12 ms·

can you explain why almost a million dollars needs to be injected into the market to keep the price stable?

by rtpg 13y ago

tlrobinson 13y ago
That's the value of the Dogecoins being mined every day: Blocks per day: 60 * 24 = 1440 (https://bitcointalk.org/index.php?topic=361813.0 https://bitcointalk.org/index.php?topic=361813.0) Current block reward: ~500,000 doge (https://bitcointalk.org/index.php?topic=361813.0 https://bitcointalk.org/index.php?topic=361813.0) Total block rewards per day: 1440 * 500,000 = 720,000,000 doge Current exchange rate: 1 doge = US$0.0017 (http://dogecoin.com/ http://dogecoin.com/) Total block rewards in USD per day: 720,000,000 * 0.0017 = $1,224,000
- hueving 13y ago
  That would make sense if every miner immediately sold every coin he/she mined.
  - deleted 13y ago
    [deleted]
  - tlrobinson 13y ago
    Miners have to pay for electricity and hardware. I doubt they're doing that with Dogecoins.
    - ycui1986 13y ago
      Doge had been the most profitable altcoin to mine several times in the past couple months.
      - sireat 13y ago
        You will be hard pressed to find any serious miner who is keeping mined Doge instead of converting them to BTC or fiat. Serious mining farms pay for their electricity, thus they will not have amortized their GPUs solely from Doge. Sure, if you are a gamer with "pre-paid" graphics card AND "free" electricity, you may elect to keep your mined Doge.
deleted 13y ago
[deleted]
pmorici 13y ago
Because a certain number of new coins are being created each day through mining so the supply of coins is increasing and if demand doesn't increase to match it the price is going to fall. It isn't a perfect calculation because those mining could hold the coins and not sell them immediately but the fact remains that the total supply is increasing and will at some point be put into circulation.
shitgoose 13y ago
http://en.m.wikipedia.org/wiki/Quantitative_easing http://en.m.wikipedia.org/wiki/Quantitative_easing

can you explain why almost a million dollars needs to be injected into the market to keep the price stable?

by rtpg 13y ago

can you explain why almost a million dollars needs to be injected into the market to keep the price stable?

That's the value of the Dogecoins being mined every day: Blocks per day: 60 * 24 = 1440 (https://bitcointalk.org/index.php?topic=361813.0 https://bitcointalk.org/index.php?topic=361813.0) Current block reward: ~500,000 doge (https://bitcointalk.org/index.php?topic=361813.0 https://bitcointalk.org/index.php?topic=361813.0) Total block rewards per day: 1440 * 500,000 = 720,000,000 doge Current exchange rate: 1 doge = US$0.0017 (http://dogecoin.com/ http://dogecoin.com/) Total block rewards in USD per day: 720,000,000 * 0.0017 = $1,224,000

hueving 13y ago
That would make sense if every miner immediately sold every coin he/she mined.
- deleted 13y ago
  [deleted]
- tlrobinson 13y ago
  Miners have to pay for electricity and hardware. I doubt they're doing that with Dogecoins.
  - ycui1986 13y ago
    Doge had been the most profitable altcoin to mine several times in the past couple months.
    - sireat 13y ago
      You will be hard pressed to find any serious miner who is keeping mined Doge instead of converting them to BTC or fiat. Serious mining farms pay for their electricity, thus they will not have amortized their GPUs solely from Doge. Sure, if you are a gamer with "pre-paid" graphics card AND "free" electricity, you may elect to keep your mined Doge.

deleted 13y ago

[deleted]

pmorici 13y ago

Because a certain number of new coins are being created each day through mining so the supply of coins is increasing and if demand doesn't increase to match it the price is going to fall. It isn't a perfect calculation because those mining could hold the coins and not sell them immediately but the fact remains that the total supply is increasing and will at some point be put into circulation.

shitgoose 13y ago

http://en.m.wikipedia.org/wiki/Quantitative_easing http://en.m.wikipedia.org/wiki/Quantitative_easing