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Good buys and coins to avoid. How daily coin maintenance costs should factor into your investment decisions

cryptocoin-buddiesAs a crypto related blog, we often get questions from users asking us for our opinions on various alt coins. People want to know what our investment recommendations are. We are always hesitant to answer. We feel that investments are a personal decision and that everyone should do their due diligence and research the coins they are investing in. However, that’s much easier said than done.

Sometimes you get caught up in the hype of latest and greatest fad coin and watch everyone seemingly doubling and tripling their investments in a matter of hours. Then, you decide… what the heck… by the time I research this, I’ll miss the boat. So you get caught up in the mania and drop some cash on some unknown coin… and the pump is over…. the price starts to slide and you’re out half of your initial investment. Now you’re left to either hold the bag on your poor investment and hope the price goes back up eventually…. or, simply call it a poor decision and sell at a loss. Don’t worry, this happens to the best of us. Even some of the most successful traders will get caught up in some hype sometimes. You can’t win them all.

What you can do, however, is limit these poor decisions. Check out the coin’s website, check out their forums, search reddit and twitter. See if they’re popular, if they have any new projects in development. Check out the community, see how knowledgeable their forum/irc members are. That’s all fine and dandy, however, forums and irc can be very misleading. Much like the trollbox on the various exchanges. Most people generally fall into two categories, fanboys or haters. There aren’t very many rational people in the middle. Another thing to worry about from trusting the community, is that everyone is in it for themselves. Chances are, if people are trying to get you to buy, they are looking to dump their coins on you. And if they want you to sell, it’s probably so they can buy back lower.

What you really need is a global view of the economy. You need to learn to read the charts. Check out the volume of coins being traded. Look at the sizes of the buy and sell orders across various exchanges. Analyze the charts to see if you can find trends. It’s very tedious work. We’re not here to teach you how to read tickers and charts though, there are plenty of places on the web to learn that kind of stuff. We’re here to tell you about another statistic we find very interesting to look at when making any trading decision. Daily Coin Maintenance Costs.

What is Daily Coin Maintenance Cost?

Recently, we came across an interesting thread by FreeTrade on BitcoinTalk (https://bitcointalk.org/index.php?topic=430639.0), which is where we got the idea for this article. To put it simply, it’s the amount of money needed per day to keep the coin at it’s current value. Meaning, that if a certain coin is worth X $, you would need at least Y amount of $ per day to be invested in the coin to keep it at that price. How is it calculated? You simply take the total amount of new coins that will be generated per day and multiply it by the current value of the coin. So if $10,000 worth of new coins are minted every day, theoretically if they were all sold people would need to purchase for $10,000 worth at the current price to keep the value the same.

CryptoSource has done an analysis on these numbers for over 85 different crypto currencies. You can see the full chart at the end of this post. We like looking at the top and bottom 10 coins. Coins at the bottom are ridiculously cheap to maintain. Just a few $100/day will keep them steady. These are really interesting. Especially if you find a coin in the bottom 10 with a great community and new upcoming services. You may have just found a diamond in the rough and probably the closest thing to a sure bet in the crypto world. It shouldn’t be very difficult to get these coins values to rise and the chances that they rise a significant amount are much greater.

On the other side of the spectrum, the top 10 will be the most expensive coins to maintain. You should be very weary of these coins. Especially if they are new or kitchy currencies. Chances are they will not be able to sustain this amount of investment for very long and their price will eventually plummet. Mind you, you will find all the big guns in this section (BTC, LTC). We consider Bitcoin and Litecoin to be “safe bets”. Their value and community have proven themselves, and their prices should remain fairly stable.

So, let’s get to the good stuff.

Great Buys

These coins all have various interesting projects in the works, have great communities and great developers. We consider these coins to be severely undervalued.

