Post
Topic
Board Announcements (Altcoins)
Re: [ANN][SYNC]X11 | POS| 1,000 Coins| Mandatory Update - HARD FORK AT 2.6.2014
by
wasamata
on 05/06/2014, 23:13:10 UTC
A little arguement against massive interest: If thinking of it like a blue chip investment it's worthwhile knowing "interest" paid out should/does not increase the money supply in blue chip stocks. Dividends in the stock market come from earnings and are paid out in fiat to holders (who then choose to keep the fiat or use it to buy more shares (a bit like the multipool system)) as opposed to creating more scrip or 'diluting' the currency holders. The size of the interest is the dividend yield which is predicated upon the earnings made. When sharemarket CEO's want to raise funds, that's when they simply create "new shares" and issue them to investors for a price. That however, always dliutes other holders, unless they were the buyers.
Usually because the offered "new" shares are at a discount to the market rate. The flipside is, the money gained from investors is used to increase the earnings potential (If the CEO is worth his salt) and therefore yield of the stock (I.E buy a new gold mine, purchasing a drilling rig, conduct aerial surveys, or in sync case something like investing in an exchange, creating an exchange, paying anon dev work). The size of the dividend yield can also be influenced by the price i.e 1$ per share dividend payouts can be quite attactive to a share that recently got sold down to 2$ as it would be yielding 50% yet if that share goes back to $10 and still pays out 1$ per share in divdends (usually quarterly) it's yield would be 10% (which mind you, is still very high in terms of the stockmarket.)