A person discussing bitcoin’s replacements by other cryptos, and their evolution
A fleeting mention of peercoin
Dated Feb 2014
We need to ask ourselves: what is a correct analogy to see Bitcoin? if we dont have any, we cannot expect to derive the right prediction
Here is is my attempt which I’m using when explaining the differences between Bitcoin and altcoin.
Bitcoin is the steam machine of the crypto world. The first one to solve a problem. Although even steam machines still work, they are not that reliable and cost effective. So in the mid to long term they will be replaced by better alternatives. The question is whether Peercoin is an analogy of an ore efficient improved steam machine or the first electric motor. Only time will tell.
On top of that with just a steam machine or electric motor you can’t do much. You would also need other equipment to make something useful e.g. wheels, steering wheel, weather protection etc. For crypto currencies this would be the services built on top of the blockchain like ability to store and transfer assets and value, voting systems, online markets, identity systems, transparent accounting ledgers etc.
Just to keep the analogy going, this can be done with both a steam machine as with an electric motor. For some services the steam machines might be better suited for others the electric motor. This may also change over time and there is also the issue of sunk costs. When you have invested a lot in your steam machine with services on top, you wouldn’t leave that until the moment your are losing a lot of money by not switching.