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RE: Introducing Buy 'n Burn
The alt coins are falling because tribal coins produce more interest than the market can absorb.
The thing is the market isn’t absorbing them most everyone is just selling them.
Buying Coins Seems To Make an Impact
Because no one else is. You can double most Hive Engine token market caps with as little as 2 Hive. You are correct about short term, but I think it’s likely shorter than you think as you can quickly double the market cap with a couple of Hive and the first dump for for the same or less will bring it back down again. Without utility and userbase there is really chance of it changing.
Since the trading volume of many the coins is less than a dollar a day, the simple act of buying a HIVE worth of coin can make a huge impact with some of the tribes.
Does it though, like does it really matter in the end? So the price changes but without volume or liquidity it meaningless.
The real goal of this project is to create a market maker that buys and sells coins. The program will occasionally burn the acquired coins.
Not a bad goal but it is like peeing in the ocean in Japan and saying it tastes funny in the US.
To attract users, both HIVE and HBD need to have a high market cap.
We need marketing that isn’t just throwing cash down the drain with nothing to show for it.
I firmly believe at this point the only thing that matters is more users. It will solve almost all of our problems. With a typical cost to acquire customers at or exceeding $200+ it becomes is very difficult to sustain.
I believe that HIVE Engine is the most likely source of new users. Splinterlands seems to draw more users to the platform than the forum.
Serious developers will judge HE on daily volume of the coins.
Anything to increase the daily volume is good.
Use Cases of HE Coins
Most of the coins on HE were issued by people who wanted to fund projects with the creation of a coin. In most cases, the interest was the only use case for the coin.
That design was not sustainable. It led people to drop cookie cutter tribes with coins that were guaranteed to collapse.
Many of the alt-coins simply gave money to the creators of the coin then left the public holding a bag.
The question in my mind is: How does one create a compelling use case for a coin?
The best way to create a compelling use case for a coin is to create a mechanism that buys the coin.
People are more likely to use a coin if they know that there is a future buyer for the coin.
Simply buying coins increases the market capitalization of the coin. Users fear that all the generated coins will come back and swamp the market.
The ultimate use case for any coin would involve a mechanism that buys the coin and then burns the coin.
The account @buynburn is not simply about burning coins.
I intend the account to fuel a discussion about ways to create use cases for coins on HIVE engine. The ultimate use case for any coin is something that buys the coin and then burns it.
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