Tuesday 27th May 2014

Lack of Understanding of the Economics of Bitcoin – Why a Hard Limit Resulting in Deflation Is Important to the World, Importance of Decentralization, Etc…

This rules out currencies such as Dogecoin, Freicoin, Ripple.

Lee Banfield


Thursday 14th August 2014

Learning from Altcoins

In general, the most interesting alt coins are the ones that fail in a unique and spectacular way that we can learn from. Freicoin is an excellent real-world falsification of the desirability of demurrage –Justus Ranvier


Saturday 2nd July 2016

In May 2014 I wrote a report looking to find a few coins that were potentially useful and not scams. I couldn’t find many because of the premined, instamined problem.

Most coins follow a predictable pattern. A quick pump launched by a few preminers, big hype, big market cap, scam people to get on board. Dumped. Crash by 90% or more. Often a dead cat bounce, doubling or tripling from those 90/95% losses, then a steady fall towards zero.


Here’s how the coins I analyzed on May 27th 2014 have performed since:

Category 1: Disqualified From My “Ethical / Useful List”


May 27th 2014: Market Cap = $0.3mill

July 1st 2016: Market Cap = $0.05mill




Immoral Coins: A Lack of Understanding About Economics.

Bank coins, gov coins, inflationary coins, centralized coins. Last time this ruled out Dogecoin, Freicoin, and Ripple.

Maybe some of them are not scams outright, but it’s not helpful to shift money away from bitcoin to support projects like this.

Lee Banfield, July 2016 Report: The Most Legitimate Altcoins



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