PPCoin has the potential to be a Bitcoin killer

Sooner or later Bitcoin is going to run into transaction fee problems, there will be so many users that the transaction fee will actually become quite large, negating one of Bitcoin’s strengths. Is this correct?

My understanding is that transaction feeds on PPCoin can remain low forever, which means PPCoin won’t suffer from this scalability issue. Doesn’t this make PPCoin a strong alternative to Bitcoin in the future? :smiley:

You misunderstand the dynamics and the purpose of transaction fees. It is used as a QoS tool (you can increase the importance of your transaction) and provides a positive feedback to miners to invest in the infrastructure to maintain a larger blockchain thus lowering the costs for transactions, ultimately leading to a dynamic equilibrium, where the true costs of maintaining the network is reflected by the average transaction cost + healthy profit margin.

The only issue with bitcoin is blockchain scalability, which means that if bitcoin grows to a global scale the cost of scaling the infrastructure may explode, a limit which is set by technology. ppcoin has basically the same scaling properties as bitcoin, because it uses the same consensus mechanism, that is the blockchain. It doesn’t matter whether you determine the main branch through POW or POS.

However, the POS scheme theoretically allows to spend the transaction fees more efficiently, e.g. by emphasizing on the bandwidth instead of the hashing tech. This should lead to slightly lower transaction fees on average.

Has PPCoin has the potential to be a Bitcoin killer?

As far as I see it the answer is:
Yes and no.

Yes, because in the long run Proof of Stake can be much more energy efficient than Proof of Work
No, because if PPCoin has success Bitcoin can adapt Proof of Stake
Yes, because out of ideology Bitcoin will perhaps not switch to Proof of Stake in the right time
No, because Bitcoin is much more known than PPCoin and other Alt Coins and PPCoin has the same user base.
Yes, because if someone Forks PPCCoin, give it a good name and invents an nice decentralized algorithm where let’s say 50% of the new generated coins go to common hood projects or are used as a basic income, than there will be a total new user base for PPCCoin

Have a nice mining,