sl@ppy (OP)
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November 30, 2014, 07:40:05 PM |
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Why invest in Premine of any coin? As I see it they really have no value except to dump in the first day or two. If you went to a gold mine to invest and were told this:
Well you can invest in mining....or you can pay us at today's rate and get a trickle of gold that we mined last month (at last month's prices) and we will just pretend we are mining it now.
Would that make sense. I just do not understand the thinking.
To me it is like saying 'Hey we did this and now it is done, do you want to invest after the fact?'
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Gianluca95
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Reputation first.
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November 30, 2014, 07:45:41 PM |
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Why invest in Premine of any coin? As I see it they really have no value except to dump in the first day or two. If you went to a gold mine to invest and were told this:
Well you can invest in mining....or you can pay us at today's rate and get a trickle of gold that we mined last month (at last month's prices) and we will just pretend we are mining it now.
Would that make sense. I just do not understand the thinking.
To me it is like saying 'Hey we did this and now it is done, do you want to invest after the fact?'
Why invest in Premine of any coin? This is a very good question ! So, if there is a very good project like ripple which has the total quantity of coin pre-mined and you give trust to the dev, you invest and think that there will be no problem in the future. But, in the major part of case, when you see that a coin has a great quantity of coin pre-mined, that's only a scam. So, evaluate the dev and the project and then choice if you want to invest or not  |
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Testing123
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November 30, 2014, 08:05:19 PM |
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Why invest in Premine of any coin? As I see it they really have no value except to dump in the first day or two. If you went to a gold mine to invest and were told this:
Well you can invest in mining....or you can pay us at today's rate and get a trickle of gold that we mined last month (at last month's prices) and we will just pretend we are mining it now.
Would that make sense. I just do not understand the thinking.
To me it is like saying 'Hey we did this and now it is done, do you want to invest after the fact?'
I don't. A lot of altcoins are in fact created for pump and dump. People invest in an altcoin doesn't necessarily expect it to become a very successful coin in the long term, but more likely just wait for it to be listed on exchanges and wait for the price to go up. |
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poncom
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November 30, 2014, 08:35:53 PM |
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There have been loads of scam coins this year and giving a PoW coin a premine is just one of a range of tricks the devs have used to get most of the available supply as soon as a coin launches. There are other tricks like a dev ensuring he is the only person that can mine at launch and giving the first few blocks a massive block reward. There are loads of types of scam coins not worth investing in.
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DrGrid
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November 30, 2014, 09:07:59 PM |
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There is only the pump.
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Bitrated user: DrGrid.
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Accommodation
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November 30, 2014, 09:13:25 PM |
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There is only the pump.
I'm sure isn't the case but for a LOT of coins it is fact. There are some legitimate coin projects that rise in value on their own. |
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poncom
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November 30, 2014, 09:18:28 PM |
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There is only the pump.
I'm sure isn't the case but for a LOT of coins it is fact. There are some legitimate coin projects that rise in value on their own. Plenty of legitimate coins tend to gravitate towards the top of coinmarketcap and stay there. Scam coins might briefly make it to the first page, but they don't generally stay there for long. |
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manselr
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November 30, 2014, 11:04:27 PM |
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They invest so they can take a big dump once the currency goes on big exchanges, sometimes they don't even wait for big exchanges and dump right away.
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hypostatization
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November 30, 2014, 11:09:48 PM |
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Are stocks worthless in absence of mining?
Is Bitcoin destined to become worthless when the last coin is mined?
Are you of the belief that a currency cannot rise in value based on increased adoption, utility, and quality?
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sl@ppy (OP)
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November 30, 2014, 11:13:52 PM |
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Thank you to all for your replies
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cexylikepie
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November 30, 2014, 11:18:21 PM |
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the only reason they invest is because they are greedy.
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hypostatization
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November 30, 2014, 11:21:32 PM
Last edit: November 30, 2014, 11:45:39 PM by hypostatization |
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Are stocks worthless in absence of mining?
Is Bitcoin destined to become worthless when the last coin is mined?
Are you of the belief that a currency cannot rise in value based on increased adoption, utility, and quality?
Seems like you did a real investigation.... this post alone tells everyone that you have no idea about bitcoin Educate us all then. How would you answer the above questions? Edit: here is how I would answer |
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MicroGuy
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Merit: 1030
Twitter @realmicroguy
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December 01, 2014, 01:39:51 AM |
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Why invest in Premine of any coin? As I see it they really have no value except to dump in the first day or two. If you went to a gold mine to invest and were told this:
Well you can invest in mining....or you can pay us at today's rate and get a trickle of gold that we mined last month (at last month's prices) and we will just pretend we are mining it now.
Would that make sense. I just do not understand the thinking.
To me it is like saying 'Hey we did this and now it is done, do you want to invest after the fact?'
There are many factors to consider when investing in a coin, the most important of which is your objective. For example, Satoshi premined 7.5% of all bitcoins before vanishing, yet Bitcoin has not been such a bad investment. Look at each coin individually and see if it fits your objective. |
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Penny Pincher XPP
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December 01, 2014, 01:53:23 AM |
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Why invest in Premine of any coin? As I see it they really have no value except to dump in the first day or two. If you went to a gold mine to invest and were told this:
Well you can invest in mining....or you can pay us at today's rate and get a trickle of gold that we mined last month (at last month's prices) and we will just pretend we are mining it now.
Would that make sense. I just do not understand the thinking.
To me it is like saying 'Hey we did this and now it is done, do you want to invest after the fact?'
That's why I deny "Premining" and will follow Mr.Lee's advice creator of Litecoin. "4. Have a Fair Launch Lee’s advice was to follow Litecoin’s steps: withhold the genesis block, allow users to play with it on testnet and don’t premine it. Premining is a big taboo in the industry, and Lee advises creators and developers to stay far away from this practice." https://www.cryptocoinsnews.com/charlie-lee-litecoins-five-steps-creating-successful-altcoin/ |
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gustav
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December 01, 2014, 11:48:23 AM |
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coins created effortless out of thin air and centrally sold/distributed are worth a lot less than mined and decentrally distributed coins. With decentral distribution through mining you create a market not with other methods.
I think all these ipo/ico/ito coins will go to zero no matter how innovative they are because the clone of it that is decentrally distributed simply has the more robust market.
Coins with central distribution through ico/ipo/ito/presale are just a flash in the pan.
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coldcryptos
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December 01, 2014, 04:16:33 PM |
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There can be good and bad use of premine. But in most cases there was an alternative path.
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