Talk to me like I’m your average consumer…
If we want PeerCoin to rival Bitcoin, I think it’s important to answer this question:
-Why is PPC better than Bitcoin? What are the benefits (from the consumer’s standpoint) to using PeerCoin versus BTC?
(From my standpoint, I don’t care about “lower energy usage”, I care about transaction fees if I will be using PPC as a currency. If PPC rises in value, the 0.01 transaction fee becomes pretty darn expensive.)
Thanks!
btw, I do understand that there is an argument that PPC is better served as a “savings account”, than as a transaction platform. However, the 1% interest is nominal and almost doesn’t make a huge impact (in my opinion).
for microtransactions third parties could offer (centralized) service to transfer ppcoins (without the fixed tx fee), it was mentioned somewhere in one of the interviews
maybe the benefit could be higher security, when bitcoin mining isn’t profitable or, I don’t know, we will see how the future goes
if you want something more useful in terms of usability look at primecoin, it has one minute block spacing, so your transactions confirm faster ,
Bearing in mind that we (people, who cannot into source codes) require more technical data to actually understand how peercoin works, I already learned this:
Bitcoin now is collapsing into miners competition and will end up with 10-20 really big miners, who will suppress other miners activity. This is a threat to decentralization. If governments and bankers will decide to ban bitcoin, they could overtake this miners (who cannot ran away because they require a lot of electricity and infrastructure to operate), gain >51% through this and fuck up the whole bitcoin network.
Peercoin proof of stake does not require electricity and special mining equipment, so it would be harder to overtake. But on the other hand, I calculated that if I decide to be a PoS miner and want to get at least my current, really humble monthly salary (12’000$/year), I will need 1’200’000$ of savings which is:
4’800’000 PPC with 0,25$ per PPC
1’200’000 PPC with 1$ per PPC
120’000 PPC with 10$ per PPC
17’142 PPC with 70$ per PPC
12’000 PPC with 100$ per PPC
6’000 PPC with 200$ per PPC
Considering that 70$ is a fair price for BTC (if we successfully replace BTC with PPC and will ignore their moneysupply cap difference), I conclude that with 40’000’000 PoS moneysupply there could be only 2333 (40’000’000/17’142) humble persons like me that will found profitable for them to mine with PoS. Or 6666 miners for 200$ per PPC which is close to current bitcoin maximum. As for me, it’s too small amount of miners for our big planet. Of course, all this calculations mostly is a guesswork, so I will be glad if somebody could correct me.
You assume that mining is a job that somebody has to be paid for. This is what bankers do, but we don’t need them. The PoS miner is not meant to make a living of his role. Mining PoS happens beside your normal usage and there is no incentive not to do so. For the average Joe at least.
Average Joe could get about 1$/month with PoS and for him, mining just wouldn’t worth his time to spend on it. Average Joe also will turn off his PC when an Average Mallory on the TV will say that it’s illegal to run peercoin. Average Joe wants to turn on his PC, buy stuff and go offline. He is not a miner type and he even doesn’t want to know what is mining and blocks of transactions are.
yep, average joe is meant to do this just like that. the chance to find a block the next time he switches on his node to make a payment will grow while the node is off. and why not switching mining on by default?
I think it is on by default, only when you have encrypted your wallet you need to unlock it for the period you are PoS mining
If we assume that Average Joe will use peercoin to buy something at least once a month, he even cannot into mining.
If we assume that Average Joe will use peercoin to buy something at least once a month, he even cannot into mining.[/quote]
What?
If we assume that Average Joe will use peercoin to buy something at least once a month, he even cannot into mining.[/quote]
For that reason, a coin control client would be a big improvement to PPC. It should be designed the way Average John can handle it without having to care about the technical background, e.g. specifying a “savings address” and a “hot address” for frequent transactions.
If we assume that Average Joe will use peercoin to buy something at least once a month, he even cannot into mining.[/quote]
For that reason, a coin control client would be a big improvement to PPC. It should be designed the way Average John can handle it without having to care about the technical background, e.g. specifying a “savings address” and a “hot address” for frequent transactions.[/quote]
aka avatar mode
4 major videos we need:
I’m glad this thread was created, #1 is certainly a priority.
