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XCP - what is it good for?

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Fernandez

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I should start by saying I am a big fan of XCP. I loved their way of doing things at a time MSC and NXT were receiving a lot of flak and how fast they were progressing with devs slated to make money only if the project is successful and not paid in advance, like a certain Ethereum project to name one.

What I don't get is the business model. Sure, XCP has delivered stunningly in the technological sense, but I don't actually see much sense in actually buying and holding XCP, or the demand for XCP. I wonder if this is a design flaw, or the devs intentionally meant it to be such.

Posted on July 17, 2014 at 2:03 PM

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• Paws1t1veEV

  

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  I'm no expert, but i think the automatic dividend feature is very attractive. I believe one can only program these to be paid out in XCP.

  For an asset to use the feature, they must convert funds to XCP and then the dividends are paid in XCP. This creates some demand for the rare token.

  Posted on July 17, 2014 at 2:10 PM
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• Fernandez

  

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  @paws1t1veev I'm no expert, but i think the automatic dividend feature is very attractive. I believe one can only program these to be paid out in XCP.

  For an asset to use the feature, they must convert funds to XCP and then the dividends are paid in XCP. This creates some demand for the rare token.

  That's a good feature, didn't know that. I still think they should have made XCP more indispensable on the platform.

  Posted on July 17, 2014 at 2:16 PM
  Last Edited: July 17, 2014 at 2:16 PM
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• Cryptonaut

  

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  @paws1t1veev I'm no expert, but i think the automatic dividend feature is very attractive. I believe one can only program these to be paid out in XCP.

  For an asset to use the feature, they must convert funds to XCP and then the dividends are paid in XCP. This creates some demand for the rare token.

  you can pay dividends in any token, including BTC. XCP, or even LTBcoin if you want

  the main function of XCP is for creating the actual assets. You have to burn 0.5 XCP in order to create a new token/asset

  Posted on July 17, 2014 at 2:17 PM
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• Paws1t1veEV

  

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  Thanks for the correction Cryptonaut. I was clearly misinformed. I love the dividend feature even more now :)

  Based on the total coins in existence, this means the Counterparty can only have ~5.3 million unique assets?

  Posted on July 17, 2014 at 2:22 PM
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• Cryptonaut

  

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  I believe the XCP price per asset is supposed to go down over time (it started off at 5 XCP then went to 0.5). Not sure if there is a specific schedule for that hardcoded or not though

  Posted on July 17, 2014 at 2:33 PM
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• malacalypse

  

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  XCP is also used for betting and contracts for difference

  Posted on July 17, 2014 at 8:42 PM
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• knircky

  

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  Yes XCP is kind of the main currency of counterparty. It is much faster to do things than with BTC.

  So if you want to:

  • Create an asset
  • Betting and CFD
  • Play Rock Paper Scissors (gambling)

  you need XCP. Since you will be able to buy XCP easy via the DEX or in future via vending machine the currency is hyper deflationary. First it is fixed in qualntity. So if the value of counterparty goes up the value of XCP has to go up. Then also when u create assets XCP gets destroyed. Thus the amount of XCP will become less and less.

  It must be the business model of the developers to built the best system ever and then hope that their XCP that they have surely bough go up in value.

  Also in the future you will likely buy most assets via XCP vs BTC since it will be much faster ans smoother.

  Posted on July 18, 2014 at 8:45 AM
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• rockhillking2

  

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  XCP deserves more attention for its excellent team.

  Posted on July 18, 2014 at 10:49 AM
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• BikerGSX

  

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  I don't think you can go far wrong by holding some XCP long term.

  Posted on July 18, 2014 at 12:34 PM
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• ney

  

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  @bikergsx I don't think you can go far wrong by holding some XCP long term. I hold my XCP since the burning time: more than 6 month!

  Posted on July 19, 2014 at 2:14 AM
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