Post
Topic
Board Mining (Altcoins)
Re: Does Coin Value being halved increase Value?
by
kalus
on 17/01/2014, 21:57:33 UTC
this is a good question.

i say no, becuase most people who do buy doge do not mine doge.  when block rewards halve it first affects miners the most, but the supply of dogecoin currently outstrips demand when you look at cryptsy order books.  i don't think surplus will change for weeks or months, if at all, after the block halving.

however, i do think when the block rewards halve a few whales will take this as an opportunity to pump-and-dump dogecoin.  I would be cautious of thinking there is a get-rich opportunity, because there are a shitton of sellers, fewer buyers, and still 70% unmined dogecoins out there.

to see the forest for the trees, in 18 months we'll have mined the last dogecoin.  i believe that will signal a genuine increase in value.  for now, i would advise mining heavily - everyone else seems to be doing this as the difficulty rose from 3xx to 5xx in a week.  I believe halving the block rewards is more of a miner signal than a signal to invest.

disclaimer i am a miner and am rich in shibe.  I also think the coin is silly, but so far it has somehow managed to work well with mining pools and switching pools that other coins cower in fear from.  the value continues to go up with supply, so i could be completely wrong.  since i hold dogecoin, i would be happy to be proven wrong.