Bearing in mind that we (people, who cannot into source codes) require more technical data to actually understand how peercoin works, I already learned this:
Bitcoin now is collapsing into miners competition and will end up with 10-20 really big miners, who will suppress other miners activity. This is a threat to decentralization. If governments and bankers will decide to ban bitcoin, they could overtake this miners (who cannot ran away because they require a lot of electricity and infrastructure to operate), gain >51% through this and fuck up the whole bitcoin network.
Peercoin proof of stake does not require electricity and special mining equipment, so it would be harder to overtake. But on the other hand, I calculated that if I decide to be a PoS miner and want to get at least my current, really humble monthly salary (12’000$/year), I will need 1’200’000$ of savings which is:
4’800’000 PPC with 0,25$ per PPC
1’200’000 PPC with 1$ per PPC
120’000 PPC with 10$ per PPC
17’142 PPC with 70$ per PPC
12’000 PPC with 100$ per PPC
6’000 PPC with 200$ per PPC
Considering that 70$ is a fair price for BTC (if we successfully replace BTC with PPC and will ignore their moneysupply cap difference), I conclude that with 40’000’000 PoS moneysupply there could be only 2333 (40’000’000/17’142) humble persons like me that will found profitable for them to mine with PoS. Or 6666 miners for 200$ per PPC which is close to current bitcoin maximum. As for me, it’s too small amount of miners for our big planet. Of course, all this calculations mostly is a guesswork, so I will be glad if somebody could correct me.[/quote]
I think you are missing the point. The point of PPC isn’t really about miners at all. Its primary purpose isn’t about the PoS aspect. The PoS aspect is just a nominal side feature, a bonus aspect if you will. It is not about the PoS, otherwise you could go ahead and try that… make a coin with a 30% per year PoS reward. It would be pointless. PPC is not going “to make you money” it is designed to preserve the wealth you already have. The PoS reward “does not make you money”. The PoS reward is completely decentrally distributed, (so really there is no new wealth being created). It is an an encrypted commodity, an asset with limited supply. It is designed to be a long-term stable financial powerhouse. I think the problem with your scenario is that it does not assume realistic supply and demand prices points. You are not taking into consideration proper market cap calculations. That is, that as the coin gets rarer, the price tends to move more expensive as each coin bought is effectively not available in the money supply for sale (because you own it).
For example:
There is just no way that you can go onto an exchange and be able to buy 4,800,000 PPC…at the $0.25USD price you say.
I’d say you might be able to get about 90,000 coins at about $0.50USD. =$45,000.
But the next 90,000 coins you try to buy will likely cost you 30% more than that. =$58,500.
And the next 90,000 coins you try to buy will likely cost you another 30% more than that, and this process continues the more you buy, because there are less and less sellers willing to part with their coins unless you meet their higher price demands.
The whole point of PPC is that it is energy efficient because it doesn’t need much in the way of PoW mining. It doesn’t make sense to mine, so you don’t mine. Not mining is the goal. Not mining = saving energy. That’s the point.
How hard is it for bitcoin to implement the proof-of-stake ‘add-in’ in the future?
Average Joe likes it because PPC is more secure against risks in the mining sphere.
Then BTC has to remove the 21 million cap of supply, which will never happen.
Then BTC has to remove the 21 million cap of supply, which will never happen.[/quote]
Not really. PoS miners can get their income from transaction fees as PoW miners, but I believe it wouldn’t happen because it will too radically change bitcoin ideology. There is no point to add PoS to bitcoin because there is peercoin for this.
Then BTC has to remove the 21 million cap of supply, which will never happen.[/quote]
Not really. PoS miners can get their income from transaction fees as PoW miners[/quote]
Then can the POS reward be made proportional to the coinage?
Why the .01 transaction fee?
protect against spamming the blockchain, and to counter the PoS inflation