Will #Obelisk devalue the price of Sia coin ???

  • Will #Obelisk devalue the price of Sia coin ???
    If there will be millions of sia coin generated by ASIC miner , there should be inflation in siacoin price . I am very new in this field.
    Can anyone please clarify?

  • Global Moderator

    @kafi959 requiring a specific hardware that you can't just buy at any time might make it go up with supply and demand.
    But also might make people lose interest because they can't mine.

    Make sure you tag me @bryan if you need to me respond.
    Forum Mod. I cannot fix transactions. I can't help with Mac or Linux.
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  • the supply of coins is done through mining. The rate at which new coins are mined is determined by the "inflation". Sias inflation follows a downward slope in some years hitting 2% where it stays. So the generation speed of new blocks where the "reward" is stored is predefined and cannot be altered. It is controlled by the parameter difficulty, to ensure that the rate of new blocks is the same.

    now... any miners ability to get hold of new block and being rewarded depends on his mining power, the hash rate. The more has rate at his disposal the better "chance" to get hold of new blocks. This is where the HW and the asics /Obelisk discussion comes in.

    Before you could mine with a normal PC, now you need GPU and in a while you will have to get hold of dedicated hardware. The algorithms difficulty level ensures that even there is more hashing power in the net work the rate at which new blocks are mined is the same, so adding hasing power does not generate more coins! and as such has no influence over the price.

    Dedicated HW can lead to centralization as we've seen with bitcoins, centralizing the ability to actually mine profitalby on fewer hands due to the high investment in dedicated Hardware, but on the other hand it also ensures a stable network so I'm not sure if it is good or bad.

    read this post and judge yourself: https://blog.sia.tech/choosing-asics-for-sia-b318505b5b51

  • Thanks @larshfloe for the explanation.

    My understanding , Sia is selling obelisk for mining that generates 50,000 Siacoin/month. If this is true and if they able to sell 10K obelisk , the average monthly coin will be 50 millions plus that will be added in Sia-pool, which mean the price of coin will be inflated and RTO will be very less or down to zero .
    In this scenario we wont able to make money except the project owners if we buy ASIC/obelisk . Also as per forum , Sia owners has less confidence on Sia coin itself than Bitcoin , which is why they accept bitcoin instead of sia-coin, looks fishy to me.

    The project for decentralized cloud looks awesome but as a miner I wont see any profit in future unless if I am missing something ?

  • My thoughts on this.
    I agree with Sia devs, it will add some stability for the system/network in long term.
    The long term perspective is upwards trending anyway, regardless of asic usage or not.
    Obelisk will not add 50KS/mo, it will reduce other miners reward by that. It's exactly the same as every new GPU starting mining decreases other miners income.

    There could be noticeable fluctuations when the first batch of obelisks start mining. I'm sure there will be obelisk owners wanting to get the invested money back as quick as possible and that means a short period of bigger coin dumps to exchanges.
    After that the obelisk owners will realize they control the coin supply, so, if the network is running as intended and the demand for storage increases, they can rise the price by holding their mined coins. If the demand from renters grows faster than the predefined inflation, price will grow exponentially, till the price of the service (private storage) exceeds renters acceptance. Just remember that coins are locked (unavailable to market) till expiration of contracts.

    No one knows how many obelisk operators will be there, only the count of devices, but operators will be far less than devices. I think the result will be something similar to DASH- a relatively small group of people controlling a significant share of all coins generated. And the human nature says the limited group will try to protect their income/profit by manipulating the price and supply.

  • Thanks Reinisp . it is more clear to me now :)

  • @kafi959 No it won't.
    See GPU miners have their undies in a knot and are crying like babies.
    ASICS aren't selling that well and thats great.
    Why? Because my mate has ordered 3 and i have 1 and some other mates are getting 1 each.
    Hopefully they only sell 2500, because at 2500 one obelisk will make 240k sia a month.
    Meaning all the coins that are being mined now, will only go to 2500 people.
    Like me and Sia will have a very secure network, win win
    : ) happy days
    People have no idea that how good the Obelisk is.

  • @andyg said in Will #Obelisk devalue the price of Sia coin ???:

    People have no idea that how good the Obelisk is.

    I would disagree there - everybody serious about about Sia understands the benefits. But not everybody can afford to invest to $2500 in a venture that may not pay off ever. Biggest reasons it may not pay off IMHO are

    1. SC may be worth shit when the miner hits the market. You get 240k SC, sure, but if that's only worth cents...
    2. the ASIC may be shit (compared to other mining solutions at that time) when it hits the market, or they may not deliver, ever.

    If you can afford to lose the money and believe in Sia, then by all means go ahead and order one (or more). FWIW I can, do and did :)

  • @maol said in Will #Obelisk devalue the price of Sia coin ???:

    1. SC may be worth shit when the miner hits the market.

    It could and should if the network isn't better than now from both (renter and hoster) sides. Regardless of ASIC existence.
    I don't believe the development will stall for the coming months so I'm sure the network state, demand for storage and profitability for hosters will go up.
    From my point of view the coin price should be depending more on the offer/demand relation for storage and less on mining. That's where Sia differs from most of other cryptocurrencies. As long there is substantially less demand for coins used to rent storage as there are mined coins I see no reason for a big rise in price for the coin.

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