The Flippening: Are DNotes Ready?I've been reading the CoinDesk Q1 Report and the related article on
'The Flippening', the point where Bitcoin is superseded by another cryptocurrency.http://www.coindesk.com/flippening-will-ether-pass-bitcoin-will-mean/A number of qualities come together to indicate dominance, such as: Market capitalization, transactions(24H), trading volume(24H), mining reward(24H), nodes, and Google trends. At the moment,
Ethereum is beating Bitcoin in all categories but capitalization and trends. This combined with ambivalent attitudes towards Bitcoin's future functionality make
The Flippening not only feasible, but approaching fast. Of course the cryptocurrency to bump Bitcoin out of the top spot will gain a chunk of Bitcoin's market share, as people wake up to the fact that substance and technical agility are worth more than having been the first to market. But along with this shift
will come a spike in price that many will recognize as a bubble. So it is reasonable to assume that during The Flippening,
the price of BTC will drop dramatically, causing more of an exodus to other cryptocurrencies which are not spiking or in a bubble. But there will also be a huge sense of urgency because as BTC drops,
they'll want to get out fast and shift their value to other alt-coin. With this transition, worthy options will also be rising quickly in price. This will mean that a decision will have to be made really quickly to avoid transition loss.
For
DNotes to increase its market share during this period it
will need to have a dedicated portal aimed at people who really know the industry. This portal should have everything needed to make the decision and act, at their fingertips with no distractions. This would include real-time price, transaction fee, transaction time. As well as links to recommended exchanges and their stats.
Bitcoin has brought cryptocurrency into the spotlight of mainstream news, and I'm sure The Flippening will be a big story. Having a solid, comprehensive, and
well explained press release to offer information hungry outlets during this rush period will also be important.
So of course I'm wondering how prepared DNotes are for this event.
Good point here. I have invested a lot in DNotes at 0.25$/NOTE. I can't even sleep with the thought that it's already at 0.15$ level. Also, if I understand this correct, in a 5 year retirement program, will I get a bonus besides the monthly interest? And if I need the money let's stay 8 months from now, will I get any interest?
Hey Alfaalfa!
It's great to see you commenting here. We also share your pain regarding the activity at the exchanges, we are all in this together. However, we are very confident in the future value of Note. We have had a very consistent message for some time that we are doing the right things to make sure we get the result we need. I will elaborate on a few things that I hope will alleviate some of your concerns.
Firstly, we have to accept that crypto markets are volatile at the moment. One of the main things we identified early on was that stability of the currency was paramount - the market as a whole is immature, and it can not afford for people to come in and get hurt, which results in them not coming back!!! We take a different approach. We tend to speak with a more conservative time, trying to avoid empty speculative draws of interest until we have the goods ready to go. We will have those goods ready to go in the near future - it is not too much longer for DNotes 2.0. I will elaborate further.
* Bitcoin prices have been hammered in the last few days - there are a variety of reasons for this. Coinbase infrastructural immaturity is one. This is an issue that DNotes Global will build and improve upon in the coming years as part of our core strategic components. Another component to this may have been the Federal Reserve interest rate announcements this week, which will often bring traders back into forex markets, and they remove their crypto liquidity to do so. I could reasonably expect traders of this type to move back into crypto as they close their forex positions (this is what I personally would do, and HAVE done in the past). I can not accurately predict the price movements of Bitcoin, but I can discuss the rationale and game theory that particular groups of actors may act by.
*
DNotes 2.0 will have marked difference in the availability of coins to be sold at market. Currently we are using
Proof of Work, which as you may know means all the new coin distribution goes to the miners. Currently miners will put their ASIC or computers at the most profitable coin to mine at any time, and often they send their coins straight to the exchanges to be sold so they can pay for the expensive hardware they have purchased to mine. This is indicative of newly minted coins going into the hands of a group of actors that have zero interest in the long-term prospects of the coin. This is one reason we opted to move to
Proof of Stake. When the DNotes 2.0 platform rolls out soon, the Proof of Stake component will mean that newly minted currency units will be paid to current holders of DNotes (2-4% depending on if you stake and use the CRISP, or just one of them), which means that the people who actually care about the future of the coin are awarded the new supply in the form of the mining reward, which is kind of like 'interest' in an illustrative sense. This move will negate the current (anywhere up to) ~36000 DNotes being sent to the markets every day by miners for sale, and give it in interest to current stakeholders. That means a massive reduction in sell side exchange activity (or ~1 million units per month reduction). I also estimate that this ~36000 newly minted supply daily of DNotes will reduce to ~6000 after the change, a not-so-insignificant differential in potential new supply that can be sold = less inflation and fewer new units available for sale.
* The fact that Proof-of-Stake awards newly minted coins to holders of the currency, the people who care about the currencies long-term future (and are less likely to sell), become the ones to get the new reward. Not only that, but being paid an effective 'interest' / staking reward incentivizes people to acquire DNotes, which means a larger demand to purchase them.
In short, while there is nothing that can be done regarding the Bitcoin markets at our end, improving the way our economy rewards its participants has been at the forefront of our mind. In the coming couple of months we foresee a drying up of coins available for sale as coins shift from short-term owners (miners) to long term holders / investors, and the scale skewed towards holding more DNotes as holders will make profit just for holding DNotes themselves. This equates to more people buying, and much lower incentive to sell.
I hope this may give you some peace of mind. Crypto markets can be tough, but over the long-term - should you invest with the right people (which I believe you most definitely have), then I think it can work out very well for everybody involved.
*** Side note, the new CRISP program that will pay 2% annualized interest from the mining reward (on all balances held there for 30 days or more to encourage saving) will become the replacement for some of the current CRISP programs (including retirement).
Thanks Tim, and a little further on the new CRISP program, as we have been getting a few questions.
The new CRISP program will require nothing more than having your coins in your wallet for more than 30 days. That could be any wallet, including a DNotesVault wallet will pay interest. It may be possible to receive this reward on exchanges if they are able to participate in the program, the logistics of this may be challenging and it is a new to the industry style of reward.
Let's break down the 2% annualized target. It will be distributed monthly, so the interest will compound. It is a target interest based on a monthly static (but increasing) distribution. Which means if less people participate everyone who does participate will get more.
You do not have to do anything to receive this reward, no action is required on the user end, and the wallet doesn't need to be online.
If there are 120,000,000 DNotes total and the CRISP 30 day reward is 200,000. If everyone kept their coins in their wallet for more than 30 days, then everyone would get .1666... percent that month. But let's say that 20,000,000 of all DNotes were moved around within the last 30 days. That leaves 100,000,000 of the DNotes to split against the CRISP reward. Then you would get .2 percent that month.