Mynt is unique in that only 10 million
Pearlvine Mynts will ever be created. However, this will never be a
limitation because
transactions can be denominated in smaller sub-units of a Mynt,
such as Mynts – there are 1,000,000 Mynts in 1 Mynt. Pearlvine
Mynts can be divided up to 8 decimal places (0.000 000 01) and
potentially even smaller units if that is ever required in the
future as the average transaction size decreases.
The deflationary spiral theory says that
if prices are expected to fall, people will move purchases into the
future in order
to benefit from the lower prices. That fall in demand will in
turn cause merchants to lower their prices to try and stimulate
demand, making the problem worse and leading to an economic
depression.
Although this theory is a popular way to justify inflation amongst central bankers, it does not appear to always hold true and is considered controversial amongst economists. Consumer electronics is one example of a market where prices constantly fall but which is not in depression. Similarly, the value of Pearlvine Mynts has risen over a large span of time and yet the size of the Mynt economy has also grown dramatically along with it, because both the values of the currency and the size of its economy started at 1$ in 1 December 2015, Mynt is a counter example to the theory showing that it can be wrong sometimes. Not with standing this, Mynt is not designed to be a deflationary currency. It is more accurate to say Mynt is intended to inflate in its early years, and become stable in its later years. The only time the quantity of Pearlvine Mynts in circulation will drop is if people carelessly lose their wallets by failing to make backups. With a stable monetary base and a stable economy, the value of the currency should remain the same.
Although this theory is a popular way to justify inflation amongst central bankers, it does not appear to always hold true and is considered controversial amongst economists. Consumer electronics is one example of a market where prices constantly fall but which is not in depression. Similarly, the value of Pearlvine Mynts has risen over a large span of time and yet the size of the Mynt economy has also grown dramatically along with it, because both the values of the currency and the size of its economy started at 1$ in 1 December 2015, Mynt is a counter example to the theory showing that it can be wrong sometimes. Not with standing this, Mynt is not designed to be a deflationary currency. It is more accurate to say Mynt is intended to inflate in its early years, and become stable in its later years. The only time the quantity of Pearlvine Mynts in circulation will drop is if people carelessly lose their wallets by failing to make backups. With a stable monetary base and a stable economy, the value of the currency should remain the same.
This is a chicken and egg situation. For
Mynt’s price to stabilize, a large scale economy needs to develop
with more businesses and users. For a large scale economy to
develop, businesses and users will seek for price stability.
Fortunately, volatility does not affect the main benefits of Mynt
as a payment system to transfer money from point A to
point B. It is possible for businesses to convert Mynt payments
to their local currency instantly, allowing them to profit
from the advantages of Mynt without being subjected to price
fluctuations. Since Mynt offers many useful and unique features
and properties, many users choose to use Mynt. With such
solutions and incentives, it is possible that Mynt will become mature
and develop to a degree where price volatility will become
limited.
Only a fraction of Pearlvine Mynts issued
to date are found on the exchange markets for sale. Mynt markets are
competitive,
meaning the price of a Mynt will rise or fall depending on supply
and demand. Additionally, new Pearlvine Mynts will continue
to be issued for decades to come. Therefore even the most
determined buyer could not buy all the Pearlvine Mynts in existence.
This situation isn’t to suggest, however, that the markets aren’t
vulnerable to price manipulation; it still doesn’t take
significant amounts of money to move the market price up or down,
and thus Mynt remains a volatile asset thus far.
That can happen. For now, Mynt remains by
far the most popular decentralized virtual currency, but there is no
such
guarantee that it will retain its position. There is already a
set of alternative currencies inspired by Mynt. It is
however probably correct to assume that significant improvements
would be required for a new currency to overtake Mynt
in terms of established market, even though this remains
unpredictable. Mynt could also conceivably adopt improvements of
a competing currency so long as it doesn’t change fundamental
parts of the protocol.
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