The Economics of Cryptocurrencies

Cryptocurrencies Print Too: Here are their costs...

All Data Procured every 5 minutes - because Block Times change within a range, the figures close to the true cost, but may vary.
Cryptocurrency: % "QE" Devaluation: Annual Cost Total Coin Supply Market Cap Transactions Last 24h Average Transaction Fee % of Annual Transaction Fees as % of Marketcap
PIVX (PIVX) 5.85% 2,365,200 PIVX 40,425,437 PIVX $140,437,969 1141 $0.00034754 0.00010306%
Bitcoin (BTC) 4.42% 748,410.6 BTC 16,935,060 BTC $118,448,453,849 192,296 $1.07000000 0.06340412%
Ethereum (ETH) 7.7% 7,581,509.9 ETH 98,508,568 ETH $38,900,970,361 612,264 $0.24800000 0.14246981%
Bitcoin Cash (BCH) 4.05% 689,521.5 BCH 17,032,992 BCH $11,994,880,621 21,673 $0.04100000 0.00270396%
Litecoin (LTC) 9.42% 5,261,664.8 LTC 55,861,733 LTC $6,720,150,936 31,243 $0.16500000 0.02799952%
Monero (XMR) 8.18% 1,298,443.7 XMR 15,880,055 XMR $2,785,154,711 3,809 $2.39000000 0.11930329%
Dash (DASH) 8.35% 666,084.85 DASH 7,978,070 DASH $2,601,787,119 8,495 $0.27900000 0.03324977%
Ethereum Classic (ETC) 7.64% 7,750,125.3 ETC 101,414,453 ETC $1,461,056,522 35,574 $0.00780000 0.00693191%
Zcash (ZEC) 72.69% 2,611,242.85 ZEC 3,592,188 ZEC $672,899,437 6,112 $0.00000000 N/A%
Dogecoin (DOGE) 4.47% 5,085,916,935 DOGE 113,747,030,597 DOGE $318,374,149 23,420 $0.00440000 0.01181394%

Source: - it's a very simple calculation a 7th grader could make: Price Paid to Computers to Provide Security / Resolve Transactions by the Cryptocurrency (also called "Block Reward") over the 24 hr period, muliply by 365 then divide by the total Coin Supply and you get the annual "QE" (Printing New Crypocurrency and Giving it to someone other than YOU, the owner) for the Cryptocurrency. You can do this calculation for other currencies. This is just the beginning and we are working on getting this data automated. It is accurate until Block Reward changes happen on a particular currency.

¹ Cost of DASH is difficult to calculate, as the 10% of DASH "Printed" to pay for Treasury Costs is not included on Treasury Reward is assumed to be created just as for PIVX. Also, the cost here is the cost to NonMasternode Owners. The structure of DASH is such that the cost for paying the Masternodes in "Printed" DASH is at the expense of devaluing the position of the Nonmasternode Investors.
² Cost of PIVX is difficult to calculate, just like DASH, as it is built off of, and has many of the same features of DASH. 10% of Block Reward of PIVX is "Printed" to pay for Treasury Costs, and is assumed to be fully spent. The remaining 90% of Block Reward with PIVX is paid to all owners, except for those who voluntarily keep their currency in Exchanges or Offline Wallets. The entire currency as a Proof of Stake Blockchain, is built on paying all owners to either Stake (keep Wallet open and online to act as a Validator for the Blockchains), or Masternode (Process Instant Transactions/act as Mixers for Transactions). The reward is designed to be balanced, and is currently almost equally distributed proportionate to ownership, regardless of Masternode/NonMasternode status. This could change and will be updated.

WARNING: This site will be controversial.
It challenges preconceived notions and the willful ignorance of the cryptocurrency community.

To understand the real cost of owning a cryptocurrency, you have to understand how and why your cryptocurrency "works". Cryptocurrencies only work because they are computer programs operating on computers (either a few or many), and are more secure the more computers that have the same program, all confirming that the transactions are valid, and no fraud (double spend of same computerized "coin") is taking place.

This takes many computers with lots of computing power across the world to keep going, depending on how the program (Cryptocurrency) is set up.
Most Cryptocurrencies are set up to PAY for this computing power internally.
They PAY for this computing power by creating new Coins and giving them to the Computers for solving the chain of transactions to keep the system secure.

This is Cryptocurrency "Printing"


When these computers are PAID, it devalues your Cryptocurrency.

It is a cost, and in economics it is called an internalized cost. Most Cryptocurrency promoters and investors don't know this. Cryptocurrency investors are told that because the amount of coins paid to these computers is going down, the currency will go up in price. But they don't tell you that these computers would go away and stop providing the security for the currency, so they will start charging higher and higher transaction fees when the "block reward" declines.

That's why we've started to educate you on the real cost of cryptocurrencies.

We are developing CRYPTONOMICS 101, first in PDF Format and then Youtube.

While we are obviously critical of this dynamic, there are solutions that Cryptocurrencies are developing to resolve this. We are passionate about Cryptocurrencies as "Free Market Money" - but the advancement of Cryptocurrencies must be sustainable and honest with a straightforward evaluation of the fundamental economics that affect Cryptocurrencies. CryptoQE is the single greatest dynamic in Cryptonomics.

Cryptonomics 101

A Comprehensive Course on the Economics of Cryptocurrencies.

Lesson #2
How Do Cryptocurrencies Work?