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421  Alternate cryptocurrencies / Altcoin Discussion / Re: rpietila Altcoin Observer on: July 31, 2014, 11:24:57 PM
my problem is that it is, in my opion, not possible to take the current development state as an indicator for a market cap in a far away distant future (even 1 year, 5 years or 20 years)

the obvious simple solution is that you have to price in the development of the project until that point in the future is reached and you have to add the potential/niche of the coin. it is more a general problem than a specific one of xcn.

maybe the most elegant solution is the simplest one: which amount of btc inflow per day at current prices is needed to keep the price stable, that is probably also the reason why I asked for that in the xcn thread  Grin
422  Alternate cryptocurrencies / Announcements (Altcoins) / Re: Stellar on: July 31, 2014, 11:12:12 PM
this is quite bad for ripple Smiley

stellar is being distrubted by 95% in the beginning - this is a statement
423  Alternate cryptocurrencies / Altcoin Discussion / Re: rpietila Altcoin Observer on: July 31, 2014, 11:06:20 PM
Any thoughts on XCN (so called mini-blockchain implementation)? https://bitcointalk.org/index.php?topic=713538

I just computed that the current price implies 22+ BTC inflow per day. I'd also add that the fully-mined market cap is 119600 BTC, which is close to a hundred million dollars.

That seems way out of line to me given the current state of the project.



interesting project - as far as I understand this has the potential to scale in a much better way than the current blockchains are doing.

I would like to discuss an economic issue you are referring to, which is somewhat complicated: afaik the fully mined market cap of this currency will not be reached in any foreeseable future (>20 years), but you try to value it in the current state of development. I think it is totally clear that this project in the current condition is not worth 119600 btc. but does this make sense? I think we can savely assume that if xcn somehow survives, the system is much further developed once it is fully mined (in 20 years) as it is now. the methodology of "valueing" very young projects with the final market cap is somehow semi-elegant. does anyone have a more elegant solution for this? probably to make it more clear: assume a new chain is started which reaches its market cap in ~5000 years and the emmission is brutally slow - it does not make sense to use this parameter does it?

424  Alternate cryptocurrencies / Announcements (Altcoins) / Re: [ANN][XCN] Cryptonite | 1st mini-blockchain coin | M7 PoW | No Premine on: July 31, 2014, 10:07:49 PM
was estimating/calculating yesterday, still have problems to understand the daily emission of new mined coines - at current prices it needs around 15-20 btc to eat the inflation and to keep the price stable? please correct me if I am wrong
425  Alternate cryptocurrencies / Announcements (Altcoins) / Re: [XMR] Monero - A secure, private, untraceable cryptocurrency on: July 31, 2014, 03:05:57 PM
when does the new weekly overview come?
426  Alternate cryptocurrencies / Announcements (Altcoins) / Re: [ANN][XCP] Counterparty - Pioneering Peer-to-Peer Finance - Official Thread on: July 30, 2014, 02:05:46 PM
the development of this protocol is nothing but impressive - maybe it is really possible to put counterparty in the front of blockchain based finance
427  Alternate cryptocurrencies / Altcoin Discussion / Re: rpietila Altcoin Observer on: July 30, 2014, 02:02:57 PM
http://www.wired.com/2014/07/overstock-and-cryptocurrency/

"Overstock has already held extensive discussions with a company called CounterParty, which offers software that could help drive such a cryptosecurity..."
428  Alternate cryptocurrencies / Altcoin Discussion / Re: rpietila Altcoin Observer on: July 30, 2014, 12:05:34 AM
this bbr xmr discussion is so needless and I see no reason why it is important - I own both in a 1/3 bbr/xmr ratio and yes bbr is massively undervalued BUT xmr has one thing and probably the only really important - the market until now has decided that xmr is the one that shows some serious network effects - I would estimate that at xmr has at least 10 times more "investors/speculators" and what counts much more, it has convinced some serious people to say this will be the privacy counterparty to bitcoins transparent ledger.

compared to all the other stuff out there the market for some reason does not value bbr properly - but to try to compare bbr to monero will seriously end up badly for bbr.

