Perhaps there is a market for a secondary system (with convertibility between Bitcoin of course) to become a more stable value, for merchants and businesses that can't operate under the volatility of speculation. Litecoin is not best for this, as it doesn't have a mechanism for stabilizing the value.
AFAIK, the only advantage (other than shorter block time) Litecoin appears to have is a place for non-ASICs miners to transition to, so is it just "losers avenue" without sufficient differentiation to gain economy-of-scale?
I need to go clarify that my design does not attempt to stop all appreciation, rather it attempts to smooth it, so that the appreciation is more reliable. It intends to make sure you gain and not end up bitten and destitute (as nearly all even great speculators do in the history of the world). But everyone needs to go bankrupt at least once in their life before they believe this. No child will listen not to put their hands on the hot burner. And I am not about to physically restrain anyone.
So what would be the real advantages of the system I propose?
* Smoothed value that encourages the transaction rate to increase or track appreciation (i.e. the weighted-average of hoarding to decrease or track appreciation).
* all clients can earn the new coins on a more equal footing (thus the debasement is given to the owners without the centralizing negatives of Proof-of-Stake)
* more transactions means a bigger future and higher appreciation long-term, and a real currency that can be used when we really need it in the coming BIG MESS and WORLD WAR 3.
Perhaps you can at least read this one linked paragraph, which explains that "network effects" are required become a useful currency:
http://bitcoin.stackexchange.com/questions/8639/how-can-bitcoins-be-used-for-daily-currency-if-their-value-changes-erratically/8647#8647
Being able to buy a few dozens or even 100s of items online is no where near being a useful currency when TSHTF (and that is very soon). And it is not accelerating. The dormancy values in Bitcoin are likely increasing, because more and more people are just salivating on the buy&hold speculation. I know someone who is a big investor in silver, he just sold 50% of his silver to buy Bitcoin.
Getting a lot of people to hold Bitcoins is very useful for driving merchants to accept them. But the problem is that now no one in the USA at least can buy Bitcoins without have to file a report as a money transmitters. If you rely on the exchange to do this for you, you are not reading the law literally IMHO, and we are headed into nasty times where the govt will go after every undotted "i". FinCEN has fines with interest for not filing. And Bitcoiners can't earn them just by downloading the client to their regular computer either.
So maybe the demographics are a fairly small market of gamblers who are not that astute about the risks they face with the law. How many Bitcoin owners are there? I saw 10,000 figure?Is that outdated?
There is another marketvalue crushing option which causes much less resistance...
P.S. I wonder when the NSA will anonymously dump some of the massive number of private keys harvested?
AFAIK, the only advantage (other than shorter block time) Litecoin appears to have is a place for non-ASICs miners to transition to, so is it just "losers avenue" without sufficient differentiation to gain economy-of-scale?
I need to go clarify that my design does not attempt to stop all appreciation, rather it attempts to smooth it, so that the appreciation is more reliable. It intends to make sure you gain and not end up bitten and destitute (as nearly all even great speculators do in the history of the world). But everyone needs to go bankrupt at least once in their life before they believe this. No child will listen not to put their hands on the hot burner. And I am not about to physically restrain anyone.
So what would be the real advantages of the system I propose?
* Smoothed value that encourages the transaction rate to increase or track appreciation (i.e. the weighted-average of hoarding to decrease or track appreciation).
* all clients can earn the new coins on a more equal footing (thus the debasement is given to the owners without the centralizing negatives of Proof-of-Stake)
* more transactions means a bigger future and higher appreciation long-term, and a real currency that can be used when we really need it in the coming BIG MESS and WORLD WAR 3.
Im too lazy to look for the link, but theres US ISP providers accepting BTC as payment. They are becoming popular now. It is nothing but up sky high for BTC.
Perhaps you can at least read this one linked paragraph, which explains that "network effects" are required become a useful currency:
http://bitcoin.stackexchange.com/questions/8639/how-can-bitcoins-be-used-for-daily-currency-if-their-value-changes-erratically/8647#8647
Being able to buy a few dozens or even 100s of items online is no where near being a useful currency when TSHTF (and that is very soon). And it is not accelerating. The dormancy values in Bitcoin are likely increasing, because more and more people are just salivating on the buy&hold speculation. I know someone who is a big investor in silver, he just sold 50% of his silver to buy Bitcoin.
Getting a lot of people to hold Bitcoins is very useful for driving merchants to accept them. But the problem is that now no one in the USA at least can buy Bitcoins without have to file a report as a money transmitters. If you rely on the exchange to do this for you, you are not reading the law literally IMHO, and we are headed into nasty times where the govt will go after every undotted "i". FinCEN has fines with interest for not filing. And Bitcoiners can't earn them just by downloading the client to their regular computer either.
So maybe the demographics are a fairly small market of gamblers who are not that astute about the risks they face with the law. How many Bitcoin owners are there? I saw 10,000 figure?Is that outdated?
I reckon you can play with em for another year. Govs will ban em fo shiz - Embagos, Can't tax them, but until they are still flying under the radar they are all good
There is another marketvalue crushing option which causes much less resistance...
P.S. I wonder when the NSA will anonymously dump some of the massive number of private keys harvested?