  • Zetacoin (ZET) (Daily Maintenance Cost: $228.13)
  • CryptogenicBullion (CGB) (Daily Maintenance Cost: $195.21)
  • Devcoin (DVC) (Daily Maintenance Cost: $452.23)
  • Frankos (FRK) (Daily Maintenance Cost: $1060.98)
  • Digitalcoin (DGC) (Daily Maintenace Cost: $8376.52)

 

Coins To Avoid

We consider these coins to be very gimmicky. While many of them have outstanding communities, their current maintenance cost is way too high to be sustainable in the long run. Most of these coins are brand new and are surviving off hype. Trading of these coins should only be attempted by experienced traders).

  • Dogecoin (DOGE) (Daily Maintance Cost: $1,060,957.44)
  • Mooncoin (MOON) (Daily Maintenance Cost: $133,602.05)
  • LotteryTickets (TIX) (Daily Mainteance Cost: $27,980.86)
  • Lottocoin (LOT) (Daily Maintenance Cost: $26,369.84)
  • Earthcoin (EAC) (Daily Maintenance Cost: $19,922.42)

This is not a knock on any of these coins. We actually applaud those of you who were smart enough to mine these babies from the start. It’s merely a reminder that their daily maintenance cost is extremely high for a new coin, so trade with extreme caution. Dogecoin costs more to maintain than Litecoin!)

Any suggestions we have made above are our personal opinions based on Daily Maintenance Costs. We advise any readers to thoroughly research each coins before investing any amount of money into alternate crypto currencies. Below is a chart of the current daily maintenance cost for over 80 crypto currencies based on their values and coin generation rates today.

 

