Topic: Merged mining and the price developement (Read 1108 times)
Braaains!
See dogecoin and litecoin. They are merge mining. 
Smokin' some good dope? Why resurrect this years old thread?
See dogecoin and litecoin. They are merge mining.
Perhaps, in the short term, the glut of supply will cause the relative value of namecoins to drop sharply.
In the long term, assuming all market participants are rational agents, I would not expect increased difficulty to be met with a proportional increase in price. However, if there's one thing I've learned from Bitcoin it's that people are not rational agents, neither individually nor on average.
In the long term, assuming all market participants are rational agents, I would not expect increased difficulty to be met with a proportional increase in price. However, if there's one thing I've learned from Bitcoin it's that people are not rational agents, neither individually nor on average.
There is the theory, that the price follows the difficulty. Let's now assume, merged mining is build into the current blockchains, lets say BTC, NMC and IXC. If the price is bound to the difficulty, the miner will mine an equivalent amount in every currency. Now with the hashrate being equal on all blockchains, the lower difficulties will raise and reach some level near below the top difficulty blockchain. If still the price follows difficulty, the exchange rate could reach nearly 1 in the long term.
I think, merged mining will come sooner or later, so the remaining question is: Will the price follow difficulty? And if yes, why?
I think, merged mining will come sooner or later, so the remaining question is: Will the price follow difficulty? And if yes, why?
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