Quote from: Dorkie on February 05, 2018, 04:20:48 AM

Quote from: azmojo on January 30, 2018, 09:47:35 PM

A page or so ago I reviewed the VeADIR. The price to buy VEADIR exposure is currently set at 1%. That is, .01 VERI for 1 ETH of exposure. I thought I heard Reggie say it was changing to 5%, so .05 VERI to buy 1 ETH of VEADIR exposure.

At $400 VERI and $1050 ETH, the new price would amount to about a 2% fee, or 0.4% if left at 1%. I would expect them to adjust the price to keep the fee at 1-2% as prices change.

Assuming...

Bitcoin market cap is USD 137.6 bil
Ethereum market cap is USD 81.4 bil
NEO market cap is USD 6.8 bil

Totaling 225.8 bil in market cap (for platform-based cryptocurrencies)...

Then the cost of using VERI at 5% would mean its market cap is 225.8 * 0.05 = USD 11.29 bil

At 100 mil total supply, each VERI would be at USD 112.9
At 50 mil total supply, each VERI would be at USD 225.8
At 10 mil total supply, each VERI would be at USD 1129
At 5 mil total supply, each VERI would be at USD 2258
At current 2,036,645 circulating supply (assuming the total supply is equally the same), each VERI would be at USD 5543

... at time of writing.

If Veritaseum will provide more business units in addition to exposure to the cryptocurrency world, then that may add further value to the price tag.

As the VERI token can be rented out AND recycled to be resold...
1. Veritaseum's bottom line remain unaffected regardless of the total amount of supply, be it 100 mil or 2 mil.
2. It would be more financially rewarding for token holders if the total supply can be reduced.

Assuming the total supply is reduced way too much, that will simply translates to much lower cost in using VERI (below 5%).
If Veritaseum's platform is significantly value-added, then we may see the market bid up the price of VERI to be back at 5%.
Either way, reducing the total supply of VERI does NOT impair Veritaseum's bottom line (because token can be rented out and recycled to be resold over and over again) while at the same time will be more rewarding to token holders.

Update:
Reggie talks about being a capitalist and thus does not burn his own token/product. But if the total supply does not affect his profit potential, then it has nothing to do with being a capitalist, which is irrelevant as a point of argument.
While burning unsold token may "artificially" increase the price, Reggie cannot ignore the fact that the price will remain purely driven by the value the platform brings to the users, irregardless of whether there will be any artificial increase or decrease of price as a result of burning unsold token.
Obviously, Reggie is not very savvy in this line of reasoning but I hope he will come to his senses to the benefit of the token holders.
While Microsoft has unlimited software licenses, none of those licenses sold can be recycled to be resold again like VERI, so I don't think this is an equal comparison.

I don't understand why the VEADIR access fee percentage has a relationship to crypto market caps? The fees charged by hedge funds have nothing to do with the price of anything. Hedge funds charge 2% and 20% of profits. VERI's fee is just a rate the Reggie thinks is reasonable for the service VERI's platform provides. This rate should have nothing to do with the price.

Quote

Update #2:
My point of argument is simple.
As the features of VERI allow it to be rented out and recycled to be resold over and over again, it makes the argument for excess supply of token to facilitate market demand to become redundant.

Assuming I understand what you are saying, does it make sense for VERI tokens to become increasingly rare as the platform is used, as your scenario suggests? I think not.