Quote from: RyNinDaCleM on July 05, 2013, 04:18:55 AM

Quote from: Luckybit on July 05, 2013, 04:02:29 AM

Not quite. PPC is deflationary because although there is no cap on the supply, the supply is controlled by Moore's law which basically caps the supply by lowing the inflation rate so low that it's even lower than Litecoin. Essentially the inflation rate determines scarcity not just the total supply. The total supply is at 19 million which is equal to Litecoin but the price isn't equal to Litecoin yet. That means there is a lot of room for profit if you buy at these prices and it reaches $3.

Because PPC will be mined with ASICs, GPU miners will have to switch to Litecoin. Basically PPC's market cap and difficulty determine the price. Difficulty determines the scarcity while the market cap shows the demand. If it's scarce and in high demand the price rises.

What happens when ASIC miners drive difficulty up so high and quit, making the next retarget never come? Remember Namecoin before it was merge mined?
Why would difficulty be any factor for price? Scarcity is apparently a non-issue currently so that is irrelevant.

Why would they quit?

They'll mine with Bitcoin and when Bitcoin isn't profitable anymore because of the vastly steep difficulty rise then they'll switch their ASICS to PPC and when PPC isn't profitable anymore they'll go to the next SHA256 coin. The point is they have no choice but to go from Bitcoin to PPC and all those USB BlockErupters have to mine something and it sure as hell won't be Bitcoin. What about the little singles coming out which will probably already be obsolete for Bitcoin by the time people receive them? More hash for PPC.

The ASICs from BFL will end up hashing PPC if people are smart. If people aren't so smart they'll mine BTC at a loss. I say buy PPC now and bet on them mining PPC. When there is a critical mass of miners behind PPC the market cap will go up just as it has with LTC because it seems mining is the key to developing an economy. Once stuff is mined then people start looking for places to spend their mined coins and then people realize their 1000 coins worth @$0.20 could be worth $3000 @$3 if they just built a few sites.