Some questions about peercoin

Hello guys,

I’m looking to invest in peercoin as VoS added it to their list, however some things I don’t understand. I really don’t like Litecoin because I don’t see it serving a purpose other than being a clone of Bitcoin. I don’t buy the “silver to gold” metaphor either. and I looked into Quark and that seems like a pump and dump.

Now Peercoin is interesting with the Proof of Stake system and being energy efficient, not having to rely on miners to power the system. Namecoin is interesting as well, though I don’t know if that will take off and if we need a currency around domain names though we do need decentralized DNS servers so sites can’t be seized and be susceptible to man in the middle attacks.

However, as an investment opportunity, why should I invest in PPC instead of Bitcoin? Bitcoin has so much momentum going for it now, I just read about someone who bought Tesla car in bitcoin…seems like more merchants are accepting it. I imagine if a really big player accepted bitcoin, the currency would be golden and set to succeed. And with companies like Tesla accepting bitcoin…who else will be next.

See I only have a limited amount of funds, so I can buy all bitcoin, or all peercoin, or split between the two. However, I’m not seeing much activity from Peercoin? PPC is still in version .3 and it becomes decentralized in 0.5 …who knows how long that will take.

Security. I don’t want to lose my coins. For bitcoin, there are so many tutorials on how to secure your coins, like using a secure laptop (not your daily browsing one) have a fresh install (maybe use linux) encryption etc…I don’t see too much of that for peercoin. Is it necessary? How does having to check in every 90 days affect security? What I’m asking is are the bitcoin ppl going to real extremes for security and the average person only needs to really have a secure laptop and encrypted backups?

My other question is in regards to mining. So one benefit over bitcoin is that miners are not necessary once the PoS system is in place. The thing is, bitcoin mining is estimated to last for a long time so we can’t say once the thing is mined then the system may collapse. That may not be decades or even a century? In the meantime, the value of it will keep rising. And eventually once everything is mined, they can still continue mining and reap the transaction fees as incentive. I wish people were forward thinking, but everyone jumping on Bitcoin bandwagon isn’t necessarily going to look at all it’s pro’s and con’s. Is it realistic to expect the value of PPC to rise anytime soon? If I have to wait a year or two I wouldn’t even mind, as that would allow me to accumulate more coins (limited funding) at a lower price, but I guess I’m wondering is if there is enough room for 3 big players. Litecoin unfortunately seems firmly entrenched in position 2.

Hi there. Welcome to the community ;D

However, as an investment opportunity, why should I invest in PPC instead of Bitcoin? Bitcoin has so much momentum going for it now, I just read about someone who bought Tesla car in bitcoin...seems like more merchants are accepting it. I imagine if a really big player accepted bitcoin, the currency would be golden and set to succeed. And with companies like Tesla accepting bitcoin...who else will be next.

Unfortunately no one can answer this but you. I’d advise in diversification, don’t just get one crypto. Choose a few different ones always remembering not to invest more than you can afford to loose. There are several different projects being worked on at the moment, and client version 0.4 should be out in a week or two.

Security. I don't want to lose my coins. For bitcoin, there are so many tutorials on how to secure your coins, like using a secure laptop (not your daily browsing one) have a fresh install (maybe use linux) encryption etc...I don't see too much of that for peercoin. Is it necessary? How does having to check in every 90 days affect security? What I'm asking is are the bitcoin ppl going to real extremes for security and the average person only needs to really have a secure laptop and encrypted backups?

Most of these principles and practices apply to Peercoin as well. There’s really no reason to make separate tutorials for every crypto, they all share most of Bitcoins code.

My other question is in regards to mining. So one benefit over bitcoin is that miners are not necessary once the PoS system is in place. The thing is, bitcoin mining is estimated to last for a long time so we can't say once the thing is mined then the system may collapse. That may not be decades or even a century? In the meantime, the value of it will keep rising. And eventually once everything is mined, they can still continue mining and reap the transaction fees as incentive. I wish people were forward thinking, but everyone jumping on Bitcoin bandwagon isn't necessarily going to look at all it's pro's and con's. Is it realistic to expect the value of PPC to rise anytime soon? If I have to wait a year or two I wouldn't even mind, as that would allow me to accumulate more coins (limited funding) at a lower price, but I guess I'm wondering is if there is enough room for 3 big players. Litecoin unfortunately seems firmly entrenched in position 2.

The advantage of PoS doesn’t rely on the end of Bitcoin’s mining, it relies on how the mining goes forward.
Peercoin value has risen immensely in the past few weeks. You just missed the biggest explosion in price yet.

Ah! thanks for those answers, I shall ponder some more. I wonder will PPC support zero coin?

I was reading this http://blog.cryptographyengineering.com/2013/04/zerocoin-making-bitcoin-anonymous.html and it seems like a really useful thing to have.

Regarding the Zerocoin question, It is unlikely that Peercoin will adopt the Zerocoin technology. That is like asking if the next model of car will also wash your dishes for you, where all current car owners must agree to add the free (but risky) dishwasher module in their current car in order to make it happen. Put simply, Peercoin has a certain purpose in mind, and Zerocoin does not further that purpose.

Ok, Zerocoin isn’t exactly like a dishwasher, but I had fun saying that.

Welcome to the forums!

How would we refute the arguments presented in this article?

If its true bitcoin will never be a currency, then the same could be said for peercoin right? The arguments in there seem like bullshit to me, it defeats the whole point of it being decentralized and nobody able to issue more currency. They are thinking too much in terms of fiat.

[quote=“CryptoNoob, post:5, topic:1056”]How would we refute the arguments presented in this article?

http://www.theatlantic.com/business/archive/2013/12/why-bitcoin-will-never-be-a-currency-in-2-charts/282364/[/quote]

Look at the price of gold. See how stable it is? Its market cap is 1200 billion. Look at the price of silver. See how its more volatile than gold but more stable than bitcoin? Its market cap, if I remember correctly, is something like 200 billion. Look at the price bitcoin. See how volatile it is? It’s market cap is 10 billion.

The difference between these three commodities is that bitcoin is in it’s nativity. It is still growing to its true potential. Gold and silver are long past this stage.

When bitcoin become ubiquitous, the price will naturally stabilize.