Quote from: Less338 on March 19, 2017, 09:55:52 AM

Quote from: olarsson on March 19, 2017, 09:29:34 AM

Why do factoids have a value and what is a plausible value for a factoid?

In various circumstances I constantly see people calling the crypro currecy with the abreviation FCT for "Factom" when the correct name for the currency associated to the Factom project is Factoid.

Why do the cryptocurrency factoid have a value? It is possible to buy storeage space on the factom blockchan with it but I can also use dollars to do the same thing. The supply is not limited and the inflation in the future will be 73000 new factoids a month which is about 1% a month.

We all know that factom project is backed by Microsoft etc. But if I like to buy on factom blockchain storage I dont even need factoids. Factom project could very well be very suceessfull in the future, but that doesnt imply that the crypto currency factoid will have much higher value than it has right now.

What is your argument for that a factoid should have a much higher value in dollars than it has now. What is a fair value for a factoid according to you?

Factoids can be converted to entry credits. If you buy entry credits directly from the store with dollars, Factom will do the conversion for you. Either way, if you store data on the Factom blockchain, Factoids will be burned.

An entry credit costs 0.1 cent and for the same value a Factoid will be burned. Would one Factoid be $ 1.00, 1000 entry credits would burn one whole Factoid.

So there will be inflation, but Factoids will also be burned. You could base the future value of one Factoid by your estimated usage. Let's say one billion entry credits would be used in one month:

1 billion x 0.1 cent = $ 1 million = value of Factoids being burned
To neither have inflation or deflation, the value of one Factoid should be
$ 1 million / 73,000 = $ 13,70

So the question is more what usage of entry credits you would be expecting, and calculate your own fair value of one Factiod

This needs some pump