Master nodes in relation with volatility

H

haarts

New member
I'm reading the whitepaper at the moment. Therein it is stated that forcing the master nodes to have 1000 dash collateral reduces the volatility in the price. It fails to explain why (at least, it is not obvious to me). I see that you tie up some coins, although in case of major market disruptions an operator can just sell them off regardless, and perhaps that's why the author thinks why this reduces volatility. I'm not convinced this is true.

Can someone elucidate this for me?
 
3200 Masternodes in Existence
means 3200 x 1000 Dash are off the market and invested in Masternodes.
that takes a LOT of coins of the trading market and so stablalizes the price.

Look at the Dash movement compared to other coins, much more stable.
 
tungfa Isn't that the same as saying that 3200x1000 coins don't 'exist' for the purpose of regular transactions? If that is so the actual amount of coin in the market is far lower. Thus making market makers (purchases/sales significantly move the price) more likely?

The fact that the price of DASH is relatively stable is merely anecdotal evidence.

Sapereaude Perhaps that makes sense; speculators might be lured into the steady income instead of the gamble of volatility.
 
Bitcoin has clearly demonstrated that markets are neither rational or trustworthy, they're far too easily manipulated , far too focused on price and ignorant of value, too little transparency and so vulnerable to trading coins they don't have... In short they have no place in the cryptocoin ecosystem and will be innovated around, possibly by distributed exchanges, possibly by masternode managed reserves, possibly by something no-ones even thought of yet but they will not be tolerated in their current form and 3.2 million Dash in safe storage and away from the exchanges can only be seen as a benefit.

As far as stability goes, those 3.2 million coins can be traded at any time and, if the price spikes they can be sold, if it drops more masternodes can be added, they're in reserve and available for trading but they haven't been sent to some archaic trust based exchange and possibly lost/stolen.
 
haarts said:
tungfa Isn't that the same as saying that 3200x1000 coins don't 'exist' for the purpose of regular transactions? If that is so the actual amount of coin in the market is far lower. Thus making market makers (purchases/sales significantly move the price) more likely?

The fact that the price of DASH is relatively stable is merely anecdotal evidence.

Sapereaude Perhaps that makes sense; speculators might be lured into the steady income instead of the gamble of volatility.
Click to expand...

the coins can exit anytime , but you are still deflating the traders market.
if you are invested in x amount of masternodes you are interested in the long term and not short (day trader ) and that brings stability
 
tungfa perhaps you're right but I'm not wholly sold on the 'if you run a masternode you're in it for the long haul'-story. If I, as an investor, can make more money running a full node, I'll do that. If, on the other hand, I can make more day trading I'd do that. Since switching between these strategies is (seems to me) costless long term interests have nothing to do with it.
 
haarts said:
tungfa perhaps you're right but I'm not wholly sold on the 'if you run a masternode you're in it for the long haul'-story. If I, as an investor, can make more money running a full node, I'll do that. If, on the other hand, I can make more day trading I'd do that. Since switching between these strategies is (seems to me) costless long term interests have nothing to do with it.
Click to expand...

i totally hear you
thing is, i am not a trader ! so i am actually the wrong person to engage on this.

"....you're in it for the long haul'-story...." is totally me,
and sure i imagine that everybody thinks like that :wink:
as i find trading terrible stressful.

setting up a mastered still takes time, you have payment circles,....
so if you have 1 up, you will not just take it down in 2 days only because the price moves
but that might just be me (again) and other people are actually more flexible in MN's and Trading
 
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