********* Update Alert *********
I've added another chapter to the discussion on the previous page about Dash economics, called "How is Bitcoin Doing It ?". Also added a new graphic to illustrate the complimentary relationship between primary and auxiliary markets in matching a step change in supply to a ramp change in demand in Icelandic generating capacity.
https://bt.irlbtc.com/view/421615.msg12549331#msg12549331Small typo in the second last para btw, "but the markets had distinct properties which complemented on another in the way Dash's do.")
Thanks Stan, have fixed that typo and quite a few others I found - perhaps you could refresh your quote to reflect the changes.
Any thoughts on what kind of effect unscrupulous exchanges would have, like the Gox scenario where most of the coins on the books didn't exist?
Thats an interesting point. I think that kind of thing is basically just a corruption of the system who's impact possibly behaves as an over-supply in the currency sector (blue area). To analyse the effects of this therefore we could model it as a relative reduction in liquidity demand, so the entry point in the model would be
step [3]a.
tok