Question?
With almost 40% of the coins in Masternode's and I would assume most MN owners hodling the coins they accumulate who the heck would sell at these prices? Especially considering BTC price. I own two MN's and I'm not selling any time soon. Miners? Price should be higher...
Anybody explain why it is not higher? Sorry if this seems like a stupid question...trying to make sense of it all. I.E. Couple hours ago someone dumped over 800 coins.
To answer that, just look at the bitcoin market over the last year.
There's never been a year in its lifetime that was more bullish for fundamentals. Massive amounts of projects, exposure, adoption by billion dollar retailers and yet.....2014 is universally seen as bitcoin's worst year ever as an investment vehicle.
If you'd invested at the start of 2014 you'd have lost 80% of your stake in dollar terms.
The reason for that is that all the development got "priced in" very early on a speculative basis. From that point on all the trading was a mix of profit taking and speculative manoeuvring. Since the 'high' had already been set there was no short term mileage left for new money.
Now it looks like the speculative element may have fully "squeezed the sponge" and we will start a new cycle (the "next phase") where actual practical use must start to drive the price as opposed to speculative trading.
Similarly, DRK had it's sponge "squeezed" back in the autumn of 2014. It's possible that no amount of development will impact the valuation from now on as it's also no longer a speculative vehicle at this point in time. Like bitcoin, DRK is now onto 'phase 2' where real world adoption is required.
In my opinion, what DRK needs more than anything is for Bitcoin to succeed.
It's just a statistical fact that a certain percentage of the bitcoin user base will be concerned about privacy. And a certain percentage of them will be concerned enough to either temporarilly - or permanently if DRK shows enough stability - convert their funds.
That is Darkcoin's market.
Note that Darkcoin is compliant with the Bitcoin commercial API (that it the merchant facing technical interface). So it's already a design priority to capture some of the Bitcoin adoption market.
What we want right now is the valuation not to go down - which it isn't. It's not necessarily a good thing for it to be getting "pumped" again so soon as we've been through all that and it brings both pleasure and pain. (If you're a massochist, then fair enough but there are more direct sources of recreation available). What's needed now is for the technology to consolidate, adoption to proliferate and the cryptocurrency market to mature a bit in general (and Bitcoin to hurry up and "bottom out" in particular).
By the way, just on that last note, it looks like there might be some promise just this morning......
