Topic: CGB Core Team - Update Thread - page 2. (Read 3214 times)
I like the CGB and invest in it since its inception. I hope to achieve the goals it set. I believe in it!
CGB Core Team Weekly Update – May 14, 2014
Please also see the Reddit post for further discussion.
Cryptogenic Bullion is a unique crypto and to understand its value, research is required. This is one of the problems that we face as a community when trying to explain the merits of CGB. Where most other coins are caught up in a massive churning of pumps, excitement, scams, mining, and other daily activities of the crypto-scene, Cryptogenic Bullion seems to sit patiently on the sidelines and observe these generally undisciplined behaviors. We would like to quickly explain some of the reasons why promotion and adoption of CGB is very different from most other crypto-currencies.
As explained in this post on Reddit, CGB derives its value by holding it as a more stable store of wealth. This contrasts starkly with what gives most other cryptos out there value, which is the size of the user-base who is holding to spend. Cryptogenic Bullion investors are holding to store wealth or anticipate such demand and there are many factors which better suit CGB for this role above the others. Please see the section on CGB’s Life Cycle on the Learn More page of the Official Website for more detailed information on the bigger picture of CGB and how it builds value.
Let’s quickly go over the motivations for holding CGB compared to the motivations for holding a daily spending currency such as Doge. CGB is designed to be held to store wealth. The more people who are holding CGB to store wealth, the more scarce CGB will be and greater the unit value. Currencies such as Doge are designed to be spent and used on a daily bases. The more people who are holding Doge to spend, the more scarce Doge becomes and the greater the unit value. Notice that investors can profit from increases in these types of demand, and purchasing accordingly in order to sell at the higher prices once demand is realized. These two use cases are fundamentally different and require a different approach to promote the adoption of each.
Here are a few questions that have been recently asked and some guidance on how to proceed:
Is merchant development a goal for CGB?
As CGB is intended to store wealth and not to expand through retail activity directly, merchant development is a goal for CGB but not in the typical way. Our strategy would be to encourage merchants who already accept other crypto to store their wealth in CGB, and consider accepting CGB alongside their existing currency selection.
Is getting listed on more exchanges a goal for CGB?
While it doesn’t hurt to be listed on more exchanges, low volume exchanges with a small user base offer very little value to the CGB community. Exchanges with a large user base would be helpful, especially if there are traders willing to make profit from arbitrage providing liquidity to this user base, and activity on CGB trading pairs.
Does low current volume and price hinder CGB’s advance as a store of wealth?
I urge everyone who asks this question to read CGB’s Life Cycle to understand the transition that CGB is currently undergoing. We also have to also look at the bigger picture of the crypto-markets which have suffered overall from Bitcoin’s recent decline. These are normal cycles that happen. When capital begins to flow inward again on a massive scale, it may be triggered by worries of hyperinflation, or other fiat currency problems. Fleeing investors may be looking for an asset which does not have the heavy inflationary tax of the very system they are fleeing. Cryptogenic Bullion will be perfectly poised, having completed its volatile inflationary phase, and awaiting the inflows of its capitalization phase. Our strategy is optimized for CGB to benefit from the increasing troubles of the global fiat-debt monetary system.
Would a profit spending multipool boost CGB’s value?
Artificial demand, which has nothing to do with the intended use of CGB, provides no long term value. This type of scheme would increase volatility (not a benefit to wealth storage), and reduce our credibility through a lack of fundamental understanding of CGB’s proper role. We can look at previous cases and conclude that the new multipool idea itself is what caused the demand, not the underlying asset being bought. We need to focus our efforts on projects which bring real value to those who use CGB to store wealth.
Is low mining profitability bad for CGB?
Remember that CGB has, for the past year, allocated the majority of the currency supply that will ever be, through mining. As we transition to the capitalization phase of CGB, this low mining reward is part of the reason why investors will find CGB so appealing. With less “money printing (mining),” our annual inflation is approaching its permanent target of 2% growth/year through mining and minting. This is the natural progression of CGB.
There has been a lot of interesting discussion on Reddit about getting CGB into the hands of communities through local interaction and a holistic multi-service approach. Community involvement is needed, ask the tough questions, get involved! We encourage you all to participate and give your thoughts on those ideas and the ones discussed in this post!
