At $0.05 all masternodes will be profitable and generate additional 166 000 coins monthly (1462x114), and it is likely that more people will invest in nodes in a positive feedback loop similar to winter 2017.
But at some point supply will once again outnumber demand because there is an equal amount of mined coins being generated at $0.05 (160k), and mining profitability for single GPU miners breakeven at this price, which will generate even more supply.
At $0.05 (ten times present market cap), supply inflation is nearly 330 000 coins per month or $16 500. This is excluding new node operators and single GPU miners.
It is unclear what may trigger value appreciation to sustain $0.05. Multi tariff masternodes (10 000 coins instead of 1000), will make Desire profitable at $0.005 which is present market cap. Because the single miner who is hashing 220mh/s using free electricity and paid GPUs is already undercutting masternodes by a factor of ten, it is likely that he will begin cutting into profits at $0.005 (he makes $800 pure monthly profit at this level, 160 000 coins). As a result prices may depreciate 50% or more to block multi tariff supply competition.
Desire is centrally controlled by a single high output miner who entered the game in early february of 2018. He is profiting even down to $0.00075 ($125/month), and so technically the price inclusive of all immaterial value represented by indexes and exchanges and other development such as wallet coding and white paper, can drop by another 88%.
This is a single user because all coins are generated into 1 wallet. If it is a mining pool where profit is shared amongst many people, then price can easily go up ten times from $0.005. As far as I can determine, it is a single user.
Remedies to increase value includes:
1. Restricting mining rewards alot or even shutting it down entirely. This was tried by Bulwark team and it did not stop price decline with the difference that bulwark was valued at several hundred times more than DSR at the time. If mining is shut down then price will increase to $0.05 where masternodes become profitable once more, but if multi tariffs are introduced, then price will decline to $0.005 again.
2. A new bull market with increased demand for masternode coins to sustain supply inflation. It is unlikely that this can last for more than a few months, similarly to what we saw in late 2017, simply due to impossible mathmatics and the fact that DSR is one of tens of dozens of similar coins, with a low total market share and USP. If hashing power and supply generation through lots of new nodes rapidly increase free float supply towards 22 million coins then price momentum may be sustained due to reduced mining rewards. Positive feedback momentum is dependant on long term investors scooping up this supply inflation at low levels and holding the coins until price settles at much higher levels. But a high valuation should be reflected in coin development and user base. DSR is part of a generation 2017 masternodes and there is some immaterial value in this respect, which, barring supply inflation, is anywhere from $0.00075 and 50 cents but probably not lower nor higher.
3. The passage of 8 years until 2026 or a bit earlier when mining rewards dwindle. In 2023 at 30% annual mining reward reduction, coins generated through mining alone will be 2.3 daily/26 000 monthly, or $131 profit at $0.05.
For long term investors a good theorethical entry is between $0.00075 and $0.0027. As this is a high tech investment it is likely to be replaced with something more relevant within those 8 years, but there may be opportunity to profit from price momentum during this interval. The fundamental problem with current state of DSR is that coin accumulation through masternode ownership does not dilute profits from the single miner who is hashing 160 000 coins per month. And he does not have mining competition either because the ROI at $0.005 is 9 years on an equivalent mining rig (which is impossible since max supply will be reached long before that point, or rewards dwindle), which he recouperated in less than 30 days when DSR was trading around $1.
Organic growth by 2026 at 0.8 daily coins minted yields $0.1 per coin. This calculation does not take into consideration masternodes and was based on 370 daily rewards at 220 mh/s which is around 9k coins per month whereas profit in the present at $0.005 is $800 per month. I did not include masternodes because we simply have not had opportunity to observe price action without mining undercutting. If you can obtain a million coins or so at terminal levels, than its a pretty solid prospect with expected x100 over 8 years.
I think current price is good for buy as its price is too low, in fact lowest since the start and also the market cap is just 33K USD. Total supply at current is around 7 million DSR and maximum supply is going to be 22 million. I think we must do the things no other is doing as most are broken with current bear market. Often times it is difficult to calculate what is going to give more returns stake, mining or masternodes. I have bought some of Desire coins, with some pending buying orders, as I do not think its price can get below much from here.
