So you are basically using initial btc investment to buy back mined std.
If no new investors come to replenish btc reserves they'll eventually run out and someone will be left holding 0 value coins.
It's a blatant Ponzi.
If no new investors come to replenish btc reserves they'll eventually run out and someone will be left holding 0 value coins.
It's a blatant Ponzi.
No, each STD will worth at least at the GER. This is permanent.
The system won't need any new investor to replenish anything.
It just works.
Please read this post, I explained it there.
https://bitcointalksearch.org/topic/m.5877531
I read it, and my comment still holds true. Fixed initial btc reserve, more STD being produced = 0 btc left if more people sell than people are buying (as it is obvious with any market). Initial btc reserve can cover this for some time but not forever, unless new investors come (as with any Ponzi).
Blatant Ponzi and really cracks me up seeing so many people not figuring out for pages and pages xD
No amount of pseudo mathematical complexity can cover up this fundamental flaw, though you will get some noob confused enough to buy in, it seems.
Even all (Yes, ALL, not a lot not a ton, it's ALL) the coins are dumped there are always enough BTC to buy back at the GER because GER = AMC/MMS (MMS = Max money supply, Max money supply means that the maximun amount of coins that can exist).
Can you give me an example when the stored BTC can not cover all the dumped coins?
Should I, really?
Let's say initial investors put in 400 btc and got 100 mil STD. GER is 400/400'000'000=0.000001
Let's say no new investor come. 300mil std will be mined and sold, and you have to use those 400 btc to buy them at 0.000001 for a total of 300 btc considering a fixed GER for simplicity (actually it's even worse because those btc used to buy miners' dump count in for AMS, increasing GER so you'll be able to buy back far less than all 300 mils before running out of btc). Then, after the mining process is finished 100 btc will be left (actually not even that, see previous parenthesis, but let's simplify). If initial investors want to withdraw now, they can only get 100 btc out of 400 invested.
Another scenario: let's say 100mil mined STD are bought by new investors, not you. For simplicity let's say all in one go. That will net 100 more btc at 0.000001. So now AMS=500 and GER=500/400'000'000=0.00000125
Let's say no new investors from now on. 200 more mil are mined and sold at 0.00000125 each for a total of 250 btc (with the same simplification: let's not consider this will raise GER, cause this will make the rest of the explanation even worse anyway). Now initial investors+new investors want to convert their 200mil back to btc, but they can only get the 250 remaining btc, out of 500 total investment (again, for simplicity, let's say they sell all in one go and GER stays the same. Actually it should go higher according to the system, but it doesn't change anything: they'll just buy back those 250 remaining btc with less STD and be left with 250 btc and some mil of useless STD).
So, basically you're telling it's a PONZI SCHEME?
http://en.wikipedia.org/wiki/Ponzi_scheme
