The new Alt production line ongoing trend

[Thorgrim]

There seems to be a trend in coins that one might call scam coins.

They have shifted over to more of a 100% premine/instamine variety.

This does two things:

1. It gives the developers and very early adopters all the coins. Far out dude!  

2. It removes the downward pressure caused by continual mining. If every day new coins are being minted and some of them are being sold then this is actually putting downward price pressure on a coin.

So they remove the downward price pressure by insta-minting all the coins and then only release lets say 10% of the coin into the market.

So then you have a coin with lets say 1 billion units, but it is being traded and exchanged like a coin with 100 million units and no continual inflow of new coins.

A great scheme for pumping up a price as fast as possible.

Having the minting process spread over many years is important because these coins are not going to mature and function as actual currency for years or even decades. It is important that the coins are distributed in a fair and thorough manner. Insta-mining does not do this. It centralizes ownership of a coin to a few.

[RogerMendes]

Don't worry bro... this is just a stage of maturing in the altcoin community, 99% of all these coins will die, and a lot of people will lose money and they'll see how dumb they were by supporting coins that offered nothing over BTC. Only a handful of coins will survive, probably the ones that have the best support team, community, and no more crappy coins will rise, as everyone will already be burnt from this stage we're living right now.

[Thorgrim]

Don't worry bro... this is just a stage of maturing in the altcoin community, 99% of all these coins will die, and a lot of people will lose money and they'll see how dumb they were by supporting coins that offered nothing over BTC. Only a handful of coins will survive, probably the ones that have the best support team, community, and no more crappy coins will rise, as everyone will already be burnt from this stage we're living right now.

I do agree that the free market will sort this shit out eventually.

It's just too bad a lot of people are going to loose a lot of money before that happens.

[Ailure]

I kinda realized how pointless most alt coins are when I realized that all I cared about was their BTC value. To be honest, it seems like the main reason alt coins get popular is due to how they tend to be (hopefully) profitable to mine, compared to BTC who is now deep into ASIC land in terms of mining, for actual security this is actually a good thing as it makes the BTC network very hard to 51% attack, but the average miner can't ever hope to get a profit. People might find it a controversial opinion but... IMO this makes bitcoin to have a safe and secure future compared to most altcoins.

[Thorgrim]

I think we need multiple crypto's.

You don't want to put all your eggs in one basket.

Multiple competitors is good for innovation and if the devs, take a coin in a direction you don't like you can shift your assets to one that better suits your interests.

[digicoin]

A single block chain rules all? No it is impossible because of risks of single point of failure and scalability. One or two altcoins will have a chance to exist.

Please think of startups when thinking of altcoins. Only one can succeed among 1000 startups. If you find some altcoins pointless, ignore them.

[gnode]

Don't worry bro... this is just a stage of maturing in the altcoin community, 99% of all these coins will die, and a lot of people will lose money and they'll see how dumb they were by supporting coins that offered nothing over BTC. Only a handful of coins will survive, probably the ones that have the best support team, community, and no more crappy coins will rise, as everyone will already be burnt from this stage we're living right now.

I disagree. Most of the coins that are on multiple exchanges will survive. Think of mutual funds. When mutual funds started there were only a few, now there are thousands, all with different properties, etc.

Huge cash inflows into the altcoins will support a lot of variations.

[TonyOliver]

Maybe a variety of altcoins with different properties actually help the leading crypto currency evolve. Without competition there is little need for innovation. So they aren't necessarily a bad thing. I do however agree that only one or two will prevail in the longer term adopting the qualities of any other coin that comes along and nips at its toes.

[PinkPotatos]

I kinda realized how pointless most alt coins are when I realized that all I cared about was their BTC value. To be honest, it seems like the main reason alt coins get popular is due to how they tend to be (hopefully) profitable to mine, compared to BTC who is now deep into ASIC land in terms of mining, for actual security this is actually a good thing as it makes the BTC network very hard to 51% attack, but the average miner can't ever hope to get a profit. People might find it a controversial opinion but... IMO this makes bitcoin to have a safe and secure future compared to most altcoins.

If you premine/instamine all the coins, then you can give them out to alot more people. You couple this idea with increased volume and the psychology of the big numbers makes a mighty fine motivator for shill creation.

If we were to go back just a year ago most of the coins being pumped would be chastised off the forums. The new crypto users are getting more and more naive.. perhaps they are getting younger. They are obviously getting more greedy and the color of their hats are going from a light grey to near black.

