I already told you about the mining process on my article about the 51% attack. In that article I explained that FEATHERCOIN has already implemented the “Advanced Check Pointing System” (ACP) mechanism in order to get rid of this attack. Do you remember?
Well today, I would like to explain you how miners can acquire many COINS without buying on the market; what better than FEATHERCOIN to illustrate this scenario.
At the time of writing, the FEATHERCOIN network is mined with a power of 3.6GH/s with the neoscrypt algorithm. One high-end graphical card such as NVIDIA RTX 2080 produces around 2,350 kh. It means you need around 1,500 cards to support the network. Considering a price around 750€ for a card; you need 1,125,000€ of hardware to run the Feathercoin network. In addition, you need a lot of electricity to run those cards 24/24 7/7.
Yesterday, we explained that the Feathercoin network produce around $500 of new coins everyday. So clearly at the moment it’s not profitable for miners (a million dollar invest which produce only 500 dollars a day!).
So why do we have so much power on the FEATHERCOIN network? The main reason is that a big miner want to get as much as possible of the new generated coins. At the moment he is mining almost 90% of all new Feathercoin; around 51,840 FTC everyday.
This miner is busy since early 2018 and during all this time he has probably accumulated a large number of Feathercoin. To get so much FTC on the market, he would have to pay a lot of money and the price would have sky rocket already.
You now understand that this is the METHOD to acquire large number of FEATHERCOIN without paying the price on the Market.
Now, the question is “What this miner will do with the coins?”. Nobody knows exactly but at some stage the miner will need some sort of return on his investment. Therefore it might start to buy FEATHERCOIN on the market in order to quickly increase further his position and the price.
So he would have even more FEATHERCOIN? Yes, it is correct and at this stage different scenario could happen:
- He start to sell slowly the coins while the price continue to increase based on the global demand.
- He makes a announce, like injecting funds on Feathercoin Development to make our preferred coin the new BRILLIANT star of the Crypto World and he keep a large part the coins “blocked” to reduce the circulating supply and increase the price.
Whatever the scenario is, the investment has been so high that it can’t stay in the shadow in the long term.
So YES, we have here an example of a miner taking acquiring many coins without buying on the market and I am very excited to see how this story will go!
Note: each of you (at a different scale) can start mining Feathercoin and applying somehow the same tactic!