Interview with Chuck Grimmett on Dogecoin – Video by Jeffrey A. Tucker and Chuck Grimmett
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Commentary by Gennady Stolyarov II, Editor-in-Chief, The Rational Argumentator:
Jeffrey Tucker interviews Chuck Grimmett on Dogecoin and emerging cryptocurrencies.
They engage in a fascinating discussion on the 2-month-old cryptocurrency Dogecoin. Some excellent points include the following:
(1) It is pronounced “doge” as in “Venetian doge”.
(2) This conversation would have seemed ridiculous 1 year ago and unimaginable 5 years ago, yet it reflects reality today. (Even I, upon initially finding out about Dogecoin, had the thought that truth is stranger than fiction recurring in my mind for an entire day without pause.)
(3) Dogecoin offers an excellent opportunity for testing Milton Friedman’s monetarist rule of building a predictable rate of inflation into the money supply.
Chuck Grimmett is the Foundation for Economic Education’s Director of Web Media. Get in touch with him on Twitter: @cagrimmett
Jeffrey Tucker is a distinguished fellow at the Foundation for Economic Education (FEE), CEO of the startup Liberty.me, and publisher at Laissez Faire Books.
This video is a production of Liberty.me.
One thought on “Interview with Chuck Grimmett on Dogecoin – Video by Jeffrey A. Tucker and Chuck Grimmett”
Dogecoin is a very interesting experiment. I would be surprised if it’s value goes to high – or it may end up being more volatile than bitcoin. I recently learned about dogecoin while researching another newcomer — nextcoin. Nextcoin is very interesting to me as it is a complete rewrite of the code – written in Java and not C; what is more interesting though is that it is 100% proof of stake and not proof of work like bitcoin and most all the other alt-coin dirivities of bitcoin (including dogecoin). I’ve been a bitcoin miner and I’ve also been scammed trying to buy ASIC’s (the latest type of bitcoin miner) from a fake company – this was my fault, I didn’t kick the tires well enough…but what I learned is that mining adds an unneeded risk. The point of mining was to widely distribute the ‘coin’, but with current mining, the coin has still become inaccessible and purchasing it is necessary for most all people. Many alt-coins have worked to address this problem, but only to a small extent as it still requires hundreds if not thousands of dollars in specialized hardware to mine. This is the genius of Nextcoin’s 100% proof of stake system – simply by owning it, you earn the transactions fees paid and there is no large processor requirement — functionally this becomes a system of ‘interest’ in one’s Nextcoin account, with no risk in purchasing mining hardware. Another issue/risk with purchasing hardware, is that one has to weigh (guess) what the future value of the currency is going to be against the productivity of a miner. A friend recently – six months ago – bought a miner for around 40 bitcoins, the miner finally arrived but it will never mine 40 bitcoins, he’ll be lucky to get half that many. With Nextcoin, all you do to earn them is to buy them – hence their is much lower risk in investing in the currency.