I do agree that the reward is quite high at the moment but I think its needed to get enough coins in circulation for mass adoption
The 6 million coins matter a lot at the current volume levels. And demand on ordinary trading days is just not high enough at the moment to absorb much of the supply market depth without having some impact on price (but I think about 50-75 are dumped). I think most people would agree with you that at the moment the impact is too much and the timing in this early commercial phase is not the best. That said, in a year the level will be much more appropriate. Likely half the coins with (assuming a ongoing successful project) double or more average daily volume turnover.
My understanding is as follows:
Block 1 (6 billion coins) premined held by Electroneum for cloud mining/ partner incentives
CMC circulating supply (9 billion coins)
Coins yet to be mined (6 billion).
TOTAL 21 billion coins
I totally agreed with this one year ago. But now that were a year further down the road, i think i would just prefer to get it over with.
There is no doubt that the newly minted coins are creating a lot of downward pressure. This is exacerbated by the low amount of buying pressure so the end result is lowering the price. Throw into that equation that the unlimited deal will have them having setup an API to automatically exchange the ETN into a FIAT of their choosing and an even bigger impact is felt.
If the unlimited were to market ETN to their current users, or if they were to do what was announced falsely (double data etc by using etn) that would instantly fix the issue. But i dont think that was ever part of the plan but i stand ready to be corrected
We need more people buying to restore the balance, with cryptopia being down, and people waiting on the sidelines watching what bitcoin is going to do next amongst other variable factors… the demand just isnt there right now.
As the BC reward reduces gradually over the next couple of years we will see a better balance, even if demand just stays the same (although i believe it will increase) im sort of looking at it in the scense of - right now ETN is on sale, and it wont be as the BC reward is reduced. If we/you/me can ignore current price then we will see the next year or so as our 1 oppertunity to grab as much ETN as we can in knowing that in future such large amounts will be impossible to come by without selling your house.
In 1yr the BC Reward has fell from 12,000 over 2 mins, to 8300 over 2 mins… now that is over with id rather it kept crashing as low as possible instead of an algorithm change that prolonged the process. Just my own opinion edit. Some typos
How profitable is the mining though? If you weigh up the value of the coins you mine against the cost of the electricity?
Mining anything right now is not profitable unless you have extremely low power cost (under 6-7 cents/kwh). Anyone mining (actual mining, not cloud mining) right now is mining for future value and only doing it simply because they have the equipment to use. This goes across the board, including ETN.
Nothing is profitable for me to mine as i have a GPU Vega Rig. But i mine other coins and sell them for ETN. In the UK the price for Electricity is c.15pence (20cents) so i would be cheaper buying the ETN but i prefer to do both.
If i am mopping up some ETN that is getting spilled by the miner dumpers, i am doing a small amount of helping restore the balance. This is why i have previously encouraged anyone in the community with a home PC to turn it to mine some CC, and then sell that CC for ETN. It wouldn’t take much people to make a sizeable dent in absorbing the dumped coins just by using their home computer. And this would alone have a positive effect on the price of ETN.
I made a thread about this 6months ago, but only 2 or 3 people came forward to ask how to do it.
I’m with you, not getting much but steadily mining ETH for ETN. I just ignore the fact it’s costing power (I’m only running one RX580,) the long term gains will far outweigh a small amount of electric…plus it’s nice when I get a little ETH and can do the exchange game! Feels far more fun than when I just buy.
ETH with a GPU?
I haven’t checked lately but im pretty sure there will be a better coin to mine than ETH
Just checked… yeah ETH seems to be in the top 3 for best mining
Yeah, I have a good friend who usually points me in the best direction. I did buy a lesser card (R9 280X) to go with it but it just couldn’t do ETH so I started mining ZEC…, I miscalculated the amount per month from the two cards! It was actually only £4 a month!! Sold it and bought ETN with the money, back to ETH. Yeah it’s small time, but ignoring the power it’s around 2k ETN a month. One day I’ll be glad of that little 580 whizzing away.
…and as a new (ish) crypto investor it feels great to actually be part of crypto rather than just buying I’m part of the Blockchain.
Mining definitely adds a new depth to the whole crypto experience. It would be great if more people did it, taking those ETN off the for sale shelves.
I used to do some CPU mining of Iridium and swap that for ETN but then the difficulty went up and price went down and I couldn’t justify it any longer so turned the old PC off. Its sat gathering dust in the garage at the moment
Block reward has come down significantly over the last some months and it will keep going down. Just in September of 2018 we were close to 11,000 per block, right now we are locking to go below 8,000. Reducing quite fast if you ask me.
I believe this will be too little too late. I feel a drastic change is needed, yesterday. Say half the emission output per block and freeze it for 6 months, before reinitiating the reduction algorythm. Just my 10cents.
If we are mining just under 6m coins per day and the price is just under £0.005 per coin, we need about £30,000 per day of new money to buy up the mined coins.
To me, in a multi-billion £ market, that doesn’t seem like too much money yet we still drop a small % each day.
Ok, so the disadvantage with lowering the block reward then is that more miners would switch off. That would lower the computational power threshold required to carry out a 51% attack. Is there a way to mitigate against that? I think Verge have a very low 51% attack threshold
That’s if you assume the price will not go up.
Lowering supply should increase demand assuming you lower it to the correct levels. If you lower it to less than the typical daily volume, price will rise. If you lower it to where it is still higher than demand, then what you are saying is a big possibility.
There is a calculated risk in messing with emissions. If you do it wrong, you set yourself up for exactly what you mention. But if you do it right, an increased price mitigates the lower emissions thus making it worth to mine. It’s not the number of coins that matter to the miner…it’s the value those coins bring. Increase the price on fewer coins is an acceptable trade off.
I’m just glad @Crypto_Kangaroo put the work in to create the Thors Hammer pools, makes it SO easy to do just that. Mine Conceal for ETN. Don’t have to futz around with an exchange.
You hop on to the new Conceal algo yet?
I’m not new to actual mining at all, but sometimes I still take a step back and look at what’s going on. I mean, my simple computer is earning me digital money! On it’s own, without constant input from me! Wow.
If there are no TX in the TX pool then it’s normal to have empty blocs.