one thing which is probably interesting is the comparison of network effects between drk and xmr - I thought about that for quite a while and we all know examples when the inferior technology surpassed for some reasons the superior technology. it is quite easy to illustrate in game theoretic form why the inferior technology surpasses the superior one - well basically it is network effects which gives the one on the superior technology a higher utility when he uses the inferior technology, in the case that all others use them as well. even if drk has more users/investors/speculators at this moment of time the inferior technology will in this case not win against the superior, for the reason that the the elasticity between somewhat half-baked private and full private regarding utility is very high. this is not watching a movie on a vhs which is inferior to betamax, but offers almost the same utility - this is a very sensitive issue: the differences in utility between the better and the worse will be massive.
429  Alternate cryptocurrencies / Announcements (Altcoins) / Re: [ANN][XCN] Cryptonite | 1st mini-blockchain coin | M7 PoW | No Premine on: July 29, 2014, 02:32:41 PM
I have extreme problems to understand how big the current block reward is - can anyone shortly clarify?
430  Alternate cryptocurrencies / Announcements (Altcoins) / Re: [ANN] Ethereum: Welcome to the Beginning on: July 29, 2014, 01:07:28 PM
Another thing I'm curious about is this: if the value of ether reaches a higher value after genesis block (and btw, what's with all the bible references? "genesis block", "exodus address", "serpent" programming language???) than it was sold in the pre-sale, and then massive amounts of ether are sold for bitcoin, how is that going to work? You would have to have buyers equal and greater to the number of buyers in the presale in order for all that ether to be unloaded and picked up in buy orders. But since everyone who supports and knows about Ethereum will buy in the presale, then there will be no demand left after the presale and no buyers. So the value would logically have to drop to a lower value after Ethereum goes live, right?
A ton of supply and barely any demand.

Yes, you got it.

I predict a painful loss between 50% to 75% for those who will sell during the first dump.
I may buy some of yours for less than 25% of what you paid.

Also this is implying Ethereum will ever go live which you investors have no guarantee.
In the case of non-delivery, expect a very painful loss of 100% of your investment.

Sleep well investors !


just out of curiosity, because many people expect prices lower than in the ipo - why should someone sell below 1btc=2000eth? the only reason I see is an explosion in btc market cap and people valueing their investments in $ instead of btc. the more interesting thing is inflation - with 28% in the first year (?) it is not that high.
431  Alternate cryptocurrencies / Announcements (Altcoins) / Re: [ANN][XCN] Cryptonite | 1st mini-blockchain coin | M7 PoW | No Premine on: July 29, 2014, 11:32:17 AM
where to put the missing dll in windows 7?
432  Alternate cryptocurrencies / Altcoin Discussion / Re: [XMR] rpietila Monero Economics thread on: July 29, 2014, 09:57:14 AM
there is no otc for xmr anymore is there? - I think if a reputable person in this forum would supervise an otc, larger investors as well as larger sellers would be better off.

buying even mediocre amounts is complicated without moving the price too much
433  Alternate cryptocurrencies / Altcoin Discussion / Re: [XMR] rpietila Monero Economics thread on: July 28, 2014, 09:47:45 AM
 Smiley especially looking forward to the methodology
434  Alternate cryptocurrencies / Altcoin Discussion / Re: well, ether sale has started. on: July 23, 2014, 07:23:59 AM
you have 2 week to think about it before they become more expensive.
you have 41 days to think about it before you can't buy them until their genesis block goes live.
The funniest thing I've seen all day is Mircea Popescu selling Ether futures, 5000/btc deliverable 2015-03-15.

lmao now that is funny

link please?

http://log.bitcoin-assets.com/?date=22-07-2014#764497

So mircea is willing to estimate this will crash and burn since the rate is now at 2000
Valuation of 40% of the current price in 1 year

Well considering mastercoin and maidsafe it seems like a risk worth considering from MP's view thanks that is an interesting find.

what is his motivation of doing this? - It makes not too much sense, if ether only sees an inflation of 28% per year and the ipo buyers probably will not sell below initial price
435  Alternate cryptocurrencies / Altcoin Discussion / Re: rpietila Altcoin Observer on: July 22, 2014, 01:15:02 PM
the main argument for closed source is that the distribution of the coins is non-optimal, otherwise you would not need to protect would you? Wink

I don't follow your reasoning. How would a coin's distribution affect its policy on open source?




from a logical standpoint, cloners need a reason to clone: the only reason for a clone to become successful is that the initial distribution is horrible. if everyone agrees that the distribution is fine, the clone will never get support.

this argument even holds from an empirical standpoint: see nxt, which was closed source until the mid of january and had a horrible starting distribution, see drk, which is still in parts closed source due to bad distribution and the fear of clones.

see on the hand xcp, which is not cloned due to the consensus that the distribution is fair. see bytecoin which was cloned due to the distribution and which is now lacking success because of the market deciding that the clone is fairer.

if your coin does not have a bad distribution I see no reason why it should be cloned and therefore no reason why it shouldn't be open source.
436  Alternate cryptocurrencies / Altcoin Discussion / Re: rpietila Altcoin Observer on: July 22, 2014, 12:55:05 PM
- we'd avoid causing clones, which reduce the trustworthiness of the altcoin phenomenon

Whatever the other merits of your approach, this one is silly. There are hundreds of altcoin clones, with countless more released every single day. Whether or not your particular pet coin gets cloned or not makes no difference at all to the overall phenomenon.


