Quote from: markm on October 07, 2012, 11:25:04 AM

I still think the cryptocoin ecosystem needs more than just bitcoins.

Bitcoins keep going up in value and can reasonably be expected to do so for quite some time.

We need things just as easy to use, compatible in their use, in short, altcoins, that do not go up in value as fast.

The prejudice against altcoins has been very destructive, I think.

Basically store of value and transmission of value are two different functions, and it is very useful to be able to use two different coins for these functions so you can stash your fast-appreciating bitcoins away in a margin aka collateral aka leverage account and borrow, using your bitcoins as collateral, something that appreciates much slower or not at all.

Obviously the fact that fiat tends to depreciate in value makes it tempting as the asset to borrow, but it lacks the ease of use cryptocoin users are accustomed to. Thus various altcoins are often much more convenient a choice as the asset to borrow.

From some reading I have been doing it seems possible that what "should happen" is the interest rates should adjust to prevent any one currency coming out ahead of any other as "the best one to borrow" but if in fact arbitrage or something is going to get to that point eventually it does not seem to have done so yet as some nice profits are being made even by the simple strategy of borrowing altcoins with which to buy more bitcoins to use as collateral to borrow more altcoins with which to buy more bitcoins, etcetera.

I do not agree that the future of bitcoin is illegal, as was already pointed out just one of the payment processors supporting bitcoin has over a thousand merchants accepting bitcoin, it seems unlikely they are all illegal businesses.

I do think though that the future is a diverse ecosystem of cryptocurrencies because there do seem to be advantages to diversity.

-MarkM-

I think thats where a coin like the proposed freicoin comes in.