Yeah but some of it is bullcrap. Slaves never had to be rewarded, so if we convince people to work for free what could be better?
At the end of the day people would rather work for rewards than for free when those are the choices (either work for free and not pay your rent, or work for money and pay your rent) and for many in the Bitcoin community that is exactly what the options are.
Rewards alone aren't enough to make you work smarter. You have to get enough sleep, you have to actually enjoy what you're doing and care about what you're doing. Bitcoin offers all of that though. Finally for creative type work or highly intellectual project type work eventually it's not about money anymore. So they are right that you have to pay people enough so they don't have to work for money anymore.
Colored Coin is trying to do something that Mastercoin is trying to do, but with Mastercoin you can get paid and work exclusively on Mastercoin while with Colored Coin you wont be able to quit your day job. What about people who don't have day jobs but who want to work and not have to worry about their bills?
50 Mastercoins are enough Mastercoins so that you'll never have to work again in a few years from now. But the rent is due this month...
None of them. Both try to fill a gap in the concept of a currency ... Bitcoin is not bound to any real asset like gold etc., mc and cc try to change this. But I doubt either this is necessary and both possible.
To be honest, I didn't understood none of them. I struggled some time to understand Bitcoin and think I reached some basic understanding. So, outside a little circle of advanced users neither of them will find people which gain enough trust through understanding to risk anything. Also I don't get it how you would reach a real connection between coins and assets which is trustworthy enough ...
Personally I like cc a little bit more, cause mc presented itself as "a chance similar to the first bitcoin-mining", which in my view appells too much to greed and naivity to be successfull.
There are different visions about what CC or MC should be used for. For me the main application is company stocks. These require trust in the company anyway, which will be established via traditional means, but it will spare the need to rely on cumbersome, centralized exchanges.
Also, it is not clear to me that using Mastercoin will require having significant amounts of mastercoins.
Hey! we finally agree on something. I posted about this a few weeks ago. If I only have 10 mastercoins, presumably I can divide them each into 1 million pieces (or more) and enjoy use of the entire Mastercoin protocol and all the great functionality it brings on 10 different share issues for example. Since nobody will ever practically need more than 10 share issues, there is little or no point in owning more than just a few MSC. Indeed, owning only 1 is probably sufficient as they are practically infinitely divisible.
J.R. hasn't commented on this point as far as I can tell.
So now you understand one of the problems of MSC as an investment. If mastercoins aren't needed in large quantities to use Mastercoin, then the supply of mastercoins will far exceed their demand, meaning the value of mastercoins will be low - even if Mastercoin is successful. An issue which, by the way, I raised 2 months ago.
I agree that JR should comment on that issue.
There are 21 million million Bitcoins that will ever exist.
There are 600 thousand Mastercoins that will ever exist.
I predict each Mastercoin will easily be worth between 20-30 Bitcoins.
But if we want to be conservative each Mastercoin is actually going to be worth at least 1 Bitcoin. Assume that everyone who has at least 1 Bitcoin will want at least 1 Mastercoin and you can easily see that the price of Mastercoins will easily surpass 1:1.
As for the particulars of how much this or that costs in Mastercoin, who knows? But you can be sure when people figure out what they can do, everyone will want some.
I think the balance JR has to reach is to have enough Mastercoins that they wont ever run out, but have it be scarce enough that the value can continue to appreciate over time.
600,000 is a good number, but the main threat I see to Mastercoin value will be from Bitshares. People will probably sell Mastercoins for Bitshares if that idea actually worked as well as they say it will, but it's very possible that Mastercoin could have first mover advantage and work better too.
JR will have to explain the math of Mastercoin, I don't fully understand and my calculations could be way off, but based on my calculations I'm not selling Mastercoins for less than 2 BTC each. The reason is I predict the demand for Mastercoins will be far greater than the demand for Bitcoins. People will be buying Bitcoins in order to buy Mastercoins so they can do certain things which can only be done using Mastercoins.
Whether my math is off or not depends on whether or not Mastercoins are destroyed after use. If they are destroyed bit by bit over time as I understand it then they'll be absolutely deflationary. The rate of that destruction would determine how deflationary and JR has to answer that. In his whitepaper he suggests 1.5 Mastercoins for 1000 Bitcoins. My calculations suggest that everyone will want to own a few Mastercoins and the price would for sure be at least a few Bitcoins probably prior to the launch and could get as high as 30 Bitcoins per Mastercoin depending on how it works.
