Some questions:
Am I correct in noting that miners are being paid in CryptoSoft Coins for mining? If so, what is happening with the coins actually being mined (like ETH right now)? Is the ETH being mined sold for USD? Who is keeping that USD? You?
So If miners are being paid in CryptoSoft Coin constantly, that means they will be constantly dumping the CryptoSoft Coin on an exchange. What is going to drive pressure on the buy side of the CryptoSoft Coin? It seems the value of the coin will only increase if stake miners are guessing correctly what currencies will appreciate in value. But if I'm an investor, and I have a good guess as to what currency will increase, why wouldn't I just invest in that currency directly? Why would I choose instead to buy CryptoSoft Coin and vote for that coin?
Am I correct in noting that miners are being paid in CryptoSoft Coins for mining? If so, what is happening with the coins actually being mined (like ETH right now)? Is the ETH being mined sold for USD? Who is keeping that USD? You?
So If miners are being paid in CryptoSoft Coin constantly, that means they will be constantly dumping the CryptoSoft Coin on an exchange. What is going to drive pressure on the buy side of the CryptoSoft Coin? It seems the value of the coin will only increase if stake miners are guessing correctly what currencies will appreciate in value. But if I'm an investor, and I have a good guess as to what currency will increase, why wouldn't I just invest in that currency directly? Why would I choose instead to buy CryptoSoft Coin and vote for that coin?
Great questions, there will be a limited amount of CryptoCoins - that means we will have to use the ETH (for example) to rebuy some of our coins from the market.
There will mainly be 3 people buying the coin - the ones that are looking to hold and hope to make money from the coin raising, the stake miners and us.
You, as an investor would rather chose to stake mine because you will be making a higher ROI by staking than buying the actual coin. Similar to buying and selling stocks in a way.
I don't think the value of the coin is directly affected by the fact that stake miners guess right or wrong. The ones that are directly affected are miners.
Thank you for responding. I don't think your whitepaper actually says you will use the underlying mined coins to repurchase CryptoCoins. And in fact, unless you commit to using 100% of the mined earnings to buy CryptoCoins, it sounds like you will be keeping a bonus on top of the mining fee, so I think the % you are committing to allocate to purchasing should be made clear so that people know how much you are keeping.
Sorry if the whitepaper does explain this and I just missed it.
