Tok, this sell order of over 12,000 DASH on Cryptsy...does not seem a part of that periodical dumping you mentioned?
wozzek - a couple of things:
Just to clarify, the 'redundant coin supply' I defined in that post only exists for an instant - basically the instant it takes for the price to move from the old value to the new value as some of the supply gets sold into the bids. Amounts sitting in the order book as 'asks' are not redundant supply - they form part of the currency liquidity needed to support markets. Remember, philosophically speaking, the entire coin supply is sitting on the order book since there is probably a price at which everyone would dump. (If someone came up to you right now and offered you $1000 per Dash, you'd probably at least think about it, so therefore all your coins can be thought of as sitting on the order book somewhere above the exchange price as well).
Regarding whats happing at the moment, we need to bear in mind that things are in a state of flux right now and will stabilise at some point. In particular, I think whats happening is that the bulk of the masternode collateral has been coming from existing holders so far which means there's minimal impact on price despite the ongoing increase in masternode count. This may have frustrated a few holders who got sick of waiting on a gain and decided to dump. However, if they dump, the coins will change hands and we need to see what the new holders then do.
Whats happening is that the people are taking positions and the slack is being taken up. The "currency supply" is going to two places - [1] to the reserve supply and [2] to markets (which is what that 12k ask is).
There are also other dynamics in play. As the masternode population increases, revenue per node decreases and this will cap the masternode count at each price level. We need to then see what happens. The currency may go trough a few cycles of devalue, then acquire more reserve capital (increase masternode count due to them being cheaper), then revalue again. On the other hand, speculative demand may keep it buoyant enough to grow the reserve portion of the supply without a devaluation.
It needs to be allow to do whatever it's gonna do for now to reach an equilibrium which will serve as a base for growth, so I'd just sit back and watch the show for a few months. I'll maybe try to come up with some spreadsheet stuff to let people play around with the model so it's more interesting to watch the dynamics play out - whether that involves selling or buying.
(P.S. I updated my
previous post to include a bit of terminology definition when referring to the distinct monetary markets that Dash addresses. I've referred to them the "reserve market" and the "currency market". Hope that makes things easier).
The two sources of masternode collateral: a) from existing holders (no impact on price) b) from markets (favourable impact on price)
