We called Nimiq a 7.95 in our initial review.
Looking at the chart above, we’re prepared to offer the extra nickel, but nothing more until the launch of the mainnet, which will be the real test of the token’s value. The ease of mining it will mean that there will be a huge diversity of holders. This diversity could easily become a constant dump-a-thon, with something always being better than nothing, until it is unrecoverably bottomed out. But, probably not.
The actual value of Nimiq won’t safely be determinable until payment processors accept it. This will be relatively trivial supposing someone like Shapeshift or Changelly is prepared to add the new blockchain to its stable of offerings. However, even then, you’re faced with an issue of desirability. If anyone can easily get Nimiq, does everyone want it anymore? This is a problem we didn’t adequately assess in our first review of Nimiq.
In a sense, Nimiq could be a constantly dilluted asset – at least at first. Treating browsers as first-class citizens and allowing everyone to mine easily means that consolidation of large amounts will be difficult. 1 minute block times means coins will be generated at a relatively rapid rate – however, there is a supply cap of 21 million, it will just be reached long before Bitcoin’s ever is. In their whitepaper, they did address all this: by design, they would prefer that centralized mining be very hard to achieve. At present, they are developing their algorithms and other pieces of the puzzle in order to start the mainnet.
We would strongly prefer to switch to a Proof-of-Stake Algorithm in the long run to get to a more energy-efficient Blockchain system. We are following the research of other projects such as Ethereum, and we are investigating multiple candidates such as Ouroboros. Just as well, we are very open to suggestions by the community.
They are interested in switching to a proof-of-stake model, much like Ethereum and Potcoin have done, using the proof-of-work phase to establish the economics and infrastructure of the Nimiq system. Unclear at present if this will violate the 21 million promised cap. If an increase to supply is part of the proof-of-stake switch, it would be advisable to exit Nimiq immediately as the aforementioned dillution would then become more extreme.
Nevertheless, as a general health check-up, Nimiq appears to be going according to plan and trading seems healthy. Given the positive movement of the token value, we’ll now upgrade her to an 8.0.