[SPR] Spreadcoin Speculation

[Green Baron]

This thread is for price speculation on Spreadcoin.

A short intro about Spreadcoin:

Spreadcoin is a currency with numerous innovations that distinguish it from the hundreds of other alternate currencies out in cryptoland. The first feature is the SpreadX11 mining algorithm, which prevents pooled mining (you can read how it works in the ANN thread). That makes SPR the first truly decentralized cryptocurrency as there aren't collective mining entities controlling the network.
Another feature is a smoothly decreasing block reward (decreases by 0.0001 or so per block). Spreadcoin also has more compact transactions than other currencies.

The number one moving feature that Spreadcoin will have will be servicenodes. Coded from scratch and developed since the early months of 2015, this groundbreaking feature will be released before 2016. Servicenodes follow a basic form similar to that of masternodes, but as well as helping confirm transactions, it will also allow decentralized applications be run on the Spreadcoin network, such as messaging, search engine, and hundreds of other possible services. One big thing that servicenodes could do would be data mining for businesses (explanation of this can be found in a 56 page whitepaper by the devs of Spreadcoin here: http://spreadcoin.info/news/wp-content/uploads/2015/10/Proof-of-Bitcoin-Node-DRAFTv1-1.pdf )


Link to the Spreadcoin ANN: https://bitcointalk.org/index.php?topic=1045373.0

[rhinomonkey]

This thread is for price speculation on Spreadcoin.

A short intro about Spreadcoin:

Spreadcoin is a currency with numerous innovations that distinguish it from the hundreds of other alternate currencies out in cryptoland. The first feature is the SpreadX11 mining algorithm, which prevents pooled mining (you can read how it works in the ANN thread). That makes SPR the first truly decentralized cryptocurrency as there aren't collective mining entities controlling the network.
Another feature is a smoothly decreasing block reward (decreases by 0.0001 or so per block). Spreadcoin also has more compact transactions than other currencies.

The number one moving feature that Spreadcoin will have will be servicenodes. Coded from scratch and developed since the early months of 2015, this groundbreaking feature will be released before 2016. Servicenodes follow a basic form similar to that of masternodes, but as well as helping confirm transactions, it will also allow decentralized applications be run on the Spreadcoin network, such as messaging, search engine, and hundreds of other possible services. One big thing that servicenodes could do would be data mining for businesses (explanation of this can be found in a 56 page whitepaper by the devs of Spreadcoin here: http://spreadcoin.info/news/wp-content/uploads/2015/10/Proof-of-Bitcoin-Node-DRAFTv1-1.pdf )


Link to the Spreadcoin ANN: https://bitcointalk.org/index.php?topic=1045373.0

Considering that these coins will produce cashflows, I would say the price will go up...

I don't have a number for the market cap though.

[Gladimor]

Check out this article on SpreadCoin: http://bravenewcoin.com/news/spreadcoin-was-an-abandoned-altcoin-until-new-developers-assumed-control-a-new-direction-attempts-to-incentivize-spreadcoin-holders-to-run-bitcoin-nodes/

[rhinomonkey]

Check out this modeling technique used by someone doing some calculations for Dash MN's:

https://www.reddit.com/r/DRKCoin/comments/2e489p/darktor_valuation/

The same could be done for SPR SN's. Then there is less speculation on price...the only speculation you will have to do is on the amount of revenue you think an individual service node will be able to produce (which I suppose is no real easy task).

[gjhiggins]

Spread those coins!

Spread those loins!

FTFY

Cheers

Graham

[Gladimor]

Big update tonight:

https://bitcointalk.org/index.php?topic=1045373.msg13408504#msg13408504

[Gladimor]

And here is the big ANN:

https://bitcointalk.org/index.php?topic=1045373.msg13481105#msg13481105

[coins101]

Check out this modeling technique used by someone doing some calculations for Dash MN's:

https://www.reddit.com/r/DRKCoin/comments/2e489p/darktor_valuation/

The same could be done for SPR SN's. Then there is less speculation on price...the only speculation you will have to do is on the amount of revenue you think an individual service node will be able to produce (which I suppose is no real easy task).

If you notice further down the thread, there is a link to my own valuation which was done before:

Web 3.0 (DarkTor for a little while longer)

Updated thinking from a few challenges on value

Current coin supply is 4.5m

Using 1,000 DRKs to create a MN (this could be changed at any time in the future to link it to, say, $5k per MN)

Assuming we get 2,250 MNs (we already have over 600 just to process privacy mixing).

Assuming we can charge $0.5 / day (about $180 / year)

Assuming average users per day reaches 1m (Tor currently has about 2.2m)

$500k daily revenue split by 2,250 MNs.

Annual revenue per MN = $81k.

Say, costs are $20k.

Profit = $61k.

Profit / Earning multiple (effectively how long you are prepared to wait to get your investment back) = 10

As an investment, each MN would be worth $611k.

