The thing is, we cant just agree a price and stick to it. It is relative to other Scrypt Alt currencies.
For example, if I mine at 5000KHs I know I'm gonna get about 8 LTC a day so about $17-$18 at current rates. (633 difficulty)
5000KH/s mining SBC will get me (assuming a difficulty of 1) about 5000 SBC per day.
So, to a miner 1 SBC is worth .0016 of 1 LTC.
or put another way, 625 SBC is worth 1 LTC
With 1 LTC worth approx 0.022 BTC then that means to a miner right now, 625 SBC is worth 0.022BTC
so I'd estimate 1SBC = 0.0000352 BTC.
If 1 SBC was worth 0.01 BTC then I'd have just mined 120 BTC in a week... Be realistic guys!!
I'll be chuffed if I can sell my SBC @ 0.0001 BTC
That's how I orginally determined the value when I first got my first few SBC but my numbers came out a bit different. How'd you get 1kh/s = 1 SBC/day?
If I mine at 100kh/s all day then I'd earn 0.15 LTC or 1 LTC in a week (6.6667 days); but if I mine SBC at 100kh/s I'd get about 35-40 SBC a day or ~250 in one week. Therefore I'd say 1 LTC = 250 SBC and 1 SBC = .000088
what am I missing?
As far as the not going below 0.001BTC I see your point and like I said I determined the value the same way given no other practical alternatives to determine the value. However the market still determines the price and while it should reach an equilibrium at the cost/revenue of mining, alt-crypto markets are far from efficient and it would be easy to create a price floor for the purpose of bringing in new miners and raising the difficulty.
As mentioned earlier, there is a lack of diversity in who holds SBC; so if 50% of SBC holders have, say, 90% of the SBC out there then they could quickly buy up all sell orders below .001BTC/1SBC and not sell/buy every sell below this(think 500 individual buy orders at bid 50 @ .001 btc for a sum of 25BTC), thus creating a shortage that would shift equilibrium from .000088btc to .001btc and then new miners would flood in. This would eventually make the .001btc price floor unsustainable(which is good since price floors, generally, should be temporary) Then as the new miners come in and start selling for less than .001 this starts to eliminate the shortage/price floor AND this would also cause the difficulty to rise and thus decrease the rate of SBC per kh/s miners earn, causing the value to rise from the original price(> .000088btc/1SBC) in the long run.
I should draw supply/demand curve to illustrate this better but i'm lazy.
I'm not specifically saying SBC holders should collude to raise prices or anything, I'm providing this point more for anyone that is holding alot of SBC as to why they shouldn't sell so easily and if anything should consider buying more SBC if they want the value of their SBC holdings to increase.
