I'm having a hard time figuring out which direction price is going to shoot when this GPU miner is released. Will the price tank because there will be an abundance of new coins on the market (which somebody will surely dump for a shitty low price), or will price increase with the new interest in the coin that this release will generate?
This is probably a crystal ball question, but I'm sure somebody in here has some insight. Either way, it would most likely be completely useless for me to donate if I only have one 7950, right?
People are speculating that the price won't tank in the same way as expected since the difficulty is recalculated with every block. It also changes the reward with difficulty since the reward is 999/(difficulty)^2 or something like that. That would mean if the difficulty was 15 the reward would be something like 4.4/block instead of the 11.6 or so we are getting right now. At the same time there will be people that will dump for low prices on the exchanges just to get cash quickly which will really drive the prices down. But the way I see this right now a gpu miner would help the difficulty rise fairly quickly which would drop the block rewards and make each individual coin gain more value over time with a lower inflation rate. With that said, the inflation rate will probably temporarily rise when the gpu miner is released since the difficulty isn't able to catch up instantly, meaning there will be some excessively high inflation for a short period of time. It's honestly anybody's guess where it will go since it's a new market without a lot of support yet.