Rank Coin Coins/Day Current Rate Maintenance Cost/Day
1 DOGE 720000000 0.0000018 BTC $1060957.44
2 LTC 28800 0.02749 BTC $648127.11
3 MOON 960000000 0.00000017 BTC $133602.05
4 PPC 16482.24 0.00668 BTC $90133.38
5 PTS 4662.72 0.01417662 BTC $54113.42
6 WDC 152279.40096 0.00039112 BTC $48757.8
7 XPM 12960 0.00385 BTC $40846.86
8 NMC 7200 0.00687 BTC $40493.21
9 FTC 115200 0.00037 BTC $34893.71
10 TIX 405000000 0.00000307 LTC $27980.86
11 LOT 94740480 0.00000034 BTC $26369.84
12 42coin 0.0864 337.00000014 BTC $23836.18
13 EAC 14400000 0.00000169 BTC $19922.42
14 NVC 1340.46144 0.0167 BTC $18325.83
15 RPC 720 0.0285 BTC $16798.49
16 TAG 10800 0.0015419 BTC $13632.42
17 NET 737280 0.00001546 BTC $9331.14
18 MEC 14400 0.00073 BTC $8605.54
19 DGC 32400 0.00031581 BTC $8376.52
20 ANC 2105.26315789 0.00400008 BTC $6893.95
21 SRC 7200 0.00115001 BTC $6778.4
22 CLR 18000 0.00041103 BTC $6056.74
23 TRC 14400 0.00044 BTC $5186.9
24 DEM 36000 0.000157 BTC $4626.95
25 BUK 14400 0.00034676 BTC $4087.75
26 YAC 108000 0.00004104 BTC $3628.47
27 JKC 72000 0.00200111 LTC $3242.43
28 CAT 7200 0.00046615 BTC $2747.59
29 FST 230400 0.0000132 BTC $2489.71
30 RED 144000 0.0007 LTC $2268.44
31 CSC 144000 0.00001901 BTC $2240.98
32 SXC 162576 0.00058 LTC $2122.03
33 FLO 216000 0.0004132 LTC $2008.55
34 ASC 1474560 0.000057 LTC $1891.49
35 GDC 1920000 0.00000114 BTC $1791.84
36 PHS 11520 0.00018974 BTC $1789.39
37 CNC 126720 0.00001681 BTC $1743.84
38 IFC 11796480 0.0000064 LTC $1699.03
39 MNC 2880 0.00070243 BTC $1656.11
40 BQC 60480 0.00003195 BTC $1581.89
41 SBC 36000 0.00005162 BTC $1521.3
42 ARG 8100 0.00022043 BTC $1461.67
43 BTB 20.808 0.08499827 BTC $1447.88
44 IXC 13824 0.000124 BTC $1403.29
45 CMC 5040 0.00033515 BTC $1382.81
46 BET 46080 0.00003649 BTC $1376.51
47 GLC 216000 0.00000764 BTC $1350.95
48 FRC 29538.72 0.00005573 BTC $1347.64
49 DMD 1440 0.00098883 BTC $1165.67
50 OSC 28800 0.00004802 BTC $1132.16
51 FRK 720 0.00180004 BTC $1060.98
52 NEC 25868.2634731 0.00004948 BTC $1047.83
53 BTE 7200 0.000176 BTC $1037.38
54 ALF 144000 0.00000877 BTC $1033.84
55 TGC 122880 0.00000987 BTC $992.87
56 LKY 63360 0.00001895 BTC $982.92
57 SPT 60307.6923077 0.00001959 BTC $967.16
58 QRK 11712 0.00010004 BTC $930.29
59 CRC 2880 0.00036804 BTC $867.72
60 XJO 30720 0.00003405 BTC $856.31
61 EZC 72000 0.000528 LTC $855.53
62 UNO 240 0.00429984 BTC $844.81
63 GLD 32400 0.00115056 LTC $838.92
64 HBN 14400 0.00006882 BTC $811.28
65 GLX 184320 0.00000519 BTC $783.13
66 KGC 184320 0.00000492 BTC $742.39
67 BCX 36000 0.00002401 BTC $707.6
68 PXC 48000 0.00001614 BTC $634.22
69 NRB 14400 0.00005287 BTC $623.25
70 BTG 432 0.001427 BTC $504.66
71 ELP 216000 0.0000946 LTC $459.85
72 DVC 720000 0.00002791 LTC $452.23
73 CAP 14400 0.0000327 BTC $385.48
74 XNC 864000 0.00001937 LTC $376.63
75 GME 576000 0.00002893 LTC $375.01
76 EMD 21600 0.0000203 BTC $358.96
77 RYC 60000 0.00023764 LTC $320.88
78 MST 49371.4285714 0.00025583 LTC $284.25
79 LK7 110880 0.0000031 BTC $281.39
80 ZET 11250.144 0.00002477 BTC $228.13
81 FFC 172800 0.00000161 BTC $227.75
82 MEM 57600 0.00016565 LTC $214.72
83 CGB 225 0.00105983 BTC $195.21
84 TEK 1440 0.00013052 BTC $153.86
85 PYC 4320 0.0000293 BTC $103.62


Let us know what you think, or if you think we made a mistake in any of our calculations. Also, feel free to discuss further in the original BitcoinTalk thread that started to get us thinking: https://bitcointalk.org/index.php?topic=430639.0 Happy trading!

 

tipTip The Author

Did you like this article? Why not send a tip to the author as a thank you?

BTC: 14j8VU7TN7X7WrUX5Qw12SJEwquoWtkz7q
LTC: Lfk1Ztt861RHcmA5W9MfXdt94SUdGNMZb4
DGC: DKGEqx6WeBbHMvSG1Gmv6LGdN6qEQfu6zN

 

Posted in Alt Coins, Cryptocurrency, Information, Investments, Trading
47 comments on “Good buys and coins to avoid. How daily coin maintenance costs should factor into your investment decisions
  1. Nasim says:

    Dogecoin certainly looks poised on an enormous precipice. How can people be dumping $1,000,000/day into it to keep current prices? For my part I have an enormous number of these coins and looking at this I am scared to continue holding them…likewise when I look at the near and long term potential of Dogecoin I am also terrified to let go of them. Dogecoin is rolling itself out in internet double time. Strange times indeed. Back to /r/dogecoin ftw!

