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Exactly. If you can buy GPU's cheaper than newegg etc., and he actually has them in stock, it makes perfect sense to use GPUC. That's the only question though, will he be able to stock the cards and sell them at a reasonable price. If he comes in at the same price, there's no reason to use GPUC.
That's what I tried explaining to folks early on in this thread, as some folks were confident GPUC would stand up with a defined value. I said no.. it won't. GPUC is merely the transport vehicle; while a static or at least high value is preferred, it doesn't mean that will be the case. The markets will define the value of the coin. This will be based on their confidence and preference of using GPUC, which is based on the business frontend's ability to outperform its Commercial Competition in quantity/volume.
I like the overall idea of the business model, being based on a product which is in demand, but that is its own Achilles heel--it's a product which is in such high demand that the factories cannot keep up with production. Amazon is the highest volume reseller of GPUs in North America to the consumer market, followed up by Newegg, Tiger Direct, etc.
While GPUCoin will surely be able to garner some sort of partnership with a wholesale or reseller/distributor, they will not be able to outdo Amazon or the others in Accessibility and Volume. They will fill a niche for sure--no doubt about it--but they won't come close to being one of the "go to" places. Especially when, right now, you can use BTC directly on TigerDirect, or buy store giftcards with it--and with Amazon, you can go BTC->Giftcard at a 15-20% discount. So if you're a Prime member, you're getting below MSRP on the GPU's already, and then another 15-20% off of that--with next day delivery, and no quantity limits.
I'm not seeing how GPUCoin can compete with that.
I might be wrong, but this is my assessment.
Edit:
In fact, if I were GPU Coin, in addition to partnerships with resellers/wholesale establishments, I would probably be buying from Amazon and then reselling it. Perhaps this is part of his plan, it would certainly open up volume. He could then make a nice net profit on his side of the ledger if he did this and kept the GPU price below Newegg's pricing.
Your writing makes a lot of sense!
I'm guessing the GPUCoin price will be pretty close to what it costs to mine. If you have to pay more than the graphics card's price you want to buy - in electricity costs - it doesn't make much sense to mine, right?
So can we have an estimate how many GPUcoins you can mine with 400usd of electricity in a couple of weeks? I think that would give an estimate of the max value of the coin.
If we in fact get a real market where GPUCoins are actively exchanged for graphics cards, early (lower) mining costs of CPUCoins may give a decent profit. In the long run I still think the CPUCoin price will be what the mining cost is. And that's IF there actually is a functioning store where to spend the coins.
Anyways, an interesting project, and happy to have mined 500 coins today :-)
