Namecoin prices plummeting - opinions? - page 5.

imperi

full member

Activity: 196

Merit: 101

Quote from: bitebitebite on June 24, 2011, 03:30:17 PM

Yea, wish I had sold ASAP. Was getting one namecoin block of 50 per day when I started... (which I roughly worked out was 3x BTC mining profit at the time in relation to the exchange rate/my daily pooled BTC mining rate). Did expect the exchange rate to hold up, and it was my first experience of difficulty increase. Thankyou for the info relating to why it has not

It could be cyclical. I think there's a pretty high chance that Namecoins will increase in value alongside Bitcoin increasing with value (compared to dollar).

bitebitebite

member

Activity: 95

Merit: 10

Yea, wish I had sold ASAP. Was getting one namecoin block of 50 per day when I started... (which I roughly worked out was 3x BTC mining profit at the time in relation to the exchange rate/my daily pooled BTC mining rate). Did expect the exchange rate to hold up, and it was my first experience of difficulty increase. Thankyou for the info relating to why it has not

gdrop

newbie

Activity: 14

Merit: 0

Namecoin serves a niche that doesn't appeal as widely as Bitcoin. Bitcoin is a currency/commodity that you can directly exchange for goods or cash. Namecoin at its heart is based on making a decentralized DNS.

It's not surprising that a BTC/NMC exchange popped up relatively early, though.

What you'll notice is that the exchange rate depends on the difficulty ratio between BTC/NMC. the NMC -> BTC rate SHOULD be around the difficulty ratio for NMC vs. BTC.

People expect that you'd get similar profits from mining NMC vs. BTC, but the fact is that people can currently use BTC for much more, while NMC only really has 1 role, so you see most of the trades going for the majority of miners going from NMC -> BTC.

Also, BTC difficulty is skyrocketing, while NMC difficulty is actually falling.

This means, that if you're mining NMC to convert to BTC to sell, sell it now. The difficulty ratio will plummet and so will the exchange rate.

I forgot the site that shows this, but the difficulty ratio is going to go for a massive drop really quickly. Soon your NMC will be trading at 0.010 BTC each.

Should've sold mine when the difficulty ratio / exchange rate was ~0.063.

Also, look at the instantaneous difficulty. That can hint at where the exchange rate is going.

bitebitebite

member

Activity: 95

Merit: 10

Iv just sold them all off at current market value (~1/3 of the value when I mined them). In ~1&1/2 weeks of various forms of mining BTC and NC with a 6990 I have ~4BTC.

Would be interested in trading BTC if any GBP exchanges pop up with fast bank transfers (if anyone finds this in the coming weeks please post), as mining seems like a waste of time for anyone without a large number of already paid off fully loaded rigs imo (made more than 4BTC's value in my morning coffee break during the 1&1/2 weeks lol)

Jack of Diamonds

sr. member

Activity: 252

Merit: 251

Quote from: michaelmclees on June 24, 2011, 11:37:53 AM

The problem with namecoins, in my opinion is that people just don't understand them. Are they meant as a currency? Are they meant as a reserve or token of web addresses? Whenever someone explains it, they go into DNS servers and stuff like that. Regular folks understand coins, transaction fees, confirmations, etc... Only webgeeks understand DNS; I know I don't.

This is exactly why namecoin will remain forever just a 'project' like a small Linux distribution, and Bitcoin will probably reach great adaption like Ubuntu.

The masses have to understand what you are proposing to them. The moment you start talking about DNS seizures and ICANN, you alienate 99% of the population.

If you explain you can create an anonymous wallet in 20 seconds & recieve money into it, that's a much easier concept to sell.

michaelmclees

hero member

Activity: 633

Merit: 500

The problem with namecoins, in my opinion is that people just don't understand them. Are they meant as a currency? Are they meant as a reserve or token of web addresses? Whenever someone explains it, they go into DNS servers and stuff like that. Regular folks understand coins, transaction fees, confirmations, etc... Only webgeeks understand DNS; I know I don't.

bitebitebite

member

Activity: 95

Merit: 10

Hi guys,

Iv been watching this exchange https://exchange.bitparking.com/main for some days and prices have more or less only been going down. Bought around 70 a few days ago at 0.06~, and own an additional 100 through solo mining (before the difficulty rise). Was thinking about trading in for bitcoins and sell via mt Gox if namecoins are a dead market in the short term (as it dosnt look like I can transfer any money into mt Gox in time for the reopening). Whats your opinions on pricing - will they go back up, or is it a slippery slope and time to cash out and play with bitcoins?

Are there any other namecoin exchanges, or GBP bitcoin exchanges with faster payment options

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