Bitcoin Forum
December 05, 2016, 10:28:02 AM *
News: To be able to use the next phase of the beta forum software, please ensure that your email address is correct/functional.
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: What are BTC's Barriers to Entry  (Read 594 times)
MackTrow
Newbie
*
Offline Offline

Activity: 18


View Profile
July 23, 2011, 04:17:23 PM
 #1

What is to stop anyone in the world from creating alternatives to Bitcoin? Clearly, it doesn't require asset-backing. So why is it special?

Personally, I think competition is coming, and it's coming hard. But I also think this is going to be great for the *concept* of BTC. The biggest threat to private currencies is government intervention. The more private currencies that compete globally, the more difficulty governments will have shutting them down. Once private currencies become established, governments will have to become competitive [sic].

So what would stop anyone from starting his own version of BTC?

Mack
1480933682
Hero Member
*
Offline Offline

Posts: 1480933682

View Profile Personal Message (Offline)

Ignore
1480933682
Reply with quote  #2

1480933682
Report to moderator
1480933682
Hero Member
*
Offline Offline

Posts: 1480933682

View Profile Personal Message (Offline)

Ignore
1480933682
Reply with quote  #2

1480933682
Report to moderator
1480933682
Hero Member
*
Offline Offline

Posts: 1480933682

View Profile Personal Message (Offline)

Ignore
1480933682
Reply with quote  #2

1480933682
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1480933682
Hero Member
*
Offline Offline

Posts: 1480933682

View Profile Personal Message (Offline)

Ignore
1480933682
Reply with quote  #2

1480933682
Report to moderator
1480933682
Hero Member
*
Offline Offline

Posts: 1480933682

View Profile Personal Message (Offline)

Ignore
1480933682
Reply with quote  #2

1480933682
Report to moderator
1480933682
Hero Member
*
Offline Offline

Posts: 1480933682

View Profile Personal Message (Offline)

Ignore
1480933682
Reply with quote  #2

1480933682
Report to moderator
Jaime Frontero
Full Member
***
Offline Offline

Activity: 126


View Profile
July 23, 2011, 04:21:08 PM
 #2

nothing.  go for it.  see how you do...
ctoon6
Sr. Member
****
Offline Offline

Activity: 350



View Profile
July 23, 2011, 04:28:50 PM
 #3

The barrier to entry is convincing enough people that your chain is better. and you would have to start out with a lot of machines to help protect it from people wanting to double spend.

Chris Acheson
Sr. Member
****
Offline Offline

Activity: 266


View Profile
July 23, 2011, 04:33:53 PM
 #4

What is to stop anyone in the world from creating alternatives to Bitcoin? Clearly, it doesn't require asset-backing. So why is it special?

In order to bootstrap initial value, a Bitcoin alternative would have to attract investment from speculators who expect it to increase in value, and then attract usage as a medium of trade in order to meet the investors' expectations.

It's clear why one would want to invest in the first cryptocurrency (Bitcoin).  It's the first "thing" that can be sent through the internet, but not freely duplicated, without having some form of central control.

It's not clear why one would want to invest in the second one, without some distinguishing feature (a la Namecoin).  Who would bother to switch?  The alternative would be less secure in terms of hashing power, fewer people would have faith in its value, fewer merchants would have their systems set up to accept it, etc.
GoWest
Hero Member
*****
Offline Offline

Activity: 543


betwithbtc.com


View Profile WWW
July 23, 2011, 04:37:29 PM
 #5

Let's say another blockchain based currency is introduced, couldn't a portion of Bitcoin's computing power suddenly decide to switch to the new currency and immediately obtain >50% of the hashing power, thus jeopardizing the integrity of the new currency?  It seems to me that the bigger Bitcoin gets, the harder it would be for another currency to safely be introduced.

Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!