What is the exact relationship between open CSC blockchain and the closed cyrcle ? Anybody can explain? Thanks
Ok, will try to explain a few things as far as i understand it, .... remember i am not Prypto nor Dreamworks so its my own interpretation of things
You need to keep 2 things in mind:
1) Prypto/Dreamworks need a commercial viable business case and thats why they need it as a closed loop
2) You need to understand the local situation on the Bahamas and how things work there
Assume the system is not a closed loop system but connected to current market price and open for business to the outside world ->
- assume the current market price for CSC is 0.018 dollar, a customer buys a voucher for 20 dollar, he will receive about 1111 CSC
- He waits a day to use his voucher in the casino
- Market price goes to 0,03 dollar per CSC, he now gets 33.33 dollar for his voucher -> customer happy !! -> Casino will go bankrupt
- Market price goes down to 0,01 dollar per CSC, he now gets 11,11 dollar for his voucher -> customer angry !! -> will never come back -> Casino goes bankrupt as well
- So as long as Market price is not above 1 dollar and volumes increases the only way to make it work is fix its value.
- If you make its value fixed you can not afford people or casino's bring coins inside the loop when they are being bought at cheap prices outside the closed loop -> Prypto/Dreamworks go bankrupt.
So when will we all benefit of it then you might ask? Well gaming on the bahamas is restricted to locals only by law so you will not be able to gamble with those casinos from outside of the bahamas. GC indicated that Prypto had acquired sufficient coins to start their business. They also stated that they already are looking to extend to Jamaica, Belize, Cuba and others so the need for coins will only increase. Either Prypto will need to buy more coins or they make the participating casinos buy the extra coins. At some point when market prices are above their closed loop prices they will open up the exchange. Actually the value has to increase as there are only about 40 mln coins available and that is not enough capital to supply a possible global market of billions, even if you only get 10% of that ....
