Bitcoin works. It has a track record. You are [mod edit: No insults allowed] and I don't have time to set you straight, assuming you even wanted to learn. I am just going to keep buying coins now while they are cheap.
The first are unbacked, fiat like bitcoin is now.
Bitcoin is not a fiat currency. Fiat means imposed using force, usually by governments. Bitcoin is a voluntary currency.
Bitcoin is, as hashcoin stated, a 'fiat like' currency. It shares one very important characteristic: no intrinsic value.
Hashcoin, thanks for the pm. If you want to discuss an alternate currency distribution scheme on this forum, be prepared for some insults and/or, more irritating, misquotes. Although it's good to see some moderation going on these days, it's one of the reasons I don't bother too much to do too much discussing here (after trying e.g this
http://forum.bitcoin.org/index.php?topic=15657.msg206521#msg206521).
Another reason is that, although I think I'd know the perfect solution for a natural, logical distribution scheme, I don't have a proper solution for two other problems that I expect to lead to the downfall of Bitcoin.
But, for the distribution, how 'bout (thanks to Ryan for part of this idea):
- Mining blocks is rewarded only with transaction fee's, no coins are generated with it.
- A 'special' transaction exists, where the 'in' does not refer to a previous transaction, but coins are generated by proof-of-work. (With proven 'difficulty' of a certain hash linear to the reward, hash of some previous block should e.g. be included to prevent double spending.)
- Anyone can create and send as many of these transactions as he/she likes.
No (noteworthy) inflation due to increasing moneysupply is to be expected, as one should be crazy to create more money if it's worth less than the cost of production. No (noteworthy, long-term) deflation is to be expected, as coins will be produced when appearently necessary.
There could be temporary deflation if money-demand outpaces production facilities. There could be permanent inflation if money-demand shrinks (same as with the current Bitcoin).
What is your incentive for early adopters of hashcoin?
I too think there's way too much incentive for early adopters now (
http://forum.bitcoin.org/index.php?topic=19303.msg241662#msg241662), and it will keep hindering it's acceptance. In normal life early-adopters are prepared to pay for interacting with new, cool technology (and for being early-adopter).
One more thing.
Build a new currency, call it hashcoins [...]
Have a look at
http://www.hashcash.org/ before you call it hashcoin...