Re: MC2 ("Netcoin"): A cryptocurrency based on a hybrid PoW/PoS system
With the Kickstarter project, will we require USD or can we do LTC?
Most crowdfunding platforms allow whatever fiat currency you use to convert to USD. The reasoning for why we need to do this at present is outlined in post #902. I do foresee that this will change one day, but right now we don't have cryptocurrency platforms to do so, as we need to bridge the space between funding to development. It may be an extra step for a few people, which sucks, but in the bigger picture it's no big deal.
That is true, things are not ideal, but I think creating a btc exchange account (in Bitstamp, MtGox..) and letting the btc users to pay and buy limited number of tickets through it, based on the current exchange rate of usd/btc at the moment of payment, wouldn't hurt anybody. This can at least be done for small investment/purchase of the tickets (<1 btc~=$100 for example).
The final amount received in that account (after reaching a cap perhaps), which will be in $, can be easily transferred by the use of wire system to any bank in US and Europe in not more than a week (you can include and charge the transfer and other fees this method may cause, to the investor's payment bill)
It will be wise to let 30% or even a bit more share of tickets to be sold this way (and you may put a limit for each purchase, by using btctalk id, to avoid rush or unfair distribution). Your currency will certainly have a brighter future if you let more people in to have a piece of the pie (even a very small one).
It's bad enough that those paying will have to provide identifiable information, but it's even worse if they have to connect it to their Bitcointalk ID too. That reduces security for the participants in exchange for decentralization of power. I think in this case security is more important than decentralization of power because power can be decentralized in other ways and at later times. Honestly, the people who buy in early aren't really guaranteed a larger piece of the pie than people who buy in late, they aren't necessarily going to have more coins, it just means they believed in the project from the start and were the first to become stakeholders and take the plunge.
One may desire to buy-in early not only to have a part of potential profit but also to support its favorite project. And after all, don't you think paying directly in fiat will more disturb the privacy and provide identity disclosure than paying by btctalk id and a btc wallet?!
I'm not too happy about the USD payment requirement. I understand why it would exist (for accounting and because it minimizes risk on the developers), but I also understand it merely shifts some risks from the developers onto the investors. Developers must have identities in order to get paid and to make the process transparent (for defense against scams, fraud, theft). Pseudo-anonymous development would be fine if you do it for free but when money is involved then there is currently no effective infrastructure in place to allow independent contractors to get paid in Bitcoin (developers in this context would be considered independent contractors).
When we make payment to kickstarter we are not going to be anonymous and that means somewhere a paper trail will exist on all who supported Netcoin development. That introduces a privacy risk to all who pay in USD, but if you do believe Netcoin is a good idea and you do support the idea then in my opinion you should pay. If you want some privacy you can pay in a friends name. The other problem is what you mentioned in that it would mostly be Americans who have USD so the early distribution might not be as good as it could be with Bitcoin.
I hope there is a way to let people pay with Bitcoin, have it exchanged into USD and then pay the developers. I think that would be the ideal way but I do understand it would be difficult.