I just wanted to repost this, since it’s relevant for this thread too…
PPC does not store value reliably
Peercoin stores value in a more sustainable way compared with proof-of-work, but Tomjoad is right that Peercoin doesn’t store value reliably in a price stable way. That’s what NuBits is for. But maybe this is the way it’s supposed to be though. Maybe Peercoin was never meant to be money or a day to day transactional currency? Bitcoin has always tried to be a currency, but this will never happen as long as it has its volatility. NuBits could end up taking over the currency role from Bitcoin in the future.
Peercoin supporters also originally thought Peercoin was supposed to be a currency in the very beginning, but then that viewpoint slowly changed over time. At first people wondered how Peercoin could be used as a day to day currency because of the fixed transaction fee. The fee would prevent microtransactions. We finally realized that off-chain networks like Open Transactions could allow us to bypass the fee and it was something that Sunny hinted at in his interviews.
That answer satisfied us for a while until the release of NuBits, when we all realized how unlike a currency Peercoin really was. Sure, we could still use OT to bypass the fee, but why use Peercoin as a transactional currency or store your money in it if it sways in price? You can’t store money in something that is volatile. Sure, proof-of-stake will ensure that your money is always stored securely and in a sustainable way, but how much will the value of that money change by the time you go to retrieve it? Because of this, I don’t think many people believe that Peercoin is destined to be a currency anymore.
So without the currency role, what is Peercoin good for? That’s the $1 billion dollar question! I sure wish Sunny would chime in on this. Maybe the answer lies in building things on top of Peercoin through sidechains? In this way, Peercoin would become similar to NuShares I think. The NuShares blockchain is like a backbone from which pegged currencies and other assets can be built on top of. The value of the entire NuShares network and everything built on top of it (all currencies & assets) is displayed in the price of individual NuShares.
Owning Peercoin would be similar to owning shares in the network. Peercoin would be the backbone of the network, while all the exciting stuff gets built on top of it in the form of sidechains. Sidechains would prevent the main blockchain from growing too much in size, unlike the NuShares blockchain where everything is under one chain. With more useful things being built into Peercoin sidechains that satisfies different needs, the value of the network itself will rise and that will be displayed through the rising price of individual Peercoins.
I’m basically just throwing out ideas here. I’m not totally sure how all this would work, but it should give Peercoin its own purpose outside of the currency role.
I think many people are realizing this. Progresses (if technically obscure) have been made in this direction such as OP_RETURN and ppcd by the developers.
An advantage of peercoin is that it is similar to bitcoin except for the POS part. For better or for worse peercoin is The POS Version of Bitcoin. Many features made on top of the bitcoin network can be relatively easily ported to peercoin. This cannot be said on other POS coins such as nxt.[/quote]