Just thought of this too...
Lets say you have a fund of 10,000 BTC and 10,000,000 AIR... and you are regulating the market... (so to speak)...
Now I know this, and want to cash-out... and just take your BTC. I only have to come and start cashing-out, until your traders dive-in and start feeding me high-value cash-outs of BTC. Same respect on the other end... If I want all your AIR cheap, I just got to start feeding you BTC, and your traders come and "regulate", feeding me nice low valued AIR in bulk... Then I just slowly pump the market with a few coins, and get above your trade-regulation limit, and dump the same way. (Replace me with you or with "your traders", and you have some laundering happening.)
Now... For those trying to "gain"... when you see the price "too high" in your opinion... instead of "us" getting it, you come take that pump-value. Then pour it back into the market when "we" might otherwise be getting our discount coin orders filled... justifying it as "balance", by taking those orders over ours.
Using our coins, does not add value to our coins. That only removes value. Even if you are using our coins to buy BTC, because that BTC value now goes back to the coins you just devalued. Still not seeing how "the coin" itself, would make the difference. I can see how it spreads "poor trading loss" across the majority holders. But that is already done by the exchange, without any intervention. (Just more added expense to pay for, which only decreases value further.)
It is very unlikely that more than about 10000/A will ever be used to pay for services, since we can do most of our development in-house. The premine is used almost in its entirety to regulate the price. We will release weekly updates of what the premine has been spent on with clear amounts to show the growth of our pool, once we have reached an exchange.
When people rush in to Buy AIR, parts of the premine get sold off for BTC or USD. This BTC is then taken into other markets, and on a day-to-day, minute-to-minute basis, traded against other currencies by our traders. This means that if someone pumps, say, Pandacoin for a 50% gain, a portion of that sold AIR will likely be put into the coin carefully at the right moment, and then will jump 50% in size. As the price comes down, our dilligent traders know to sell. As time goes on, we'll be able to release information on how this pool grows and its effect on the long-term exchange rate.
Then, that 50% increased amount is used to buy back AIR at set a new, higher equilibrium price. This continues until no other markets are increasing faster than AIRcoin.
This means that the AIRcoin price is usually a fuction of the highest possible price % gain available in all cryptocoins. That function is determined by how good we are at trading. In an ideal world, you could just tally up all of the % gains in the entire market (200+ coins) and find the highest ones, and over that time period that would be how much the AIRcoin price would increase. Since we only invest in coins that we are certain of (that's the reason we've hired traders, to make those calls) it's generally safer than even an index investment because we know to pull out of coins that are going to decrease.
You could also think of it as an index of "fastest growing coins", or a coin that shifts your own personal trading gain to an expert trader for you.
The rest of the non-traded coins set up barriers that "smooth" the price movements. Instead of bouncing between two walls, we just apply slightly heavier resistance up and down on the price. This is mostly formulaic. This means that, in your scenario, the larger the volume you would try to move, the less and less profitable it would become. It would be very bad to simply enter and "regulate" as you said, rather, we always have some hand squeezing the market on a point-float system, but allowing free market movement in a narrow range.
Lastly, we don't need to sell the premine to make money. We just take a small fee off the top of the gains we do make, the rest go back in the market. We are fully accountable to our actions and will report any gains we make. By comparison, it makes pump and dump schemes look crude. All of this is outlined in our FAQ page. The size of the premine is designed to both deal with large trading volume,
and ensure that only 1% - 5% gains are needed to grow the exchange rate, instead of 20%-30% on a smaller amount.
If those who download our wallets are like the citizens of a nation, and that nation is theirs, then we (the AIA) are its army. Like the army, the citizens have to accept the fact that there is a lot of power in our hands, but you also have to accept the fact that like the army we are accountable, under constant surveillance through the blockchain, and are the only group with the real power to make the coin last for a long time.
On a side note, and I do not mean this with offense, you use of the word "value" in your last few posts is very, very incorrect. Value is seen as the highest price available that a person will pay for an item. If the negotiated price is higher than the value, no sale will happen. Example, if you bought a banana for $5, $5 is not its value. If I could have sold it to you for $500, then $500 is its value, from you.That tells me that you're willing to give up, at most, $500 for this bananas. It is impossible to "Add" value in any way other than convincing people that they want something more than they did before. However, there is a limit, since people generally only have so much resources to give to exchanging an object. This is the core of the concept of "utility". Like utility
value must always be considered on a person-by-person basis. Otherwise you have to make assumptions and averages (losing accuracy) in order to make economic decisions based on concepts of value.
What you seem to be talking about is "added value", which is a very different concept outlined by Karl Marx (
http://en.wikipedia.org/wiki/Value_added) this is a controversial definition, but generally does not work well in small-scale economics and is reserved for large-scale economics where a single individual's demand has less impact on the ultimate calculations. It is generally not accepted as academically correct, for what its worth.
The "value" of an item is what someone is willing to pay, nothing more. Putting years of work into something does not make it more valuable. However, that act
may convince people that they would want it more, which would (as a secondary effect) increase the value. But that is a secondary, non-dependent effect that does not hold in all cases.
"Utility", which is a perceived usefulness that someone would obtain from something, can be looked at as the continuum from the lowest price to the highest price someone would be able to pay for something. Unless they get benefits from spending money (See: Giffen goods) that is usually from 0 (lowest) to Value (highest).
Exactly how long will we have to mine before we have mined 0.25% of the total coins, to turn your premine of 0.25%, into about half-value? Thus the initial 0.5% is starting off at only 50% of whatever any mining estimator claims for daily estimates mining.
Make the coin for us, and we will use it... It is that simple.
P.P.S. Still only have one connection... not even sure if I am on the right chain, without a block-chain explorer.
At the current rate, the premine is overtaken by the mined coins in exactly 2.54 years. However, the block reward does change once on an exchange, and in the event of a price rise, the block reward will increase high enough that the premine will be overtaken at a faster rate.
All the wallets we have tested have between 3-6 connections right now.
when will be expected some exchange ?
EDIT: what net hash rate is for all AIR coin?
We have received offers to enter exchanges, and we
could open any time we want. However, we will likely not open on an exchange until dialogue between us and some of the larger, more reputable exchanges is finished. For this coin to work, it is imperative that we enter a large, reputable exchange with an excellent API and low market latency.
Hashrates are currently at 21,700,000H/s.
JK
