Post
Topic
Board Announcements (Altcoins)
Re: [ANN] Ethereum: Welcome to the Beginning
by
Skoupi
on 28/10/2014, 16:00:53 UTC
In a sidechain you can't create new coins (not even with block mining reward), only transform coins from the main chain. In a 2-way pegged altcoin (like Ethereum or any other) you can.

Actually you can... https://www.reddit.com/r/IAmA/comments/2k3u97/we_are_bitcoin_sidechain_paper_authors_adam_back/clhnd0i

True, I was wrong in that.

But it doesn't make a lot of sense to send coins to a sidechain when you are going to have inflation while price is pegged to bitcoin. Holding this sidechain coin will give you less profit than holding bitcoin itself.

Well maybe the sidechain will have more than one native tokens in a way that makes sense. Or maybe a predictable dilution on the value of your sidechain coins might be treated as the cost of buying a certain sidechain functionality.