Re: [ANN] FACTOM - Introducing Honesty to Record-Keeping

Current amount of FCT (8.7 million) x value of FCT (1.9USD) / EC price (0.001USD) = 16.500.000.000. So this is the amount of entries that can theoretically be made with the current price of FCT, while Factom is now at 5.7 million entries. Seems like a big difference, but we all know once Factom starts to acquire big companies with big data sets to store on Factom's blockchain, it can go pretty fast. 16.5 billion is then suddenly not so much anymore. Especially if you keep in mind that a large part of the FCT will never be available for convertion into EC's, as they are used for trading/speculation and long term holdings. So in reality there are way less FCT available to really burn into EC's than the number of 8.7 million. This will drive the price.

Plus to me the inflation is not something that crazy, many fear that 73k FCT per month is crazy, but that basically means (if the company survives without burning any FCT) that it will double its supply in 10 years. So 16-20m FCT is not a huge supply either and that's the worst case scenario. That would never happen because the company will actually go out of business.

In any case and we any real usage, inflation will be very low or even deflationary. So if Factom gets any kind of traction that means the current price is a steal like many of us have said in the past.

Please note that while 5x price is quite the mark up, we expect this to be a very, very low volume service. Someone who needs a few hundred EC to build a proof of concept will save way more than $2 to not have to mess with exchanges and wallets and go straight to application building. And once they have real needs (100k's of entries) they can contact us (or some other FCT holder) and buy them at a much more reasonable volume based price.
I don't understand how FCT could be available to be burn into EC's before M3 as FCT's are always hold by someone in Poloniex or wallets. Actually and until M3, where burned FCT come from?

That is actually a good question. Maybe someone from Factom can answer this here?

Anyone holding FCT can convert that FCT to Entry Credits in a Factoid Transaction (our wallet handles building such a transaction). So I am not quite sure what the confusion is. You can buy FCT from Poloniex, then convert that FCT to Entry Credits. Or you can buy Entry Credits directly from Factom.

https://shop.factom.com/

(A note about shop.factom.com: The idea isn't really to be a source of Entry Credits, given a price of .5 cents for something you can convert yourself for .1 cents. The idea is really to provide a low friction path to Entry Credits which avoids wallets and Factoids and Exchanges.)

We expect there will be other sources for Entry Credits over time.

Paul

So is this your way of saying Factoids are useless and a way to take advantage of people in a unregulated environment as they are dumped upon us for sustained income by who knows?

If we can buy EC from the website as seen at shop.factom.com , what makes Factoids valuable or what will make them valuable? I just feel we are being misguided and tricked to be an income source for your startup.

We do the conversion of FCT -> EC for you. We have no special place in the network, and we have to have FCT to provide the service. The key value here is to allow users to access the protocol without having to wade through the wallet and cryptocurrency issues.

So I don't think it is accurate to claim FCT is useless. It is required to provide the service.

Exactly. So whether you convert FCT yourself into EC's or you buy them directly from the shop, in both situations FCT are burned. But in case you do it via the shop, you pay 5 times as much. So FCT are not useless at all. Without them there is no way to get EC's. Buying via the shop means you don't need to buy FCT yourself first, but you use FCT owned by Factom. So PapOu, back in your cage again...