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RE: GRC Supplementary Developments Proposal
Looking forward to following this project.
Question.
Under this system, would my cousin Carl be able to use gridcoin to crunch some data him and his kid put together with a hundred citizen scientists around the world, or would he have to buy Gridcoin to compute? Or how do you envision elementary schools using the Gridcoin network in this system?
@jringo Idea is to give scientist for free. Maybe even to people, but charge companies only. Of-course, companies would need much more resources and enterprise grade product following some industry standards of quality, so we can easy make separate products, free for citizens / scientists / institutions and paid for businesses.
Also the input money for businesses to buy computing power is not GRC only, - it's any monetary note, crypto or not. The output for researchers who execute tasks is GRC.
Now goes the "economy trick" part. We use that money from companies and buy GRC with that money. This is where we create so called "value difference", leading for GRC price to jump up due to market demand. (And we are supporting and creating that demand by exchanging other currencies into GRC).
'trick' sounds sneaky, it seems to be basically broad service / product / money interchange system (or simply economy).
@hobit the "trick" is a very sneaky one, but it's used as an economy tool in regular economies of the countries to prevent inflation and raise the value of currency if it's devaluated. The best example of using such tool in crypto-market are promotional posts on steemit here (to promote post, you send to null address).
Without such 'tricks' any currency (real of virtual) can't climb to real market potential, although empowering such tricks too much lead into another set of problems.
That kind of tools should be tweaked by people who know much more about the economy then me. What I do know however, is that the price of GRC is very devaluated, maybe even 10 times. It's relatively easy to tell by observing dependence (or independence in this case) on other currencies and market change.
the "trick" you're referring to is used because fiat fails regularly. inflating a price by artificially creating demand is ultimately self defeating. that's one reason why crypto was made in the first place. we will likely not need to use the economic tricks of fiat in a global digital micro-transaction multi-currency economy (buzzwords for googling).
i think there is potential to this project, but please be careful.
@jringo there is a small difference between artificially creating demand and 'converting a demand for product into a demand for currency', these are very separated things.
Here, we are burning real money converted into GRC and then burned, so it's not artificial, but "projected value" that's burned, and more important "projected" against demand of product that relies on main currency within the economy of the product itself.
I needed to explain the difference.
But i do agree it needs to be done very carefully, and not by me, by someone who knows much more.