It looks to me like there's a bit of a supply problem with DRK. (i.e. market supply not coin supply).
As far as I can see there's about 6000 DRK for sale in the known universe and its almost all on Cryptsy.
Bitfinex has less than 300 which could be due to 'hidden orders' except for the fact that it appears to have spiked up to 0.00634 this afternoon on a volume of a mere 90 DRK.
That's what I was saying earlier about liquidity - there is none. It's all tied up in masternodes where people are earning money with their DRK. As soon as there's the slightest bit of demand for this coin the valuation looks like it might fly. All that's being traded right now is granular DRK.
Do you see this as becoming an issue? I'm not programed to understand economics, so I'd like to know if this deflationary coin is too deflationary or something?
Not really an issue IMHO, the supply is tied to the price level. There is low supply at these prices but there is also relatively low demand so the price has stayed stable for a long time. Having said that, it has to move at some point, it seems unlikely for it to crash because is oversold and most of the investors seem to be long with DRK. So it is more likely that as we reach new milestones demand may increase and the price would need to move up to be able to meet the extra demand.
So in summary, more people will sell but not as these prices. It may continue to be stagnant too, there are no warranties. That is why our efforts to promote adoption and awareness are very important.
P.S. I am on my mobile so excuse any typos.
(Wow, I'm impressed with your mobile typing! You might want to checkout MessageEase. It is great once you get over the learning curve. (Of course you could cheat and use voice recognition.
))
@TanteStefana2
Regarding deflation; it is not the threat to DRK that it is to fiat for at least two reasons. First, the primary danger of deflation to a debt based economy is the aforementioned "pushing a rope" scenario. If your primary means of manipulating the economy is interest rates, you lose your ability to do so when rates reach zero, and have to resort to some form of "negative interest" such as QE. As deflation leads to an increase in the value of a currency (purchasing goods requires
less currency) People hoard the currency knowing every delay will result in more purchasing power, and the economy stalls as sales slow. At the same time, borrowing slows as people must pay back loans with increasingly valuable currency, while the urgency to purchase is reduced by the knowledge that prices will go down. Since the interest to pay back loans was
not created at the point of loan origination, the failure to loan more money into circulation guarantees an increase in defaults on loans which cascade through the system, ultimately destroying the system in any one of a number of possible end-game scenarios.
Since new DRK are not borrowed into existence
and there is an expectation of greater demand for the utility of DRK; there are no significant loans denominated in DRK whose default could wreak havoc on the DRK economy. Add to this the fact that there is currently not much DRK denominated economy at all, and the risk is non-existent. In point of fact, the "hoarding" of DRK caused by MN formation has an effect somewhat akin to that of deflation, in that the reduction in available supply supports the value of DRK by limiting the pool available to meet demand.
The second risk of deflation in a debt based economy is that there is simply not enough currency to meet the needs of the economy, which results in starvation due to lack of monetary units. (Think the great depression.) In this regard we are in new theoretical territory, but I suspect that the infinintly divisible nature of DRK combined with its true fungibility, and ease of transport/distribution, will render such negative effects as at most, trivial.
As Oblox observed, in an absolute sense DRK might be considered as slightly inflationary during the current "mining phase." But it seems likely that continued upward pressure due to demand for MNs as well as growing utilitarian demand for DRK in commerce will greatly overcompensate the slight value reducing effect of the new coins.
Ultimately, the effect of deflation is to increase the value of monetary units relative to things exchanged for them, be they FERNs, BTCs, Au, Ag, bread, bullets, or whiskey. This is the precisely what we desire and expect in the case of DRK. It is not to be feared, but rather cheered.
I hope that makes some sense.
Peace...
