Did you know that the emission rate of Grin is no different from the emission rate of Bitcoin during its first 4 years? So the whole argument that Grin can’t rise in value due to its initial high inflation is flawed.
It was estimated that $100 million in mostly VC funding went into SPVs to support the Grin network( since there was no premine investors couldn’t get an early slice, so the most cost-effective way to acquire a position was to rent/ build out mining infrastructure- rather than pushing the price up and buying on market). Many laughed off this $100million figure, however, if you look at the current Grin network (2.4m GPS), it equates to over $100 million worth of hardware currently supporting the Network. Why has the price of Grin not falling further? Beacuse most the network is supported by longer term investors(VCs) not typical miners looking for a quick profit…
Each second has 1 Grin created, so there will be 60x60x24 = 86400 Grin created every day. A Grin has a price of 5$, so the miners will be profitable 86400x5 = 432,000$ per day. Therefore, in 231 days, miners will benefit from receiving 100 million dollars (equal to the initial capital spent to invest in the excavator). I see, there is no reason for Grin to raise prices in the first 10 years. During this 10 years time, miners will gain huge profits even if Grin does not raise prices (as above calculated). Thus, investors will not have any benefits, investors should only buy Grin after 20 years!
Vào Th 4, 20 thg 2, 2019 vào lúc 09:17 Mopsus via Grin grin@discoursemail.com đã viết:
Each second has 0.02 Bitcoin created, so there will be 0.02x60x60x24 = 180 Bitcoin created every day. A Bitcoin has a price of $3,900 so the miners will be profitable 180x3900 = $700,000 per day. Therefore, in 231 days, miners will benefit from receiving 160 million dollars. I see, there is no reason for Bitcoin to raise prices in the next 10 years. During this 10 years time, miners will gain huge profits even if Bitcoin does not raise prices (as above calculated). Thus, investors will not have any benefits, investors should only buy Bitcoin in 20 years!
Your argument is so riddled with holes it’s hard to know where to begin. Revenue is not the same as profit so “the miners” will not be profitable to the tune of $432,000 per day unfortunately, since there is electricity required in large quantities to power the mining gear. Then, if you think that VCs give someone $100 million dollars to buy expensive toys to play with for 231 days as long as they get their initial advance back at the end, then you have never dealt with VCs…it will be $100 million and THEN SOME to be repaid… which follows on nicely to the next hole which is that by the time the VCs are paid with juicy returns, the gear will probably be obsolete - an unfortunate consequence of living in a universe governed by entropy a.k.a depreciation - at which point, said miner may be back to square one with nothing much to show for all that mining. You’ve also made the assumption that Grin will be priced at $5 indefinitely … it may be…or it may be more or it may be less. I happen to think Grin has a bright future and will be valuable in 20 years (as a result of its utility) but you may need to rethink your understanding of how it might get there.
Nothing will ever solve #2. The general public will never be able to tell one currency apart from another. What we can do is to create a currency for tech savvy people to use to solve their problems of lack of financial privacy and control. That will as a cause move the currency from a speculative one towards an adopted one, and then the people who know nothing about it can feel safe and also use it, because they can see that it is being used widely and that they won’t have to worry about ending up with a bag of shit they can’t sell. The reason people store their wealth in gold is not because they find it valuable to themselves, but because they are certain (although not necessarily correct) that they will always find someone that will buy it from them for at least a significant share of the price it is worth today.
The adoption of Grin will thus have to start with the enthusiasts and the people who have actual use for it. I can see Grin being the primary coin to use for several things, including illegal trade and hiding your tracks on a less private chain (such as Bitcoin) by swapping back and forth with Grin. Why Grin and not [insert your favorite privacy coin]? Because Mimblewimble—and Grin in particular—greatly increases decentralization. Without decentralization, a crypto-currency means nothing.
You mean that , We should not invest in Grin Coin? Perhaps you are right because of Grin’s high inflation rate, it will be almost stable, the number of newcomers to buy Grin will balance with the speed of inflation and so will make the price stable. Grin Coin is not a currency for investors to make a profit, if anyone wants to make a profit (within the next 10 years for example), they should buy and keep other rare currencies, not Grin coins, only Should keep Grin Coin after about 20 years when inflation rate drops.
Look at ETH, it’s printing unlimited but now around $250… and many more other tokens, the initial supply already starting with billion of billion.
All we need now is marketing part.
The need to do now is to increase the number of miners so that the costs of miner for each Grin increases, and it will not be sold as cheap as now, I heard that the costs of miner each Grin is only 0.5 $ now. So it must be popular to have a lot of miners in the world, as much as possible to increase the miner costs and it will not be sold as much as it is now.
@PhamKy You do not need to spam this message in every thread… Be polite.
And your point seems not logic. The cost of Grin is cheap will motivate other GPU miners come to GRIN more, and the hashrate will be bigger & secure the network better.
Miners( hashrate) follows price, Grin won’t attract more GPU miners without the price going up. What you heard also sounds like hogwash, you can’t really calculate a fixed cost to mine each Grin( cost is variable for all participants). At Grin’s current price ( circa $3 USD) ROI for a popular GPU( 2070) at standard electricity rates( $0.10/kw) is anywhere from 2.5-3 years. So It’s not even worth mining. For the average person, the cost to mine is greater than the cost to buy on market.
I understand now, Grin is awesome! Grin’s inflation law makes equality between the after miners and the first miners.The purpose of Grin is to encourage people to use Grin for trade. Since then Grin will be widely used, according to calculations, the number of users will increase much faster than the inflation rate, and Grin is still scarce, Grin will strongly increase price in over time, and this has shown. After 50 years, as calculated, the percentage of inflation will be equal to the percentage of Grin lost, the equilibrium is set! Great!
Max supply of Grin is about 1.6 billion after about 50 years, why is max supply 1.6 billion/50 years? It is here: Always and forever, 1 Grin is created in 1 second. So 365 x 24 x 60 x 60=31 536 000 Grin/1 year. According to calculations, 2% Grin is lost/1 year (due to forgotten password, device failure, death, …). Suppose that at some time, the amount of Grin is N and the number of Grin is created in 1 year equal to the number of Grin lost, we have the equation, 0.02N=31 536 000. Thus, N=1 576 800 000=1.6 billion. If We take N/(the number of Grin which is created in 1 year)= (157680000)/(31536000)=50 years. Thus, the equilibrium is set after 50 years, and max supply of Grin is about 1.6 billion after about 50 years. Wow that’s great! The Grin creators are excellent people, a great monetary policy, it is the best today compared to all the Cryptocurrency industries!
. Thats Okay.
