All dumper are crazy
As soon as the mining dumpers that have to pay for electricity are out of the system the investors can take over. A high network mining hash rate is not important because you can have the same block rate with 1 CPU at low difficulty vs a gazillion quintillion terra has rate at super high difficulty. What is important is to gave the coin in the hands of many investors. There must be an average hash rate for mining but many exchanges with high volumes of trading for the coin so that there can be liquidity. The highest risk of a new coin are many miners mining for profit because miners are the dumpers on small exchanges with low volumes causing the value of coins to be low. Investors know how to work a market so that there is not high volatility and investors know better than to just dump. A new coin must just get through the first few weeks without being killed by profit mining dumpers and Bob's your uncle.
Perhaps these dumpers have no idea what is coming on inside next months. (Scrypt ASIC's )
I start this by admitting that I am new to this game, and have limited experience and knowledge of how the market forces come together to give value to coins.
I am a miner with about 8K hash power (n-scrypt) and I have been mining EXE these last days because instinctively it felt a good coin and the thought of the ASICS scares the begeebies out of me. I started mining before the price fall, and even bought some coins too. I continue to mine and hold, waiting for better times as everyone seems to think will come. But then I find myself asking questions about the coins future and I cant see how its going to work. So if anyone with a better grasp of things than me can explain how this all hangs together I would appreciate it : My thinking goes like this.
- At some point in the future the scrypt ASICs will hit the market in significant quantities, causing the difficulty of scrypt coins to rocket. This will ultimately make scrypt mining pointless for GPU based systems.
- Those people who choose not to sell off their kit on EBAY will turn to n-scrypt coins such as EXE or VERT, whilst those who have invested in the ASICS will be committed to staying with scrypt coins.
OK - this is clear enough, but what I don't get is why EXE will benifit.
If all the enormous GPU HASH power currently out there suddenly focuses on EXE then surely this will cause EXE difficulty to go through the roof, whereas the scrypt coins loose the GPU mining, to be replaced by ASICS, but share this additonal HASH power over all the scrypt coin, thus lessening its impact.
Also what is stopping the introduction of shed loads of new n-scrypt coins over the coming months that compete directly with EXE and might offer other innovative features, as yet un-thought of, that make EXE as an early adopter of n-scrypt look lacking in some way or other.
Truth is I'm confused and don't know which way to jump ....
Any thoughts welcome.
lol