MONDAY 24TH MARCH 2014
Mastercoin & Counterparty
What kills me about Mastercoin and Counterparty is that better designs were well known long before their birth.
Mastercoin-like designs were considered, coded and abandoned in 2012 as lame:https://github.com/jgarzik/smartcoin
Colored coin, N-way peg far superior – Jeff Garzik
Tuesday 27th May 2014
HONEST COINS THAT SOLVE A PROBLEM OR HAVE POTENTIAL TO MAKE AN IMPACT
An honest attempt at a decentralized asset exchange. Currency issued through “proof of burn” which ensure an honest environment rather than the horrific launch of NXT or Mastercoin.
Done without the hype and and intense marketing of Ethereum. – Lee Banfield
MONDAY 9TH JUNE 2014
Mastercoin’s market cap has been as high as $50 million, making it one of the most valuable altcoins, but its cap is less important than its trading volume when it comes to actually realizing that value. And its trading volume has been one of the lowest of the altcoins.
It’s hard to sell it. “With $23,000, the price of a Honda Civic, you could crash the Mastercoin market to $0,” says Dan Held, founder of Bitcoin market information app ZeroBlock, and director of product for Blockchain. “Owners of Mastercoin are stuck holding an absolutely illiquid currency.” – Kashmir Hill
Tuesday 16th September 21014
Think Twice Before Throwing Away Even a Couple Millibits Towards Bitcoin 2.0 Schemes
Bitcoin is poised for exponential growth, so the opportunity costs of not being involved to the highest personal degree possible are incalculable.
Yet merchants, investment peddlers, and other hoarders have been able to convince countless bitcoiners to part with their future riches, despite the obvious downsides given you have a long enough time horizon to see the coming post-fiat world. They’ll tell you spending is vital, that Bitcoin 2.0 will be even better if only you give them some of your Bitcoin 0.9, or that your bitcoins are worth only $475 a piece. They’ll tell you this with a straight face, the wringing of their hands unseen across the Internet.
Bitcoin is exciting. Looking at a static wallet file and balance is not. Instead of holding and forgetting, many bitcoiners choose to “put that money to use,” and endless crypto-peddlers are ready to snatch your bitcoins up. They’ll offer you mining contracts, present their plans for a hedge fund, or entice you into investing in a Bitcoin company. Today, the most popular investment vehicle for bitcoiners are Bitcoin 2.0 schemes, ranging from Mastercoin to Ethereum.
Long term investors should use Bitcoin as their unit of account and every single investment should be compared to the expected returns of Bitcoin.
If hyperbitcoinization occurs, Bitcoin holders will see their purchasing power increase by orders of magnitude. Bitcoiners should think twice before throwing away even a couple millibits towards a project “just to see where it goes.” A running joke in the community is how expensive the two pizzas Laszlo bought were. We joke about a million dollar pizza, and hyperbitcoinization has not even occurred yet. I praise Laszlo for his entrepreneurial use of a new technology, but I do not wish for myself or others to be a Laszlo.
My friends and I joke about starving due to the intense deflation, but I can’t say I don’t look back and wish I had skipped a couple lunches in the crappy dorm cafeteria to buy $10 bitcoins when I had the chance. Hyperbitcoinization will not be a force to trifle with. Even a marginal bitcoin holding right now will constitute a very significant majority of a bitcoiner’s portfolio. Once it happens, there is no going back. One day, your Bitcoin balance will likely never see the decimal point move to the right again. – Michael Goldstein
Monday 20th October 2014
Why Open Transactions? Because Appcoins Suck
Here’s the endgame as I imagine it:
* Bitcoin is base money. It is used as cash for most types of routine purchases.
* The blockchain also serves a few non-monetary roles, like hosting colored coins.
* OT is a contract-processing system. It is used for financial instruments (everything that is not base money): loans, stocks, bonds, trade credit, smart contracts, all types of credit in general
* In order to achieve federation, OT will rely heavily on colored coins
* Colored coins can’t host their own metadata in the blockchain, so they need some type of external metadata processing system in order to be useful.
* OT will become the standard metedata system for colored coins
* OT + colored coins makes Ripple, Counterparty, Mastercoin, Bitshares, etc all redundant.
* Users will prefer OT+CC to all the above because OT+CC doesn’t require them to purchase tokens from IPO investors.
* Ethereum is impractical for reasons beyond the scope of this post
* Openbazaar-style functionality is already being added to the reference OT GUI
* OT will survive because it has avoided the mandatory token approach, all the other projects will not.
Monday 3rd November 2014