The CGB Core Team
Please also see the Reddit post for further discussion.
Cryptogenic Bullion is a unique crypto and to understand its value, research is required. This is one of the problems that we face as a community when trying to explain the merits of CGB. Where most other coins are caught up in a massive churning of pumps, excitement, scams, mining, and other daily activities of the crypto-scene, Cryptogenic Bullion seems to sit patiently on the sidelines and observe these generally undisciplined behaviors. We would like to quickly explain some of the reasons why promotion and adoption of CGB is very different from most other crypto-currencies.
As explained in this post on Reddit, CGB derives its value by holding it as a more stable store of wealth. This contrasts starkly with what gives most other cryptos out there value, which is the size of the user-base who is holding to spend. Cryptogenic Bullion investors are holding to store wealth or anticipate such demand and there are many factors which better suit CGB for this role above the others. Please see the section on CGB’s Life Cycle on the Learn More page of the Official Website for more detailed information on the bigger picture of CGB and how it builds value.
Let’s quickly go over the motivations for holding CGB compared to the motivations for holding a daily spending currency such as Doge. CGB is designed to be held to store wealth. The more people who are holding CGB to store wealth, the more scarce CGB will be and greater the unit value. Currencies such as Doge are designed to be spent and used on a daily bases. The more people who are holding Doge to spend, the more scarce Doge becomes and the greater the unit value. Notice that investors can profit from increases in these types of demand, and purchasing accordingly in order to sell at the higher prices once demand is realized. These two use cases are fundamentally different and require a different approach to promote the adoption of each.
Here are a few questions that have been recently asked and some guidance on how to proceed:
Is merchant development a goal for CGB?
As CGB is intended to store wealth and not to expand through retail activity directly, merchant development is a goal for CGB but not in the typical way. Our strategy would be to encourage merchants who already accept other crypto to store their wealth in CGB, and consider accepting CGB alongside their existing currency selection.
Is getting listed on more exchanges a goal for CGB?
While it doesn’t hurt to be listed on more exchanges, low volume exchanges with a small user base offer very little value to the CGB community. Exchanges with a large user base would be helpful, especially if there are traders willing to make profit from arbitrage providing liquidity to this user base, and activity on CGB trading pairs.
Does low current volume and price hinder CGB’s advance as a store of wealth?
I urge everyone who asks this question to read CGB’s Life Cycle to understand the transition that CGB is currently undergoing. We also have to also look at the bigger picture of the crypto-markets which have suffered overall from Bitcoin’s recent decline. These are normal cycles that happen. When capital begins to flow inward again on a massive scale, it may be triggered by worries of hyperinflation, or other fiat currency problems. Fleeing investors may be looking for an asset which does not have the heavy inflationary tax of the very system they are fleeing. Cryptogenic Bullion will be perfectly poised, having completed its volatile inflationary phase, and awaiting the inflows of its capitalization phase. Our strategy is optimized for CGB to benefit from the increasing troubles of the global fiat-debt monetary system.
Would a profit spending multipool boost CGB’s value?
Artificial demand, which has nothing to do with the intended use of CGB, provides no long term value. This type of scheme would increase volatility (not a benefit to wealth storage), and reduce our credibility through a lack of fundamental understanding of CGB’s proper role. We can look at previous cases and conclude that the new multipool idea itself is what caused the demand, not the underlying asset being bought. We need to focus our efforts on projects which bring real value to those who use CGB to store wealth.
Is low mining profitability bad for CGB?
Remember that CGB has, for the past year, allocated the majority of the currency supply that will ever be, through mining. As we transition to the capitalization phase of CGB, this low mining reward is part of the reason why investors will find CGB so appealing. With less “money printing (mining),” our annual inflation is approaching its permanent target of 2% growth/year through mining and minting. This is the natural progression of CGB.
There has been a lot of interesting discussion on Reddit about getting CGB into the hands of communities through local interaction and a holistic multi-service approach. Community involvement is needed, ask the tough questions, get involved! We encourage you all to participate and give your thoughts on those ideas and the ones discussed in this post!
The CGB Core Team
I will post the CGB Core Development Team updates to this thread as they come out. For historical updates, please visit the CGB website or the CGB announcement thread.
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