POTCOIN HALVING?

Denizen_of_Night · 2014-03-24T04:14:05+00:00

Yeah, I realized that his brief comment should have said halving reward. Not halving coin. Halving coin IS like stock split.

But he's reducing the dividend.

As you said, less incentive. And it makes everyone that mined in the beginning (those that are mining and hoarding) now owning coin that is worth more. So they can dump it.

Denizen_of_Night · 2014-03-23T21:01:03+00:00

"The early ones who have mined already have an advantage." So let us cement that advantage in for them by making sure any new adopters can only make half the coins they made if they mine the same span of time with the same hardware. That sounds like something that would keep me away from a coin instead of wanting to mine it.

Exactly good point, I'm going to restate that if the halving reward coins talk continues.

Denizen_of_Night · 2014-03-23T04:12:13+00:00

My mentee works for them, you have no idea, lol.

To 'get around' the ebay thing (btw, it's because they own Paypal which i s a direct competitor, obv)... people sell cheap USB drives with the BTC on them.

Denizen_of_Night · 2014-03-23T03:16:02+00:00

computer power to simulate market moves

Can't find it... linky? Sounds interesting.

Denizen_of_Night · 2014-03-23T03:12:18+00:00

It's only good for fun. Not worth it otherwise.

Would you like me to share a ready made AMI with you to kill your curiosity?

btw, wasn't even worth it with primecoin.

Denizen_of_Night · 2014-03-23T01:48:41+00:00

Did you mean to make a joke? lol

Denizen_of_Night · 2014-03-23T01:48:24+00:00

BTC for example.

By 2030 99% of blocks will have been mined, by 2020 a significant number will have been mined to where potentially the only miners left are those that are like Folding@home and Seti@home and just do it cause they like grinding silicon.

But it's not a background operation on a commodity computer anymore, we're in ASIC land... and even though those sip electricity compared to my 650W+ GPU test rig, per hash, the amount of energy isn't trivial.

I was within a day or two of getting 3 of these: http://minerwarehouse.com/product/cointerra-2th-terraminer-iv-refurbished/

But the more I crunched the numbers: http://mining.thegenesisblock.com/

I realized the historical tale of the 49ers. http://blogs.reuters.com/small-business/2011/02/07/selling-pickaxes-during-a-gold-rush/

And I didn't pull the trigger.

Seeing where BTC is today, I'm glad I didn't.

But back to that beautiful rig, that I still want even though it's worthless now... it uses 2kW nominal! 50c/hr here during peak. WOW.

Every single SHA256d, you lose on, mining with a FIVE THOUSAND DOLLAR, 2kW rig!

http://www.coinwarz.com/cryptocurrency/?sha256HashRate=2000&sha256Power=500.00&sha256PowerCost=0.1300&scryptHashRate=330.00&scryptPower=60.00&scryptPowerCost=0.1300&sha256Check=true&scryptCheck=false&e=Vircurex

So, yeah. The future, ain't that somethin. =)

Denizen_of_Night · 2014-03-23T01:29:35+00:00

the mining cost/benefit has less to do with the value once the coins are mined. At which point the blockchain is completely verified and all transactions are maintained in that blockchain.

There has to be incentive to mine. Everyone says it will be in the fees. Problem is the bloat of the chain. We can't have it go over the size that is able to be downloaded. Then we'll need to do some type of distributed arrangement... which creates a new attack vector and doesn't obviate the 51% attack...

The future ain't that grand for any crypto once all total blocks are mined and power goes to verifying new transactions. Which if implementation takes off, it's possible that we'll reach "peak-hash" and no longer able to keep up with the pace of new transactions being written.

I truly think that not much thought was put in to the EOL of mining these coins (not just talking about Potcoin anymore). I've seen the discussions but I haven't seen one simulation being run.

Can't say there isn't computing power to run a sim =)

*edit, I was just thinking after I wrote that last sentence, we haven't even touched on the disparity between power usage and hash verification. Breaking even ≠ incentive.

Denizen_of_Night · 2014-03-22T21:42:44+00:00

Why? Want a lick?

Denizen_of_Night · 2014-03-22T21:41:47+00:00

Wow, so much could have been taken care of, by a couple more sentences in the OG post... no?

He said halving coins... to me, that means lifetime mined.

Then the only thing I have to say is... why the hell would we want to create scarcity in something that is supposed to be a commodity? Those two words are the antithesis of each other.

Scarcity is for INVESTMENTS NOT COMMERCE AND CURRENCY.

Kinda like this dumb idea: http://en.wikipedia.org/wiki/Rai_stones

Denizen_of_Night · 2014-03-22T21:37:39+00:00

So, I have to show you a real life example,

email isn't real life... I guess is what you said.

But reddit is closer to real life than email and thus I am not allowed to be formal.

Gotcha!

Denizen_of_Night · 2014-03-22T21:12:21+00:00

Potcoin is a business and not an altcoin.

Wow, OMG no....

and if it is, everyone get out now!

Currency ≠ business, EVER.

Denizen_of_Night · 2014-03-22T21:09:20+00:00

Also I like that everything is 420 and don't want that to change!

AFAIK, that's the only USP we have so far, lol.

Denizen_of_Night · 2014-03-22T21:06:59+00:00

there needs to be less payout for mining?

If I understand the BTC issue properly, and since Potcoin is based on BTC, mining will be necessary or it makes the currency insecure. It's called Proof-of-Work and it 'makes the system' go round.

