Sorry i didn't read the topic(maybe there was someting like i wrote).
Can it replace or at least be like BTC/LTC? maybe, all depends on
early adopters now.
BTC had diff 64 too, long time ago. But those times people mine it for the idea,
not for the money.
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All of crypto-currencyes subjected by the thing, known as "starting crysys"
if coin can goes through starting crysis, it lives.
------------------------------------------------------------------------------ At the start i want to connect BTC's and LTC's past with the theory of revolutions.
People who mine BTC at it's early times does it for the idea of better future
and "money of the future". Idea of the better future is the strongest idea ever
faced by humanity. It can lead to the revalutions and wars. Such things can't
be done sitting on a chair, requers greats efforts and connected with great
suffering of single human.
People, who mine LTC does it for the idea too. Because of hopelessness and
indifference. There are very strong ideas too. It can make human to do anything.
When the ASICS appears in bitcoin mining, so expensive videocard rigs become useless.
In the middle of this summer you can bought ATI videocards in killograms.
So someone set their rigs to mine LTC because of:
1.) they already have rigs or videocards can be bought cheap.
2.) It was too cheap to sold it.
3.) There was free electricity or sth like that.
4.) LTC was well known.
People, who mine LTC earlier does it for the idea of beter future too.
And here DOGE comes. Why most of the peoples starts to mine doge?
Exactly. For fun (Doge, very currency, much zeroes) and because of curiosity.
And because their know about doge too. And what is the fun and curiosity?
There is natural state of human brain (remember youself in childhood).
Curiosity and fun have advanced the humanity from the monkey-state to the
space flights and quantum computers.
And when doge comes to exchange something happens...
There i want to show you the great picture. It paintig called GREED
or well known "pump and dump scheme".
http://gifti.me/i/YdlFw5.pngI mark those place where i think CATs is. Period between awareness
phase and mania phase usually long.
Gold be required 40years to paint that, Bitcoin - 1 year and Doge - 1 WEEK.
This is continiously drawn by all not renewable and hard renewable not industry-involved
actives all the history.
Do you store your money in tulip bulbs? Or culinary spices? Tea and coffe?
All of those things paint their GREED oil painted canvas long time ago.
Bottle caps (not botle cap coins, real bottle caps) (Fallout)?
It may become money of the future, isn't it. What are you think?
Lets go back to our Starting crysis.
Case of dead of cryptocion always in... recalculating of the difficulty.
The death of cryptocion is when transaction can't be done.
If there are many miners with high hashrate on start, difficulty goes high fast.
Bitcoin(and cats) has 2016 blocks recalc period. So 100800 coins can be
generate between the different difficulties.
So on start we have an easy money. When difficulty goes high (relatively) most of
small miners (i get so little coins now, but i have reserve) and all of big
freebie-miners (i've done my bag of coins, so i can relax and continue to mining
primary currency) exitting. Block time increasing, the remaining miners get less
reward/time_unit and exiting. So we have chain reaction, which eventually
lead to situation when remaining loyal miners can't find the amount of blocks
to the difficulty recalculation, all abandone the currency, nodes in network goes to 0,
blockchain lost => deth of currency.
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So we can make a conclusion: the starting crypto currency(
especially without
stable exchange rate)
doesn't need fast hashrate growth (will kill the coin),
it's in a great
need of long term STABLE hashrate to slowly reach balanced difficulty
with target blocktime. If the target diff less then actual diff with large enough
blocktime, there is a danger.
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Now look at the market: coins/timeunit falls with stable hashrate, price will go up.
When large keeper decide that price is high enought he sell their reserve. Reserve
overloads the market, price goes down, all of large keepers sell their reserves too to
fix their profit => collapse => above listed crysis. It means, that
FREE MARKET
can easilly kill starting cryptocurrencies by tons. All there about hope.
Psychologically, small keepers has more hope than big, because they lose less than big
if something goes wrong.
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Economics decentralisation at the start can easily kill coins.
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Dogecoin creator were economical and cryptocoins genious. He first
made and promote extemely fast coin, so it can comlete pump and dump phase
in one week. Cat is extremely slow there, like Bitcoin.
Suspect(didn't exactly know), the doge diff update is very short, so exchange rate
can be wery volatile, due to start (and in long term too). So it lack of strong
long term stabilisation mechanism like BTC. Doge is the currency, that made easy
to take off(yes, much zeroes too), not to go for moon. Going to moon and especialy
to Mars is a very long way.
Attention to the words FREE MARKET, it is main problem at the start.
Usualy,
premine helps to avoid starting crysis. As i know Satoshi mine about 1M BCT alone.
There can be many caces why he did it, but i think it is not simple greed.
I think he did it to avoid starting crysis.
So we make conclusion that while block time not goes to target with stable
difficulty, we all will be PREMINERS(it is not so profitable all time in this case). And if premine can solve the starting crysis we need to avoid free market, we should
to become something like syndicate or Collective intelligence.
And when cryptocoin been mined => can live? Exactly, when it is profitible
to mine. When is it profitible? It is profitible, when the same hashrate does more US
dollars(and all like that) per time unit then on other currencies. So there is
need to calc with respect to strong currency what exchange rate is acceptible.
BTC has enother hashing algorithm and ASICS, so they ussless in that case. Use litecoin,
for example (Doge take off, because they were more profitible to mine that litecoin).
We need to raise real exchange rate (not asking) by lowering the trading amount
to not overload the market. And convince all big keepers to do so, else CATs will die.
if you realy want to sell Your cats do it in very small amonts (FRACTIONAL PARTS),
even if price will big enough. Think about peopels who mine it, not only youself, and if you
have the reserve it will be greatly rewarded in future.
