The thing I don't get about the coin and maybe someone can explain it to me is the incredible hyper-inflation this coin has built into it.
It's going to go from 12 million coins to 1.2 billions coins over 15 years. Am I understanding that correctly? Through staking.
That just seems like dooming the coin to 1 satoshi right there. There's no way it can hold its value. It's gonna make doge look like gold by comparison.
You got it right. When I raised the issue over at HT with the pre-mining of 12,000,000 out of the 12,500,000 Paycoins in the PoW stage, most of the True Believers countered that 12,000,000 is peanuts compared the the 1.2 Billion Paycoins that will be issued, so by their logic the "pre-mining" is a big yawn.
The argument is kind of like saying "Don't worry about the $17 trillion dollar national debt, we are going to print 100,000 trillion new dollars to pay it so it won't matter one bit."
The reason I don’t worry about 12 million premine is because you should have expected it. They are running this closer to an IPO meaning most coins early on will be from people who paid for their coins. This will help “protect” the investors in this case. You want people that had to pay for the coins to be major holders because they are less likely to dump for a loss early on. Miners on the other hand dump to cover their cost of mining. So with this part I see no problem. As long as all the coins go to their respective investor. Now of course you have to believe GAW a lot on this. You have to believe these coins were actually bought by outside investors and that they are not just split into a bunch of GAW addresses where they are going to sell them off before HP customers get theirs.
I am just trying to imagine the sales pitch Garza gave investors:
BIG INVESTOR WHALE
Okay, so if I understand correctly. You are going to give me 1.25 million paycoins and an Orion controller for $1.5 million. What will my investment be used for?
GARZA
Your money will b the wall. We are fixin the price of paycoin at $20. That means you are making 20X on your investmint!
BIG INVESTOR WHALE
WTF!? My money will be used as a wall to hold up the price? Aren't all those little worms on your site getting paycoins for $4 a piece? Those greedy bastards will take a 4X profit immediately and wipe out my whole investment!
GARZA
No, u don't undestand. They do exactly what I want! They will be buying paycoins off the site for $25 to put in our hashtakers. The wall will never be touched cause my minions will hype the coin and support the coin outta their pockits. They have no choose cause many of em have their life savings in gaw.
BIG INVESTOR WHALE
It sounds like a ponzi scheme to me.
GARZA
You will be out and lving on the beaches of belize long before they figure that out my friend!
BIG INVESTOR WHALE
Hey what exactly is an Orion Controller anyway?
GARZA
Well, it's actually just an excel spreadsheet: OrionController1.xls. We can rename it whatever you want though. Even give it a cool icon. Just let me know. So what you say? You ready to breed the bull!?
BIG INVESTOR WHALE
What the hell are you saying? You want me to fuck a bull? No. No. Are you high!?
GARZA
I'm high on life friend! You want me to release the Kraken?! I will. I have one special orion controller. It's a little more expensive, but it's called: LegendaryOrionController1.xls. What u say!?
BIG INVESTOR WHALE
Stop unzipping your pants fucking sicko! No I won't invest in your ponzi scheme! Goodbye!
GARZA
Don't go. You haven't heard about the features yet! ROI 2.0 and unlimited upward trend flex technology! Shit, lost another one boys. Better start thinking of new ways to screw over those gaw miner suckers again! Who says you can't milk a dead cow!?
