Reasons why Peercoins are so advantageous

Hi everybody,

I opened this thread to make a collection of reasons why Peercoins are important in the future why people could invest and use Peercoins. The problem at the moment is that most people do not know a lot about Cryptocoins and therefore could need to easy entries into this topic.

Here are some examples I just thought about. I would appreciate it if you help to find some more. I will add them later to this first post to make this thread easy to read.

Why are Peercoins so advantageous?
• Independence of failures of financial institution e.g. banking crisis ->Independence of possible wrongful seizure
• Independence of failures of state e.g. sovereign debt crisis ->Independence of possible wrongful seizure
• Independence of failures of central banks e.g. print of money ->Independence of possible wrongful seizure
• Peercoins are more energy efficient than Bitcoins in the long run and provide a better security at the same hashrate ->Environmentally friendly
• They are pseudonymous / they have an open but anonymous transaction history. ->Restoration of bank secrecy
• Can be made anonymous if necessary ->Restoration of bank secrecy
Transaction time is much faster than in traditional banking system. It is at about 10 minutes (or about 60 minutes for 6 confirmation)-> Speedy Transaction
• Peercoins are not localized at a certain place they exist in the network and this is the large internet. So it is very easy to use them in one country or another without having to do Peercoin transvers from one country to another since they are present everywhere where internet exists. ->Delocalization

I allow to copy this list without any reference.

Got to say I’m on par with all off the given arguments but didnt know that it was more energy efficient over BTC. That is interesting :slight_smile:

Why is being energy efficient so important? Couldn’t bitcoin improve over time?

Why is being energy efficient so important?

It is important because…
• it safes a lot of energy cost in all the countries. And since the energy cost in different countries is different, a high energy efficiency can help to better decentralize the amount of miners on earth e.g. in the US the miners have an advantage since the energy cost is low, whereas in Germany the energy cost is high so there are not a lot of miners to help the network since it is not so profitable. This is not preferable since it centralizes the mining power to certain low energy cost countries.
Peercoin uses an additional Proof of Stake system which allows all owners of Peercoins, independent whether they hold only a few Peercoins or a lot, to emit additional Peercoins at a rate of about 1 % per year in form a blocks. This emission by Proof of Stake requires almost no power which helps to decentralize the miners.
• it reduces upkeep for the network so less energy is needed to keep the Peercoin network alive which helps to pollute less CO2.

Couldn’t Bitcoin improve over time?
• This is unlikely. Bitcoin has a large mining industry and dedicated mining hardware. If Bitcoin was changed, theses miners would lose a lot of their income from mining and trust in Bitcoin. I think is it not a good idea to play with miners since they are crucial to secure the network from malicious attacks.

I just recently discovered Peercoin (and even Bitcoin!), so please bear with me if this has been answered elsewhere, but…
From what I understand, Peercoin’s system most highly rewards people who have held the most amount of coin for the most amount of time (after a certain amount of time). Is that correct? If so, then doesn’t that create a system where the richest get richer?

[quote=“prime_peer, post:5, topic:810”]I just recently discovered Peercoin (and even Bitcoin!), so please bear with me if this has been answered elsewhere, but…
From what I understand, Peercoin’s system most highly rewards people who have held the most amount of coin for the most amount of time (after a certain amount of time). Is that correct? If so, then doesn’t that create a system where the richest get richer?[/quote]

No.
Think of it like this…
Let’s say they added another decimal place to Bitcoin:
So there are are 9 decimal places instead of 8. if you own 10 bitcoins, you got 10x as many new currency units as the guy with 1 bitcoin, but you each have the same value you had before. In peercoin, the money supply slowly increases, but your value stays the same.

[quote=“Alertness, post:6, topic:810”][quote=“prime_peer, post:5, topic:810”]I just recently discovered Peercoin (and even Bitcoin!), so please bear with me if this has been answered elsewhere, but…
From what I understand, Peercoin’s system most highly rewards people who have held the most amount of coin for the most amount of time (after a certain amount of time). Is that correct? If so, then doesn’t that create a system where the richest get richer?[/quote]

No.
Think of it like this…
Let’s say they added another decimal place to Bitcoin:
So there are are 9 decimal places instead of 8. if you own 10 bitcoins, you got 10x as many new currency units as the guy with 1 bitcoin, but you each have the same value you had before. In peercoin, the money supply slowly increases, but your value stays the same.[/quote]

I do not understand. What you meant by “the money supply slowly increases, but your value stays the same.”.

