This coin seems to be doing all the right things - why does the price keep dropping?
Is it simply the massive inflation rate? If so, are the devs planning to slow that down to give the price a chance to rise?
Cheers!
Vlad,
We have been having internal discussions about this. Simply put we doubled the production of coins at block 145k.
DigiByte was on track to produce all of its coins over a 30 + years. Now it will happen in about 15 years. We are potentially thinking of a hard fork next spring that will cut new coin production in half.
What is the communities take on this?
I sometimes wonder about our ability to see beyond the ends of our noses when I hear people talking about cryptocurrency “inflation”. Okay, I get the point when comparing with other cryptos, but isn’t that a bit shortsighted?
With developed nations’ total aggregate money supply being somewhere between 50 and 75 trillion USD equivalent, wouldn’t it be reasonable to expect a large enough demand in cryptocurrencies to support at least a 5 trillion of USD equivalent money supply in cryptocurrencies?
If we had a 5 trillion total USD equivalent of cryptocurrency money supply, and assigned a generous total of 50 cryptocurrency survivors to our equation, each of the 50 survivors would have a proportionate 100 billion USD equivalent money supply, an amount which in each individual case would hardly even begin to compete with the 50-75 trillion of total fiat supply
and ITS inflation!
In the case of BTC, a 100 billion USD total capitalization would equate to a price of $4,761.90 USD.
MEC would be valued at $2,380.96, LTC at $1,190.48, HBN at $833.34, DGC at $500, QRK at $404.86, EAC at $7.41, DGB at $4.77, and DOGE at $1.00, for example.
While we could argue all day long about whether or not Hobonickels will be one of the eventual survivors, what I’m sure we can all agree on is that there will be someone who takes the place of Hobonickels if it doesn’t survive, and if not (let’s say there are only 30 eventual survivors, or 20, or 10), then the eventual total money supply would be even smaller that the original 5 trillion conservative figure.
The key question that I think one has to ask is if you think BTC could possibly trade in the $5,000 dollar range, and then, depending on how you view that, you could move on towards analyzing other coins like MEC (could that coin really survive much less trade at $2,380.96?), or EAC (currently trading between 2 and 3 satoshi – what’s the story there? already ruled out as a potential survivor?), or DGB.
If cryptocurrencies ever do claim their place in the sun, I think a modest 7.5 - 10% or so of developed economies’ real aggregate M2 money supply is a reasonable figure with which to begin eventual baseline valuations.
And don’t forget that the fiats will continue with rampant inflation and that figure of 7.5 - 10% or so will also adjust upwards accordingly as those fiats continue to devalue.
I have to bite my tongue in order not to laugh when I hear people using the inflation word with regards to cryptocurrencies, when in fact it doesn’t even begin to compare with the fiat equivalents, that we should really be comparing with.
And having done that, we’d be able to move on to the next step and ask:
- Why is DOGE valued around 30 times more then EAC when it has more than 7 times the eventual money supply of EAC?
or
- Why is BTC valued around 1 million times more than CGB when it has 21 times the eventual money supply of CGB?
The answer to those questions is what should lead to what I consider to be priority number 1 for DGB at this time. The technical aspects are a done deal, and what we need to do now is gain mass acceptance, starting with the widest possible distributed initial user base as possible. We have a finished product for all intents and purposes (of course, there will be updates, but the core product is not going to change), and
it’s time to start marketing and selling it.http://money.howstuffworks.com/how-much-money-is-in-the-world.htmhttp://dollardaze.org/blog/?post_id=00762&cat_id=20http://en.wikipedia.org/wiki/Money_supplyhttp://data.worldbank.org/indicator/FM.LBL.MQMY.CNGoing to check my PMs.