    • Rob Close says:

      At 0.5% inflation for 247m coins, Quark is added about 3400 coins to the market daily – at about 9-10 cents a coin. That’s, what, about $300 daily coin maintenance?

      And this is for the #6 coin, given current values, right behind Doge. It’s not mentioned on this article, for some reason, but given this criteria, it seems like Quark has a huge advantage going forward. Soon as enough people realize it wasn’t pre-mined, and it’s the fastest of the big coins, plus super secure and has a marketable name – what’s not to like?

      • CryptoMaster says:

        Thanks Rob,

        My reasoning for overlooking Quark was simply out of laziness when I was researching my numbers. Since the rewards half very quickly, I didn’t feel like calculating the current rewards at the time.

        However, where are you getting 3400 QRK added to the market daily?

        By my calculations, QRK has 30 second blocks and the current reward is 4 per block. Which means you should get about 11,520 newly generated QRK per day. So that would put the daily maintenance costs @ around $950 USD/day. Which is still a very low maintenance cost btw.

        This site seems to support my numbers: http://bitinfocharts.com/quarkcoin/

        But yes, you are right, I should have included Quark. I just didn’t want to include anything if I wasn’t sure about the numbers.

      • CryptoMaster says:

        I have added QRK to the list.

      • Ralph Wiggum says:

        QRK was released without pre-announcement and was extremely instamined. The net effect is the same as pre-mining.

      • 6strings says:

        Quark wasn’t premined but it was certainly instamined. I had 20 aws instances on it within a few mins of launch. Had millions of quark. Dumped them all for a few BTC days later. Point is, I am not the only one who did this. There are people who probably have their stash ready to dump when the time is right. Be careful is all I have to say.

        • cryptocaveman says:

          According to the cryptsy volume, the other miners did pretty much what you did and dumped all of their Quark. If you look at exchange data, Quarks quick mining process (and low value at the time) seems to have made it an extremely well distributed coin among investors. Could be the reason why it has the 4th largest crypto community behind BTC, LTC, and DOGE.

    • Itsik says:

      You didn’t mention MemoryCoin (MMC) which should be somewhere at the bottom of the list (which is a good thing…)

    • o···o says:

      Don’t worry , DOGE will be all mined in 2015 , by then much more developments
      will be integrated , thanks to its wonderful , creative community ∞ Much Wow :D

      Right now , DOGE is distributing itself at cheap price , a high incentive to give !

      o·o

  2. Rob Close says:

    80 Cryptos, and you ignore Quark completely? It’s one of the most valuable coins; why bring up so many scams and clones, and ignore Quark?

  3. xar says:

    I’m very impressed by this article. I didn’t actually thought it this way, very important thing to know for an investor.

    One of the coins that came out promising according to this article is Quark.
    Dogecoin scored the worst, didn’t see that coming.

  4. Scottii says:

    Frankos for the win!

  5. Brian says:

    not sure about some of these comments

    Dodgecoin is just another pump and dump scam coin.
    Yes you can make money trading these, but all coins like this will eventually die.

  6. delacroix says:

    What about the Maintenance Cost of the Bitcoin ?

  7. Uniqueorn says:

    Why haven’t you written about NXT in this article? It would be a great oppourtunity to compare the first nexgen with pastgen.

    • CryptoMaster says:

      NXT is not a mineable coin. Therefore there is no maintenance cost to compare with the other coins in this article. It would be like comparing apples and oranges. We will be writing more articles about NXT shortly as it is a very interesting coin.

  8. Given that you added Quark to the chart only after the whole article was written, and given that by your own admission Quark has a very low maintenance cost, would you not say that Quark deserves to be included in your “Great Buys” list?

