Proof Of Stake - Why I believe Leocoin will be the next Bitcoin
In order for the price of an item go increase demand must outweigh supply. There must be more buyers than the current supply in the market.
Simple economics tells us that if you have one seller of apples with a barrel load of apples and 10 buyers eager to buy then the price of apples will increase. If there are 10 sellers with a barrel of apples each and only one buyer then the price will decrease. Simple enough.
It is the same in the world of cryptocurrency. If a digital coin has limited supply and demand is high then the price will rise (and vice versa).
So what makes me think that Leocoin will have the right supply and demand dynamics to make it the next bitcoin? In a nutshell - Proof of Stake (POS).
POS is where crytocurrency miners are rewarded by the amount of coins they stake rather the amount of computing power they provide. You can watch a video by the co-founder which explains POS in more detail. I want to highlight the salient points that make for high demand and limited supply.
According to the Leocoin protocol only 20 coins can be mined per minute. This is equal to about 10.5 million per year. Remember this figure as it is the total supply in a year.
The Leocoin proof of stake works with amounts of 1000 coins, 5000 coins and 50000 coins (rewards are 10%, 15% and 25%). So if a member has 999 coins then there is no reward and no opportunity to benefit from POS. Given this scenario most members will want to have at least 1000 coins. There are currently about 220,000 members. For the last four years Leocoin has quadrupled its membership. If this were to happen again from now until the end of 2017 then there would be almost a million members. Lets be conserative and assume that the membership grows to just 500,000 (half a million). If each of these members wants to have 1000 coins then you have demand for 500 million coins. Demand is limited to 10.5 million. I will let your imagination play around with the potential price increase!
POS is a game changer as far as Leocoin is concerned. There are a number of other enhancements, updates and releases which will ensure that LEO in general and Leocoin specifically will grow and be successful and I will be writing about these in future articles.
If you would like to know more about LEO or want to take advantage of the great opportunity offered in the exciting and lucrative field of cryptocurrency then please contact me or visit my website
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