Will peercoin ever reach $100?

Will peercoin ever reach $100? What do you think?

Sure.
As soon as the POW fanatic mass, which is now about 99% of the people in this market, gets diluted by the smart money you will see PPC climbing up against BTC and i have no doubt one day we could even see 100$ PPC.
If you consider costs of storing value in PPC against BTC you will see there’s really no reason to stay in BTC and pay 10% per year via inflation anymore.
You can exchange a fraction of your PPC for BTC only when you need it, fees for exchanging one crypto with another will go down a lot in the future and liquidity will also increase a lot and that will reduce the cost of exchanging your PPC for BTC to a very small %.
As PPC becomes bigger a lot of merchants will start to accept it along with BTC until one day you may not need to convert them to BTC anymore 8).
The coin that can provide best security at lowest cost will win this race and PPC is a huge favourite against any other POW out there.
We now need only to get rid of that centralized checkpoint system. ;D

At 3% inflation it takes about 150 years for $100 to be worth today’s purchase power of 1 peercoin (taking 1% POS inflation and destroyed tx fee into account).

At 3% inflation it takes about 150 years for $100 to be worth today’s purchase power of 1 peercoin (taking 1% POS inflation and destroyed tx fee into account).[/quote]

what do u mean?

He means FIAT inflation will raise the PPC price to $100 in 150 years from now. If you take into account the 1% relative deflation from PoS and destroyed fees.

In other words he’s saying FIAT will plunge instead of PPC will pump (Relativity! I like the idea :p).
I’ll be curious to see the calculation, because I have no idea how you can predict the 0.01 destroyed fee growth ^^.

If the transaction fee remains constant (~400 per day):
400365.250.01 = 1461 PPC destroyed per year (PPC inflation)

One factor you haven’t taken into account are the coins that are newly created from mining/minting… (and contribute to the PPC deflation)

But at the end, your statement is wrong I’m afraid. You cannot base your calculations from the current price (which is already a result of those parameters). And PPC price is mainly driven by user’s demand (more demand, price goes up --> more PoW mining --> more expensive to mine, same if price goes down).

But still, that was a fun statement to make :slight_smile:

A better way to say is “At 3% inflation it takes about 150 years for $100 to be worth 1 peercoin assuming Peercoin holds its purchase power.”

Suppose fiat money will lose value with no end due to QE, greed, war, and whatnot, at an average CPI of 3%. Peercoin will inflate 1% per year due to POS reward. It’s actually less because those peercoins in constant circulation don’t mint, because many people just don’t mint (Now it’s about 12% of all Peercoin actually mint), also because some coins will be inevitably lost. Transaction fee is a wild card. If we assume peercoin will appreciate and tx fee will be adjusted to a level such that it is always a fraction of the cost of Peercoin network running cost, which is approximately the POS reward. Combining all the above factor, I think it is reasonable to predict the long-term net inflation of Peercoin is close to zero.

Mining will contribute to inflation but due to Moore’s Law the mining production rate will deminish. Someone please come up with a model. I will ignore it.

It then will take log(100/0.72) / log(1 + 3% -0%) ~ 150 years for $100 devalue to 1 PPC, if Peercoin holds its purchase power.

A better way to say is “At 3% inflation it takes about 150 years for $100 to be worth 1 peercoin assuming Peercoin holds its purchase power.”

Suppose fiat money will lose value with no end due to QE, greed, war, and whatnot, at an average CPI of 3%. Peercoin will inflate 1% per year due to POS reward. It’s actually less because those peercoins in constant circulation don’t mint, because many people just don’t mint (Now it’s about 12% of all Peercoin actually mint), also because some coins will be inevitably lost. Transaction fee is a wild card. If we assume peercoin will appreciate and tx fee will be adjusted to a level such that it is always a fraction of the cost of Peercoin network running cost, which is approximately the POS reward. Combining all the above factor, I think it is reasonable to predict the long-term net inflation of Peercoin to be close to zero.

Mining will contribute to inflation but due to Moore’s Law the mining production rate will deminish. Someone please come up with a model. I will ignore it.

It then will take log(100/0.72) / log(1 + 3% -0%) ~ 150 years for $100 devalue to 1 PPC, if Peercoin holds its purchase power.

150 y is a long time.

Because having 1PPC=$100 is a long shot. :wink:

Because having 1PPC=$100 is a long shot. ;)[/quote]

Yeah but still. I would expect more like 5y.