bitcoin alternatives
Posted: Tue Jun 14, 2016 6:20 pm
Bitcoin has gotten a lot of media coverage but i have discovered it has a lot of flaws, i am certain it will fail eventually due to technical reasons. Bitcoin is not anonymious either, every transaction is saved forever in the blockchain. If bitcoin was a true alternative to the current monetary system it wouldn't get much media coverage.
There exist many alternative cryptocurrencies that is technically superior http://coinmarketcap.com/ almost all of them will fail but if you manage to pick the winning one you will get more than 1000 times your money.
When i analyze altcoins i look for the following
-not pure Proof of stake, there should never be more coins generaged due to interest than Proof of Work mining http://cointelegraph.com/news/the-inevi ... -is-needed
-strong anonymity, this will make the coin suitable for illegal activity.
-no exponential decrease in block reward(transaction fees will not be enough to keep the the betwork safe). The block reward formula reward=2000/(1+N²10^-12) where N=blocknumber also results in the amount of coins being limited. Monero and quark have a small maintainance block reward which results in the coin being unlimited in supply.
-fast confirmation time(bitcoin is to slow which makes it unuseful for q lot of applications).
-most coins mined with ordinary computer hardware, if asic come when it is mostly mined it is OK.
-strong comminity
Currently i am considering an investment in monero http://moneroinfo.org/ i will do sime nore reading first. I personally guess bitcoin will drop in prize soon which should also affect most altcoins. The downside with monero is that it's price is to 99.9% speculation, it is technically very interesting(maybe the best) but that is not enough. The market cap is currently $ 16,626,921
When it comes to the community Dogecoin is probably to best(the sponsored nascar) but it is highly inflationary(fixed at 5 billion yearly when the total is 105 billion) and nit that impressive overall(still much better than bitcoin).
it is still possible to get rich
I almost invested in bitcoin then the prize was 2$, i would hade made 500 times the noney if i had done that, it doesn't matter that the coin is technically bad if you sell in time. I do think racialist should do research in altcoins, invest in the nost promesing, do a lot of marketing and than hopefully get 100 times our money. I have also seen technically promesing coins fail, it is mostly about marketing.
The centralisation of bitcoin
The idea of bitcoin was "one CPU one vote" but now it is more like "one giant asic farm one vote". Generally mining for cryptocurrencies is of the form CPU -> GPU -> FPGA -> ASIC as the prize increases, specialised hardware will always be more efficient than general hardware(CPU/GPU). It is however possible to have a currency that is mostly mined by ordanary hardware but with pure "proof of work" mining you will always end up with hardware more and more hardware centralisation.
https://www.youtube.com/watch?v=_RC8wEL2r9s
https://bitcointalk.org/index.php?topic=1319681.0
There exist many alternative cryptocurrencies that is technically superior http://coinmarketcap.com/ almost all of them will fail but if you manage to pick the winning one you will get more than 1000 times your money.
When i analyze altcoins i look for the following
-not pure Proof of stake, there should never be more coins generaged due to interest than Proof of Work mining http://cointelegraph.com/news/the-inevi ... -is-needed
-strong anonymity, this will make the coin suitable for illegal activity.
-no exponential decrease in block reward(transaction fees will not be enough to keep the the betwork safe). The block reward formula reward=2000/(1+N²10^-12) where N=blocknumber also results in the amount of coins being limited. Monero and quark have a small maintainance block reward which results in the coin being unlimited in supply.
-fast confirmation time(bitcoin is to slow which makes it unuseful for q lot of applications).
-most coins mined with ordinary computer hardware, if asic come when it is mostly mined it is OK.
-strong comminity
Currently i am considering an investment in monero http://moneroinfo.org/ i will do sime nore reading first. I personally guess bitcoin will drop in prize soon which should also affect most altcoins. The downside with monero is that it's price is to 99.9% speculation, it is technically very interesting(maybe the best) but that is not enough. The market cap is currently $ 16,626,921
When it comes to the community Dogecoin is probably to best(the sponsored nascar) but it is highly inflationary(fixed at 5 billion yearly when the total is 105 billion) and nit that impressive overall(still much better than bitcoin).
it is still possible to get rich
I almost invested in bitcoin then the prize was 2$, i would hade made 500 times the noney if i had done that, it doesn't matter that the coin is technically bad if you sell in time. I do think racialist should do research in altcoins, invest in the nost promesing, do a lot of marketing and than hopefully get 100 times our money. I have also seen technically promesing coins fail, it is mostly about marketing.
The centralisation of bitcoin
The idea of bitcoin was "one CPU one vote" but now it is more like "one giant asic farm one vote". Generally mining for cryptocurrencies is of the form CPU -> GPU -> FPGA -> ASIC as the prize increases, specialised hardware will always be more efficient than general hardware(CPU/GPU). It is however possible to have a currency that is mostly mined by ordanary hardware but with pure "proof of work" mining you will always end up with hardware more and more hardware centralisation.
https://www.youtube.com/watch?v=_RC8wEL2r9s
https://bitcointalk.org/index.php?topic=1319681.0