As people accept prices rise, this does not take into account increases in costs or revenue.

As MNs are expected to add additional services, for example BTC <> DRK exchanges (I've considered the regulatory issues, and from my current understanding, regulators don't see crypto to crypto as an exchange; only crypto to fiat or fiat to crypto)

So, with other services, each MN could have an investment value of $600k to $1.2m.

As to the issue of causing shortage of DRKs, as Sir Crouton has pointed out, we just change where the decimal point sits.

Bitcoin has max supply of 21m. Bitcoin is intended to transact $billions if not $Trillions. So it was always the case that 21m coins would be segmented down, thereby increasing liquidity. Same for DRK. Its a non-issue.

MN = Infrastructure, which is optional.

DRK = currency

edit. more challenges please.

This is the sort of approach that gets new investors into crypto. I want some more robust arguments for and against.

DRK can be worth $billions with something tangible like this.

You'll also notice that I talked about services. Well, that wasn't going to happen in DRK because everyone wanted to go after BTC. So, when SPR came along I and others pushed for services to be a central feature of SPR, instead of DRK (now DASH).

So, this valuation still stands, but its now only really relevant to SPR.

[rhinomonkey]

Check out this modeling technique used by someone doing some calculations for Dash MN's:

https://www.reddit.com/r/DRKCoin/comments/2e489p/darktor_valuation/

The same could be done for SPR SN's. Then there is less speculation on price...the only speculation you will have to do is on the amount of revenue you think an individual service node will be able to produce (which I suppose is no real easy task).

If you notice further down the thread, there is a link to my own valuation which was done before:

Web 3.0 (DarkTor for a little while longer)

Updated thinking from a few challenges on value

Current coin supply is 4.5m

Using 1,000 DRKs to create a MN (this could be changed at any time in the future to link it to, say, $5k per MN)

Assuming we get 2,250 MNs (we already have over 600 just to process privacy mixing).

Assuming we can charge $0.5 / day (about $180 / year)

Assuming average users per day reaches 1m (Tor currently has about 2.2m)

$500k daily revenue split by 2,250 MNs.

Annual revenue per MN = $81k.

Say, costs are $20k.

Profit = $61k.

Profit / Earning multiple (effectively how long you are prepared to wait to get your investment back) = 10

As an investment, each MN would be worth $611k.

As people accept prices rise, this does not take into account increases in costs or revenue.

As MNs are expected to add additional services, for example BTC <> DRK exchanges (I've considered the regulatory issues, and from my current understanding, regulators don't see crypto to crypto as an exchange; only crypto to fiat or fiat to crypto)

So, with other services, each MN could have an investment value of $600k to $1.2m.

As to the issue of causing shortage of DRKs, as Sir Crouton has pointed out, we just change where the decimal point sits.

Bitcoin has max supply of 21m. Bitcoin is intended to transact $billions if not $Trillions. So it was always the case that 21m coins would be segmented down, thereby increasing liquidity. Same for DRK. Its a non-issue.

MN = Infrastructure, which is optional.

DRK = currency

edit. more challenges please.

This is the sort of approach that gets new investors into crypto. I want some more robust arguments for and against.

DRK can be worth $billions with something tangible like this.

You'll also notice that I talked about services. Well, that wasn't going to happen in DRK because everyone wanted to go after BTC. So, when SPR came along I and others pushed for services to be a central feature of SPR, instead of DRK (now DASH).

So, this valuation still stands, but its now only really relevant to SPR.

So, what this is essentially saying is that  SPR could have a bigger marketcap than dash? I mean even if you're talking millions or high thousands of dollars being SPREAD across nodes, things look bueno.

I did notice your model and that was part of the reason I put this here. I figured there was a connection between that post and why you were involved with SPR now haha

[12dailycoin]

i hope SPR will be up

[shanem]

I thought that this coin was dead. I remembered the dev disappeared halfway and the coin was down to a few thousand satoshi but now the coin is more than 10k satoshi. Is there a takeover of this coin?

[rhinomonkey]

I thought that this coin was dead. I remembered the dev disappeared halfway and the coin was down to a few thousand satoshi but now the coin is more than 10k satoshi. Is there a takeover of this coin?

Definitely not dead. Go check out the development going on:

https://bitcointalk.org/index.php?topic=1045373.msg13481105#msg13481105

[Abou Talha]

I thought that this coin was dead. I remembered the dev disappeared halfway and the coin was down to a few thousand satoshi but now the coin is more than 10k satoshi. Is there a takeover of this coin?

Spreadcoin will be pumped like Darkcoin. Buy before Servicenodes release.

[coins101]

....
So, what this is essentially saying is that  SPR could have a bigger marketcap than dash? I mean even if you're talking millions or high thousands of dollars being SPREAD across nodes, things look bueno.

I did notice your model and that was part of the reason I put this here. I figured there was a connection between that post and why you were involved with SPR now haha

Well, what it should mean is that service nodes will become businesses so you could value them as such.People value businesses on the basis of future earnings. So if your node makes $1,000 per year then its value could be $15k if someone wanted to buy your spot on the list because of the limited numbers allowed on the network.

