Other alt coin prices have been dropping over 300% from a month ago. Blackcoin which is considered one of the better ones has gone from just under 30 000 to under 10 000. Same with many other alts atm. Litecoin down to USD 5.7 from 8 2 weeks ago. For the most part NLG has been very stable. When things turn around later this year it's going to be interesting times!
The fact our hash rate has gone up when NLG price has dropped slightly, shows how bad other coins are doing.
Since I have some bleutrade shares I've been looking into the other coins that are listed on that exchange. No wonder those coins are doing bad. They have NO added value over the fact that you can collect them. This week the following coins were added:
* CzechCrownCoin
* Darkfox
* eUtopium
* HoboNickels
* KeyCoin
* Monacoin
* OrbitCoin
* SonicScrewdriver
I checked the websites/ANN posts of most of them. They list the specs and their fancy name and that's it. No value, info on innovation or niche that it fills, or whatsoever. The funny thing is to read the trollbox, people saying how great an investment *coin is (hoping to pump and dump the coin). These people don't spend money on those coins (get them by trading or so) and people why buy coins, don't buy those. As a result the market "value" drops. I mostly put them on the market for NLG.
Correct me if I'm wrong but with 4.7 million coins mined a day and a steady price between 80 and 100 Sat the value of NLG goes up. In my opinion at least
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I believe it's 470 000 coins a day. At current prices and if all coins were dumped out it would need about .4 btc to maintain. Very cheap
i'm still learning a lot about cryptocurrencies but here are my thoughts on NLG mining and current price. Let me know if I'm way off on any of this..
NLG coins per day:
Block reward: 1000 NLG coins per block
Target blocktime: 2.5 minutes
# of NLG coins mined per hour (60/2.5 * 1000) == 24,000
# of NLG coins mined per day (24,000 * 24) == 576,000
NLG profitability:
Currently litecoin profitability is ~0.00042000 BTC per MH/s per day
Current NLG profitability is ~0.00046000 BTC per MH/s per day (assuming 1 NLG == 83 satoshi, 1,000 MH/s network hash rate)
So most scrypt miners who immediately convert to BTC to pay their bills are better off pointing their rigs at Guldencoin than Litecoin at the moment.. especially when the NLG/BTC exchange rate is above 90 satoshi and network hashrate stays around 1,000 MH/s as it has been the last few weeks. However, if lots of miners start mining NLG and the NLG network difficulty goes up, those miners who need to convert to BTC right away will have to sell their NLG for a higher BTC price in order to beat litecoin profitability.. otherwise they'll switch to something else more profitable. So based on current network difficulty, hash rate, and LTC profitability, miners who are only interested in converting NLG to BTC would be happy with anything above 80 satoshi per NLG. The next few months will be interesting for NLG and all scrypt coins with the introduction of the relatively cheap 500MH/s and 750MH/s mining devices.
Of course, people who believe in the future growth of the Guldencoin economy look at the price of 80 satoshi and think it's a bargain. I personally am a believer, amazed at what has been accomplished so far.. the fact that there are some merchants that don't accept BTC but accept NLG blows my mind.
On the topic of total NLG coin, I think it was a very smart move designing the coin such that there will be 1.7 billion NLG in circulation. I know people that are turned off by bitcoin simply because of the price.. thinking they can't afford to get into bitcoin because a single bitcoin will cost them 600 USD. In 15 or so years, when most NLG are in circulation, if Guldencoin has a market cap of $80 million USD, a single NLG would be worth around 5 US cents. I could see myself arriving at schiphol airport and buying a cup of coffee for 100 Guldencoin. Very easy to understand from a consumer point of view. Versus that transaction with bitcoin would be something arbitrary like 0.00003951.
I think that is a good way of looking at things. Right now .41 btc will buy you a full days worth of mining, 1.7 billions coins also means only 1700 people can own a million and 576 000 * 365 = 210 million coins a year until the block rate halves. This means only 210 people can become NLG millionaires every year.
840 million in 4 years and that will be half the coins mined out.
