Topic: MasterCoin: New Protocol Layer Starting From “The Exodus Address” - page 29. (Read 448462 times)

Well, MSC is an interesting idea. However, I feel very strange about this as such.

There is the question about how exactly MSC makes my coins harder to steal when using the bitcoin protocol as a layer for itself. If it would be possible in a few years to actually "create" bitcoins by finding collisions in the sha256 bitcoin uses, will MSC still be stable?

With the initial funding and distribution of MSC, the devs "valued" their own MSC at a given MSC/BTC ratio. Why do you exactly get 100/BTC?  Is it good to value your own currency without looking at the market first?

devMSC is a thing that actually bothers me. It's not like you did a fundraising for your work at first and then you actually create yourself new MSC beyond already being funded... That sounds not fair to me. You should have gone with only the fundraising and not simply implement a coin generation like that. -> You increased your value of MSC by 1/10 for your dev crew only. Meaning you archived a margin of fundraising by 10% already for you guys simply with those devMSC.

Another thing that bothers me is that there is no exchange already. According to your Exodus add you received around 5000 btc on that one. That would be 5million dollar funded by you without having a working exchange.

This should not mean that MSC is a bad thing. I kinda like the idea behind it, but there are still things you need to think about. Why stick with MSC if you simply could roll with BTC because MSC is not that much of a difference right now. Simply just another alt coin. Ye its nice it uses the bitcoin protocol and stuff, however it is far to insecure for me to actually believe it will skyrocket anytime soon.

I also would predict that it actually shrinks to around 0.005 - 0.09 BTC. The main reason for this is that MSC can't do anything without being backed by BTC.

My biggest problem currently is that the devs actually look greedy and simply are hiding the fact that this was a quick nice idea to get some bucks in their pockets. Why else create 10% more coins just for the devs after fundraising the whole thing...

Help me understand something here.

Why does the exchanges for MSC say "Test MSC"?   Are these people just trading test coins here?  Is this like being on the Test Net and their are no real coins exchanged?

Having additional currencies is not a drawback. Might be in the case of pegged BTC currency, as you need some extra conversions and you may find it easier to trade on an existing Bitcoin stock exchange. However, this isn't the case if we're talking gold backed currency or USD pegged currency to buy Twitter shares.

I've been trying to get the answers to these questions for weeks, after trying to understand Mastercoin for over a month


I've had an order in the Mastercoin Buyer/Seller spreadsheet since November

stslimited's questions might have just killed mastercoin. i can't believe nobody asked them before

Risk factor: A less convoluted protocol will come into existence obliterating the demand for Mastercoin

an alternate technology enables issuing securities, contracts, etc on decentralized exchanges without the need for any additional currencies.

You would need a Bitcoin pegged Mastercoin based virtual currency for that, which you could buy using Mastercoins. Let's call this pegged currency MasterBitCoins (pegged 1:1 to Bitcoin). You'd be required to buy these MasterBitCoins, pegged to the value of Bitcoin, in order to trade AsicMiner stock. This would mean in other words: convert fiat/crypto to MSC and then convert MSC to the desired amount of MasterBitCoins.

How many Mastercoins you would need depends on the value of Mastercoin at that given moment. In a year from now 1 MSC might buy 2 Bitcoins, who knows. Should MSC trade at 2BTC per 1MSC, you would need 250 MSC to buy 500 MasterBitCoins in order to buy 100 AsicMiner shares.

Not really sure about the other questions. Still trying to get more info myself.

so aside from the fact that nobody knows how many mastercoin will be necessary to do anything, my current conclusions

1) there is no functional difference between 1 MSC, .1 MSC, .01 MSC .... 1^-ex MSC

2) If there is a functional difference between 1 MSC, .1 MSC, .01 MSC .... 1^-ex MSC that makes 1 MSC more valuable, then it is solely to prop up existing investment (developers get paid in MSC stipend)

3)
If 2) becomes a reality, then alternative application layers which do not require additional token of limited supply (colored coin) will have more demand than Mastercoin protocol due to prohibitive cost of Mastercoin....
If 1) remains a reality, then Mastercoin will collapse in price after it becomes more apparent its infrastructure will not attract demand to support its current valuation



yeah, that about sums it up, given the current information

Clearly you understand it all.

just ignore it, the same stuff is going on in every single thread on this website

Crappy ad hominem attack because I've pointed out to the likely price manipulation you attempted in the other thread. Sour grapes ay?

