Topic: Can a coin that is primarily a store-of-value succeed? - page 3. (Read 2385 times)
2140 is pretty far, but if you think about it, a block reward of < 1 BTC wouldn't be all that much, unless bitcoin's value skyrockets. So we may face this problem a lot earlier.
Yes it can. DMD Diamond s primairly store of value and it s going to be big. Yes, I have invested in it and yes you can consider this as a promotion. However, if I think it s smart to invest my own money in it, I see no reason why I would not recommend it to other people.
LOL
Yes it can. DMD Diamond s primairly store of value and it s going to be big. Yes, I have invested in it and yes you can consider this as a promotion. However, if I think it s smart to invest my own money in it, I see no reason why I would not recommend it to other people.
Okay, you're free to promote a coin you like, but in keeping with this being the bitcoin discussion section, would you mind elaborating why you think such coins can/will succeed? You're free to bring examples from your coin, but I hope that there is also something in general to all cryptocurrencies. I don't mind the mods moving this thread, but I'd prefer if it stayed here. Thanks.
Yes it can. DMD Diamond s primairly store of value and it s going to be big. Yes, I have invested in it and yes you can consider this as a promotion. However, if I think it s smart to invest my own money in it, I see no reason why I would not recommend it to other people.
Sorry if this should go into the alt section. But it's not just about alts, and I figured there are more people here. If it should be moved, sorry for giving you more work, mods.
Can a coin that is primarily a store-of-value succeed? What I mean is, a lot of people have been comparing bitcoin to gold. Some, like me, believe that it will be very hard for bitcoin to overtake current national currencies (I avoid fiat, because it doesn't matter whether they're fiat or not, the point is the governments of the world recognize these currencies, thus they're "legitimized" in a way) in terms of being a spending currency. But bitcoin could also carve out a niche in other areas, particularly as a store-of-value, since it was even modeled after gold. If bitcoin goes mainstream, because of the deflationary nature, many people will want to save and hold instead of use.
So if bitcoin becomes a primarily store-of-value coin, or if an altcoin that pops up in the future decides to make itself primarily for the use of storing value, will the amount of transactions be able to support miners, when the block reward drops off, and only transaction fees are left? If not enough transactions happen, what will happen to the network security? Will the big players spend their own money to secure the network to make sure the value they have in the coin is safe? Or will transaction fees be very high? Or will the network be vulnerable?
-Just two points to end; yes, I understand, for the libertarians among us, the hope is that bitcoin will work as a currency. I'm just talking about a hypothetical question here. Or perhaps, if bitcoin goes mainstream, there will surely be more people making altcoins for various niches. So no need to tell me that bitcoin will kill fiat for sure, blah blah blah.
Also, if an altcoin is too inflationary, obviously it won't work well as a store of value. But perhaps a small amount of inflation could work; if we could estimate the amount of coins lost (through mistakes, death, or whatever else) per year, and have the emissions match that amount, we are essentially keeping the amount of coins constant (or close to it). Miners will still get rewards, and we won't end up with a grand total of 1 satoshi that isn't lost, from 21mil coins in the future.
Can a coin that is primarily a store-of-value succeed? What I mean is, a lot of people have been comparing bitcoin to gold. Some, like me, believe that it will be very hard for bitcoin to overtake current national currencies (I avoid fiat, because it doesn't matter whether they're fiat or not, the point is the governments of the world recognize these currencies, thus they're "legitimized" in a way) in terms of being a spending currency. But bitcoin could also carve out a niche in other areas, particularly as a store-of-value, since it was even modeled after gold. If bitcoin goes mainstream, because of the deflationary nature, many people will want to save and hold instead of use.
So if bitcoin becomes a primarily store-of-value coin, or if an altcoin that pops up in the future decides to make itself primarily for the use of storing value, will the amount of transactions be able to support miners, when the block reward drops off, and only transaction fees are left? If not enough transactions happen, what will happen to the network security? Will the big players spend their own money to secure the network to make sure the value they have in the coin is safe? Or will transaction fees be very high? Or will the network be vulnerable?
-Just two points to end; yes, I understand, for the libertarians among us, the hope is that bitcoin will work as a currency. I'm just talking about a hypothetical question here. Or perhaps, if bitcoin goes mainstream, there will surely be more people making altcoins for various niches. So no need to tell me that bitcoin will kill fiat for sure, blah blah blah.
Also, if an altcoin is too inflationary, obviously it won't work well as a store of value. But perhaps a small amount of inflation could work; if we could estimate the amount of coins lost (through mistakes, death, or whatever else) per year, and have the emissions match that amount, we are essentially keeping the amount of coins constant (or close to it). Miners will still get rewards, and we won't end up with a grand total of 1 satoshi that isn't lost, from 21mil coins in the future.
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