got a question...
what will happen if for a long time, a PoS coin inside the wallet will not be used? i mean, the owner intends to keep the coin as long as possible... does this benefits the owner, the community and the coin?
personally, on my understanding on the laws of economics, in order for a currency to gain value, it must be actively used... now, on my example above, the coin was just hibernating inside the wallet. it was not used as intended...
please share your thoughts... thanks...
what will happen if for a long time, a PoS coin inside the wallet will not be used? i mean, the owner intends to keep the coin as long as possible... does this benefits the owner, the community and the coin?
personally, on my understanding on the laws of economics, in order for a currency to gain value, it must be actively used... now, on my example above, the coin was just hibernating inside the wallet. it was not used as intended...
please share your thoughts... thanks...
Creating money out of thin air will reduce the value of money...debasement. - fiat money like nowadays.
Creating coins out of thin air will have the same effect as the created coins has nothing backing it, i.e POS - no mining. POW has mining so created coins has something backing it - holds it's value.
I disagree with you on this one for sure because your analysis completely ignores the changes that occur with the supply and demand of the coin. Also there is no difference in what is "backing" the coin. In either scenario you have an amount of capital, whether physical or digital, that is being utilized to hash on the chain.
You have a right to disagree but i'm afraid you are totally wrong. Supply and demand is a market force phenomena to establish a price of a particular good and/or services. The creation of money supply has nothing to do with supply and demand. You need to understand classical economics, especially the work of Ludwig Mises. When a money supply is expanded, it creates inflation. Fiat money creates high inflation as it cost nearly nothing to produce. Money backed by gold has very low inflation because it cost money to get gold out of the ground. The difference between the cost and the selling price of gold is the expansion of money supply.
it's not just that. i sorely hold to any one economic idealogy. especially of those minds from the past. this is the 21st century, we have a more evolved society, and growing minds and cultures and behaviours have changed since those guys time. as much as some old fashioned idealogies may find some areas where they are still accurate today. i dont think that they can be and/or should be looked at as a universal way of seeing things for the rest of humanity's existence. situations change, behaviours change and what was once can no longer survive.
if only it was still so clear cut black and white. plus, as much as we may want to compare mining in the mines to virtual mining. it is my view simply that the value of a currency now, especially in crypto is determined by how many competing sellers there are and how low they are willing to go to extract a different currency for theirs(btc for nobl). basic supply and demand will not drive the value of the currency simply because investors will run out of investment capital and then what do you have to attract new investors??. as i can buy 2.5billion coins out of 3billion but the remaining 0.5billion still may contain undersellers who will push the price back down to the starting point because they didnt get to sell in the first place.. meaning i will continually have to buy to lift the price until i own all 3 billion coins. psychology plays a major role now as many people understand economics and capitalism to a greater extent than the average person did say 100 years ago.
but if noone sells in a market with 10billion coins and all u can find on the market are .01 fractions to buy at say $3000/coin, then that really does not help the standard supply and demand model. the value of each coin would effectively be $3000, but because noone is selling down the price the demand was allowed to grow. but that doesnt mean there wasnt a large supply. so at the end of the day.. u have to give people something that they are willing to hold on to. very very few people will just buy and allow their investment value to shrink to 1/10 their buy in value without dumping the stock to rebuy lower or invest elsewhere like i have with ltc and doge.
i invested in ltc hoping for it to rise.. but instead it lost 50% value. i dumped it, invested in a coin and received 3 times my ltc value in btc much quicker than waiting for investors to accumulate and build ltc price. it was just the smart thing to do. now if i see fit, i can reacquire my ltc at no loss. but im seeing nothing from them to provide me that interest. so vericoin will now get ltc's investment.
in crypto supply and demand plays a little differently. what is being sent to exchanges is the supply. and what is being held in personal wallets is not. thus simply holding will create scarcity and force buyers to pay higher prices to utilize the services. it requires patience on the part of all investors. individuals who want noblecoin itself will mine it because that is what they want.. but multipools and asics may not have the same view. if users do not want to hold the coin and will continue to sell at sub 20 satoshi even after this coin has shown that investors are willing to pay upward of 200 satoshi then it is an indication that the coin is losing the race to daytraders and others who really dont care about it as earlier investors are pretty much filled up with all they need/want and there is nothing successfully attracting new investors to set the floor at 200satoshi.
