This coin is an intriguing idea, and probably extremely undervalued, but....
Sustaining even 10 Cann = 1 gm will be extremely difficult without a giant network of vendors accepting it. There's just too many coins. As long as the coins in speculator hands is so much greater than the demand, you'll never hit the peg. Remember, crypto traders dump every time the price goes up 5%. It's in their DNA.
This is what I am thinking. While an ultimate pg of 1g = 1 CANN would be great, how difficult will it be to build & maintain the price to nearly that level in the early days?
I disagree that once the price is pegged it can never be changed again. That notion completely ignores all relevant factors.
I would think the following approach would be easier to build & maintain....
Inital peg of 10 CANN = 1g Cannabis. Target price for 1 CANN = USD$1 (approx)
(then when market is ready, eg 1 years time, or demand exceeds supply)
change peg to 5 CANN = 1g Cannabis. Target price for 1 CANN = USD$5 (approx)
(then when market is ready, eg 1 years time, or demand exceeds supply
change peg to 1 CANN = 1g Cannabis. Target price for 1 CANN = USD$10 (approx)
This approach would effectively act as a price reduction for CANN holders purchasing Cannabis priced at the peg rate.
In this way, patients who adopt early & secure a bag of CANN will see increased purchasing power when the peg is updated to reflect increased demand.
If this design is detailed in the CannabisCoin Roadmap, I suspect it would encourage both patients & long-term traders to buy & hold more CANN than they would on a fixed peg.
Price Reductions are the way to go (imo)
Consider the "(Amazon Web Services) AWS Pricing Philosophy"
http://aws.amazon.com/pricing/AWS's pricing philosophy is driven by a virtuous cycle - more AWS customers drive more AWS usage; more AWS usage drives greater infrastructure spend, which gives AWS significant economies of scale - thereby lowering infrastructure cost and allowing AWS to pass savings on to customers in the form of lower prices.
http://aws.typepad.com/aws/price-reduction/If you've been reading this blog for an extended period of time you know that we reduce prices on our services from time to time, and today’s announcement serves as the 42nd price reduction since 2008.
