Cryptocurrencies have officially jumped the shark. Meet ARSCoin created by the news reporting website Arstechnica. Please stop wasting electricity on this stuff. They are extremely deflationary. Lots and lots of coin is lost to the digital oblivion; available coin will exponentially decay with time. These 1st generation crypto-coins will forever be a speculation vehicle, not a workable medium of exchange. Hey man... ill give you 0.000000023 CRP coins for that burger. Im sorry sir, current exchange rates now dictate that I should charge 0.000000019 CRP for said burger. By the time you finish eating said burger, the price will adjust again. This is almost unworkable as a medium of exchange. hmm.... my crypto-money is appreciating in my pocket or more precisely: my public-private key-pair. Maybe I should not spend it (hyper-deflation). Im rich! They you pass away from a burger related heart attack. Your crypto-money disappears with you (since you held the secret, the money effectively vanishes with you). More deflation causing less money to change hands (slowing the crypto-economy further). Alternatively, some theft steals your private key-pair because youve got malware and you irrevocably lose all your money (there are no chargebacks). Cryptocurrency needs a lot more development before we can begin to think about buying food, gas, ect with it. Until then, its a fad and a speculation vehicle. Use cryptocurrency simply as a high risk short term investment (their going to find flaws in these first generation crypto coins). Sell it to the uninformed people that play the crypto game after you (assuming your not the last person in this shell game). Theres still plenty of potential investors left to exploit. Its only a matter of time before the financial industry figures out a way to make a legitimate exchange traded fund backed by BTC or similar. In the meantime, stop wasting electrical power and air conditioning mining the stuff. Your competing with highly skilled people that create custom built, hyper fast mining machines in jurisdictions with really cheap electrical power and efficient cooling systems. Theres no way to compete with this; the endgame is written on the wall; most all mining will go to these mining centers. This will also have a chilling effect on the security of the entire system (centralized mining means less security and ultimately trust of the cartel in control of the computing power driving mining and transactions). We already see this in Bitcoins, more than 30% of the mining power now resides with an unknown private mining pool. Said pool could take control of bitcoins transactions if they get lucky or overtake 50% of the computing power.
Posted on: Wed, 05 Mar 2014 15:08:57 +0000
Trending Topics
Recently Viewed Topics
© 2015