This post is a logical follow-on from our post about which coins miners were about to dump.

The Daily Maintenance Cost was invented by Freetrade on Bitcointalk. The premise is simple: given that new coins are being mined everyday, and some or all will make their way to the exchanges (depending on who is mining), a certain amount of new money needs to flow into the coin each day, just to maintain it's current value.

The calculation is simple = you multiply the coins issued per day, by the current value in dollars, to work out how much money needs to flow in that day just to maintain the current price.

For example, here's the Litecoin calculation as at the time I'm writing this post:

Litecoin issues 50 coins per block, and the blocks are found every 2.5 minutes. Thus 576 blocks are mined per day. The total number of coins issued per day are therefore 28,800.

As at the time I'm writing this, the Litecoin price on BTC-E is $13.80.

Therefore the Daily Maintenance Cost for Litecoin at the moment is $397,400.

Here's the same calculation for Dogecoin:

Dogecoin is on block 159253 as at the time of writing, which means that according to the block issue schedule, 250,000 coins are issued per block at the moment. Each block takes a minute to mine, which means there are 1440 blocks a day. Therefore 360,000,000 coins are mined each day.

The Doge price on Cryptsy as at the time of writing is 0.00000104 and the BTC price is $500. This makes the price of each Dogecoin $0.00052. Therefore the Daily Maintenance Cost for Dogecoin at the moment is $187,200

The calculation for Devcoin is 0.00000027BTC x $500 x 720,000 coins = $972.

The calculation for Quark is 0.00004305 BTC x $500 x 11712 coins = $252

You can do this calculation for all the coins you are interested in - they ones with the lowest Daily Maintenance Cost need only a few people investing to make them move, whereas the ones with a high DMC need a lot of new people investing to make them move. Based on today's prices, Quark looks especially promising.

On the examples above, if we assume each new investor puts in $100, Dogecoin needs 1872 new buyers today to maintain the price at 104 satoshis, while Litecoin needs 3974 new buyers just to maintain it at $13.80.

Before you invest, ask yourself where the new buyers will come from - either look at the search trends, or support from the community or a combination of both

If you found this page useful, please leave a tip!

BTC 1LGdRmtnb45bU7eoNzqUrkbGf5UjX83V3e

LTC LL75CwNPdJyGJJYjTjwHpjZomLWaZwhwRx

DOGE DANyjiJmAFU83vWb8aeBoGToKJ1rqQVr3d

Related Posts:

Method 1: Looking for altcoins with a big community

Method 2: Which coins are being searched for?

Method 3: Which coins are the miners about to dump?

Method 4: Which coins have an ecommerce economy?

Method 6: How Pumps and Dumps Work.

Method 7: Trading Thunderclaps

Method 8: Trading Block Reward Halvings

The Daily Maintenance Cost was invented by Freetrade on Bitcointalk. The premise is simple: given that new coins are being mined everyday, and some or all will make their way to the exchanges (depending on who is mining), a certain amount of new money needs to flow into the coin each day, just to maintain it's current value.

The calculation is simple = you multiply the coins issued per day, by the current value in dollars, to work out how much money needs to flow in that day just to maintain the current price.

For example, here's the Litecoin calculation as at the time I'm writing this post:

Litecoin issues 50 coins per block, and the blocks are found every 2.5 minutes. Thus 576 blocks are mined per day. The total number of coins issued per day are therefore 28,800.

As at the time I'm writing this, the Litecoin price on BTC-E is $13.80.

Therefore the Daily Maintenance Cost for Litecoin at the moment is $397,400.

Here's the same calculation for Dogecoin:

Dogecoin is on block 159253 as at the time of writing, which means that according to the block issue schedule, 250,000 coins are issued per block at the moment. Each block takes a minute to mine, which means there are 1440 blocks a day. Therefore 360,000,000 coins are mined each day.

The Doge price on Cryptsy as at the time of writing is 0.00000104 and the BTC price is $500. This makes the price of each Dogecoin $0.00052. Therefore the Daily Maintenance Cost for Dogecoin at the moment is $187,200

The calculation for Devcoin is 0.00000027BTC x $500 x 720,000 coins = $972.

The calculation for Quark is 0.00004305 BTC x $500 x 11712 coins = $252

You can do this calculation for all the coins you are interested in - they ones with the lowest Daily Maintenance Cost need only a few people investing to make them move, whereas the ones with a high DMC need a lot of new people investing to make them move. Based on today's prices, Quark looks especially promising.

On the examples above, if we assume each new investor puts in $100, Dogecoin needs 1872 new buyers today to maintain the price at 104 satoshis, while Litecoin needs 3974 new buyers just to maintain it at $13.80.

Before you invest, ask yourself where the new buyers will come from - either look at the search trends, or support from the community or a combination of both

If you found this page useful, please leave a tip!

BTC 1LGdRmtnb45bU7eoNzqUrkbGf5UjX83V3e

LTC LL75CwNPdJyGJJYjTjwHpjZomLWaZwhwRx

DOGE DANyjiJmAFU83vWb8aeBoGToKJ1rqQVr3d

Related Posts:

Method 1: Looking for altcoins with a big community

Method 2: Which coins are being searched for?

Method 3: Which coins are the miners about to dump?

Method 4: Which coins have an ecommerce economy?

Method 6: How Pumps and Dumps Work.

Method 7: Trading Thunderclaps

Method 8: Trading Block Reward Halvings