Quote from: AdamWhite on January 28, 2015, 01:29:41 PM

Quote from: Mortimer452 on January 26, 2015, 08:25:38 PM

Phosphorous is completely correct in his calculations. It only makes sense that eventually, each MMXIV coin is going to be worth less. It would be foolish to think that by December when there are a billion MMXIV in circulation they will still be worth 0.02 BTC each. As much as I'd love for MMXIV to have a market cap of $5billion I believe that is highly unlikely.

All cryptocurrencies head down this path. As they are mined, more come into circulation, and most of the time, this devalues the currency. The more of it available, the less it's worth. The important metric to look at here is total market cap - and for MMXIV, this is growing steadily over the past 30 days.

The import distinction with MMXIV is your personal stake rate versus network inflation. While you are staking MMXIV you are earning 5.5% of your balance every day. At the same time, the network coin supply is inflating by only 4.0%. This is an awesome system and has never been done with a POS coin before.

What this means is that as the currency devalues due to inflation, you are still earning more MMXIV in stake than the currency is being devalued by. For example, if you were holding 200 MMXIV today and staked them for the next ~2 months, and I'll adjust the current price for inflation:

Jan 26
Current coin supply is 19,200
Your holdings are 200 MMXIV or 1.04% of the total supply
Current price is 0.02BTC per MMXIV
Your wallet of 200 MMXIV * 0.02BTC = 4 BTC

Mar 30
Current coin supply is 227,196.48
Your holdings are 5833.6 MMXIV or 2.57% of the total supply
Current inflation-adjusted price of MMXIV is now 0.0015 - assuming it dropped by 4% per day this entire period
Your wallet of 5833.6 MMXIV * 0.0015 BTC = 8.9 BTC

Simply by holding and staking these coins, your personal percent value of the market cap increased by 1.5x. Even after taking inflation into account, you're still earning 1.5% per day.

It's not clear why you believe your 1.04% of total supply will increase to 2.57% of total supply?... what assumptions are you making?

it is assuming total supply inflates at 4% only (due to transaction fees, inflation controls, coins in exchanges etc..)
while you hold and stake the 200 daily for 5.5%

so

coin supply from 19,200 to 227,196.48 (4% inflation)
holdings from 200 to 5833.6 (5.5% daily compound interest)
5833.6 / 227,196 = 2.57%