Quote from: clout on April 21, 2014, 07:09:08 PM

Quote from: prophetx on April 21, 2014, 02:42:45 PM

Quote from: clout on April 21, 2014, 09:29:46 AM

Quote from: prophetx on April 21, 2014, 09:22:43 AM

Quote from: clout on April 21, 2014, 09:10:05 AM

can you guys at maidsafe explain how safecoin can appreciate in value if it is constantly being diluted through the por mining process?

it's basically the same as with bitcoin. bitcoin is being constantly diluted however the more people use the network, the more valuable it gets

its not like bitcoin. its a not a scarce resource. the more ppl connect to the network the more safecoin there are. you don't have to go on an exchange to buy safecoin. as long as the resources you offer the network are more than the resources you take from the network your use of the network is free.

there is a limited number of safecoins. that means it is scarce.

Quote

It is proposed that safecoin will have a predictable cap (232) with a value that is determined solely by the market. Safecoin will be a virtual currency with SAFE being used to complete transactions.

There is no hard set cap on safecoin as there is with bitcoin. I don't approve of bitcoins inflationary model so I find it hard to approve of safecoins hyper inflationary model, determined by moores law. The number of safecoins is correlated with moores law and the value of safecoins is thereby correlated with the cost of resources which will continue to decline.

You have to understand this from a pragmatic perspective. Why would I ever pay for this service when I can simply offer the network more resources than I can use. Safecoins are not the same as investing in a companies equity, because companies do not continually dilute the shares in the company. Safecoins are more a way to account for and economize resource on the network. You can only loose money by holding on to safecoin. The price of safecoin will never be determined by the market per se because no one ever has to purchase safecoin as long as they provide more resources than they consume.

I agree with that the "predictable cap" is not a good sign, I'd like a hard cap more.

Quote from: clout on April 21, 2014, 07:09:08 PM

because no one ever has to purchase safecoin as long as they provide more resources than they consume

Is not this same thing as "noone will ever purchase bitcoins, as long as they mine more bitcoins than they consume" ?

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