Hi, my first post here. I am thinking to invest in Holochain. As a beginner I am not too much aware of it. So I need your suggestions.
SUBJECT TO CHANGE - NOT FINANCIAL ADVICE
I will give 3 quick pointers from our Telegram channel to get you started on your journey. If you are interested in HOT, Holo and Holochain as a whole I can help you further on the way. We are focused on our product and our community.
• $HOT is the ERC20 temporary token.
• HoloFuel will be a Mutual Credit Cryptocurrency for Holo Hosting payments.
• Holo is both a distributed cloud hosting service and App Store for distributed applications
• Holochain is a data integrity engine (protocol) and application development framework (pattern) for truly distributed applications.
written on Telegram by @LifeSMyth
You should take a look at holo economics 101 article. There is a reserve that will provide a counterweight to HOT speculative prices on exchanges. People will decide where to buy/sell depending holo fuel price is lower/higher at the reserve or at exchanges.
written on Telegram by @Sol
How to understand the prices of HOT and Holo fuel? What is the interplay between the two? Remember that HoloTokens (HOT) act as temporary, transferable receipts which can be redeemed for Holo fuel when Holo is launched. The supply of HOT is small and temporary, whereas the supply of Holo fuel is dynamic and designed for long-term economic viability.
5 Factors drive Holo fuel’s value
The current market for decentralised and centralised hosting through Ethereum, Amazon Web Services, and others
Demand for distributed computation, personal data ownership, and hosting
Number of hosts, and their prices based on the ability to run on cheap hardware
The popularity of apps and usage levels of hosting power on the Holo network
Relative demand from hosts for redeeming out into each reserve currency
You will notice that neither demand for nor supply of the currency was on the list of key pricing dynamics. Patterns of thinking about currency value based on token supply simply do not apply to Holo fuel — that is by design. It is optimized as a value-stable medium of exchange rather than a store of value, so that it can grow an active economy, rather than just have people parking their crypto assets. As a mutual credit currency, the net supply of the currency is always fixed at zero — positive balances offset negative balances. No currency is created from nothing. The active supply expands and contracts based on real market demand to keep the value stable, while still being capped at the productive capacity of the network to provide hosting power.
The Hosting Market
The first two factors have to do with the fact that today, we pay a premium for hosting because of the complexity of scaling software and server infrastructure, and the high cost of the expertise to do so. The introduction of Holochain as a self-scaling P2P crypto architecture paired with commodity hardware for running Holo may bring hosting prices for decentralized apps from where it sits today on Ethereum at 400 million times the cost of cloud hosting, down to the price range of cloud services or even below that price.
The Holo Hosting Market
If you buy Holo fuel before Holo hosting prices drop, then as Hosts charge less fuel for hosting, you can purchase more hosting with that same fuel. As the buying power of Holo fuel grows the market price for Holo fuel also grows. The value of the currency is tied to its buying power in a productive economy of hosting services. If you buy HOT before Holo fuel is available, then again as Holo hosting prices drop, then as Hosts charge less fuel for hosting, you can purchase more hosting with the same fuel that you bought (for later use) during the ICO.
Initial Pricing Relative to Ethereum Performance
To predict the costliness and efficiency of the Holo network relative to the Ethereum network, we measured the computational load, price, and timing of running dApps on Ethereum, made counterpart apps on Holochain that accomplish the same things, and ran benchmarks to compare performance. Read more about this process here for details of how we established the value of a unit of Holo fuel and pricing for hosting dApps (at 1/10,000 the cost on Ethereum).
Short-Term Expected Influences on Holo fuel
Positive influences
Hosts likely to receive massive revenues at ICO or token market rates (which will yield aggressive pricing)
Initial rapid fall in hosting prices means a rapid rise in buying power = currency value
Migration of noteworthy projects from blockchain will boost Holochain’s credibility.
Long-Term Expected Influences on Holo fuel
Positive influences
Easy use of Holo fuel from Holo dApps will expand the application and reach of currency usage
Once supply and pricing algorithms have reached reasonable equilibrium, prices should stabilize making more users feel safe to try cryptocurrency.
Alliance with other emerging asset-backed currencies expand safe/stable crypto user base
If regulators shut down crypto coins, Holo fuel may continue to operate because it is crypto-accounting
In short, buying HOT now is speculating on the future value of the Holochain/Holo network.
written on Telegram by @r2d2 and @WorldOfHolochain
I thank those who are quoted for their contributions! Please inform me if you want this reference or information removed. I have the intention to experiment if reacting to this question is even viable as I embrace the idea of welcoming.
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To add on to @Daya info above, on factors that can cause Holo fuel value increase, below is the github article back in 2018 on “Holo Value Benchmark”: https://github.com/holochain/benchmarks
The key points: " We are promising that Holo apps will be able to compute for 1/10,000 the cost of doing so on Ethereum. The benchmarks show this to be an easy target such that expect independent market pricing to end up closer to 1/100k or even 1/1m the cost of Ethereum. Holo hosts will still make a good return on their hardware investment even at those rates."
"TL;DR;
- 1 Euro buys you 10,000 Holo Tokens.
- 1 Holo Token buys you 1 Euro’s worth of Ethereum computing on Holo.
- This price is high enough for hosts to charge less which should create early value increase in the currency and then stable value once a price equilibrium is reached."
However, i like to add this is way back in 2018. I have no idea how would holochain computing cost relative to Ethereum’s cost NOW.
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Hi, I’m trying to understand if $HOT makes sense as an investment, but I don’t get why the price should go up from here: all the factors listed above should already be reflected on the price right now, should they not? And why the price should rise considering that the increase in demand for the currency doesn’t affect the price?
What am I missing?
Thanks
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