Bitcoin is making its way into legacy systems via things like the Winklevoss ETF, SolidX swaps (target institutional investors) and so forth and so on. I expect to see much more of this and Bitcoin is very much strengthening its position as the base crypto currency.
Peercoin is by design very suitable as backbone currency, but have yet to be picked up by Wallstreet as Bitcoin to some limited degree have been already.
Now, what I’m curios to know is what you think about this as a goal. Do you see and do you want Peercoin to be bundled up in swaps and traded via futures on Wallstreet? Do you think its more important that Peercoin is becoming the “goto” currency in the crypto finance sphere?
I’m not really looking for answers here. Just your opinions and thoughts. I’m curious to hear what you guys and girls have to say about it and also I think it could be beneficial to community, that people know what people think about this.
I save my own opinions until later, so at not to color the discussion from the start.
I think it is important to become to goto crypto. As a backbone you need to build ties with industries where the big money is pushed around. We can’t just sit and wait, hope that Bitcoin fails and then the magic happens. We will have to be visible as a viable alternative all the way along, invest in relations and frameworks which would support this, so we are ready when the market starts looking for alternatives.
Up until now, Peercoin role was unclear - it’s starting to get clearer.
Peercoin is a backbone commodity that efficiently distributes Nushares dividends - PPC are then exchangable for Bitcoins (which are the digital gold?)
Ok so here we go. I think there are a few things that I can think of:
1. Peercoin as Store of value
Since the efficiency of minting is greater then Bitcoin and, over time might become more decentralized then Bitcoin, I think Peercoin has the potential to become a store of value coin.
In a wider financial context I guess that the store of value feature, would be come in use as collateral and for a private person this would be like savings or something. Used as a collateral, it would be included in cryptographical contracts and you could also see a derivatives market blossom around it. As such it has the potential to become an integral part of a sophisticated financial market.
Especially so if Peercoin starts to interface with more and more ecosystems, which brings us to…
2. Peercoin ubiquity
The more external ecosystems that Peercoin technically interfaces with, the more use it will have. If Peercoin is always there when you want to transfer value between point A and B, then Peercoin could be used as providing backbone liquidity. I.e. because its presence everywhere you know you can depend on it for your transactions. If you want to liquidate BIG value and need money, then peercoins should be an alternative (right now bitcoins is it in cryptos and in fiat its all about US treasuries).
This was about Peercoin as backbone currency in a wide diverse ecosystem, tying many different ones together, i.e. becoming a bridge between other ecosystems.
3. Peercoin as backbone for DACs
Peercoin could be used as a store of value, for decentralized autonomous organizations. If NuBits saved some of the peercoins it bought and did not pay it out in dividends but instead saved it, then peercoins could be used to one day support the NBTUSD peg. The crypto that I’ve invented (but have not yet talked publicly/or even privately about) make use of this. Should share price drop, the network would still be capitalized by the peercoins kept as store of value. This makes the DAC valuable not only because of its traded share price, the product/service it offers, but also the peercoins it is holding.
4. Peercoin as a backbone network for side-chains
So… I think I’ve figured out a mechanism that would make Peercoin extremely useful as a backbone crypto. I’ve emailed Sunny about it but have not received an answer yet. I have to give it some more time and then I’ll spill the beans about this one here. So to be continued.
