Quote from: slapper on March 28, 2016, 09:02:19 PM

Quote from: r0ach on March 28, 2016, 07:41:05 PM

Quote from: slapper on March 28, 2016, 03:25:45 PM

You don't have to know who is dumping, just look at charts for last 2 years. Welcome to dump city.

Marginal costs of botnet miners is nothing, or relatively nothing = dumping intensifies. It's a disseservice to the honest miners and coin ihhabitants to allow them a gateway into the coin. Whether this whole CPU friendly algo will pay off in the future in some manner, I have no idea, but it definitely did not in the past for overall coin health. I think I was mentioning this would happen the 2nd day the coin was released.

The price would be way higher than now with a GPU advantage algo. First reason, better network effect because history has shown GPU mining always wins in that regard.. Second reason, the marginal cost blackhole doesn't exist, which is kind of related to the first.

With the recent hardfork it was proven that not more than 10% (+-5% for more accuracy) of the hash rate is botnet. Botnet and GUI are just an excuse to manipulate the market according to individual positions. Everyone knows that there will be traders controlling the price of the market, but the very culture of holding and respecting prices is lacking. There are other things broken and burnt bridges that is going to take a lot longer than bringing a GUI.

If we use jargons like network effect, then we must also accept that a LOT goes with it and what constitutes building it. Simply throwing technology superiorities is never going to cut it.

Instead of whining about dumps or people "controlling the market" why not try to profit from it ? If we presume your theory is true, whoever is controlling the market acquired the XMR's (or BTC) used to control that marked from the market itself, fair and square. And guess what? You could do the exact same thing!

Speculators gather an asset when nobody wants it and what does that help with? It prevents the price from going too low! Without speculators, XMR might have completely died off. On the other end of the spectrum speculators will sell when the price is in bubble mode thus ensuring that the price will not go too high. Increase in speculators also results in more stability and smaller price swings as they all compete for profit and their profit margins goes down.

If you have a market with thousands of speculators the "big whales controlling the market" will lose their power as they will be eaten alive by all the small fish acting against them. For example a big dump may be eaten up by speculators who all "take delivery" of their coins. A whale is not beyond the laws of nature. There is no magic here. It's all supply and demand and if you buy all what the whale dumps, he will eventually be left with zero.

I also expect less large dumps over time as the price goes up due to the third party risk involved with leaving money on exchanges.