchases a mining rig for $1,000 on this day in 2014. They then mine for 1 hour and recieve X coins. Person B purchases a mining rig for $1,000 exactly 2 years later, and also mines for 1 hour
This can be solved much easier by just rewarding time "checked in" instead of your retarded scheme.

>>person A purchases a mining rig for $1,000 on this day in 2014. They then mine for 1 hour and recieve X coins. Person B purchases a mining rig for $1,000 exactly 2 years later, and also mines for 1 hour
>This can be solved much easier by just rewarding time "checked in" instead of your retarded scheme.

And you ensure each check in is unique how?

>Mining doesn't dictate price, retard. Plenty of mineless coins (100% initial supply) have been released and they're just as volatile as anything else

The 100% initial supply thing is even worse.

You're forgetting the "Supply is fixed and therefore if widespread adoption happens they'll be worth millions each because the entire global population will be scrambling over a few hundred thousand coins" hysterics that fuels speculative bubbles.

Moore’s law as a factor of difficulty is dumb because equipment for mining isn’t exactly following a linear growth curve

Oh I already noted that it might not be linear.

To be on the safe side, an underestimate to yield moderate inflation is perhaps the best tuning.

The same way shitty russian F2P video games does, or your local bank. This is a solved problem.
>The 100% initial supply thing is even worse.
I'm not saying it's better. I'm just saying you're retarded for thinking that altering how mining happens will somehow let you control the price