NXT's distribution seems to have turned out pretty well, so that's part of the reason it's still one of the top currencies.
I think distribution is pretty overrated in general, as long as it's not an extreme case there are many more important factors.
Satoshi didn't premine BTC, but he did set up a mining farm and mined the majority of BTC during the first while. Around a million BTC according to expert research.
I think distribution is pretty overrated in general, as long as it's not an extreme case there are many more important factors.
Satoshi didn't premine BTC, but he did set up a mining farm and mined the majority of BTC during the first while. Around a million BTC according to expert research.
NXT's distribution is much better today than it was originally. The fact that it's price has been quite low for some time now probably helps as well. Here's an interesting infographic I found about the subject. It's pretty old so the numbers are probably even better today:
What about ripple?
Man, ripple is not even a real cryptocurrency. The company still holds a large premine. I don't think ripple can ever claim to be fairly distributed. What ripple did right was drawing in gullible people and some bigger investors with their shilling. I don't think ripple will ever go mainsteam.
What about NXT? Well, it was open to the public to buy in the beginning and possibly one could call it fair but it isn't a wide distribution. NXT was fair but not good (wide) distributed. It did go places however. But in both cases ripple and nxt some technical innovation justified their marketcap. DRK same story. In cases of great first mover innovation large cap can be aquired without good distro but these coins always need to fear the copycat that is better distributed. NEM cuts into the demand for NXT, several anon coins cut into the demand for DRK and Stellar cuts into the demand for XRP. So these coins all gave room for competition thanks to their bad distro in the beginning.
About bitcoin: Back when it was created and had highest blockrewards people were mining it on their Laptop CPUs. The community in the early years was very small so the distribution is sub optimal and this fact to this day affects market sentiment (satoshi wallet for example will always be a topic and will prevent many people from putting any real money into BTC). Of course it was beyond satoshis control but he could have given away a large amount of these coins too but he didn't.
Today more people know about crypto and i think many of the alts of today have a much better distro than bitcoin had when it was their age.
If you know the coin is very good distributed you can catch a falling knife where this means higher risk on less good distributed coins.
Man, ripple is not even a real cryptocurrency. The company still holds a large premine. I don't think ripple can ever claim to be fairly distributed. What ripple did right was drawing in gullible people and some bigger investors with their shilling. I don't think ripple will ever go mainsteam.
What about NXT? Well, it was open to the public to buy in the beginning and possibly one could call it fair but it isn't a wide distribution. NXT was fair but not good (wide) distributed. It did go places however. But in both cases ripple and nxt some technical innovation justified their marketcap. DRK same story. In cases of great first mover innovation large cap can be aquired without good distro but these coins always need to fear the copycat that is better distributed. NEM cuts into the demand for NXT, several anon coins cut into the demand for DRK and Stellar cuts into the demand for XRP. So these coins all gave room for competition thanks to their bad distro in the beginning.
About bitcoin: Back when it was created and had highest blockrewards people were mining it on their Laptop CPUs. The community in the early years was very small so the distribution is sub optimal and this fact to this day affects market sentiment (satoshi wallet for example will always be a topic and will prevent many people from putting any real money into BTC). Of course it was beyond satoshis control but he could have given away a large amount of these coins too but he didn't.
Today more people know about crypto and i think many of the alts of today have a much better distro than bitcoin had when it was their age.
If you know the coin is very good distributed you can catch a falling knife where this means higher risk on less good distributed coins.
Agreed. Well said. Distribution does affect the chances of a coin surviving but a highly innovative coin should be able to overcome it except in the most serious cases.