    By the way, the block reward will halve again soon, so the maintenance costs will be even lower, although I don’t know how long that will hold given that new exchanges are adding quark, new development projects are in the pipeline and coming online, and the community’s growing quite fast too.

    • CryptoMaster says:

      Yes, I believe QRK is also a strong buy at the moment. I already owned and purchased more QRK after reviewing these numbers. Many coins could have been added in the Great Buys list. These were just my own personal picks. I am not a professional trader by any means. The numbers are there for all to see and everyone can make their own decisions on what coins offer the best bang for your buck.

  9. Eboard10 says:

    You list Zeta as the best buy due to its low maintenance cost and interesting projects and community backing it. However, I had a look around and can’t seem to find much about it and there’s hardly any community or major ongoing developments. What made you pick Zeta as your favorite coin? I’d like to invest in it but am hesitant because of this.

  10. kazushi says:

    If we look at daily maintenance costs, marketcap and infrastructure/community ratio, then i have to admit Quark is the best buy.

  11. m0rf says:

    Great article, thanks! Although am I right in assuming that your calculations are based on mining figures, not how much actually enters the exchanges (ie the market)?
    I know coin supply is an important factor but different coins will have different proportions of miners holding or selling newly minted coins.

    • CryptoMaster says:

      Yes, these values are strictly related to newly generated coins via mining. If everyone is holding their coins, then you don’t need as much money to keep the coin afloat. However, it doesn’t change the fact that X$ worth of coins are being generated every day.

  12. Mr. Net says:

    Heads up!
    Daily Coin Maintenance Cost on netcoin is going to halve in about 40 days!!
    Last time it halved, price jumped 500%.

  13. koooooj says:

    That’s a really interesting and important article, because of the mechanism of analysis that it proposes. I think it’s a must-read for anyone interested in relatively LONG-TERM investments. But here are some improvements to your mechanism:

    I started putting together similar data for my own use, but they presented a lot more. Daily Maintenance isn’t the only thing to look at when considering investing in a coin–you also ought to look at market cap–a coin with a market cap of 20 million will be able to absorb a maintenance of $1000 per day much better than a coin with a market cap of only, say, 100,000 (see: LKY: maintenance of $982.92, cap of 157,212).

    To that end I took the article’s data and added in market cap info from coinmarketcap. Coins that were only listed on one site or the other were excluded from the analysis, for simplicity (note that this excluded some of the lowest daily maintenance coins). I added Bitcoin in just to see where it lies; I calculated the maintenance as 2,765,052 USD/day using the Bitcoin price from coinmarketcap at the time.

    It is worth noting that while daily maintenance changes when a coin increases in value, percent daily maintenance only changes when the reward changes. It is percent daily inflation (using inflation = increase in money supply, not increase in prices) and is inherent in the design of a coin.

    Some highlights of the data include:

    * 11 coins with a daily maintenance of over 1%: 42Coin (9.1%), MOON (5.7%), RPC (5.5%), DOGE (2.2%), LOT (2.17%), CSC (1.7%), EAC (1.7%), TAG (1.5%), CRC (1.3%), DEM (1.1%), and XJO (1.0%).

    * The surprising position of Bitcoin–it has the highest maintenance cost but also the highest market cap by far, placing it as 53rd out of 58 coins analyzed with 0.029%

    * 5 coins with a percent daily maintenance less than Bitcoin: CGB (.024%), IFC (.020%), DVC (.014%), ZET (.0074%), and with the lowest percent daily maintenance, QRK (0.0049%).

    * The majority of coins are somewhere between 0.1% and 0.75%, with a count of 31 out of the 58 analyzed.

    * Only 18 coins have a percent yearly maintenance (percent daily maintenance * 365; essentially inflation per year) of less than 100%. Only 5 come in under 10%. None of the coins analyzed have a percent daily maintenance less than the inflation of the USD. Only Zetacoin and Quarkcoin come in below the inflation for any of the years listed.

    So, in short, according this this data, Quark is really the best alt coin for long-term investment.

