This is really true, I think. The other end of it is to consider the attributes of safecoin as a currency. As confidence grows in the solidity of the network-- and thus the veracity of safecoin–the anonymity, transaction velocity, etc., of safecoin will certainly cause it to increase in value, perhaps fantastically, due to speculation as well as supply and demand. This will only drive farmer participation and thus expansion of network resources and stability, builder participation, etc. Th…
The key to the price projection depends on the decision to make Safecoin divisible or not (or some sort of additional mechanism within SAFE that allows this).
If the minimum denomination you can use is 1 coin, then the price will always be severely depressed.
No one is going to want their minimum spend amount to be $5 or $20 or $50, etc.
It sounds like the devs and @dirvine are keen on divisibility though so I am not too worried at all.
Let the free market send the price wherever they see fit (which in my mind, once people get their heads around what is being done here, will be up!)
hmmmm - even if it won’t be divisible … have you ever been to zimbabwe? Oo … they don’t have their own currency since … some years … don’t know how how long
they use US Dollars instead (that is really what comes out of the cash machine…) with the smallest amount you can spend 1USD - as smaller units they mix up the coins of their 3 neighbour-states … or you can just get a lolly as change if you want that …
Of course that is not the ideal solution Oo but i wouldn’t say non-divisibility would necessarily prevent the value from rising above 1 USD …
ps: info … ~3 years old … i don’t know how it is right now … i just assumed not too much changed since …
From the Safecoin RFC: “Therefore a safecoin will purchase an amount of storage equivalent to the amount of data stored (and active) and the current number of vaults and users on the network.”
Does this mean that the Safecoin price is basically pegged to the data storage cost?
i didn’t read the linked RFC (maybe some time ago i did … i have to work now so just a short answer) but afaik storage cost in safecoin go down when there’s over-supply and go up when there is scarcity … and that is probably meant by this …
so when safecoin prices go up (with same storage available) storage costs go up - at the same time the farming reward (in safecoin) becomes more valuable → is more profitable to farm → storage increases → storage costs (in SC) go down [ in theory / a perfect world ->storage costs become the same they were before the safecoin price surge ]
that is basically the idea behind it as i understood it so far
Unless you can divide a Safecoin, yes, this would more or less be true.
If Safecoin is not divisible, then the minimum spend you can do is 1, which would peg the Safecoin to a low price. (no one would ever want to have a minimum spend of $20, that would not be practical)
If you can divide a Safecoin, like bitcoin for instance, the market price and the storage it buys will not be pegged or correlated.
Safecoin would be free to go to $1000 a coin and you can still pay 0.00001 Safecoin for storage…
I believe this is the approach the devs are planning on taking (divisibility) to enable micro payments, etc and let the price of the coin run free in the world.
