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10359970 No.10359970 [Reply] [Original]

People still have some incorrect assumptions about the remaining 650M not in circulation. Half goes to the team. Half are used to pay the nodes.
Rory has stated this.
Now would it make sense for a company that's been around for 4 years to dump their portion of links on the market with the price so low?
No, it would be stupid. The half used for node rewards will be locked until they are used to pay node operators, namely, us.
Node operators will be paid a dollar amount in link, depending on the number of transactions it preforms.
If you were to be paid $100 dollars in link, would you rather link be $100 (1 link payment) or $0.50 (200 link payment), I hope
you said 200 link payment.
Now arbitrage will not likely last long as the market catches on, link will not remain a low price given a return on Xlinkies exceeds the other investing opportunities
by a significant amount.
I actually don't think current price is all that far off from a healthy but normal rate of return we may see in the early stages of the network. For example, If you have
A monthly return: 20,000 link in a node (@$0.25) and it rewards 100 link (or $25), or annualized 1200 link = $300. $300 return on initial $5000 investment = 6%.
Now where it gets interesting is when more transactions are processed through the node (more businesses are on-boarded), if price were to remain stable you would receive more link.
So now lets say 20,000 link returns 300 link a month ($75), but that would be an annualized 18% return, this should get people interested therefore buying up link
and driving up the price of link which lowers the amount of link you recieve as reward (but keeping the $ amount of the reward the same).
So in this example lets keep 6% an equillibrium, the price would rise to $0.75 per link and your 20,000 link are now worth $15000 rather than $5000 and your previous rewards that you recieved at $0.25 you could now sell
for $0.75. Continue this processes until link = $1000 :).

>> No.10360015
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10360015

Good synopsis, anon.

>> No.10360392

>>10360015
Thanks Anon. Line breaks are weird since I type in Notepad. I also omitted (due to space) that I don't believe Circulating Supply will exceed 500,000,000 until 2021 for reasons I listed near the beginning.