[ANN][NOTE]DNotes - Celebrating DNotes 3rd Birthday - Forum Now Open

[CryptoBroker79]

Word of caution for anyone hoping to take advantage of arbitrage between Cryptsy and Poloniex: I've been waiting 16 hours for a BTC transfer from Cryptsy, and support is extremely slow to respond as usual.

are they having BTC problems? Apparently they being investigated by SEC.
I am starting to get cautious with storing too much funds on there!

That's definitely a safe bet, still no sign of the BTC yet, but support got back to me and this is what they had to say:

"Most BTC LTC and BTCD withdrawals are currently extremely slow moving due to tech issues.
This progressively got worse over the past week and were trying to find the reason they are not going out. Please understand that due to extremely high security this a very complex system and the problem is still being resolved.

We appreciate your patience and understanding on this matter. Should you wish to cancel your pending withdraw, please let us know."

[CryptoBroker79]

From CryptoMoms Forum Today:

Wow! CryptoMoms blew right through 14 K Members and the traffic has been growing too.

4789 Posts in 568 Topics by 14018 Members

Thanks for all your support. We are gearing up to do a lot more next year.

Our top priority next year is to start working with woman small business owners with an attempt to pull and engage other resources that are helpful for all small business owners and their employees. I will be starting a new thread to answer business related questions. Let us know if you have any suggestions as to how we could be more helpful to small business owners.

As  part of our Christmas tradition, we will be sending out DNotes, as gifts, to all our CRISP For Kids on Christmas week. There will also be a number of special prizes given out. If you have not signed up a CRISP For Kids account for your child, this is a great time to do so. This is a great gift idea for anyone - parents, grandparents, family and friends.

Congratulations CryptoMoms, keep up the great work!

[wiser]

Word of caution for anyone hoping to take advantage of arbitrage between Cryptsy and Poloniex: I've been waiting 16 hours for a BTC transfer from Cryptsy, and support is extremely slow to respond as usual.

are they having BTC problems? Apparently they being investigated by SEC.
I am starting to get cautious with storing too much funds on there!

That's definitely a safe bet, still no sign of the BTC yet, but support got back to me and this is what they had to say:

"Most BTC LTC and BTCD withdrawals are currently extremely slow moving due to tech issues.
This progressively got worse over the past week and were trying to find the reason they are not going out. Please understand that due to extremely high security this a very complex system and the problem is still being resolved.

We appreciate your patience and understanding on this matter. Should you wish to cancel your pending withdraw, please let us know."

The reason for the arbitrage between Cryptsy and Poloniex is because of the issues with BTC withdrawals. People who don't want to wait for an indefinite amount of time to withdraw BTC are buying altcoins at a markup just to get their funds out. As for the reply from support, that is a copy/paste of what they've been sending out over a week ago, possibly even earlier than that. If it "progressively got worse over the past week" two weeks ago, then what is actually going on now? I got the same copy/paste earlier today, and getting the exact same message again really made me lose a TON more confidence in them. It's sad, but clearly PR and customer service are huge weaknesses for them. If the technical difficulties they are having (which I believe are genuine) don't sink the ship, the horrible PR will.

[CryptoBroker79]

Word of caution for anyone hoping to take advantage of arbitrage between Cryptsy and Poloniex: I've been waiting 16 hours for a BTC transfer from Cryptsy, and support is extremely slow to respond as usual.

are they having BTC problems? Apparently they being investigated by SEC.
I am starting to get cautious with storing too much funds on there!

That's definitely a safe bet, still no sign of the BTC yet, but support got back to me and this is what they had to say:

"Most BTC LTC and BTCD withdrawals are currently extremely slow moving due to tech issues.
This progressively got worse over the past week and were trying to find the reason they are not going out. Please understand that due to extremely high security this a very complex system and the problem is still being resolved.

We appreciate your patience and understanding on this matter. Should you wish to cancel your pending withdraw, please let us know."

