Altcoins have been diluting their market more and more and more for several years now and will probably continue to do so.
In olden days when there were only 30 or so then even when there were only 300 or so, things were different.
Once there were over 3000, it got a lot more diluted, each one less visible.
By the time there were 30,000 or more it got ridiculous.
It is not necessary though to just keep being pulled around by the massive movements you are too small to have any personal effect upon.
There are still coins out there that have been around for many years and have shown great stubborn-ness over many years and are small enough that even very small players can make a real difference individually, and those offer you some real control over their fate.
Look at the history for example of IXCoin and I0Coin (that is a zero not a letter-o).
Three or four times over history we have ratcheted their value up to a USD or more per coin, only to have the exchange they were on fold or fly by night or "get hacked" losing our entire buy-side of bitcoin and huge amounts of the IXC and I0C, yet moving on to another exchange we have built it up all over again, only to have the same happen.
Nowadays though they are not only on FreiExchange which has faithfully stuck around for many years not yet pulling the plug on us but we have also put them onto the
HORIZON platform but also even more recently the
Stellar platform, so nowadays we have platforms on which our buy-side offers get to stay in our own wallets instead of on a third-party exchange so this time around once we get them back up to a dollar and more we can just keep on going.
The
Galactic Milieu has been working with such ancient and venerable coins for a long long time, you can check out our tables and plots going back to 2012 at
http://galaxies.mygamesonline.org/digitalisassets.htmlWe still use our policy of only "tokenising" half the coins we actually have, so that in principle the other half can be used to buy back our tokens while still holding the coins the tokens represent, so in essence a 200%-reserve policy; then on top of that double reserve we also use a "treasuries" system so the whole game's tokenomics is designed to "lock up" more and more of everything into "treasuries" leaving less and less "in the wild" to potentially "hit the markets" aka "be dumped".
The philosophy is not that huge bags of coins are something one will someday sell off but rather that the bigger the "bags" one keeps off the market the rarer they become "in the wild" where they might someday "hit the markets".
The generational wealth to be made lies not in the bags of coins held by whales but rather in the increasing rarity of those still "in the wild", still available to be traded rather than being locked up into tokens or into treasuries or both (treasuries of tokens).
More and more game assets get locked up into treasuries, more and more of the game currencies and assets formed as "treasury based" get themselves in turn locked up into "treasuries"; the goal is not to leave your heirs and assigns - your dynasty, your "family office" - with bags of coins to dump but rather to pile your generationally increasing "bags" into concrete vaults under your swimming pool, or split between umpteen-of-oodles split keys distributed among safety-deposit boxes on many contininents or whatever other super-frozen frozen wallets knowing that really your dynasty ought never to need to un-freeze those frozen coins because the frozen ones are in the first place only half of it all, the other half can buy back all the tokens leaving the original tokenised coins still buried in forever-freeze for ever more generations.
The money is in the trading and market-making, never in "dumping" your "bags".
The bags exist only to make what is not yet "in the bag" more and more rare "in the wild" aka "on the markets".
The value in the bags is not lost though, because the bags form the "treasuries" of the next generation of assets...
Do bear in mind this is all just a game, a proof of concept experiment, if it works - as so far it certainly seems to - it could take a generation or few of spending lots on lawyering and legislating to do it "for real" rather than just as a simulation in a game; afterall we already saw Facebook try to take the "treasury" idea and fly with it and seemingly run into some "snags", but maybe if the proof of concept in-game simulation shows it works and works well it will yet be possible to "fly" with it "for real"...
-MarkM-
