"Mining new coins doesn't inflate market cap."
Bitcoin market cap is inflating by about 8% per year. Lightcoin by 30% per year. And you are calling me dense. LOL
I think you are confusing Coin creation with marketcap.
Marketcap = (number of coins)x(price of coins)
There is very little correlation between # of coins and total market cap as you can see when looking at the market caps of different coins.
Your statements "Marketcap = (number of coins)x(price of coins)" and "There is very little correlation between # of coins and total market cap" are already in conflict with each other. You are correct that when mining you don't pay to developers or early investors or later investors or anyone for that matter but mining does in fact increase the market cap. Bitcoin and other alt-coins are all inflationary! Currently the new money coming into it is higher then money getting taken out of it but the coinbase of all coins is currently growing with even large cap coins like litecoin for example at a huge year over year rate of growth.
I don't completely disagree with your logic but many miners sell as soon as they mine so the increase in market cap by the greater number of coins produced each day is offset by the constant downward price pressure created by the extra coins sold into the market each day.
Coins like NXT are 100% created at the beginning with no constant inflow of coins to be sold. The people that started with all the coins hold back 90+% of the coins from the markets so the market is trading only a fraction of the coins and this artificial scarcity creates an artificial price.
I hate plugging the site after telling people to avoid it but, the best example of this artificial scarcity is Ripple on coinmarketcap.com. It 2nd in market cap of $2,588,022,379 with only $118,927 volume which is only 0.0045% traded in 24 hours. LTC marketcap $564,307,094 with $35,485,635 volume is 6.28% traded in 24 hours.
Can you see the problem here? Ripple is in 2nd in market cap even though it has less volume then LTC, MSC, PPC, NMC, WDC, FTC, DOGE.
In fact Ripple has 134x the market cap of WDC with about half the 24hour volume. How is that possible if Ripple is disbursed widely and fairly? Obviously it isn't possible, the creators of Ripple hold almost all the coins. If they were to sell even 10% into the market the price would crater. NXT basically has the same structure and that is one of the major strikes against it.
NXT currently is off coinmarketcap because of lack of market data which seems to be a reoccurring problem. 3x in the last week it has been down. When it was up I remember the stated volume of NXT traded was fairly high but can the data be trusted? Is there anything stopping the owner of dgex.com from faking the volume? It could be done by straight forgery or by having puppet accounts trade back and fourth with each other. The fees going back to the owner.
If you can't understand this line of reasoning I can't help you.
