Question about Fixed Amount of NEM

Technical Discussion
#1

Hey Guys,

Ive been an investor in NEM for a while. Ive been recently looking to increase my investment substantially, but I had reservations with that fact that there wont be any more issued coins.

If I were to invest on building on the NEM blockchain there would be no way to have any real cost control, because my input cost XEM can raise at any given moment. In fact its gaurnteed to raise as the product is more popular. This puts the developer in a difficult position, becuase the sucess of his coin would result in more demand for XEM and then higher costs to acquire the coins. Why would someone decided to give themselve that potential cost exposure?

Btw I might have looked at this the wrong way, so please let me know if I am missing something. I understand that cryptocurrencies are afriad of “inflation”, but from an ecnomic standpoint, any currency that is bult for transactions needs an inflationary component to prevent users from being priced out.

Looking forward to hearing your thoughts…

#2

It’s definitely a fair point and I think there is no way to know right now where this goes. I’d also be in favor of a very very low inflation of like .1 % or so. In fact I think using that as block rewards could be a good idea. Combined with the already andvanced spam-filter that could make it possible to get really cheap transactions going.

What you do have to consider is that XEM isn’t necessarily meant as currency how store of value. XEM could at the same time just turn out to be the token that makes it possible to utilize the technology that is nem. Like XRP for Ripple.