So, what are the advantages for the early miner? The value for peercoin will not be volatile than bitcoin?

One area not covered above, but that is important to mention, particularly when discussing the long-term power requirements of Peercoin, is that the way that transaction fees are handled.

Under Bitcon’s network model, transaction fees are distributed to the miners who validate the blocks. To keep the currency working, and secure, you always need to have machines cranking away and eventually (once 21M. BTC have been mined) the only income that miners will make will be based on transaction fees.

With Peercoin’s design, transactions do have a fee, but rather than issuing that fee to miners, the fee’s value in PPC is destroyed. By automatically removing a small fraction of coins per transaction, the currency attempts to self-regulate inflation. This destruction of coins during a transaction is partially offset by “Proof of Stake” block payments.

Long-term, PPC takes significantly less energy to maintain the security of the network, because a majority of the validation is done during PoS processing, which is much more efficient than brute-forcing exponentially large blocks until the end of time.


If I’ve got anything wrong there, please let me know. I’m working on trying to develop ways to articulate for people why PPC is such a strong idea, but worded in a way that’s understandable without needing to know a lot about the underlying network and crypto functions.

even though it helps to save the environment, ppc still looks pretty cool. ;D

[quote=“Alertness, post:6, topic:810”][quote=“prime_peer, post:5, topic:810”]I just recently discovered Peercoin (and even Bitcoin!), so please bear with me if this has been answered elsewhere, but…
From what I understand, Peercoin’s system most highly rewards people who have held the most amount of coin for the most amount of time (after a certain amount of time). Is that correct? If so, then doesn’t that create a system where the richest get richer?[/quote]

No.
Think of it like this…
Let’s say they added another decimal place to Bitcoin:
So there are are 9 decimal places instead of 8. if you own 10 bitcoins, you got 10x as many new currency units as the guy with 1 bitcoin, but you each have the same value you had before. In peercoin, the money supply slowly increases, but your value stays the same.[/quote]

It’s not entirely right. See http://www.peercointalk.org/index.php?topic=940.msg8937#msg8937

it will improve as hardware improves but that will just increase the difficulty; we really won’t know if bitcoin will continue to suck up a lot of energy; it isn’t a big problem right now though, people are willing to spend it for the greater returns in mining the bitcoins

http://qz.com/156479/miners-spend-17-million-a-day-for-a-shot-at-4-4-million-of-bitcoin/

Thanks for the list, Centaure.

I really like the fact that it’s energy efficient.

My favourite feature of Peercoin is the 1% inflation, I know it kind of resembles parts of what people think is a problem with central banks printing money/adjusting interest rates but I think it will help with widespread adoption of the currency as its not too dissimilar to how money is created , Bitcoins approach of having a fixed number of coins is too radical and utterly stupid as coins go missing and gives people a confusing conundrum as whether to buy to speculate as rarity increases, I cant get my head around it.

With Peercoin you know theirs always new coins created albeit very slowly this should instill confidence as its value can’t go to astronomical values like Bitcoin would IF it became the digital currency of choice, Thats one of Bitcoins biggest issues IMO, do people really want a currency that has a permanent fixed number of units? Like I said I believe its a flawed concept and the mainstream wont buy it and Peercoin offers the best solution of any of the top digital currencies available.

I agree. Bitcoin is so deflationary that you’re tempted to hold. If you want to establish a currency that moves for real shopping/trading (not just speculation in various exchanges), a controlled inflation of 1% seems perfect.

At least that’s how i understand it, please correct me if i’m wrong.

Tell me please, how does peercoin inflation work?

What are the differences between prime and peercoin?

I too would like to know the differences between prime and peercoin.

I have decided to focus on one or two crypto currencies. Bitcoin is out of my reach now so I have nixed the idea of feathercoin and terr coin. I want to be in this for the long haul. Not fly by night speculation. :slight_smile:

Bitcoin uses Proof of Work. For lack of a better word it makes computers do “pointless” work to process transactions. This wastes energy.

Peercoin addresses this by (eventually) eliminating the work. It rewards you based on how many coins you’re holding rather than how many “pointless” calculations your computer can do.

Primecoin addresses this by making the work meaningful. It makes you find big prime numbers that can lead to advances in mathematics, instead of doing “pointless” calculations.

This stuff is covered in more depth elsewhere in the forum. Have a rake around for it.

Thank you k33k.

I was thinking more along the lines of practical applications. For example some think that Litecoin is better for small transactions daily transactions and I have read that Peercoin was more like a CD account.

I will try to do another search for such posts. I appreciate your response.