You've added nothing to the conversation except throwing insults around. You are the moron, sorry to say.

Well put, those are the same questions I have. You managed to quantify them a bit better than I'd been able to though.

I imagine you'd require MSC to be able to create a third layer currency, but I can't quite tell how that would work if you only had 1...or 0.1 MSC etc as you put it.

Also what happens in the scenario that say one person defines a Data Stream for some commodity and people accept that as the definition for that commodity and then you stop broadcasting that data. Since you own the address no one can take it over, so does that currency / value just stop working?

Bingo. I'm guessing 90% of the people here don't understand or don't know how mastercoin will actually work. I have yet to receive a response from someone knowledgeable:

What can 1MSC do that .1 MSC cannot? What does an MSC (the kind selling at .17 BTC) actually DO? Is it SHARES in the mastercoin protocol corporation?Are MSC going to be used to launch 3rd layer applications? And if so, how many will be needed for each particular application?

well, my frustration stems from the fact that this doesn't seem to be a thing that anyone can answer. I assume SOMEONE can, but nobody on the mastercoin subreddit or in the general bitcointalk forum can.

it seems as if the currency aspect of the technology is limiting the flow of objective information, with the speculative nature of the currency unit hampering technical discussion

but, as someone that has considered buying mastercoin, I want to be able to do my own objective analysis of mastercoin's future demand, and so far this requires me to understand how many mastercoin people will actually need to do anything

great, since this is in line with my current understand and to avoid walking in even bigger circles, so lets continue with my original example

I want to buy 100 shares of ASICMiner at 5 btc/each , this is 500 btc in this example

I want to participate in a decentralized stock market where this company is denominated in bitcoin, listed in its bitcoin price, and trading in bitcoin

How many mastercoins will I need to participate in that 3rd layer application and facilitate the transaction?

How many mastercoin will the seller need to participate in that 3rd layer application and facilitate the transaction?

How many mastercoin will the issuer ASICMiner or ASICMiner-decentralized-Pass-Through need to have listed the security?

did I miss anyone that may need a balance of mastercoin? a market participant? a transaction fee? anything?

someone should be able to produce a finite number or equation for how much mastercoin that I or any of those market participants, or anyone ever, will need

This shouldn't be a problem. You don't need to buy a full mastercoin same as you don't need to buy a full bitcoin in order to participate. Mastercoin is highly divisible, same as Bitcoin.

Guess you can think of the actual MSC coins as the entry ticket to the 3rd layer of applications. You need MSC to enter that 3rd layer, Master Protocol being 2nd layer on top of Bitcoin (1st layer). You will need to convert currency into MSC to be able to participate in the 3rd layer applications like stocks or commodities.

This is precisely my question, and it seems in inescapable that, if you need any more than a fraction of any master coin for all functions, and if this is wrong and only certain functions can be obtained by having a certain number of mastercoins, then it opens the way for a competitor to enter the market that any fraction of the protocol coin can do all functions.

The whitepaper has a few typos, I noticed "Listind ID" and "addional information" while reading it.

After reading it I'm very interested, but also still a bit fuzzy on how it all works. Certainly a very interesting concept though. With the price of a single mastercoin at ~0.17 BTC though that certainly represents a massive barrier to entry (one which wouldn't have existed back when the exodus address was created), so that's quite a shame.

please elaborate, lets focus on one single thing that would require people to hold a balance of mastercoin. Any arbitrary balance of MSC. What would require that person to spend those MSC and what would require that person to get more MSC from the open market?