Post
Topic
Board Announcements (Altcoins)
Re: [ANN][DOGE] Dogecoin - very currency many coin - v1.5.2 Released, please update!
by
AlexGR
on 11/03/2014, 15:44:36 UTC
Doge is only 3 months old...
The best time for him didnt come yet.
Community is still growing, price must go up finally.

It's simple maths really... 360 million DOGEs are issued daily. At 110 satoshi, 400 BTCs are needed every day to buy the mining supply, just to keep the price stable. At some point, the inflation numbers eat up the BTCs, the BTC investors dry up and the game is over => the only way is down.

When you know that in a year from now, there'll be almost double the DOGEs, and bitcoins will be more-or-less tha same in numbers, it's a no brainer why the Doge/BTC price ratio will go down and down and down.

Thats true, but what about people that invest in coins which will not double their amount in a year, but x100-ple their amount in 3 weeks? And yet these coins are still worth a lot of BTCs.
Please tell me another < 3 months old coin that you rather invest in.


That is only possible due to the very small market cap - where you can throw a few hundred BTCs and buy the entire coin in circulation so to speak. But as the number of coins increase, the rule takes effect and the prices are dilluted.

Take for example Maxcoin vs Darkcoin - issued in the last 3 months and close in coinmarketcap positions.

Maxcoin issues ~276.000 coins per day. At 0.00027 BTC, it takes 75 BTC to absorb all further supply without the price dropping. Even if one applies a 50% hold formula, where the miners hold 50% of the coins and only 50% are dumped, 37.5 BTC are needed daily to keep the price steady.

Darkcoin issues ~12.000 per day. At 0.0013 BTC it takes 15.6 BTC to absorb all further supply without the price dropping. With a 50% hold / 50% dump formula, that is reduced to ~7.8 BTC.

Once the initial spike of interest passed, where the price could be pumped with a very small number of coins in circulation, Maxcoin tanked - despite its publicity. Why? Because it needed too many BTCs to hold it steady.

Cases like Aurora with millions of coins out of the market are "weird" exceptions because there is artificial shortage (for now) - which will make the price drop once this is "resolved".