[porcupine87]

It is the free market and when everyone can copy paste his own coin, why not? And sure, many people advertize their coins. It's the same with me. When I have thoughts about coins I have, sometimes I think, I have discovered a flaw. Now, should I spread this? I do really have no idea, what there will be in one or two years. Only Bitcoin with other coins only under 1mio.? Many big players?

To the topic:
Sometimes new coins are really bad. I mean, just changes 1 or two parameters? And then the do not even archieve to make a decent start post in the thread. hm...

[markm]

The big problem is that blockchains are insanely expensive to secure.

You need more than half of the world's computing power of a given type in order to secure the chain.

It is like the how many nukes do you have game, except you maybe don't get to know which individuals, terrorists, or governments control the nukes.

So maybe we could have a few superpowers, like one has a few superpowers among nations, but, with the bonus that their nukes do not work on each other, only on their imitators, client-states, internal states/provinces or whatever. The SHA superpower cannot wipe out the Scrypt superpower nor can the Scrypt superpower wipe out the SHA superpower but all the non-ASIC third-world and balkan and etc trivial little minor states can all probably be trashed by any superpower any time until they too get ASICs uh I mean nukes.

About the only reason any Scrypt coin might be able to actually become secure enough for serious use is that Scrypt ASICs are on the way.

Have you tried computing how much an attacker can afford to spend to attack a coin that is worth even just a paltry $300,000 per coin?

Or maybe you could calculate by market cap, $300,000 multiplied by how many coins equals how much can an attacker spend and still make a profit from an attack?

Most coins have a market cap that is less than one bitcoin once bitcoins start to achieve reasonably useful "serious" values.

When it costs just a bitcoin (a few billions or tens of billions of dollars) to totally PWN a chain, maybe profiting directly by taking over a coin won't hardly seem worth it, what the heck for gosh sakes the whole chain is only worth a bitcoin or so, why bother, just destroy it. Short it then destroy it.

Its like you lot are running around with a bunch of little plastic water-pistols playing war and you don't even have concentrated acid in the things let alone live anthrax. Get real.

-MarkM-

[paulus51]

well i am running for worldcoin after lite coin and ofcourse bitcoin
look at earthcoin good community good offset to

the did indeed pre mining for arround 320 million but.....the put that amount in promotions this coin is just 2 days old i believe

to me it looks trusted and good anough to mine this one to ........

just wait en see what happens near the future if this one is going on ................

[markm]

That reminds me, a few scrypt altcoins were successfully 51% attacked and somehow still have huge "market caps". How does this make sense?

It makes sense because economics as in the rational person who produces the invisible hand effect is not a person it is an easter-bunny, robot, myth, or simply an erroneous theory. Upon which, unfortunately, economics seems to be founded.

It makes sense because humans are not rational animals they are rationalising animals. (Tip of hat to Lazarus Long, whose philosophies the Grand Old Man of science fiction conveyed to us.)

-MarkM-

EDIT: Also, they do NOT have huge market caps. On the contrary, even bitcoin keeps having its value horribly crazily suppressed, possibly because of all the crapcoins causing lack of confidence in the whole blockchain concept. $300,000 per coin is merely reasonable, akin to gold; but gold is not huge it is tiny compared to forex/finance... Huge would be way the heck more than $300,000 per coin, can't recall the math offhand so cannot recall about how many orders of magnitude more.

EDIT2: Heck there are corporations trading on stock markets that have larger market caps than bitcoin let alone larger than most altcoins. So very very far from huge. A nation's entire stock-market even maybe isn't huge, is it, really, even for the largest nations? Just a drop in the bucket compared to the Forex market? I wonder how many publicly traded corporations there are whose market cap is larger than bitcoin's, let alone larger than an altcoin's?

[tokyoghetto]

Why we don't have ScamCoin yet?

It was already launched under the "EarthCoin" banner.

[TonyOliver]

Bitcoin
Litecoin
Megacoin
Worldcoin
Quarkcoin

rest will die 2014

What about Dogecoin? Back to the moon!

[FrictionlessCoin]

Bitcoin
Litecoin
Megacoin
Worldcoin
Quarkcoin

rest will die 2014

What about Dogecoin? Back to the moon!

Dogecoin has a higher hash rate than Megacoin and Worldcoin  combined!!! 

[YoyodyneSystems]

I think someone should have to drink a shot everytime they say the word "scam".

It's really getting old.

This will all play out as it should and will... and nothing will stop it. It will either disappear or evolve.