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Rasputin

Economy of Cryptos

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I dont know if any one else has been wondering the same thing as i have, that there are so many crypto currencies out there now and many more in development that the crypto market could get to saturated and prices could fall? 

am i the only one worried about that or is this a topic also bothering other people?

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The alt crypto market is already saturated and surely new coins could bring some trouble, although very few survive after a couple of years so medium-long term it won't matter to us, whats more it benefits us because people will tend to trust on those coins that have already survived more than 2 years.

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9 hours ago, Berzeck said:

The alt crypto market is already saturated and surely new coins could bring some trouble, although very few survive after a couple of years so medium-long term it won't matter to us, whats more it benefits us because people will tend to trust on those coins that have already survived more than 2 years.

and what is the lifespan of WDC i mean how long has it been around?

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May 2013! We are an 'old' coin! :)

The ability to survive and adapt is something that will prove crucial in the future when crypto is more mainstream, and we will be the very few ones that will be able to prove these skills!

 

 

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9 hours ago, Berzeck said:

May 2013! We are an 'old' coin! :)

The ability to survive and adapt is something that will prove crucial in the future when crypto is more mainstream, and we will be the very few ones that will be able to prove these skills!

 

 

Happy 3 year birthday WorldCoin :D

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12 hours ago, Berzeck said:

May 2013! We are an 'old' coin! :)

The ability to survive and adapt is something that will prove crucial in the future when crypto is more mainstream, and we will be the very few ones that will be able to prove these skills!

 

 

So are there still people making and pumping out new and new cryptos?

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10 hours ago, bruno said:

So are there still people making and pumping out new and new cryptos?

Yeah, the thing is that most of those new coins are PoS (Proof of Stake) or some similar combination with other scheme, which means that no new coins are mined, so they offer an interest rate depending on the amount of coins you have in your wallet, each period of time this interest rate decreases, so the appealing of these new coins decrease with time, in other words the buying pressure decreases with time.

With PoW coins (like ours) the effect is exactly the other way around, miners are rewarded with new coins when they process a transaction block, this reward is sold automatically in the market by many miners so they can cover they operating costs, now in our case the reward is reduced 1% per week, the effect of this is that as time passes the sell pressure is reduced.

In other words PoS  coins tend to start strong but they get weaker as time passes, on the other hand PoW coins (like us) tend to start weak but gets stronger as time passes (because as explained the constant sell pressure is reduced), in the particular case of WDC, it started strong for 2 reasons:

1] It was a new coin in a very naive period, it is when people buy anything crypto related after the big spike of BTC in 2013, many people thought that they could be millionaires investing in alts,

Example:

Dude A: "Hey there is a new very interesting coin!!"

Dude B: "Oh yeah and whats new?"

Dude A: "It's price is backed by potatoes by a Russian farmer"

Dude B: "Whoaaaaaa ALL IN !!!!"

2] For new people, original creators were, allegedly, building a bank like crypto institution called Scharmbeck and they even sold shares on this, it was supposed to be a big deal for crypto, the project collapsed (they said because internal fighting) and many, many people lost a lot of money, most people thought it was a scam from the beginning, sadly be won't ever know :(

 

Those 2 reasons made WDC original price extremely overestimated.

 

 

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6 hours ago, Berzeck said:

Yeah, the thing is that most of those new coins are PoS (Proof of Stake) or some similar combination with other scheme, which means that no new coins are mined, so they offer an interest rate depending on the amount of coins you have in your wallet, each period of time this interest rate decreases, so the appealing of these new coins decrease with time, in other words the buying pressure decreases with time.

With PoW coins (like ours) the effect is exactly the other way around, miners are rewarded with new coins when they process a transaction block, this reward is sold automatically in the market by many miners so they can cover they operating costs, now in our case the reward is reduced 1% per week, the effect of this is that as time passes the sell pressure is reduced.

In other words PoS  coins tend to start strong but they get weaker as time passes, on the other hand PoW coins (like us) tend to start weak but gets stronger as time passes (because as explained the constant sell pressure is reduced), in the particular case of WDC, it started strong for 2 reasons:

1] It was a new coin in a very naive period, it is when people buy anything crypto related after the big spike of BTC in 2013, many people thought that they could be millionaires investing in alts,

Example:

Dude A: "Hey there is a new very interesting coin!!"

Dude B: "Oh yeah and whats new?"

Dude A: "It's price is backed by potatoes by a Russian farmer"

Dude B: "Whoaaaaaa ALL IN !!!!"

2] For new people, original creators were, allegedly, building a bank like crypto institution called Scharmbeck and they even sold shares on this, it was supposed to be a big deal for crypto, the project collapsed (they said because internal fighting) and many, many people lost a lot of money, most people thought it was a scam from the beginning, sadly be won't ever know :(

 

Those 2 reasons made WDC original price extremely overestimated.

 

 

wo berzeck thanks for the load of info ;)

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