todo: replace then with than
Google tells me that currency (http://en.wikipedia.org/wiki/Currency) is money (http://en.wikipedia.org/wiki/Money) in circulation. Fiat money (http://en.wikipedia.org/wiki/Fiat_money) is currency declared so by the state, i.e. if you have a store you have to, by law, accepts the fiat and you have to pay tax in it as well.
A major reason why dollar is the dominate reserve currency, is because the US bond market (http://en.wikipedia.org/wiki/Bond_market#U.S._bond_market_size) is the worlds most liquid debt market with enough depth to absorb huge amount of money. I.e. if you have a whole lot of money and want to park it somewhere, you want to put is somewhere where you get an interest and where you can buy and sell huge amounts at any given time, without moving the price.
So what have we learned? Currency is money that is used a means of exchange. To make a currency popular, you have to create huge amount of liquidity and depth in the market (if you don’t you get the kind of volatility that we have in most cryptos right now). You also have to pay some kind of interest on the debt, so that the lender is rewarded for taking the risk.
A cryptocurrency is a kind of digital money, that is being used as a medium of exchange, i.e. its circulating in the economy (true to some degree, hopefully more true in the future). If Peercoin is going to be a reserve cryptocurrency, it will have to offer the depth and liquidity necessary for big money to move in. It competes with Bitcoin. Right now Bitcoin does not offer the depth and liquidity necessary for big money to move in either, but Bitcoin has the network going for it, which is major deal.
My foremost reasons for accumulating peercoins are that I believe that Peercoin will be cheaper to transact with then Bitcoin. If Peercoin can do all the things that Bitcoin can, but at a cheaper price, people will gravitate to using it more then Bitcoin. Peercoin can be cheaper to use then Bitcoin, because it doesn’t use Proof-of-Work. I.e. the cost of securing the network with Peercoin is cheaper then Bitcoin, hence the cost should also be lower in the future.
If Peercoin was super inflationary and offered no protection against the inflation, it would be a very bad place to store purchasing power. While the inflation rate now is very high (in 10 years half of your purchasing power in peercoins should go away, all else being equal) compared to some other cryptos (say those that were 100% pre-mined, which is a major bad thing in itself - think of the ripples tanking on the mere news of a big hodler thinking about dumping), the inflation rate is likely to go down in the future and right now the peercoins are so cheap, that it compensates for the inflation (my personal opinion).
Just as with the US bond market, entities that park/save money, want an interest. In Peercoin you do get an interest on the money, that compensates for the inflation in the currency supply.
Peercoin as a (technical) backbone crypto currency, makes sense to me because it should be very cheap to use Peercoin to do such things (because of PoS). Things such as Factom (http://factom.org/) would be cheaper to use, if it was not dependent on a PoW secured blockchain (at least theoretically it could be ). Burning Peercoin, depletes the existing supply of peercoins and is another way of moving value from Peercoin else where.
Also a major flaw with Bitcoin is the economies of scale, where PoW results in centralization and the even worse bastardization with cloud based mining contracts. Bitcoin is not decentralized and is moving away from that model. Proof-of-Stake, being more cost efficient, is the best and only viable alternative that I know of.
So basically, I buy peercoins not because it think its a good alternative to Bitcoin that could exist as a backbone currency somewhere in the “background”. I buy peercoins because I think that Bitcoin, in its current implementation, will eventually either fail or be more expensive to use.
I.e. in my opinion Peercoin , although Peercoin could serve as a backbone currency, it is going to move to the for front of the ecosystem (and only then will it work as a reserve crypto currency).
edit: oh and I don’t expect this to happen tomorrow or even next year. I think it will take much longer then that. However, we got time because peercoins sustain the network at basically no cost (besides the devs maintaining it) and the longer the time, the better the coin distribution and the greater the decentralization. i.e. time is favoring Peercoin.