Divisibility addresses this. Few people can simply buy or would want to spend a whole bitcoin today (much less so at its previous ATH of ~$20K). However, buying or spending a fraction of a bitcoin is an entirely different and much more manageable story.
The reason why people don’t spend bitcoin much is that (beyond basic speculation) they don’t have much of value to easily buy with BTC. That won’t be the case with Safe, especially as an ecosystem of useful dApps spin up on the bedrock of data storage. Then imagine what happens with the development of smart contracting capabilities, token creation, as well as compute and processing.
After sleeping i think your probably correct, bit IMO I think another factor comes into play.
Let’s say 1000 coins farmed per day.
Thats flooding the market, so fiat price declines.
So farmers leave, causing increased farming reward to say 1100 per day.
That causes more coins to market, causing more farmers to leave, so again farming rate increases to 1200 per day.
Were in a downwards spiral at this point.
I think when farmers refuse to sell, even though they are gaining more coins per day is when price will start to recover causing more to join.
I do not think this will force farmers to leave. I’ve been farming $0.90/month an average last 10 months in Storj. But I’m farming with a computer that’s turned on anyway. Ie it’s free for me.
The Safe network is created to use free resources. There is no reason to leave if you make less free money. There is a reason to leave if someone else gives you more free money in another network …
I’m trying to understand neos logic about how an increased reward as ppl stop farming will cause a a drop in sold coins, when actually more coins would be being farmed