Now Auroracoin seems to settle itself well above Peercoin in marketcap, it is probably time to analyse what this does mean.
On first sight you would say a 50% premined Litecoin clone wouldn’t have a chance.
However, there seems to be some kind of government support from the Icelandic government. So this is the first government backed cryptocurrency! Edit: It’s only a public government database used for distribution at this stage.
Also they are going to airdrop 50% of those coins (all premined ones) to the residents of Iceland. That’s a new distribution model as well.
I think it is at least a very interesting experiment which we should closely follow.
Should Peercoin do a similar thing and look for backing of some government in the world? Or should Peercoin really continue to stay independent from any government as much as possible?
I’m not looking so much for a pro- and contra liberterian discussion but more whether government regulations would benefit Peercoin and its users in the long term.
Or even better should Peercoin follow Auroracoin and e.g. contact the government of Cyprus whether they are interested. In case you wonder Cyprus is a similar island country as Iceland which also had some troubles with their currency in the past. Assuming they would be good with that we would then all giveaway 50% of our Peercoins to be distributed to the residents of Cyprus (e.g. with paper wallets) and in turn get the government of Cyprus providing some support and hopefully have our Peercoin double in value (or more).
Love to hear your opinions and I do realise that the chances of this happening is pretty slim. But at least it is a fun thought experiment.
The market capitalization of Auroracoin is very misleading. The site lists 10M+ coins in circulation, when the reality is that only 100k of those are actually able to trade hands today.
I like the project, a lot, but the actual valuation is completely different from what you see on coinmarketcap.
Auroracoin is not backed by the Icelandic government, has no governmental support, and still needs to prove that the “airdrop” can actually happen without governmental interference. It’s a very interesting situation because there is a real chance that access to the Icelandic resident database, which is public today, may not be by the 28th of March; either through legislation or a “temporary glitch”.
If the team has already grabbed a copy, they may be ok , but it won’t be the most current version.
Until the airdrop occurs, Auroracoin is a great human interest story, but should be viewed with extreme skepticism.
Agree with you Ben. Even if they make it to the airdrop, it is likely that value will also drop sharply depending on confidence and how many people would try a quick buck by massively selling on the first days.
This is a fascinating development. I wonder if most people won’t simply view it as a free 500 bucks and auto sell, in which case the price would fall sharply after the airdrop, and in effect it becomes just another altcoin clone.
But if enough people stop and think “why did I just get a free 500 dollars?” then auroracoin could become a very good investment. I’m kinda torn on whether I should pick a couple up or not.
At current prices it means that each Icelander will be given $1k+, quite ridiculous and immoral.
But it isn’t my point, I cannot find whitepaper and distribution description, from what I understand there will be some linkage between national IDs and the coins.
Due to the capital controls put in place in 2008 to stop money flight on the króna, buying and selling Bitcoin in Iceland, which appears to consider Bitcoin as a foreign currency, is Illegal. The Icelandic Central Bank confirmed that "it is prohibited to engage in foreign exchange trading with the electronic currency Bitcoin, according to the Icelandic Foreign Exchange Act", however commentators suggest bitcoins mined within Iceland could be freely traded.
Does anyone know legal status of airdrop coins? Will there be some kind of 'blinding' on IDs?
W/o those answered it could be v. dangerous for ppl.
I could make a coin, premine 1 trillion, and leave some coins to be mined. I will mine 1 coin and trade it on an exchange I setup, where I will sell the coin for $1. If no one buys it, I buy the coin myself. Then I will claim that the coin has a marketcap of $1tr.
Hmm, maybe you’re right and I’m getting your point, but why aren’t we flooded we such coins yet?
Auroracoin is now trading at the same high volumes as Dogecoin, so at least it is interesting for speculators. That doesn’t seem the case with those other non-mineable coins with high marketcaps or very low number of coins. The experiment and the promise is probably a larger factor on the exploding marketcap.
@kactech, I don’t think anyone knows the precise legal status of this as it is without precedent. And no-one knows how the receivers would behave to receiving such an amount of money on such scale, and I think those are the reasons why the speculators are having a frenzy right now.
Auroracoin now almost have double the marketcap of Litecoin.
These are fascinating times for observers like me 8)
[quote=“mhps, post:11, topic:1721”]I could make a coin, premine 1 trillion, and leave some coins to be mined. I will mine 1 coin and trade it on an exchange I setup, where I will sell the coin for $1. If no one buys it, I buy the coin myself. Then I will claim that the coin has a marketcap of $1tr.[/quote]Do you guys want to do this? I’m completely serious. I think it would be fun.
I think that perfectly fits into better positioning Peercoin as we are still very weak in that.
BTW on-topic again, Auroracoin, clearly positioned, is now more than double the Litecoin marketcap, half of Ripples and has volumes of over $4m, many times that of Peercoin. I think something else is going on here, the experiment and the risk that this coin might, just might establish itself is attracting a lot of people. I think this experiment, if only half successful will benefit all cryptos on the way to gain broader support, so although I’m not investing I do support this experiment and their founders.