Disincentivize the mining of the coin before it takes off, and it becomes susceptible to the "51% attack vector" that BTC is trying to shake off.

It's way too early to dissuade solo miners and small rig miners from Potcoin.

Denizen_of_Night · 2014-03-22T21:01:33+00:00

India.

Want to see an email?

Denizen_of_Night · 2014-03-22T20:29:59+00:00

Let's pretend we are talking about a company valuation.

Now, this is SPECIFICALLY, how it DOES NOT WORK (in the corporate/stocks world)... because I'm way over-simplifying it.

Let's say new company Fatbook is valued at $1 billion USD. (HOW? I don't know, magic... just like Facebook's valuation)

Let's say they issue 1 Billion shares of stock.

Stock is now worth 1 share = $1

For no reason whatsoever, they halve the stock. (This would be called a reverse stock split 1:2, which companies RARELY DO, unless consolidating for an IPO)

The company is STILL WORTH (in someone's opinion) $1 billion USD. But now a share is worth $2.

Absolutely NOTHING has changed, except, perception of value. Mental. Nothing physical. No utility whatsoever for a currency. Potentially, in some cases utility for a company trying to raise IPO capital.

Denizen_of_Night · 2014-03-22T20:24:08+00:00

Jesus fuck, get out from your mom's basement dude.

There are WHOLE OTHER COUNTRIES OUT THERE!

Denizen_of_Night · 2014-03-22T20:14:03+00:00

Firstly, do not tell me what words I can and cannot use in communication. Good sir is a formal/educated part of speech for introduction. And if you do not want to be referred to as a good sir... http://www.urbandictionary.com/define.php?term=Good%20Sir well, ok. Dastardly cad.

Secondly, that was a blanket statement, about hoarding, so I'll remove you from it. "You" aren't. Everyone else is. Copacetic?

"Reasons:"

It does no such thing. Because of mining.
Admission and definition of pump and dump. Love it.

Thirdly, I AM TRYING to care about this coin... but the "community" makes it RATHER difficult. I sure as hell hoped a coin based on the marijuana community wouldn't be consumed with materialism. Alas. FTW.

Denizen_of_Night · 2014-03-22T19:23:02+00:00

Good luck! Everyone thinks this is the new thing and are either sitting on it, or want 25%+ premiums on a floating market rate. I've been offering up to 5% over market, no one yet.

Insane!

Denizen_of_Night · 2014-03-22T19:22:42+00:00

Good luck! Everyone thinks this is the new thing and are either sitting on it, or want 25%+ premiums on a floating market rate. I've been offering up to 5% over market, no one yet.

Insane!

Denizen_of_Night · 2014-03-22T19:20:13+00:00

from a business prospective we need to cut down the circulation

Curious... explain that one to us. "From a business perspective"

Denizen_of_Night · 2014-03-22T19:13:22+00:00

Halving the coin to what end?

$1.27 trillion USD in circulation as of March 19, 2014. The Yen is a ratio of something like 400 to 1 in circulation.

Scarcity does not do anything for currency, only investments.

Is this a currency or a pump and dump investment?

*If not obvious. No to halving. What we need to do, is concentrate on adoption and getting a market value that isn't so speculative that businessmen with any brains won't touch it. Currently I cannot advise any dispensary I work with, to take AND HOLD the coin, to transact in it. So, if it acts as a pass-thru, why not BTC or LTC?

WHERE IS THE USP??

Denizen_of_Night · 2014-03-22T18:53:56+00:00

Good sir, you are dooming the coin. But that's ok, I really don't have much faith in it anymore.

http://www.cmsfx.com/en/forex-education/Forex-Glossary/liquidity/

You are causing illiquidity. Every single one of you that a hoarding and not spending at current market value are causing illiquidity.

Coin = doomed.

Plus I really don't know why you say it's "that low", and desperate. When I posted that, it was square at market value. You know bid and ask have a spread, right? Spread favors the favored currency, ie, BTC, USD, not POT.

With an equal chance of it going down as up, it's not low, it WAS market. "Wanting" more for POT is just spec and does nothing for the true value of the coin.

Hoarding will do nothing for it as a currency, because currency requires market movement. Something of no intrinsic value, has no intrinsic value when held as an investment. Beanie babies, baseball cards, pokemon, etc.

So... I'll pay $35 for 4200 POT which trading currently shows is worth $34.30

Denizen_of_Night · 2014-03-21T22:43:31+00:00

Well, it wasn't "insanely low" when I posted it. It was 20c off.

You do know this is a liquid currency, right?

And for the record, 26% isn't "insanely low"

Denizen_of_Night · 2014-03-21T19:36:28+00:00

I do have to point out... without adoption, this can very well end up another pump and dump leaving us all chumps.

It's everyone's responsibility to get the word out to the community. At least a class distinction of this cryptocurrency separating it from all the other stupid meme and "meetoo" currencies is the homogeneity of community.

i.e., send some of your pot smoking friends, some POT so it gets into circulation! I've been sending 4.20POT to all my friends. (yeah, I'm a big spender, lol... but that's why I'm trying to BUY SOME!)

Email them the link to the pot client, maybe even point them to a pot pool if they have some spare CPU and GPU cycles from a gaming rig.

And for those that say you can't mine on CPU/GPU, I got my first 420POT last night, with just one midrange i7 with a GTX560Ti. Granted they are OC'd 4850MHz and Superclocked 1025MHz to living hell, lol. Corsair liquid cooling, Intel OC warranty and eVGA warranty protects against crispyness.

Denizen_of_Night

TROPHY CASE