What is the profit for altcoin creators?

[jack01]

Hi there.

I know that creating of a new alternative cryptocurrency cost as minimum about  2000$.

The real price i think its about 10000$. I understand that its a big business to have your own altcoin.

But how the altcoin owners get profit from their currencies?

Its so difficult to create and support own cryptocurrency but why people all time launching another currencies? (dashcoin, darkcoin, peercoin ...) From what they get their profit? Playing on exchanges with their own altcoins?

Who knows - explain please in two words. 

[kelsey]

for some its not about profits 

[jack01]

for some its not about profits 

Its nonsense. All is for profit. 

[kelsey]

for some its not about profits 

Its nonsense. All is for profit. 

unfortunately thats the way too many think around here.

chasin the fiat kinda defeats the whole point of alt to fiat p2p currencies.

[tiggytomb]

There are a lot of coins just released now for pure quick profit, especially when they hold an ICO to sell their coins prior to launch, many times they gather the Bitcoin and run.

There are and you may need to look a bit to find them, there are some developers that care not too much about the profit and are actually excited to bring new things to the table with their coin. 

Recently though as sad as it is, new altcoins seem to be pushed out and then die a quick death.

[kelsey]

Recently though as sad as it is, new altcoins seem to be pushed out and then die a quick death.

saturated market, and the instant profit scamcoin; well you can only play that game out so many times then the laws of diminishing returns kick in 

[rnicoll]

for some its not about profits 

Its nonsense. All is for profit. 

Some of us do it for technical curiosity. It does however lead to some impressive clashes as people keep expecting us to push the price up.

[jack01]

There are a lot of coins just released now for pure quick profit, especially when they hold an ICO to sell their coins prior to launch, many times they gather the Bitcoin and run.

There are and you may need to look a bit to find them, there are some developers that care not too much about the profit and are actually excited to bring new things to the table with their coin. 

Recently though as sad as it is, new altcoins seem to be pushed out and then die a quick death.

Creator get profit from each transaction. Of course its lower to send money now via bitcoin network than SWIFT BUT i too pay commission for bitcoin creators.

[rnicoll]

Hi there.

I know that creating of a new alternative cryptocurrency cost as minimum about  2000$.

The real price i think its about 10000$. I understand that its a big business to have your own altcoin.

But how the altcoin owners get profit from their currencies?

Its so difficult to create and support own cryptocurrency but why people all time launching another currencies? (dashcoin, darkcoin, peercoin ...) From what they get their profit? Playing on exchanges with their own altcoins?

Who knows - explain please in two words. 

You phrase your question in two words, I'll write an answer in two words

It's much easier to launch a coin than to maintain a coin. No ticking clock against which to deliver security updates, no community to manage, you write the code, produce your marketing materials, announce, and mine. So almost everyone who wants to turn a profit does exactly that, sells their coins ASAP and moves onto the next launch because that's far, far easier than spending months maintaining a coin in the vague hope there's a bigger pay off in the end.

[bittamak]

Probably it may be the case of original coin developers. Now a days most of the new coins are copy cats of one of the successful coin.

[cynicSOB]

Creator get profit from each transaction. Of course its lower to send money now via bitcoin network than SWIFT BUT i too pay commission for bitcoin creators.

can't tell if trolling or just ignorant.....
creators don't get tx comissions
maybe they do in some cappy alt, but surely not in bitcoin

[cynicSOB]

10k?
more like 200 usd

[HeroCat]

Some people are creating altcoins for profit, but get only own altcoins without any profit  This is something like game 

[rnicoll]

Creator get profit from each transaction. Of course its lower to send money now via bitcoin network than SWIFT BUT i too pay commission for bitcoin creators.

can't tell if trolling or just ignorant.....
creators don't get tx comissions
maybe they do in some cappy alt, but surely not in bitcoin

Not sure if they're serious, but certainly a LOT of people in my experience think of cryptocurrencies as a company, so they presume by "buying in" the company (and by extension devs) make a profit, and it's not hard to see people believing the same for mining fees. There's a very prevalent attitude of "I bought in, what are the devs doing to make me a profit" and of course the answer is that in a fairly distributed coin, coin devs typically hold a tiny fraction of all coins, and value movement is of very limited relevance to them.

Edit: Yes yes, Satoshi, blah blah... no. Satoshi essentially solo-mined Bitcoin for the first several weeks of its existence, because no-one else was that interested. Any new coin release can expect thousands of miners competing for the block rewards, not one person grabbing all of them for weeks.

[jack01]

When i make transaction i pay fee for "supporting network". Explain where does this money go?

[rnicoll]

When i make transaction i pay fee for "supporting network". Explain where does this money go?

It goes to the miners, who use specialised hardware to solve mathematically hard problems (finding a value to place in the block header such that the SHA256 sum is below a derived value), the work referred to in "proof of work".

[jack01]

When i make transaction i pay fee for "supporting network". Explain where does this money go?

It goes to the miners, who use specialised hardware to solve mathematically hard problems (finding a value to place in the block header such that the SHA256 sum is below a derived value), the work referred to in "proof of work".

Thank you.

Whatever crypto coins very favorable for dark business. They very interested on it and maybe some altcoins they created for themselves.

Its something like alternative banking system for them.  

[MrPump]

Usually they profit from you buying it.

[rnicoll]

Usually they profit from you buying it.

However, so does everyone else, so what's the motivation to be a dev for a new coin rather than jumping into the Bitcoin bandwagon?