What I mean is that the price won't be determined by supply/demand, but instead by the set value of $20/coin. Sure the price can go up to $100/coin if the free market decides, but I don't see how that can happen with a currency that has an inflation rate of 400% per year.
Where are you getting an inflation rate of 400% per year?
With bitcoin, the price may go down to $1/coin which would make many investors sad, but it wouldn't affect the intrinsic value.
I don't think this is the place to debate this, but I find this argument strange. In order for something to have value, it must be compared to something. A BTC may always be equal to a BTC, but if the buying power of BTC has changed, then the intrinsic value
has changed.
If it used to cost me 0.005 BTC to buy a cup of coffee a week ago, but now it costs me 0.01 BTC to buy that same cup of coffee today... I'm going to be perplexed as to why this "currency" has any value. It makes it impossible for anyone to make informed buying decisions with the instability of the exchange.
Paycoin's intrinsic value is that it's stable/profitable. So when that's gone, all that's left is a bunch of halfassed features nobody really cares about.
Ok, so you don't think the features are worth anything. Since they aren't available in BTC, they must be worthless? Half-assed is debatable.
125,000 is 1% of all available coins right?
125,000 of all available coins at full launch of POS, yes. But not 6, 18, 24 months from now, no. You will require a lot more than 125,000 6 months from now to stake your controller to meet that 1% obligation.
And yes, you cannot spend the coins when staked, but why not after? What's preventing that investor from dumping his entire stash after 2 years? Or multiple investors dumping their stash after 6 months?
Nothing I guess if they wanted to. I think the better question is why would they want to? If they are true "market makers", it would be self-evident that it would be more valuable to sell the prime controller, including the staking coins, than to try your luck with a huge sell wall on an exchange.
Exactly my question, who is going to buy these coins? (besides GAW who promised to spend $35m propping the price up at $20/coin)
If the coin gains traction, there can and will be purchasers. If the coin can exhibit stable behavior, the crypto-markets will notice, and people will buy. Why in the heck do the Chinese buy/sell/trade BTC? Because it's an investment vehicle and a hedge against other currencies, and well... speculation.
One last question: If you think 400% profit per year from staking is sustainable, why not 1000%? or 10,000%?
I'm assuming you are rounding up to come up with your 400%, because on the "high-end" rate of 0.01 XPY per day is only about 365% per year.
But your point is taken. The quoted range from GAW is from their models of what they expect to make from their prime controller(s). I suspect it's plural.
And the rate will not stay the same in the next round of 6 months. I suspect it will start to creep down every round of 6 months, and everyone here will start yelling ponzi at that time because they can't pay out the fabulous rates they had before... similar to the ZenPool debacle.
Side note: thanks for trying to have a serious discussion. It's not often we can debate with GAW supporters without it immediately degrading to insults.
Appreciated, and ditto.
I'm fairly neutral about it, despite my obvious leanings towards GAW. I just think there needs to be some balance to this thread, and as time goes on and we know more, we can debate the merits of the coin rather than GAW's part in it. I know I'm not going to change anyone's attitudes here about GAW, they are too far gone in most poster's eyes here.
