Post
Topic
Board Announcements (Altcoins)
Re: BYTEBALL: Totally new consensus algorithm + private untraceable payments
by
Marc De Mesel
on 23/08/2018, 14:35:04 UTC
CUT

Actions speak louder than words

edit: To be explicit. Undistributed bytes are being given away, but not to the speculator/investor who already bought bytes, they recieve nothing from the remaining pool but it does go elsewhere. Thus the supply is being inflated elsewhere or another way, the value of the unit of byte being diluted. Therefore for the speculator/investor who bought bytes their investment's value is diluted. For the steem user who got some free bytes they don't care the value was diluted, they didn't buy them. It was a windfall. For the speculator / investor who did buy them, now they see that there are more bytes flooding the market. Their own bytes that they bought when they were scarce are not so scarce anymore, the value goes down. It is very basic economics. The speculator/investor has been shafted. To rub salt in the wound, the rug was pulled away without warning. Previously the speculator / investor was standing in line to benefit from airdrops.   Surely you see how this is an explicit negative for the speculator /investor? It isn't a tweet, it is a very definate action against the speculator / investor, an act of hostility.


Sure investors don't get any coins anymore simply for holding, and undistributed funds go to others, but that does not mean that investors get diluted. It all depends on what value Byteball gets back for these undistributed coins they spend on these projects. If value they get back is higher than the coins spend, it will raise the value of all coins in circulation, so the investors profit, but if the value is lower than the coins spend, then all coins go down in value and indeed you can call it dilution.

But a poor investment is not really dilution as it is part of doing business that you will sometimes pay people or projects that end up not delivering. Dilution is when one on purpose creates more units and gives to people that did not create any value, thereby indeed for sure diluting coin/shareholders.