Post
Topic
Board Altcoin Discussion
Re: XMR vs DRK
by
smooth
on 25/03/2015, 05:01:42 UTC

See above.

Hint: that is only true if you denominate returns in DRK

The term Ponzi scheme refers to a very specific type of scam. One where current investors' gains are paid from funds contributed by new investors. Are you somehow involving inflation?

I'm using the term in a broader economic sense.

Note, however, that the literal defintion applies in some ways when you realize that the value of a coin where new coins are being created will not decline automatically by a given inflation rate. It will decline instantly to zero if no new capital is being added.

EDIT: somewhat does not apply to PoS coins where the new coins go to existing coin holders; those are closer to merely being inflationary.

so in what sense are *you* using the term when you accuse DRK of being a 'ponzi scheme'?  How do people become ponzies when buying DRK?  If you are trying to help DRK investors as you say maybe you could give some specifics?

To the extent that people are buying masternodes for yield they are relying on other people to continue buying to support the price of DRK. If they stop buying the price of DRK will fall and the yield will fall as well.

The original question was about the profitability of masternodes, and that depends on assumptions that are not consistent with a non-ponzi (using the term broadly) investment.

If you are buying DRK speculatively, that's a different matter. In that case it just has to go up for you to make money, and then you sell at the right time, sure. However, the fact that the masternodes are a big part of the system at this point means they can't be ignored in analyzing the entire picture.

That can be applied to any coin production.

No it can't because "any coin" does not rely on paying a high (or even positive) yield to masternodes to (supposedly) incentivize their proper operation.


All coin production produces a yield to incentivize producers that is the foundation of Crypto  Huh

Miners lose their return if they violate the rule that mining is intended to incentivize (to simplify, by mining on other than the longest chain). Masternodes do not lose their return if they spy on people, and probably not if they do some other malicious things too. Not the same.

Quote
if you have no idea what you are talking about

Or it could be that.