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To: JimRed

You could start your own coinage. How do you get folks to trust it enough to see it as a store of value? One of the nice things about Bitcoin is that anybody can “mine” the coins. It doesn’t matter if Bitcoin’s founder spends all he or she has and never mines another coin. When Bitcoin started, folks could mine a coin in a reasonable time period using their home computer. It takes much more processing power to mine a coin today. And that’s by design. Some folks think the last Bitcoins won’t be mined until 2030 or so, because of the amount of processing power needed. There are hundreds of Bitcoin miners, but only a handful of companies with warehouse-sized processing farms are mining the vast majority of new Bitcoins today.

The new coin that I’m keenest on has taken a different approach to trust. Instead of decentralized mining from the start, the company doesn’t plan to make the algorithm public until 80% of the maximum 2.1 billion coins are mined. The trust factor involves the company’s huge goals for the usability of their coin — the profit they will make from, say, displacing Amazon in online marketplace and Paypal in online payments dwarfs the billions involved in the coins’ face value. Most of the world’s population doesn’t have a bank account. Cryptocurrency has vast potential in helping billions of unbanked folks day in and day out. I think cryptocurrency will have as big an impact on the world as the invention of the printing press, the TV, the computer, and the cell phone combined.


31 posted on 02/03/2016 7:20:52 PM PST by Steve Schulin (Cheap electricity gives your average Joe a life better than kings used to enjoy)
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To: Steve Schulin
Most of the world’s population doesn’t have a bank account.

But they have a computer? Or even electricity? Strange world!

33 posted on 02/04/2016 7:06:35 AM PST by JimRed (Is it 1776 yet? TERM LIMITS, now and forever!)
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