Last Active: August 06, 2013, 12:41:48 PM
The developers should explain their intentions and the future xencoin support. We all are waiting on their clear explanation.
However if anything happens, I still believe in the coin. Because if I noticed and counted it corectly in July, almost all premined coins were already sold and given away so now its fair game as with other coins, people mine it and then can trade it.
And if you compare overall utility to other coins it is almost the same but price is very low.
For example Infinitycoin. For almost whole July there were even no single buy orders (now I am not sure whether I saw no buy orders on cryptsy or coins-e) since people were selling billions of coins for the lowest possible price of 1 satoshi (0.00000001 btc). (But I must admit that developers of IFC are more active and honest than people who made XNC). However I think whatever happen it could only help Xencoin. Basically I think all cryptocoins will encrease their value in next year or two (but of course some of them will skyrocket and some of them will only double or quadruple the initial investmment - but where else if you dont have your own company - could you get this evaluation?. Of course, it is possible only for "low" amounts, there is not enough liquidity for your pension fund or millions of USD- see http://coinmarketcap.com/ but if you are not Arabian sheikh you do not care. You just invest some reasonable amount which you can afford ($100) and hold it for the longest time or at least years).
I assume, according to my common sense, basically it is because into the cryptoenviroment more money comes in than out. Well, I would say not only more but significantly much more (eg. my friend send his $12000 to MtGox and bought BTC and he is gonna holding coins for the longest time). You can see it on yourself or your friends (how much did you invest into GPU, into your PC, time and electricity devoted to mining, maybe also some fiat money to buy some coins, etc. And compare to it, how much did you "withdraw". I mean - eg. you bought GPU for $200, used it for mining and very probably you did not sell the same GPU for $250 later (and spend the money for something oposite to cryptocoins like shotgun etc). Also the time we spend here reading posts influence price of advertisment here at bitcointalk web and other magazines. So even people who are only reading about coins or googling it influence slightly the price of coins. Of course this is very far from any academic explanations, it is only my thought)
And in the end I think it leads to overall constantly rising price of all coins. (probably it exists some level where there is a "balance" and eg currently for bitcoin it flows much more money in than which are needed to make balance so the price goes up) And besides it we have ongoing inflation and distrust in fiat currencies.
Even if somebody dislikes cryptocurrencies we cannot deny the fact that they offer the best solution to today's world and that they could in many ways substitute weak USD or EUR.