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View Diary: The Problem with Crypto-Currencies and Why SolarCoin is Different (124 comments)

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  •  I agree, except I don't think Bitcoin is the one. (4+ / 0-)
    Recommended by:
    nuketeacher, jbalazs, linkage, Sandino

    Bitcoin itself has a lot of flaws, such as:

    1. The mining process wastes lots of energy.
    2. A large percentage (upwards of 10% of all bitcoins) are hoarded by a small number of founders and early adopters.
    3. Bitcoin does not incentivize any productive economic activity or philanthropic cause.

    I think alternative currencies will succeed and transform the global economy, but I suspect that Bitcoin will go down in history as merely the first one to prove that the concept works. It will be (and is already being) improved upon by altcoins such as SolarCoin, which solve the 3 issues I mentioned above.

    Bitcoin will probably be remembered as the Altavista or the MySpace of cryptocurrency. Successful at first, but overtaken by better innovations in the same technological space (e.g. Google and Facebook).

    The most serious problem in American politics today is that people with wrong ideas are uncompromising, and people with good ideas are submissive and unwilling to fight. Change that, and we might have a real democracy again.

    by Eric Stetson on Sun Apr 13, 2014 at 05:26:03 PM PDT

    [ Parent ]

    •  Bitcoin Mining is expensive because it is (0+ / 0-)

      designed to have zero trust in any small group of people (you do have to trust that 50+% of the mining pool are not collectively trying to screw the rest over).
      Add more "trusts" in the system (such as backed by government, trust one or multiple authority who can "sign" blocks in block-chains) reduce or eliminate the mining cost.

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