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RE: On gridcoin mining, profitability, value and other random thoughts.
Interesting analysis.
The conclusions would probably change though if we remember that:
Most of the PCs on the Gridcoin (and BOINC...) network are already existing machines that are used for something else, and only do research during their previous idle time.
GRC provides a rebate on power costs for the hundreds of thousands of exiting BOINC volunteers. If the GRC miners wanted to make maximum profit, they would be switching between coins daily to always mine the one which is most lucrative. Instead, the miners are here primarily to support science and advance humanity.
I've tried to focus only on economical aspect of the network and general conditions that would make underlying hardware sustainable. Currently system thrives on love for science and I also think this part is awesome and should be cultivated.
ad) To adjust to these machines working in their previously idle time, we just need to factor dedicated machine income requirements. If there is 10 pcs with specs equal to our reference computer, each working 2.4 hours a day on BOINC, they equal together one reference computer, thus each should earn 1/10th of the latter. So basically such 10 computers are represented by one reference, dedicated computer in the model above.
ad2) Yes, provides a rebate on power costs, but for how long? Without current crypto bubble, who knows, GRC could be 50 times cheaper and rebate would be quite negligible.
I don't think this would ever happen. Fifty times cheaper would put GRC at USD$0.0006, and people would buy stacks of it far before that point.