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RE: Grab a ball of bytes for fun and profit
Very interesting, thanks for sharing!
So you say that it is a long term investment, do you believe the price will increase due to the smaller number available, or are there other reasons?
There are some opposing forces to take into account here. First of all, the current supply of coins is very limited as just a bit more than 10% of the total number of bytes have been distributed so far. Over time, as more coins are released, the supply will increase and we can expect to see some downward pressure as people sell their free bytes. However, that could be offset by "buy the rumour / sell the news" style waves of buying before each distribution round, as people try to establish positions so they can effectively get bigger cost basis discounts from the distribution. We already saw one such large price increase before the February distribution, followed by a sell off afterwards.
So one possible strategy I will explore is to ride the waves before the distributions, selling a portion as the waves crest and buying back once the price goes back down, thereby increasing my total stash.
Overall, I will continue holding until at least all the bytes have been given out, to maximize the number of coins I get. Beyond that, price should be largely determined by fundamentals: is Byteball usage increasing, are additional assets being added to the platform by third parties, etc. Just as the number of successful dapps on Ethereum should contribute to the value growth of Ether, I expect something similar could happen with Byteball if the devs can attract interest from third party developers. Byteball is designed to be very friendly to integration with the existing financial system, so if any banks can be persuaded to experiment with it, that could also be a catalyst for explosive growth.
Basically, the platform has a lot of potential but it could be a long time before that potential is realized, and before fundamentals can assert themselves we have to get past all the distribution rounds, which will have the largest impact on the price in the short term.
Wow! What a reply!
Thanks so much for the info, @cryptomancer - I will definitely look in to this.
You're welcome. By the way, I noticed your profile says you are a freelance graphic artist. As such, you may be interested in this design contest for the VIVA economic system, another crypto project I will be writing more about soon: https://steemit.com/contest/@vivacoin/viva-contest-so-you-think-you-can-graphic-artz