    PS: my data is available here http://pastebin.com/LRubW1Zc which you can paste into Excel and form your own analysis.

    • CryptoMaster says:

      Wow! Really neat analysis. Thank you for this. I definitely did not drill down that far into the numbers. I still find it very cool that 3 out of the 5 coins I picked as great buys are listed in your lowest percentage daily maintenance calculations ;)

      This makes me believe that this is probably a very important number to look at. Nice numbers on QRK too. The more I look at QRK, the more I am getting sold on it, despite it’s bad rap for early distribution.

      • cryptocaveman says:

        The thing is, its a bad rep and nothing more. Quark didn’t even have a bad initial distribution because everyone thought it was worthless until recently. Sort of mimicked the Bitcoin situation where people sold thousands of coins for a dollar. Here is proof (a crypto-rarity these days) in terms of volume exchanged at all points of Quarks lifespan: http://www.quarkcoin.cc/wp-content/uploads/2013/12/quark-volume.png

        Even if the initial distribution was bad, you should be more concerned with the current distribution of a coin if you’re an investor. And Quark is pretty similar to all major other coins in terms of its top holders, but I believe Quark has the second highest number of small wallet holders (unsourced).

  14. J Ruttiger says:

    ZETACoin Faucet 50 free ZETACoin http://tinyurl.com/kdsqfpd

  15. TheBat says:

    Yes, that’s nice number juggling. But in the end the coins are almost all identical and what really counts is:

    a) how useful is a coin
    b) how accessible is a coin (which relates to a)
    c) do people know & want the coin (a follows c)

    If you want to invest short term into coins I agree with above statements. You calculate on the basis of traders and investors. That’s fine, but it isn’t accurate long term. The People supporting a coin make it what it is and if people want to use a coin, supporting businesses will follow – it’s free marketing and more customers after all. With many supporters comes a lot of innovation.

    That in turn brings more publicity and thus more people that are attracted to it. And so the spiral goes. Bitcoin is a prime example for it.

    Dogecoin has next to Bitcoin clearly one – or the? – biggest base of loyal supporters. They love their coin. Not just traders that move to wherever an opportunity arises, but gents & ladies heavily in love with all the coin stands for. They don’t just move on if the value drops – as it did in the past. They are there for the fun & message. If money comes with it, great. If not, so what?

    And THAT is what a long term successful coin needs! Sure, it may crash more then once on the way to the moon, but that just means cheaper coins for everybody.

    If you look at the numbers of how many are mined, the coin would have to lie beaten on the ground. But it isn’t. 7 weeks old and already 40% off all coins mined! There are around 2 weeks left of easy coins and after that it’s getting SO much harder to get them coins. It is a coin that is heavily used and traded. It’s not sitting there waiting on the next good news.

    Yes, it is also hyped. But if the coin falls in value this cheap coins will be picked up with a smile because everybody knows where the coin is heading, driven from love and not greed.

    In the long run most coins will disappear, but Doge will stay. About this I’m a 100% certain.

    To the moon!

  16. justmyname says:

    Such Greed Much Foolishness

    38 Billion Very More Tomorrow Much Empty Bags In Future

  17. altcoin enthuasist says:

    If dogecoin coin rises in value steadily despite highest daily maintenance cost means more and more people are getting into the coin everyday. Dogecoin is bringing 1000 btc worth of new members everyday. Also after 10 days reward will be halved, and 50 days later again halved and so on. So the question to ask is should you buy dogecoins now or after 1.5 years when daily maintenance cost will be 1000 times less than today?

    • cryptocaveman says:

      Neither. You shouldn’t buy Doge.

      I think you’re missing the point about crypto maintenance costs, and that is that if the value of the coin goes up, so will the maintenance cost. So if Doge’s maintenance cost is really 1000x lower in the near future, it will be a pretty much worthless coin.

