A long time ago (about a month ago) I made this post.
[quote=“merockstar, post:1, topic:1173”]I was wondering if you fine people could help check my understanding on some concepts, and help to solidify them.
Peercoin is designed to be the savings account of cryptos.
Proof of work will eventually be phased out entirely, in time (how much time?) and the network will use pretty much only the resources consumed by the computers minting proof of stake. Making it more environmentally friendly.
The fixed transaction fee functions to incentivise people to save peercoin long term and minimize transactions, and disincentivise them from using it as a currency.
Annual inflation from proof of stake functions to offset the transaction fee after having saved the coin for at least a year. So people will eventually want to at least get their year out of their coin to cover the transaction fee.
When transactions happen, those fees get destroyed, offsetting the coins created by proof of stake some, and helping to keep the number of ppcoin in existence lower.
Because of peercoin’s intentional design as a coin to save money with, if peercoin comes to serve its purpose on a widespread level, and crypto comes to be ubiquitous, then the fact that most of worlds wealth is being stored in savings accounts and bonds, means that peercoin’s target userbase’s funds represent the biggest chunk of the potential crypto market cap (those who want to gain safe interest on their savings, like a savings account or bond would in the old system).
So when people finally figure out what the different cryptos are used for, peercoin is going to get slammed with everybody’s long term savings. Also, the fact that people are incentivised to save for at least a year means that the supply of cryptos available will be much lower than similar markets for other coins, that don’t penalize people for transacting. This means that at some point in the future we’re going to see huge demand from people wanting to establish their stakes converge with limited supply in a market that encourages people to save their coin and gain interest. That sounds like a recipe for a moon bound coin price to me.
Because peercoin is intended to be used this way, if it eventually grows to fill the niche carved out for it then it becomes the most lucrative potential investment in the crypto market today.
I see people using whatever currency ends up being popular for buying bread (sunny proposed primecoin for this, which supplements peercoin by using the PoW necessary for day to day transaction to also contribute to science by finding cunningham chains, but I wonder if an already established coin like litecoin might end up filling this role instead simply because it was the first to become established) to save up to buy some fraction of bitcoin. People would save up to buy bitcoin (or take loans from the new banks), and use those to buy, houses, cars, and other expensive goods and services that you wouldn’t need to pay for with Litecoin/Primecoin/Quark/whatever takes hold. One could then convert that btc to ppc if they wanted to save their wealth for a few years and gain interest.
Am I missing/misunderstanding anything? I think I’m almost more bullish on peercoin than I am bitcoin now…[/quote]
When I posted that was the moment I became an actual peercoin supporter.
For the longest time I was wondering, “ok an alternative to bitcoin, but why? Litecoin exists, and seems to be faster than this. is it the proof of stake aspect? I suppose it makes it more secure, but if bitcoin works, why bother with the added inflation other than for security but is it really worth it? Bitcoin works, does it not? Are people really going to give up their first mover coin just for environmental reasons?”
Then I grasped, from Sunny King himself, in this and several other SK quotes, the idea that PPC was designed as a savings account:
From my point of view, I think the cryptocurrency movement needs at least one 'backbone' currency, or more, that maintains high degree of decentralization, maintains high level of security, but not necessarily providing high volume of transactions. Thinking of savings accounts and gold coins, you don't transact them at high velocity but they form the backbone of the monetary systems.
Which brought me one step closer, but it hadn’t clicked yet. However, this is why I went into this post assuming already that Peercoin was being marketed as a savings account.
What really got me to pondering was hearing about this fixed transaction fee, “Wait, what? Does that not stifle SPENDING? The sacred crux of our economy? SK doesn’t talk stupid… what is he thinking?”
Thats when I was finally able to put it all together and figure out where Peercoin fits in.
The marketing as a savings account is what distinguishes Peercoin from other currencies. It’s what drew me in. I think we must get the word out there that PPC is like bitcoin, except for savings, and we must explain it well enough for it’s role to make sense.