The reason for the arbitrage between Cryptsy and Poloniex is because of the issues with BTC withdrawals. People who don't want to wait for an indefinite amount of time to withdraw BTC are buying altcoins at a markup just to get their funds out. As for the reply from support, that is a copy/paste of what they've been sending out over a week ago, possibly even earlier than that. If it "progressively got worse over the past week" two weeks ago, then what is actually going on now? I got the same copy/paste earlier today, and getting the exact same message again really made me lose a TON more confidence in them. It's sad, but clearly PR and customer service are huge weaknesses for them. If the technical difficulties they are having (which I believe are genuine) don't sink the ship, the horrible PR will.

Hopefully they get it sorted out, the last thing the industry needs is another large exchange collapse.

[wiser]

Hopefully they get it sorted out, the last thing the industry needs is another large exchange collapse.

I think they'll get their technical issues solved. What I'm not so sure about is rebuilding their reputation after they solve the issues. Although it may be sufficient that they solved them and came back to offer what customers expect. If you bounce back a couple times from something like this and don't pull a GOX, then I think that counts for something. Still, improving their PR would be so simple... and yet apparently too difficult at the moment.

[IMZ]

The positive here is what a good light it puts the Dnotes 'model' in. Accessible, plain-spoken, polite, attentive to the detail* -- dang, it's revolution!

[And if every single automated exchange blows up today, IndiaMikeZulu will have a P2P exchange up and running within 24 hours. Easy peasy!]

Mark (IndiaMikeZulu), Australia


*Even inclusive of . . . whatchamacallit? . . . girl persons!

[Dyna]

Hopefully they get it sorted out, the last thing the industry needs is another large exchange collapse.

I think they'll get their technical issues solved. What I'm not so sure about is rebuilding their reputation after they solve the issues. Although it may be sufficient that they solved them and came back to offer what customers expect. If you bounce back a couple times from something like this and don't pull a GOX, then I think that counts for something. Still, improving their PR would be so simple... and yet apparently too difficult at the moment.

There are many reasons why businesses failed; including some who got a taste of success and still failed, while others may not have been so fortunate. The three most important components are the guy in charge, the employees, and the customers. Everything is a reflection of the top leadership.

In most cases, the top guy is the owner or one of the founders, often the one with the great idea, technology or money, or both. Since he can not do much by himself, he needs employees to grow his business and customers to support his business. Technology alone is not enough to see him through. All three are of high value and must work well for continued success. They are all inter-related and affect one another. The one in charge must build the most favorable environment for every component to work well together. My book covers these in great details.

When customers, don't feel like the employees care or appreciate their business, there is little loyalty to be support the company, which it very much needs, when it encounters problems as in the case of Cryptsy. Unless you are the only game in town, the customers will start to consider other options and choices available. Once they are gone, it is a lot harder to get them to come back. There is no indication to me that Cryptsy's management recognized the magnitude of the problem, or any efforts of damage control. Unfortunately, this is one of the main causes of business failures. Being great in one or two areas is not enough to be successful because everything matters, with some to a lower degree.

[wiser]

Hopefully they get it sorted out, the last thing the industry needs is another large exchange collapse.

I think they'll get their technical issues solved. What I'm not so sure about is rebuilding their reputation after they solve the issues. Although it may be sufficient that they solved them and came back to offer what customers expect. If you bounce back a couple times from something like this and don't pull a GOX, then I think that counts for something. Still, improving their PR would be so simple... and yet apparently too difficult at the moment.

There are many reasons why businesses failed; including some who got a taste of success and still failed, while others may not have been so fortunate. The three most important components are the guy in charge, the employees, and the customers. Everything is a reflection of the top leadership.

In most cases, the top guy is the owner or one of the founders, often the one with the great idea, technology or money, or both. Since he can not do much by himself, he needs employees to grow his business and customers to support his business. Technology alone is not enough to see him through. All three are of high value and must work well for continued success. They are all inter-related and affect one another. The one in charge must build the most favorable environment for every component to work well together. My book covers these in great details.

