Quote from: itod on August 04, 2013, 04:21:54 PM

Quote from: woodrake on August 04, 2013, 10:17:39 AM

Quote from: itod on August 04, 2013, 09:43:26 AM

Quote from: LlamaMaster on August 04, 2013, 02:30:42 AM

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?

It seams rather obvious that GPU miners will be able to produce XPM cheaper than VPS farms used today. People are closely monitoring the profitability ratio of altcoins/bitcoin, and if it is rather high (like 200% for some coins) they mine altcoins and trade them for BTC. As more GPUs get into the game, more VPSs will get out. Current price is guarded by the price of VPS hosting, when that wall breaks and cheap GPU generated XPM flood the market I suppose price has to go down.

This is a persistent misconception; all cryptocoins are generated at a static rate. The mining capacity/hashrate thrown at it has no real impact on the price of the coin, because mining hashrate has no net impact on generation rate - that is why difficulty goes up as you apply more computational power (total network hashrate).

The only thing affecting XPM price now is speculation. The only thing which will ensure longevity of its value is market support (ie. a XPM economy).

Kate.

Kate, you've completely missed my point, and said couple of false claims. I won't argue about the things you are wrong, but I'll underline my point once more: If you got hold of something at high price you can't afford to sell it low and keep your head above the water. If you paid (relatively) high price for VPS hosting, you have to sell XPS high to cover your costs and earn something. But, if you've generated your coins on the cheap with your GPU, you can sell them much cheaper and be happy. So, I'll be very surprised if price of XPM want go down fast immediately after the GPU miner is released to the masses and VPS farms are shut down.

But if GPU mining is relatively cheap, more GPU owners will jump on it, making the difficulty higher, giving less reward, removing the relative cheapness from GPU mining.