Multipools + AutoSell
Its more profitable to mine alts and then convert to BTC, several multipools are out there now attracting people with claims of "Always be mining the most profitable coin" but just look at coinchoose, refresh it every 5 minutes and you see the top coin changes all the time because the pools mess with difficulty in a big way.
regular miners end up getting screwed over by massively high difficulties after only a few minutes of the huge hash rate multipool being on the coin.
eventually miners realise its not profitable to mine the coin most of the time and move to another, which just leaves the daily dumping of the coin for the multipools.
which leads to the eventual demise of coins being mined by the pool.
This isnt the only factor, but im fairly sure its a big one!
I have posted about the likely root causes.
First of all, multipools are erasing the identities of altcoins -- especially when they are being auto-traded for BTC. These auto-trades are driving down the market price because logic isn't taken into consideration -- they're just being dumped at what should be below market value. However, once these dumps occur, the resulting sale price becomes the new market value. Smart buyers are laying out lower offers knowing that the big dumps will drive the price down into their net...and sellers are competing with auto-sellers that don't care about the value or identity of the coins being sold.
Another issue is the flood of garbage coins that are getting listed on the major exchanges. Each week, more and more of these copy/paste coins are rolling out that are designed to be nothing more than a pump-and-dump scheme. For example: ASC, SAV, TGC, VLC, and ELP -- these were all released by the same deceitful dev under different names. Then, the same group of usernames proceed to campaign aggressively to get the currencies added to Cryptsy (using grammar that is so bad it's borderline-criminal, really.) People mine these coins (or buy them once they hit the exchanges) thinking it's a good investment...but as soon as the clowns at the top dump everything they walk away and everyone else that invested in the coins is left holding the bag. Even though there are only a few bad seeds in the mix, it's enough to erode trust across the entire market. The altcoin world is the wild west and con artists continue to execute the same scam over and over because there is no regulation or authority to verify anything. I mentioned it earlier today in the Cryptsy thread, but if they keep listing these coins and allowing these bums to profit off this crap the altcoin industry is doomed.
There are simply far too many coins out there that provide nothing new, have no services, and yet people are willing to invest in them only to get burned. People are pulling out of altcoins as fast as they were flooding in last month and it is eroding demand across the board.
From a different thread... Bold added for emphasis. The first section explains why we aren't on Coinchoose at the moment, the second why we aren't in a rush to get on Crypsty, at the moment.
The devs will get together and discuss the future direction of the coin.
Generally we care about our miners, and we don't want them ripped off by flash miners.
We care about our coin as well ..
Some idiot said "top devs are on their third or fourth coin" in one thread... Well we have three devs, two who worked almost every spare second for three months straight, with technical and other support from at least half a dozen others all on one coin, the other is concerned with developing and recruiting commericail sites, and started several days before we hit an exchange... I don't think "top devs" can produce one successful crypto currency in a couple of months much less three... Too many newbies running around thinking you get rich quick.. No-one except scammers have ever gotten rich quick. You don't get rich quick by selling a days worth of mining say 20,000 coins for 15$ worth of bitcoin... you get rich by mining said coins 24/7 for month after month, and then slowly selling them off when theres enough websites using them to make them worth a dollar each.
If just being a cryptocurrency was enough to mean real world value without actually being used as a currency, we'd just clone extreme coin, release it, and sit after our whole ten minutes of hard work and wait to rake the riches in.. we could call it "PlatinumBars" cause naming it after a precious metal adds real world value..
Right now the name of the game is to survive, we've already out survived a few coins, and theres more on the ropes while we are just about to hit our stride. Theres going to be dark days ahead for the alt-coins I think, and it's going to take alot of hard work to get there. Coins are going to need to be credible, we've got four websites but thats not enough. We already have plans to push for more as soon as we clear the hardfork.
But alot of that is my opinion, which is why we'll being discussing, debating and then rehashing opinions among the devs over the next several days, and deciding what direction to take.
As usual, anybody who has an opinion to post on the current altcoin climate is welcome to do so, we love getting different perspectives so we don't miss any angles