Post
Topic
Board Announcements (Altcoins)
Re: NEM Official Thread - Redemption extended[Updates&Discussion]
by
jabo38
on 04/01/2015, 18:19:19 UTC
This is an interesting bit of calculation I saw on reddit, and something that NEM unfortunately will never have to worry about because of PoI and no wasteful mining requirements:
http://www.reddit.com/r/Bitcoin/comments/2rajx5/a_minimum_of_1470_bitcoins_has_to_be_dumped_on/

Just yet another advantage we will have over the vast majority of cryptocurrencies out there as time goes on.

I had a very long debate with somebody at the conference about this.  I explained that it takes 1 million USD a day to support mining.  I had long ago figured out the numbers in the article, though mine were just rough guesstimates working backwards instead of forwards (same conclusion though).

In the long run, Bitcoin has a huge problem. The miners are being subsidized $1,000,000 a day from us, but they actually are only paid $4000 a day in transaction fees by people sending Bitcoins.  That means that $1,000,000 worth of new money must come into the system everyday, and the price just stays the same. 

But for us, if $1,000,000 comes in, then it is reflected proportionately in the price of NEM and the marketcap goes up $1,000,000.