The production of new coins, is halved every few years. Now we get 25 coins per 10 minutes, it was 50 before, and will be 12.5 in 2016, until 2140 new coins in free float will be less and less. That's for me a deflation-property (in contrary to what the FED and any other Central-bank does: printing more and more coins and creating inflation).
'Litecoin Is Silver To Bitcoin's Gold' â Here's What That Actually Means
- Thread starter Banjo
- Start date
The production of new coins, is halved every few years. Now we get 25 coins per 10 minutes, it was 50 before, and will be 12.5 in 2016, until 2140 new coins in free float will be less and less. That's for me a deflation-property (in contrary to what the FED and any other Central-bank does: printing more and more coins and creating inflation).
you sounds like the gold bugs. the big flaw in the goldbugs reasoning is gold will go to $5000 when it can be produced for $600 an ounce at $100 a barrel oil. The shorters are obviously the gold miners, who see this as free money.
Gold is tied to the oil price. These goldbugs expect $5000 gold but $100 oil.
I cant right now see the exact flaw in your reasoning but it should exist. As always, in a tulip bubble, $7000 is not out there, its a tulip.
Based on what, Scarcity? Litecoin is taking off, and it has 2 years on BTC, just compare their histories. At 2 years BTC was still worthless, LTC is already at $40.
Now since LTC and BTC are pretty similar, we can't really talk about scarcity anymore, since we are talking about 105 million coins eventually. Add to this the coin that hasn't even been invented yet but with better features, and anything over 100$ is a gift for any virtual currency...
I look at it the other way. Once Myspace was copied and taken over, its value has fallen. From its original price of 580 million Justin Timberlake and Co. bought it recently for 35 millions.
That is quite a drop my friend...
"Myspace generated $800 million in revenue during the 2008 fiscal year.Since then, the number of Myspace users has declined steadily in spite of several redesigns.As of June 2013, Myspace was ranked 303 by total web traffic, and 223 in the United States."
Also, try to sell all bitcoin at once and see if you get 13 billions for it...
Currencies are not companies....
Quote from Pekelo:
Also, try to sell all bitcoin at once and see if you get 13 billions for it...
Currencies are not companies....
you might get the same as when everyone tried to sell citi all at once. .99 cents?
I get what you are saying. All Im saying is this thing might transform the way we use money in the near future. maybe yes maybe no. In the meantime it might make you some money if you put up and just shut up...hahah Jk...take it easy .
Here's the little and research I performed on bitcoin being queried in search engines correlation to it's price... http://www.cornixtrading.com/2013/1...l-sample-of-public-interestprice-correlation/
This market looks like an ideal "lab rat" of classic market behavior compared to traditional economics. Very interesting stuff to research.
This market looks like an ideal "lab rat" of classic market behavior compared to traditional economics. Very interesting stuff to research.
FWIW, as an update and some idle thoughts...
In the last month or so, network hash rate on lite coin has ramped up from ~30k to ~80k. 50K MH increase in hash rate works out to about sales of 69K AMD R9 280x equivalent cards (a little over $20MM worth of sales of AMD video cards). This works out to about the equivalent of 28K 2.5 card rigs (since a lot of the rigs are using lower hash rate cards). In the face of Xbox One and PS4 sales in the same period, the impact to AMD sales should be fairly negligible. I assume also because these cards were already in the channel, you may not see even the $20MM of revenue impact until a later quarter.
Even then, the cards are all sold out, with the only thing available being slower mining cards (Radeon 7870/7850 being the next best alternative). So a few things are called into question: 1) How long will it take the supply chain to fill up stock again? 2) will AMD respond to the demand signal and up production of these cards. I think that may be a bad move, as gamers may just move to Nvidia cards, and with litecoin showing signs of topping, mining investment may be no longer attractive (at these difficulties).
Last point of interest: even thought mining appears profitable now at current prices, doing some simulation of the evolution of prices combined with likewise forecast of difficulty increases, getting a payback of just investment in a decent time (90-120 days) is looking increasingly unlikely. Doing so would depend on no more cards being available (capping difficulty increases) for the next month or two combined with an increasing price (from the $25 level here).
What's most interesting here is that mining litecoin made more sense at $6 with half the difficulty level and better upside price prospects than at current difficulty levels and $25 price level. The project's returns are quite path dependent, as its easier for a potential miner choose to not invest when not already in, but more difficult for a miner to stop given they've already sunk costs and there is still a tiny sliver of profitability or potential profitability. This will keep network MH high even if profitability for new miners is low. This mirrors the 2009 natural gas shale drilling boom, I believe. I think profitability and decent payback-time on investment is already a very difficult proposition for new players, even though it may not appear so.
In the last month or so, network hash rate on lite coin has ramped up from ~30k to ~80k. 50K MH increase in hash rate works out to about sales of 69K AMD R9 280x equivalent cards (a little over $20MM worth of sales of AMD video cards). This works out to about the equivalent of 28K 2.5 card rigs (since a lot of the rigs are using lower hash rate cards). In the face of Xbox One and PS4 sales in the same period, the impact to AMD sales should be fairly negligible. I assume also because these cards were already in the channel, you may not see even the $20MM of revenue impact until a later quarter.
Even then, the cards are all sold out, with the only thing available being slower mining cards (Radeon 7870/7850 being the next best alternative). So a few things are called into question: 1) How long will it take the supply chain to fill up stock again? 2) will AMD respond to the demand signal and up production of these cards. I think that may be a bad move, as gamers may just move to Nvidia cards, and with litecoin showing signs of topping, mining investment may be no longer attractive (at these difficulties).
Last point of interest: even thought mining appears profitable now at current prices, doing some simulation of the evolution of prices combined with likewise forecast of difficulty increases, getting a payback of just investment in a decent time (90-120 days) is looking increasingly unlikely. Doing so would depend on no more cards being available (capping difficulty increases) for the next month or two combined with an increasing price (from the $25 level here).
What's most interesting here is that mining litecoin made more sense at $6 with half the difficulty level and better upside price prospects than at current difficulty levels and $25 price level. The project's returns are quite path dependent, as its easier for a potential miner choose to not invest when not already in, but more difficult for a miner to stop given they've already sunk costs and there is still a tiny sliver of profitability or potential profitability. This will keep network MH high even if profitability for new miners is low. This mirrors the 2009 natural gas shale drilling boom, I believe. I think profitability and decent payback-time on investment is already a very difficult proposition for new players, even though it may not appear so.