Quote from: Skydog on September 07, 2014, 02:19:54 PM

Quote from: pineapples on September 07, 2014, 01:57:40 PM

Quote from: Skydog on September 07, 2014, 01:22:31 PM

Am I the only one here wondering about the economics of this entire thing?

We have an maximum amount of 106,000,000 coins with currently 21873600 coins being mined. With a pegg of 1:1 and an assumed price of $10 a pegg the current coin supply would be worth $2187360000 worth of coins or in other words twohundredsevetysixmillion dollar or in other words more than all other altcoins together. However, the current price of the coinis $0.015 or 1/10000 of the given pegg. Now when people are coming to your business and starting exchanging CANN for candy are you going to sell them the price at a lose? Do you believe the price will rise this extreme until you start exchanging the CANN for candy? How are you planning this to happen with so many people holding and trading with the coin? How are you dealing with vortality?

this is a "classic" question.
basic answer is, if you accept them as payment, you dont' sell them at a loss. you hold.
this will reduce supply of available coins, increasing price. etc. the market will adapt, and then shop holders can sell them for a useful price.

volatility will still be an issue though. liquidity is the term that describes a currencies ability to maintain a constant price while being traded regularly.

how it all pans out is yet to be revealed

But most people who have the coin have them aquired through trading and will use them to trade. Currently I am holding meger 10k which isn't even that much but would mean I am entitled to 10kg of candy - with that in mind how could they ever realistically exchange the coins on a 1:1 basis when most of the people got the coin for 1/10000 of the price. If they wanted to use that coin on 1:1 place why did they even sell it on the market place and didn't premine it all and then gave out on this basis? Sorry but the economics behind the coin don't look really thought through.

Yes your entitled to 10kg of canndy, but you can only get 3 grams a day. It would take you 30 years or so to get that many, and thats if you go everyday. Most people holding the coins live hundreds of miles away and will most likely be selling them. You dont have to sell your coins on the exchanges. You can sell them to people that live close to the stores on craigslist or ebay. As for the shops they wont sell back untill the price of the coin is atleast 10 dollars or more a coin. A gram of bud is 20 so i see this coin going to around 15 dollars atleast. The people that bought at the low price will be selling around 4 to 5 a coin probably at first. But why would you sell something less than its worth?