Topic: Can a coin that is primarily a store-of-value succeed? - page 2. (Read 2385 times)

Gold have little intrinsic value indeed. It's is just psychology, social consensus and most importantly tradition. Gold have been currency for nearly three thousand years so ppl traditionally think it has a great value on it's own (rarity, looks nice, etc). BTC have no such tradition, the social consensus isn't widespread enough yet, and because of volatility and the lot's of scams psychology even working against it.

yes, look at the gold coin been going strong for thousands of years

It's difficult to tell if a coin like this could succeed. Many store of value coins have been made in the past and they always failed, maybe in the future a sidechain an be built with a store of value.

Its the same as saying it pointless to have Pepso, Fanta and Sprite since we have Coke. Well, I like my choices. I m sure other 2 million supporters of other alts also like their choices. Can BTC stake?

I don't see a point for a coin to have any value over Bitcoin, unless it does something that Bitcoin can't do. I do not think DMD is the case.

Because (again) I want to move real bitcoin on the blockchain and not off chain. For the question about the private keys, no one more than me can store and protect my private keys. Why should I trust another person to save my funds if I can save it/them myself?




  It is normal, a lot of person here hate the banks and it is not necessary a bitcoin bank (look at the exchange system).



I think bitcoin will survive until a few person will support it, but I think one day will 'born' a new concept better than Bitcoin itself.

Why? because within the system, you can save on transaction fees. They might also offer some sort of a bonus, or claim they can store your keys with more safety than you can. May sound outrageous to some of the extreme techies here, or those who cannot trust anyone. But I'm sure for a fair number of people, this would be totally true.

Also, I'm not looking for a store of value. I'm wondering how bitcoin will survive in various scenarios, and how the altscene will develop in the future.

@Snail: what's the intrinsic value of gold? And yet it keeps keeping up with inflation.

"...coin that is primarily a store-of-value ..."

Is there any such thing? IMO Cryptos are for transaction processing not for storing value. BTW what value? A value suggested by a bunch of pumpers and/or fuders ? What will happen if you want to buy something from an "unbeliever"? In that case the value of your coins are exactly zero (unless you can find a "believer" around and sell your coins for fiat).
A crypto what is acting as a store of value is basically an electronic form of fiat as it has no intrinsic value on it's own. Only the consensus of a community grants any value for our coins.

Watch out Amph, talk bad about Diamond and crazyivan will begin to flip shit-soaked pancakes.

BTC is basically fulfilling the role from the OP.  Any alt-coins claiming this are almost certainly dependent on the mercy and market elasticity of BTC.  Defeating the purpose.

Gold or go home.  Seriously, and physically own it.

@futureofbitcoin,

if you want to store value (like 10k dollars) or something I can suggest you to chose the 'gold', because BTC compared with gold it's very, very volatile. bitcoin as money (at the moment) for a lot of us is considered a thing for make money (pure speculation) but when one day this speculation will terminate we can start to think to another concept of bitcoin and usage.


(This was just my personal opinion).

then what about other pos coins that have less coin supply(like 1 coin and many others crap with 100k total supply(firecoin, lemurcoin ecc... )? they should be better than diamond or bitcoin right? well i don't think so

There s no doubt this is useful trait but the question was whether a coin which is primarily store of value can succeed?

Then in this case we will not "move" bitcoin, but something like that "the promises" as in the FIAT value. The limit of 7tx/s is due the block size, and I think one day it can be "adjusted" to 5 Mb per block. We should move real bitcoin on the chain, not 'off the chain'.

For the question of bitcoin banks, I think it will never exist a bitcoin bank.... because bitcoin was created also for 'go away' from those banks. Why someone should keep his bitcoin on a hypothetical 'bank'? We own ours wallet/client to keep and store bitcoins and (in my honest opinion) we don't need bitcoin banks.

Really? How many diamonds do you have? As opposed to some other carbon stone? I can find coal in my back yard, diamonds, a bit harder.

....... read the thread title? The question is what will happen if people choose NOT TO transact, and give miners rewards...

Or even if people transact, but within a system say xapo or coinbase or something, such that the transactions don't actually happen on the blockchain, but within xapo/coinbase or some future bitcoin bank, and miners will not get rewards.

The things we should keep in mind that when time goes by, the adoption rate of bitcoin will increase, and the number of transaction per day will increase as well. So does the transaction fees.  If the number of transaction can reach to the theoretical maximum of 10tx/s, then every block can collect 9 BTC (we assume every transaction includes the minimum fee 0.0001 BTC) to reward the miners. And the supply of it is diminishing, more merchants and individual are requiring it and the price will definitely shoot up.  Until the bitcoin ecosystem reaches to the balance.

Just FYI, diamonds are common.

The tendacy would be that some people would want to hodl/hoard it, because of the deflationary nature, but there would also be a huge number of people, who would use it, for the other features it offers them.

1. Low Fees
2. No charge backs
3. Speed of transactions { 1 or 2 confirmations}
4. Better security for online transactions, compared to credit cards etc. 
5. Some degree of anonymity.
6. Cutting out the middle man {Banks}

We hope these features of Bitcoin would promote it's use and not the deflationary nature of the coin. Nothing is set in stone, so features can be added to make it more flexable. 

I think we will see something before/after the next halving (25 --> 12.5 bitcoin). Maybe from 200 dollars the price will jump to 300 bucks, but as you said the real interesting thing may happen after ~2032 (when the block reward will be less than 1 bitcoin).

Ok, sure.


You know how they often compare crypto to a gold?

One of the major function of gold is to be a store of value, in other words a precious metal you can turn your assets into and know that you ll be able to retain that value over decades.
The same idea s behind several cryptocurrencies, I would say most of them besides those with high inflation rate e.g 700%+

People often think that the primary reason for crypto to succeed is to get accepted by thousands of small retailers and get spent EVERY DAY. This might not be true.
I personally chose my currencies to act as store of value, I do use some of them to purchase things I need but most of them I hoard like a hamster. Let us be honest, most of us do the same.
The only difference is that some people do it solely because they expect the price of their portfolio to apprecaiate while other, like me, do this due to this additional reason of PRESERVING current assets over time.

I like gold but I m into tech and I need something with characteristics of a precious metal which can be turned into FIAT fast, which is easy to transfer, which is safe and secure.

Why DMD Diamond? Well, its a 50% annual PoS coin. In other words, it s a gold bar which generated small gold bars over time. 
Also, it s a coin with a very limited and scarce supply as a real diamond should be. PoW phase reward just got reduced from 1 DMD per block to 0.2 DMD per block.

So, yes, I believe crypto can be used as a store of value. Whether this is its primarily function, it depends on the person who holds it.