Post
Topic
Board Altcoin Discussion
Re: Dash Sucks Dicks Dash Is Instamine
by
dinofelis
on 10/03/2017, 16:20:28 UTC
These three aspects of monetary media not only are distinct, but actually have conflicting priorities - which is why they are almost never the same medium. If you try to create a crypto that does these three things well it will be a crap crypto because you'd have to create nasty couplings between conflicting objectives:

 • Payment systems need to be currency agnostic whereas blockchains have to be currency native
 • good stores of value need to impose scarcity to deflate prices over time whereas good currencies need to inflate liquidity to keep prices stable
 • currencies must be definable against a heterogeneous background of both payment systems and collateralising assets, whereas payment systems only facilitate the clearing of a trade and represent neither a currency nor an asset

This is a very good analysis.   That said, block chains can take on the role of "small community currencies" where they also perform the function of a payment system.  Using them as a store of value/speculative asset (which is most of crypto these days) is a totally different role.  But you can have many block chains that perform many different functions - what is still not present sufficiently, because of bitcoin's domination, are distributed exchanges that can connect different chains, and as such, form a larger payment system.