If Satoshi made bitcoin today.
What if you can forecast how Satoshi would have made bitcoin if he made it in todays world, reading his own original thoughts in his posts?
What if you can identify this protocol today in its early days?
What if u can identify the next big crypto like identifying bitcoin before 2013?
One week after publishing his whitepaper Satoshi says this.
If there was some clever way, or if we wanted to trust someone to actively manage the money supply to peg it to something, the rules could have been programmed for that.
Previously Sepp Hasslberger on February 18, 2009 at 14:41 had posted the following question to Satoshi Nakomoto to which the above reply was made.
Reference Link
I have two questions, Satoshi. the first one ties in with Joerg’s doubts about the trusted supply of tokens/coins. As far as I understand, there will be a limit of the total amount of tokens that can be created, and a changing gradient of difficulty in making the tokens, where the elaboration gets more and more difficult with time. Is that correct? It is important that there be a limit in the amount of tokens/coins. But it is also important that this limit be adjustable to take account of how many people adopt the system. If the number of users changes with time, it will also be necessary to change the total amount of coins. Is there a formula to decide on what should be the total amount of tokens, and if so, what is the formula? If there is no formula, who gets to make that decision and based on what criteria will it be made? I will keep my second question for later. One thing at a time
The clever way to determine the value of real world things came into being with Chainlink. Ampleforth team precisely utilised this opportunity to act as a central bank to adjust the money supply as the population of users grows as described by Satoshi. They built one of the most beautiful protocols i have ever came across in crypto. Ampleforth built it in a way that was previously not possible at the time when satoshi proposed bitcoin. Though i am not very sure the idea of ampleforth is inspired from these original posts by satoshi. Maybe , Maybe not.
Instead of the value changing to keep the supply the same, the value is predetermined and the supply changes
So in case of AMPL if the demand keeps increasing the market value will go higher than the predetermined value of 2019 CPI adjusted value for 1 USD, then the total supply is increased ( rebasing ) and the increase in total supply is equitably distributed amongst all the AMPL holders proportionate to their previous holdings. Unlike the Fed after increasing the supply dilutes the valuation of all existing holders. This means as the demand increases the total quantity of ampl in your wallet keeps increasing along with price going above the peg to say like 1.5 or 1.7 USD
The Flipside is that if demand decreases the total quantity of AMPL in your wallet decreases proportionately.
As the value keeps fluctuating between .80 USD and 1.5 USD Arbitrage traders also may flock into the eco system. On a longer run this may decrease the price fluctuation above and below the peg price.
At a market capitalisation of 104 million AMPL got lots and lots of room to grow if AMPL aims to compete with or replace USDT or USDC. Considering that USDT at 80 billion , USDC at 50 billion and UST at 11 billion market cap.
As a thumb rule an investment of 1,000 USD in AMPL made when AMPL market cap is at 100 million will be valued at 100,000 USD if the market cap touch even 10 billion. ( Because the 1000 AMPL bought at 1 USD would have rebased to 100000 AMPL by the time the market cap is at 10 billion )
With authorities keen on cracking down stable coins with backing, ample is likely to be spared as it is completely algorithmic without any requirement of any asset backing. In such a scenario AMPL can even position itself as the corner stone stable coin for DEFI.
A coin that grows in quantity in your wallet as demand grows.
As it is not very easy for a beginner to understand AMPL a simplified model which is easier for people to understand maybe to buy wrapped AMPL where the wAMPL supply remains the same but price goes higher and lower based on demand and supply. Ampleforth team is constantly making efforts to improve the protocol and make it available across multiple blockchains seamlessly as part of AMPLeverywhere effort.
NOTE: Not a financial advise. Do your own research