The valuation figures are just guesswork ATM, but that's the way I think things might pan out

[rhinomonkey]

....
So, what this is essentially saying is that  SPR could have a bigger marketcap than dash? I mean even if you're talking millions or high thousands of dollars being SPREAD across nodes, things look bueno.

I did notice your model and that was part of the reason I put this here. I figured there was a connection between that post and why you were involved with SPR now haha

Well, what it should mean is that service nodes will become businesses so you could value them as such.People value businesses on the basis of future earnings. So if your node makes $1,000 per year then its value could be $15k if someone wanted to buy your spot on the list because of the limited numbers allowed on the network.

The valuation figures are just guesswork ATM, but that's the way I think things might pan out

What would you say gives DASH it's value (you've been around it for a while and may have a better idea than I do)? If it was purely valued based on the cash flows produced by a master node, then it might be safe to assume SPR would be valued based on the cash flows SN's produce as well.

Perhaps it's not a fair comparison, idk. I suppose time will tell 

[smooth]

What would you say gives DASH it's value (you've been around it for a while and may have a better idea than I do)? If it was purely valued based on the cash flows produced by a master node, then it might be safe to assume SPR would be valued based on the cash flows SN's produce as well.

Perhaps it's not a fair comparison, idk. I suppose time will tell  

The value of Dash derives purely from speculation. Yes the masternodes produce income but it is essentially all in the form of new coins paid for locking your coins into a masternode (i.e. staking interest). The income is not from revenue paid to provide a service, it is just redistributing coins within the system.

If you have something that provides a service people actually want and pay for, the valuation model would be completely different.

[rhinomonkey]

What would you say gives DASH it's value (you've been around it for a while and may have a better idea than I do)? If it was purely valued based on the cash flows produced by a master node, then it might be safe to assume SPR would be valued based on the cash flows SN's produce as well.

Perhaps it's not a fair comparison, idk. I suppose time will tell  

The value of Dash derives purely from speculation. Yes the masternodes produce income but it is essentially all in the form of new coins paid for locking your coins into a masternode (i.e. staking interest). The income is not from revenue paid to provide a service, it is just redistributing coins within the system.

If you have something that provides a service people actually want and pay for, the valuation model would be completely different.

Smooth has arrived, everyone.  

So basically, Dash is a self perpetuating system of valuation which makes it hard to value. If price went up a lot then the "value" of the node in terms of collateral plus dash flows would also go up, with no real new revenue from outside of the network. So SPR would differentiate later on if there were people paying for the services it provides and contributing real value to the network. Makes sense then that valuation now is just guesswork.

Edit: I forgot to say thank you. Thanks for clearing that up for me.

[smooth]

What would you say gives DASH it's value (you've been around it for a while and may have a better idea than I do)? If it was purely valued based on the cash flows produced by a master node, then it might be safe to assume SPR would be valued based on the cash flows SN's produce as well.

Perhaps it's not a fair comparison, idk. I suppose time will tell  

The value of Dash derives purely from speculation. Yes the masternodes produce income but it is essentially all in the form of new coins paid for locking your coins into a masternode (i.e. staking interest). The income is not from revenue paid to provide a service, it is just redistributing coins within the system.

If you have something that provides a service people actually want and pay for, the valuation model would be completely different.

Smooth has arrived, everyone.  

So basically, Dash is a self perpetuating system of valuation which makes it hard to value. If price went up a lot then the "value" of the node in terms of collateral plus dash flows would also go up, with no real new revenue from outside of the network. So SPR would differentiate later on if there were people paying for the services it provides and contributing real value to the network. Makes sense then that valuation now is just guesswork.

Edit: I forgot to say thank you. Thanks for clearing that up for me.

I wouldn't necessarily say self-perpetuating, but its value is based on some expectation of it having value in the future. It is not based on service revenue masternodes are receiving now or in the near future.

[Pollak]

I thought that this coin was dead. I remembered the dev disappeared halfway and the coin was down to a few thousand satoshi but now the coin is more than 10k satoshi. Is there a takeover of this coin?

Spreadcoin will be pumped like Darkcoin. Buy before Servicenodes release.

All coins are victimised by pumpers and dumpers. However some coins are more vulnerable.
With Spread having a decent volume it will be pumped again soon.

[1btcdream]

I thought that this coin was dead. I remembered the dev disappeared halfway and the coin was down to a few thousand satoshi but now the coin is more than 10k satoshi. Is there a takeover of this coin?

Spreadcoin will be pumped like Darkcoin. Buy before Servicenodes release.

All coins are victimised by pumpers and dumpers. However some coins are more vulnerable.
With Spread having a decent volume it will be pumped again soon.

Without a doubt, I'm glad I bought around 1btc worth of SPR @ 7000 sat.