Namecoin worth in relation to bitcoin

[wachtwoord]

Hey,

I started mining Namecoins yesterday because when I calculated the expected yield of it versus mining bitcoins at an exchange rate of 1:0.033 it was far more profitable to mine namecoins (+ Bitcoin needs my hashing far less). Today the price of namecoins dropped to 0.013. Still mining namecoins is more profitable but this is a big difference.

So,

1) What are the historic prices of BTC:NTC ?
2) What is the expected price of BTC:NTC?

Basically I want to know when and if I should dump my NTC in favor of BTC. (I could also hang onto the NTC of course)

[Sukrim]

NameTcoin?! 

Anyways, the BTC<-->NMC exchange is just open since ~1 week, so there's not much to know there about price developments.

I expect the value of NMC to be roughly the ratio between BTCdifficulty/NMCdifficulty. (see also: http://dot-bit.org/tools/nextDifficulty.php)
Also I guess a lot of miners will flee to Namecoin once BTC drops down to 25 BTC/block, destroying prices there and then coming back to BTC and vice versa...


It heavily depends on future developments if Namecoins will even be worth ANYTHING. Currently it's a nice supplementary currency to Bitcoin.

Maybe it would even pay off to buy Namecoin which are currently overpriced but might be cheap compared to future difficulty ratios - who knows?

[wachtwoord]

Thanks a lot for the link. Based the estimated future difficulty ratio I'll hold on to them. I don't mind guessing but I really prefer doing this in an educated fashion.

And the ticker, lol. I wanted a 3 letter ticker and managed to pick a letter not in the word. Other suggestions? NMC?

[Sukrim]

I use NMC, but it's just intuition more or less, haven't seen any conventions yet really.

Hopefully the namecoin exchange is soon listed on http://bitcoincharts.com/markets/ (they would just need to publish their trades + order book in JSON!)

[Raize]

Namecoins get destroyed over time. I don't like that model. The more they get used the more expensive it becomes to obtain them. It's going to be hard for Namecoin to replace DNS when it eventually will cost exponentially more money to register a domain there than the current system.

[ctoon6]

Namecoins get destroyed over time. I don't like that model. The more they get used the more expensive it becomes to obtain them. It's going to be hard for Namecoin to replace DNS when it eventually will cost exponentially more money to register a domain there than the current system.

there may be a change to get rid of that, instead of them being destroyed, the miner gets the coins.

[ribuck]

there may be a change to get rid of that, instead of them being destroyed, the miner gets the coins.

That suggested change would actually be a really bad move, because then the miner who generates a block could register an enormous amount of domains for themselves at effectively no cost.

Namecoin's stroke of genius is destroying the coin when a new domain is registered, yet having the renewal fees going to the miners.

The number of coins burned for each domain name drops exponentially over time, so there will eventually be no scarcity. This is as it should be: names are not inherently scarce; only a few specific names are highly valuable and those will be reigstered early on while the fees are higher.

[Anth0n]

Namecoins get destroyed over time. I don't like that model. The more they get used the more expensive it becomes to obtain them. It's going to be hard for Namecoin to replace DNS when it eventually will cost exponentially more money to register a domain there than the current system.

there may be a change to get rid of that, instead of them being destroyed, the miner gets the coins.

A better solution would be to have the coins go back to the "earth" to be re-mined. Recycling is good!

[Chucksta]

69% difficulty decrease set for the 1st of August

Price fluctuating between 0.02 and 0.03

NMC and BTC difficulty:
http://dot-bit.org/tools/nextDifficulty.php

[deepceleron]

69% difficulty decrease set for the 1st of August

Price fluctuating between 0.02 and 0.03

NMC and BTC difficulty:
http://dot-bit.org/tools/nextDifficulty.php

Currently it takes 26.1x as much hashing to mine BTC as namecoin, but you can mine 1 BTC and buy 33 namecoins outright. The exchange rate is wrong, which is interesting because namecoin actually does something, you can buy domain names with your namecoins as well as it being a virtual currency.

The difficulty is a real problem for namecoin now, so many people mined during the last 2000 blocks and then quit that mining activity is about 25% of what the target is set for. Now instead of six blocks an hour, it is closer to one, and that means it can take several hours to get just two confirmations on a transaction. http://explorer.dot-bit.org/.

At the current rate of hashing, it might take six weeks or more instead of the expected two weeks to reset the difficulty.

Namecoin needs more permanent miners instead of opportunists. With it's low hashing right now, one of the top five pools or a bad actor with similar cpu power could point at namecoin for 24 hours, kill this 2000 blocks and the next 2000 blocks, and set the difficulty so high that it will be way hard to mine (let alone that with >51% cpu they could reseed and confirm a block that wipes all the existing domains and funds, and gives them 2^31 coins). Transactions would take days for a confirmation, and the difficulty would take a year of hashing to reset again.

[talpan]

According to these stats http://dot-bit.org/tools/nextDifficulty.php the diffculty will increase instead of drop to the bottom.
As it seems some are switching to Namecoin.

Regards, talpan

[Manko]

According to these stats http://dot-bit.org/tools/nextDifficulty.php the diffculty will increase instead of drop to the bottom.
As it seems some are switching to Namecoin.

Regards, talpan

You have misread the tables...

NMC mining is forecasted to be x0.53, which is a decrease of 47%

AND, amazingly,

BTC mining is forecasted to be x0.99, which is a decrease of 1%
That won't last

[talpan]

Sorry, I should have gone to bed earlier

[opticbit]

I'm putting ~10% (~ 60mhash) of my mining power into namecoin

[gambitv]

It's given out automatically on bitminter pool but I have no clues what you do with them.

[kodo]

Namecoin can be trusted, its a good coin.

[kodo]

Namecoin has a big future infront of it imo

[joesmoe2012]

Namecoin can be trusted, its a good coin.

Namecoin has a big future infront of it imo

Do you really have to post twice to say next to nothing?

It's given out automatically on bitminter pool but I have no clues what you do with them.

Didn't know that thanks for the heads up. I assume its not just given out free but as a bonus or something?

[gambitv]

From the bitminter site:

To increase income further we also generate namecoins, which take no extra effort. You can read more about namecoins at dot-bit.org.