From what I understand, no one is sure how quickly new Safecoins will be generated. What is to prevent a massive devaluation of current holdings once everything goes live?
What is to prevent a massive increase in valuation of current holdings once the network goes live?
Basically, the conversion from maidsafecoin to safecoin will not happen until have there are serious tests of the network, including testsafecoin. After those tests run, we will have an idea of how profitable the network will be what speed people will PUT data etc.
But the long-term answer to your question is that Safecoin, unlike basically any other cryptocurrency I am aware of, is pegged to the frequency of PUTS, when PUTS are frequent, the amount of data PUT per safecoin will decrease. Essentially, the price of safecoin should stabilize right around, or just above the cost of data storage. This should happen regardless of the size of the network.
Has anyone working on this project stated that they will tweak the algorithms involved after testsafecoin has run its course in order to prevent a devaluation from taking place?
I do believe that is why they are doing the whole testsafecoin thing. If the point weren’t to tweak the algorithms, then there would be no reason to do testsafecoin, they would just go live as soon as they had a stable underlying data network.
Edit: And when you look at what the team has done, if they were just interested in making a network that ran most of the time for most of the people, we would have had a public testnetwork by this time last year. These are people heavily invested in getting it right, doing the testing, and making the necessary corrections.
The team is obviously heavily invested in the technology. But are they invested in increasing the value of investors’ current holdings? The “point” of testsafecoin could simply be to make sure it works.
I’ve read that the shareholders will be paid out in Safecoin. How exactly will that Safecoin/share price be calculated?
Safecoin is the oil of the network, if the algorithm for generating it and setting the PUT price doesn’t work, then Safecoin doesn’t work. I think perhaps you misunderstand how trivial it is for safecoin to function as a means of transferring value once the network is live. Thats easy. If the network is live, then there is a secure process for transferring ownership of files, and that is all you need to make the transaction side of safecoin work. Thats why it will be SO EASY to generation altcoins on the safenetwork. The only thing that would require a specific testsafecoin is the need to test the generating algorithms, those are the more difficult part.
EDIT: As to whether the team is invested in increasing the value of safecoin, the thing which drives their network, which they have slaved away at minimum salaries some of them for over a decade now… well I think that question kinda answers itself.
Well I don’t know that, and I really doubt that the company is at liberty to disclose that without the consent of the shareholders themselves.
The plan is to apply with the ECB for the new LTPO (Long Term Pump Operation) funds which would be used to prevent the sinking of SAFE exchange rate.
I noticed two of your new posts and both were substandard. Not a good way to get noticed.
Quite opposite answers from kirkion and janitor on this. One says “of course” and the other says “of course not”.
Somebody has to ask the tough questions from an investor’s point of view. A forum full of people patting each other on the back for years at a time only provides so much information.
The SafeCoin has more purpose than simply data exchange, it will be a currency same as Bitcoin. A few killer apps combined with speculating investment will be what drives the price
Correct me if I’m wrong @janitor, but I think your point was that the question was disingenuous.
This is not asking a “tough questions” this is borderline trolling.
Are you an investor? Then you can ask Maidsafe about their deal with you.
Maidsafe is not currently seeking investment as far as I know. (As an aside why on earth would they? Their crowd sale did not go as planned, but they made plenty of money)
So no Safecoin valuation questions here? That’s funny from members of a community that purportedly values free speech.
A safecoin valuation question is: What will the price of safecoin be in a year. $1, $10, $100?
What will drive the value of safecoin.
They questions you are asking are insinuating that the team won’t do everything in their power, or lacks the competency to make the safenetwork a success. That’s not a valuation question.
Thanks for the question suggestions.
If you thought about it for a moment you might realize that the point of my question is that the value of Maidsafecoin does not need to be protected in order for the SAFE network to be a success. Thus my concern as an investor and my subsequent questions.
If the network is willing (And capable) to trade storage for safecoin, then the price will not fall far beyond the value of the storage.
@jreighley Has anyone drawn up calculations as to what is the value of storage and how that translates to the value of a Safecoin?
Not sure what you’re trying to find out, other than what you might get from a fortune teller.
The primary purpose of safecoin is, and always has been, to act as a lubricant for the network. The network does not and cannot know anything about the value of safecoin outside of the network directly.
The testsafecoin will be run to work out the algorithms necessary to keep the balance between resources provided to the network and the cost, in safecoin, for PUTs to the network.
The perceived value of PUTting data to the network should be the minimum price-translation factor. What that value might be has been discussed here a fair bit in the past. Search @dyamanaka’s posts for pretty good breakdowns on how these things might factor out.
If the network works anything like as proposed, safecoin should also have a much higher value than just the “storage” factor, IMO.
Seems like you’re asking for the sort of investment analysis that is done for prospective investments, many of which work out to be wrong anyway.
MaidSafe is focused on getting a viable network running. That’s all that has ever been promoted. It’s not about the price, but a successful network should ensure a very good price. More than that is guessing and is not at all the focus of most anyone interested in the network as a whole. At least that’s what I think.
I think any adult could guess the project leadership is obliged (we also know that it’s willing) to act in a fiduciary responsible way, so of course they will do what they think is the best.
What is - his question or my response? I almost said I agree but I’m not 100% sure you’re not referring to my response.
The question demonstrates a complete lack of understanding how a currency ought to work and what the role of a currency custodian ought to be.
The whole world can see that after 6 years of “tweaking” the value of the dollar, euro and other currencies, central banks are completely helpless in their quest to cause loss of value of their currencies. How can one even think that a relatively poorly funded project (the Fed spends hundreds of million ps a year) can change an algo and solve that kind of problem?
Secondly, instead of firing off those laughable two questions he could have started with the white paper which is suggested reading for all new members, and in it see how the idea is to keep the value growing. There is also a prospectus type of info in the same white paper.
I am not sure if the project endorses the use of the “i” word, but to answer that, I bought at the launch and then this year I’ve been trading (my MAID ownership has been oscillating between 0 and <10 BTC)
His question, I completely agree with your response.
I think there maybe some confusion in this thread between a MaidSafe investor in the traditional sense (those who bought and own equity/shares in MaidSafe.net) and holders of MaidSafecoin. With regard to equity investors in order that they achieve more immediate returns, we will be offering them the option to swap their equity for safecoins on hard launch as per the original white paper.
Regards the price, which btw is perfectly reasonable to speculate on, but is much more of a guessing game that scientific analysis, I feel that everytime you make something more useful you add value. I think the increased utility of safecoin on launch combined with the speculative trading will drive the price, but that’s just my opinion.
Hi Nick, I very much appreciate your objective response. Can you share info on how the safecoin/share rate might be worked out?