Ok guys. As an economist, I would like to point out some things here.
What we have here is a very competitive market place. Many altocoins appear daily.
Low barrier to entry witch means that it is easy for new players to show up.
Furthermore, our market position is weak. We are not Litecoin, or even Dogecoin.
This reduces our possibilities when acting on the market.
Proposal that Kosmost made is a sound one. Still, there are some problems with it. What we are doing here is rebranding the product.
This means we are operating with the same thing, but changing the quantities. In the end it is the same coin. Now, this might move the price, but most likely, users will realize that there is no change, and the price will stay the same. Since our product is inferior on the market, price will actually decrease, like we see with other altcoins. The way to counter this is by innovating and creating new services. Making a change such as this one, without creating a new content will not make a substantial change. The only influence it will have is a psychological one, but in the end, the price will revert even if it goes up.
My suggestion is to launch this change when we publish a whitepaper and present the public with the new ideas we are planning to implement as a community. Then it will have more meaning.
This is an interesting clip from tv show The Wire. It approaches this problem. What happens in the end is still a decline in the demand of the product, since users understand that it is actually the same old product.
http://www.youtube.com/watch?v=mDBq-OU1rHo&t=1m35sThank you for your detailed analysis.
Before I comment, please note that I'm aware that you are suggesting that the change should be implemented when other "good news" is announced. I think it should be implemented as soon as possible because the changes benefits are primarily long term.
I trust you read all my posts on this matter? The objective isn't to make a change in the price of Karma (at least in the short term), it is to increase the activity on the Karma BTC and LTC markets.
I pretty much agree with the above and it is a very respectable assessment however it is not a rebranding of the product, it is a minor but important change, nobody is pretending it is a new product. The products primary use at the moment is being traded on exchanges, price per 1,000 would enhance its ability to do that, therefore the product itself is being improved. I'm sure the slight name change (KARM to KARMA) will be very well explained by the exchanges.
No offense but as an economist you aren't uniquely qualified to determine which products are inferior or superior products. A more accurate statement would be that it will help Karma find its real market price faster than if if the change were not implemented.
I completely agree that the change is primarily a psychological one. You are of course coming from the perspective of an economist, talking about short term prices, which may over-correct in one direction or another and will then revert back to close to where they started. I'm suggesting that it will have a long term impact due to its psychological effects, given I believe it will impact on the queuing for the sale of Karma on the market and it will increase market activity due to the increased granularity, which increases its value as a product whose primary use at the moment is being traded on exchanges.
The reason I keep stating Karma's primary use at the moment is being traded on exchanges is based on both volumes and number of transactions. I would of course like to move tipping up a few places so it is the primary use for Karma but that isn't the reality of the situation at the moment. I'm glad to see people tipping each other on the forum but that isn't enough, we need wider tipping adoption.
I won't post about this any more (other than reminders) as there is little objection, just a lack of resolve to make it an official policy.
Chargin.