I'm having a hard time figuring out which direction price is going to shoot when this GPU miner is released. Will the price tank because there will be an abundance of new coins on the market (which somebody will surely dump for a shitty low price), or will price increase with the new interest in the coin that this release will generate?
It seams rather obvious that GPU miners will be able to produce XPM cheaper than VPS farms used today. People are closely monitoring the profitability ratio of altcoins/bitcoin, and if it is rather high (like 200% for some coins) they mine altcoins and trade them for BTC. As more GPUs get into the game, more VPSs will get out. Current price is guarded by the price of VPS hosting, when that wall breaks and cheap GPU generated XPM flood the market I suppose price has to go down.
This is a persistent misconception; all cryptocoins are generated at
a static rate. The mining capacity/hashrate thrown at it has no real impact on the price of the coin, because mining hashrate has no net impact on generation rate - that is why difficulty goes up as you apply more computational power (total network hashrate).
The only thing affecting XPM price now is speculation. The only thing which will ensure longevity of its value is market support (ie. a XPM economy).
Kate.
Ah yes, the "All coins are created equal" speech. They're not. All you have to do is look at
http://cryptometer.org/primecoin_90_day_charts.html and you will see how wrong you are. Day 9, 893% of target blocks generated. Over 190,000 coins were minted day 9, or roughly 6.6% of the current supply. Personally, I think Sunny made a mistake in his difficulty adjustment. Humongeous bot nets were thrown at this coin and it took over 10 days before the difficulty caught up enough to get the target block rate under 120%. 24 days * 1440 blocks per day = 34,560. We're up over 97,000! If the GPU is anywhere near as powerful as people think, we'll be over 200,000 blocks for sure and likely over 300,000 before difficulty catches up.
