The thing is, though, that as bitcoin grows, then the market cap of counterparty can grow without the XCP/BTC rate improving. So, say you think the market cap of XPC should be closer to 200M in dollar terms, and will get there in 2 years time, that could happen simply by the BTC/dollar rate improving. (Imagine a world where bitcoin has taken over fiat currencies and is worth hundreds of trillions, XCP would also have to be worth trillions to have an XCP/BTC rate of 0.1)

I haven't fully got up to speed, but is it possible for counterparty to be hugely successful, but still have a small XCP rate? Are XCPs truly needed, or can many asset classes be traded on the bitcoin network via the counterparty protocol but without requiring XCPs? As I understand it, 5 XCPs are required to create the asset, but are they needed after that? (Those 5XCPs are paid to the developers, right, for the improvement of the protocol? What happens when the system becomes stable and developers aren't really needed, where do those XCPs go then?)

If the value of XCP goes up to say 0.1btc, and btc goes to 10K dollars, then creating a counterparty asset would cost 5Kdollars, which might be a problem for the continued adoption of counterpart. However, as I understand it, that 5 XCP fee can be reduced. Is it that fee which creates the demand for XCP, and if so, will it be manipulated to keep the asset creation cost down? Would that manipulation also change demand for XCP, and thus affect the BTC/XPC rate substantially.

Sorry if these are dumb questions, just trying to understand the XPC economy.

The 5 XCPs while creating an asset get destroyed or 'burnt'. They don't go to Developers.

Poll for 99designs logo competition (cross-post): https://forums.counterparty.co/index.php?topic=180.new#new

Can you double check the link? Page not found.

They all look bad ... Current one is still the best option.

This looks awesome, great work.

Ok, thanks, that makes sense. Thought I read somewhere that the XCPs went towards project development bounties.

So bitcoin get burnt to create XCPs, then XCPs get burnt to create asset classes. Makes sense.


Thanks. If asset creation is the main usage of XCP then seems that this cost would be very important to the XCP value which would be a strange basis for the XCP economy. But I'm reading more, and it seems that XCP will be used for other things like betting as well.

It sounds promising. How is this going to work if someone sells their Goldcoin on the DEX to another person? It will now be associated with a new Pub/Priv key. Will the application in question use an active Node to verify the Blockchain?