      That’s why we see value with high market cap/low maintenance coins like Quark. Quark can double in price and only need 2000$ a day instead of 1000$. Doge on the other hand…if it doubled in price would need 2.6 million instead of 1.3 mill.

  18. altcoin enthuasist says:

    Why do you accept donations DOGECOINs and not any of the top five coins?

    Quoted from this very webpage. On right side whee article ends.

    Start of quote

    Donate
    Help keep this site going. Your donations are much appreciated. Please send currencies to the following addresses:

    BTC: 14j8VU7TN7X7WrUX5Qw12SJEwquoWtkz7q
    LTC: Lfk1Ztt861RHcmA5W9MfXdt94SUdGNMZb4
    DGC: DKGEqx6WeBbHMvSG1Gmv6LGdN6qEQfu6zN

    End of quote

    • CryptoMaster says:

      DGC is a Digitalcoin address, not a Dogecoin address.

      As a side note, we accept donations for any coin. If you wish to donate in a different currency, simply contact us and we will give you an address ;)

  19. BingoBango says:

    @TheBat

    If the basis of your coin is smiles and love, then all I can say to you is good luck, and don’t plan on quitting your job.

    Dogecoin is nothing more than a bitcoin with a new logo. There is no technical development that improves it beyond bitcoin. What is to stop someone jumping on the next internet meme with another such coin? How well do you think a Gangnamcoin would be doing now?

    You might think that people will hold onto it when the price dips, but markets are ruled by greed and fear. If, sorry when, it starts to slide, fear will take hold and everyone will try to sell before the price goes down, which itself pushes the price down.

    I could be wrong. No one knows how these coins will play out, but I just don’t see what long term value Doge has. It looks like a bubble to me.

    I am long on Quark because of all the coins I have looked at (and I have looked at all the main ones) it is the only one that significantly moves the technology on from bitcoin.

  20. Justmyname says:

    Now that I know that their is a limit of 100 Billion for Doge coin it is possible that it could go to several Dollars. Judging from the Trillions of fiat money worldwide.

    Haven’t bought any though. It could start dieing any time also.

  21. Cryptsyclown says:

    I love doge coin! I mine it then dump my coins for Quark! Quark is the most stable coin in my mind with a growing community and and solid base makes for a great coin. I also agree litecoin is a good investment to.

  22. Matthew Bailey says:

    Thank you for the summary of maintenance costs.

    This crossed my mind (after my father, who is a returned CPA, Lawyer, and Financial Expert, mentioned it to me as something I might want to take a look at), but I had no idea how to calculate it at the time (sort of stupid of me, but I am a Computational Biologist, not a financier).

    I do think that Doge has a future in spite of it’s maintenance costs, but this is a SIGNIFICANT feature of cryptocurrencies that needs to be considered.

    Doge looks to be going the way of BTC in that regard… But I just accidentally diversified into QRK (I have a portfolio of less than 2BTC, so I am limited to these less expensive coins).

    I will retain my Doge, though, because it only cost me about $50 to buy into it, when it was only worth 20satoshi, and I have made two trades since on 40+ Satoshi spreads (increasing my Doge to a little more than roughly .5M).

    But I am looking at some other coins that will be worthwhile over 1 – 3 year periods…

  23. andrew says:

    Hi, don’t worry,
    Dogecoin is great coin BECAUSE there is popular support

  24. praeconium says:

    Hi, I just found this topic Your blog post and came here, and why would maintenance cost be total daily supply * price?

    Assuming daily supply price is static (although diff changes, so diff day diff static) while price fluctuates the only determinant of price is actually the amount of coins that change hands on exchange, volume at specific price.

    Wouldn’t for example (avg 7d volume – daily volume) * price be more accurate? As well as needed amount of BTC to lower it 10% etc based on orderbook be more accurate note of how much money is needed to destabilise price?

    Because this way You count how much daily cap is added, rather than money needed to support current price.

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