If this is working out, won't rather quickly happen what happened to bitcoin mining? I mean, huge professional mining farms in low electricity cost countries will be profitable while it will be unprofitable for the average Joe?
Any bonus?
What are we actually buying here? Equity? Doesn't look like. So we are not going to own the company behind this. Therefore we are also not eligible for dividends. Later they may actually sell equity like others did on bank to the future.
Due to the recent spam of ICO's, I wonder if it is useful to join this one. Most ICO's were traded below ICO price right after they were distributed. So even if I like this project, I wonder if it would not be better to just buy on exchanges after the initial major dump.
So it is an apptoken we are buying here, right? A token that can be purchased by someone interested in getting cheap cloud computation power? Then I don't see the developers interest in a high token price since that would hinder the project. And if this project succeeds, it will not be long until huge data centers start providing their services and thereby driving the token price down.
Please prove me wrong since I am always looking for high risk high reward investments.
@someone111 You're buying the currency that the Golem Network will use for all transactions.
If you want to take a look at the things that will likely influence the future value of GNT, we wrote a blog post on that here:
https://blog.golemproject.net/the-economics-of-the-golem-network-token-d64c1a50b1d5#.7a1lqt2lkIf the cost of GNT rises, it won't have any effect on the cost of computing power on the network. Just like Bitcoin, if 1 GNT is worth 10x what it was before, people will simply charge 10x less in GNT than they did before. Likely more, actually, since a rise in price is likely reflective of more computers on the network (which also makes addresses the datacenter aspect, as them joining the network will drive the power of the Golem Netowrk, and thereby the cost of GNT, up instead of down.
The more datacenters offering their services on Golem, the more supply of computing power. Simple market logic dictates, that prices fall if supply increases. So GNT price would go down.
If more customers want to use Golem network, but there are too few datacenters, then price of GNT could go up.
Which one is more likely is a pure gamble. I think it will be easier to get the datacenters excited and on board, because they are always looking for ways to optimally use all their available capacity. Getting the word to users of blender etc. and make them use Golem however looks more difficult to me.
Replace GNT with USD. And replace Golem with market for computing power. An abundance of computing power and shortage of customers, results falling prices in USD of. Vice versa, a high demand of customers but short supply of computing power, results in falling USD prices for computing.
(Okay, well, the supply of USD is insanely, incalculable and arbitrarily inflated, but that is besides the point here. If someone wanted to use a currency with a known sane inflation, they could just buy bitcoin or if they wanted zero inflation, there are other coins for that.)
Why should I buy the internal currency (app token) as an investor?
What will the people owning the company behind Golem earn? If they earn an percentage on all GNT transactions, then this seems much more profitable to me. Investments into startup companies makes sense to me, but investments into app tokens not so much.
