11 [QUESTION]Do the economics of the mobile mineer really work?

Estebantr · 22-05-2018, 02:59 AM

(Sorry to use the word meener, but I have a question for this group and it keeps getting removed.)

I'm trying to think through the economics of the mobile meener, and I'm worried that its success hinges on a substantial increase in the price of ETN.
Ells is aiming for millions of mobile meeners in the near future, and Electroneum wants each mobile meener to get $3 worth of ETN each month. Let's say that Electroneum is very successful in marketing the mobile meener, and by this time next year, it has 10 million mobile meeners.
If the price of ETN then is .023, as it is now, each mobile meener would get about 130 ETN a month to get $3. If there are 10 million meeners, that would be 1.3 billion ETN per month. That would blow through the 7 billion premeened ETN in a couple of months. And with all those ETNs flooding the market, there is no conceivable way that the price would increase. In fact, it would almost certainly decrease. Which would require Electroneum to give each mobile meener even more ETN each month to hit $3. Leading to more pressure on the price. A classic death spiral.
If, however, the price rises to $.50, each mobile meener would only get 6 ETN a month. Even at `10 million meeners, only 60 million ETN would be distributed each month. That wouldn't blow through the 7 billion very quickly.
So here's the question. Does the success of the mobile meener require the price of ETN to get substantially higher before mobile meener is actively marketed? Does the success of Electroneum (and our investments in ETN) hinge on a substantial price increase in the short term? If so, this is profoundly risky.

11 [QUESTION]Do the economics of the mobile mineer really work?

Submitted by Estebantr, 22-05-2018, 02:59 AM, Thread ID: 89346