If your objective is to completely destroy altcoins, yes then that would be the approach.

I would definitely say it makes a world of a difference to the people that have invested in the coin to not have their premium feature released before it reaches its prime and have hundreds of different coin clone the one thing that separate it from all the other coins....

by all we know about market this argument does not make sense at all - the market ALWAYS benefits the main innovation, regardless of how many shitclones are existent. I think the arguments for protection are on a multidimensional level stupid.

the main argument for closed source is that the distribution of the coins is non-optimal, otherwise you would not need to protect would you? Wink
437  Alternate cryptocurrencies / Announcements (Altcoins) / Re: [PRE-ANN][XCN] Cryptonite | 1st mini-blockchain implementation | M7 PoW on: July 21, 2014, 05:04:46 PM
whereas I also think that 600$ per coin is also far from optima, it is bitcoins biggest unit of account, and it is no problem to use a smaller unit like satoshi or bits or whatever.
There's no reason you can't to the opposite thing and use larger units to denominate values.

I understand what you are saying, but it seems billion count coins don't fair very well these days.
Maybe that's just because there have been no innovative coins which use billions of coins? I don't think having billions of coins really has anything to do with why a coin will fail.

bytecoin has - look I own 1.8 million bytecoin - this is worth somewhat 40$ or 0.08 btc - imagine I buy a coffee or a pizza with this or take the opposite I would try to buy a house with bytecoin - this is really really horrible even for a math oriented person to calculate.

I do not think we should spam this wonderful project with this, from a technical perspective, minor problem but you should really consider this.
438  Alternate cryptocurrencies / Announcements (Altcoins) / Re: [PRE-ANN][XCN] Cryptonite | 1st mini-blockchain implementation | M7 PoW on: July 21, 2014, 04:46:31 PM
i was silently following your other thread.

i like your concept but also think that a coin supply of around 20 million is much better than this almost undefineable huge number - the reasons for this are practical.
What exactly is practical about 1 BTC being worth more than $600? Instead of sending very small amounts we'll be sending very large amounts to each other, why is one better than the other? And it's not "undefineably huge", it's 184.4 billion coins.

from a normal non-autistic person you need some point of reference to define the value of one unit - maybe some big currency like dollar or euro or what a cup of coffee costs etc. whereas I also think that 600$ per coin is also far from optima, it is bitcoins biggest unit of account, and it is no problem to use a smaller unit like satoshi or bits or whatever. when you start xcn the biggest unit of account will be 1/184400000000 - even if this project is uber successful it will take ages until one unit is accountable for a normal person and to find some reference point.

the rate of distribution is also independent of the unit of account - so I do not see why you need this huge number. it will probably not be a short time killer for the coin but it will definetely hinder wide adoption
439  Alternate cryptocurrencies / Announcements (Altcoins) / Re: [PRE-ANN][XCN] Cryptonite | 1st mini-blockchain implementation | M7 PoW on: July 21, 2014, 04:25:28 PM
i was silently following your other thread.

i like your concept but also think that a coin supply of around 20 million is much better than this almost undefineable huge number - the reasons for this are practical.
440  Alternate cryptocurrencies / Altcoin Discussion / Re: [XMR] rpietila Monero Economics thread on: July 20, 2014, 03:09:32 PM
I cannot directly help you with this analysis and appreciate what you are doing, but I have a few concerns:

I followed monero from the otc time and probably the first ten pages of the thread. AFAIK there were little to no buys over the counter with more than 10000 xmr volume. Even otc it was very hard to aquire reasonable amounts of xmr. I cannot speak for the OTC in freenode (?)/ IIRC. Maybe some powerful miners would have the possibility to get a six digit amount of xmr - but to buy them would be quite complicated.

It is probably just an educated guess but I think the group of 1000 to 10000 is underrepresentated to the cost of the group above and below. My idea is that you probably cannot use the normal distribution which is neccessary for power law, because altcoiners are probably not the perfect representative group for that - I assume this group is capped at the top.

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