It goes to the network but then where?, I have read Farmers get rewarded(In a lotto type manner correct, some % change of reward per storage), Application owners get rewarded, MaidSafe foundation gets a portion. What does it matter where it goes for the first hop?
EDIT so my chain does not get long. GETs are supposed to be free, PUTs are supposed to insert data and cost. requests are GETs correct and always free? What would something that is free(and spammable to a degree under a rate-limit throttle from a variety of hosts) dictate any relation on who gets paid?
voting is free and dictates which politicians get paid ā¦? clicking at ads is free and dictates how much money the guy who wanted the ad to be displayed needs to pay ā¦ i donāt see an argument in the āwhy does the free action decide?ā
Yes, the incorrect use of proper terminology is a problem. āBurnā is definitely the wrong word.
Spend : Purchase PUT storage from the network using safe coins so that they can eventually be recycled back to the farmers.
Earn : Receive safe coins from the network for storing PUTs and successfully fullfilling GET requests from the clients or other network functions. The coins originally spent on PUTs have been recycled and can be spent again by the new owners/farmers.
Burn : send coins to an account, then destroy the key that allows access to them either on purpose or by simply forgetting/losing the account password. The coins are lost forever.
Itās not given directly to the farmer, but in-directly. Itās just a delay before itās transferred to someone else. Burning coins is supposed to be an irreversible action and this concept was first introduced in bitcoin as the action of sending bitcoin to an address where the private keys are unobtainable. And by the way, if nobody requests data on the network and nobody gets paid, how is the network supposed to be sustainable? The whole idea is for farmers to be rewarded on GET requests, if the coins do not enter the economy again, thatās a sign of maid dying.
my bad - yes - then itās nut burned but spent as @jlpell said
well - in the case of nobody requesting data it is not - and that would at the same time mean nobody is using safe ā¦ in which case the thing Should (!) die ā¦
When maid turns deflationary the farming rewards increase to incentivize hosting, this increases inflation/supply and pressure on the price. That invalidates your argument.
It means something. It means weāre looking at potentially as much as 50% inflation the first year (if not more?) and is unlikely to experience less than 10% inflation for decades. For comparison countries usually target inflation rates like 2.5%. As an investor this is a valid concern. Right now there is nobody who can answer what inflation will be, people are making guesses but no clear algorithm with accompanying charted estimated has been presented. You canāt simply ignore the economic facts that inflation entails.
Second, inflation is just a small concern here. Why is 40 coins per person number relevant? Maid will need to be divisible long before then. You do realize the entire monetary supply of the world is $90.4 trillion right? Claiming that maid being worth $85.9 trillion is only a ābrief stopā on the way up is not just hopelessly naive, itās bordering deceptive.
and there is 544 trillion invested in derivatives so how can there only be 90 trillion $ ā¦?
ā¦i donāt want to argue about 20k per coin or not ā¦ and honestly i donāt care ā¦ iām not a speculator but just a follower of the project and i love the tech ā¦
ā¦but the numbers and how you present them seem to me to be taken a bit out of context ā¦
Thatās not all you said. First you responded to my comment where I said thereās inflation by stating:
Your first argument is contradicting your last. You canāt have it both ways. Which one is it?
You donāt need to know the adoption curve to answer the question. You can have a set emission rate algorithm where adoption is x and provide that curve.
Itās not out of context. Itās real world valuations. Youāre expecting safe to be worth more than all of the worldās companies, COMBINED, and you expect this valuation to be a ābrief stopā before going much higher. Itās completely out of touch with any and all economic realities and those very basic comparisons should show that clearly.
did you seriously re-post the source that i mentioned myself as if it was a new source?
??? i never (!) did say that ā¦ but of course you can think whatever you want
yeah - sure - and the answer will be super realistic - let me help you here:
say adoption is pure storage - no GETs ā¦
which leads me to deflation
?! noā¦? to my knowledge i never said something else - and safe would not be sustainable in that scenario - yes
but to respond with a more reasonable statement as well ā¦
ā¦ as long as the safecoin-algorithm / farming algorithm isnāt agreed on and implemented there will be nobody who could tell you any supply-curve based on any demand-curve ā¦ so what you are asking for is nonsense at this point in time ā¦ sorry ā¦
Another consideration is that itās not set in stone that maidsafe will become successful in all areas, maidsafe can become a massive success with regards to file hosting and decentralized web, while at the same time fail spectaculary with regards to money. By the time of launch (2020? 2021?) cryptocurrencies will have had a lot of time to develop further. Itās going to be an enourmous uphill battle to compete with the early adopter advantage of giants such as bitcoin and ethereum at that point.
If the only use case for maid is a decentralized web the prices are more likely to be based on supply and demand for storage and those may not reach anywhere near the kind of valutions a currency is able to. Then even $100 may be unrealistic unless maid is able to capture a very large market share of that market.
For example the dedicated file hosting market in 2018 is less than 6 billion. Weāre talking lower digits billions here. The entire cloud storage market was estimated to be $25.171 billion in 2017. What market cap does say 50% (which would be an enormous share) of that justify?
Derivatives is not the same as money (coins, deposit in bank etc), the source shows that.
Right. So for now we only know that itās likely to inflate very heavily for a period of a few decades. Then weāre back to start of the argument.
So my first argument would be that bitcoin up until now would be considered deflationary no? So in that sense you are basing fiat currency that can be printed at will without controls to this or another crypto so not an even comparison. The 40 coins means nothing other than just showing how few coins a person would have at fully supply with 100 million users. Thatās a ton of users but with true adoption over a decade it would be small. Iām not sure where you came up with the 85 trillion number but I didnāt say that. You can certainly argue that there will be more Han the current supply after launch if you would like but claiming that the market will be flooded haphazardly with coins after launch is equally deceptive.
The idea that if Maid delivers all of these different ways to use the technology and the ceiling is $10 is more irrational than saying it will be $1000. I think people relcuctant to make bolder predictions and rather be short than long. At full supply what is 40 billion in the world market place? Literally nothing. There is so much liquidity, assets like the real estate market ect. all tied up and an autonomous internet with its own currency, storage, privacy ect. Is worth 40 billion and thatās assuming all the coins are released? It all needs to be delivered but this $10 high water mark is plain dumb.
You all should read with more attention, @warz made many good points, and then he got many answers that were off the mark, personal attack by @neo included. Then he started to write in a more reactive/confronting way.
What I want to point out, is that if you read the text more carefully then you will understand better both parties, and avoid unnecessary confusion.
And yes, the original enthusiastic @Zoki comment was absolutely delusional, but he made it in a innocent way like a child would speak about his favorite candy, and wasnāt a serious prediction.
About Safecoin supply, there will be an initial (very brief) deflationary period as users store data, and then a sustained inflation as users browse the net. There may be deflationary moments with the launch of video streaming services and such, but probably each big upload will mean big downloads afterwards, and inflation of course.
Bitcoin has been very inflationary in the first years, and yet it increased in value exponentially, because adoption had a stronger effect on the price. As long as we have an adoption growth rate superior to the inflation we should see a price increase. If it is the other way aroundā¦ Well, it has been nice knowing you
Two more things:
At current prices buying safecoin is the equivalent of buying bitcoin when it was 40$ the piece.
there is around half safecoin per human 4.2B/7B
so how can there only be 90 trillion $ ā¦?