When customers, don't feel like the employees care or appreciate their business, there is little loyalty to be support the company, which it very much needs, when it encounters problems as in the case of Cryptsy. Unless you are the only game in town, the customers will start to consider other options and choices available. Once they are gone, it is a lot harder to get them to come back. There is no indication to me that Cryptsy's management recognized the magnitude of the problem, or any efforts of damage control. Unfortunately, this is one of the main causes of business failures. Being great in one or two areas is not enough to be successful because everything matters, with some to a lower degree.

I'm really looking forward to reading your book, Dyna. Let me know if you'd like any editing help with it

There is one aspect in which Cryptsy is the only game in town for me, because it's the only exchange that carries a particular coin I get on a regular basis. If it weren't for that, though, I'd have completely left them by now as all the other coins I'm interested in, including DNotes, are carried on other exchanges. This basically proves your point. Since there's a reason the one coin trades only on Cryptsy, I'm clearly not going to be enough glue for them if lots of other people (who don't care about my coin) ditch them over this. But I do hope they continue to exist, because one thing in their favor is that they rarely if ever delist coins. Time will tell whether that can possibly make up for their weaknesses.

[Dyna]

The positive here is what a good light it puts the Dnotes 'model' in. Accessible, plain-spoken, polite, attentive to the detail* -- dang, it's revolution!

[And if every single automated exchange blows up today, IndiaMikeZulu will have a P2P exchange up and running within 24 hours. Easy peasy!]

Mark (IndiaMikeZulu), Australia


*Even inclusive of . . . whatchamacallit? . . . girl persons!

Thank you, Mark. The DNotes' model is built to survive the test of time. We are at the mercy of the same challenging environmental factors everyone in our industry is subjected to. Many of those factors are beyond anyone's control, but unless we can promptly adjust and adopt, it could be very damaging as we constantly witnessed.

One might have observed that DNotes has continued to make progress in multiple fronts and never stopped to advance. We have successfully added DCEBrief recently and various projects will be launched in 2016. This is a good indication that we have a clear vision and a dedicated mission. Our multiple strategic plans are continually being executed flawlessly irrespective of DNotes market price. Over time, the true value of DNotes will be recognized. DNotes is being built with our long term stakeholders in mind. We will continue to add value to our long term investment but not sure if there is anything we can do for short term traders.

[Dyna]

Hopefully they get it sorted out, the last thing the industry needs is another large exchange collapse.

I think they'll get their technical issues solved. What I'm not so sure about is rebuilding their reputation after they solve the issues. Although it may be sufficient that they solved them and came back to offer what customers expect. If you bounce back a couple times from something like this and don't pull a GOX, then I think that counts for something. Still, improving their PR would be so simple... and yet apparently too difficult at the moment.

There are many reasons why businesses failed; including some who got a taste of success and still failed, while others may not have been so fortunate. The three most important components are the guy in charge, the employees, and the customers. Everything is a reflection of the top leadership.

In most cases, the top guy is the owner or one of the founders, often the one with the great idea, technology or money, or both. Since he can not do much by himself, he needs employees to grow his business and customers to support his business. Technology alone is not enough to see him through. All three are of high value and must work well for continued success. They are all inter-related and affect one another. The one in charge must build the most favorable environment for every component to work well together. My book covers these in great details.

When customers, don't feel like the employees care or appreciate their business, there is little loyalty to be support the company, which it very much needs, when it encounters problems as in the case of Cryptsy. Unless you are the only game in town, the customers will start to consider other options and choices available. Once they are gone, it is a lot harder to get them to come back. There is no indication to me that Cryptsy's management recognized the magnitude of the problem, or any efforts of damage control. Unfortunately, this is one of the main causes of business failures. Being great in one or two areas is not enough to be successful because everything matters, with some to a lower degree.

I'm really looking forward to reading your book, Dyna. Let me know if you'd like any editing help with it

There is one aspect in which Cryptsy is the only game in town for me, because it's the only exchange that carries a particular coin I get on a regular basis. If it weren't for that, though, I'd have completely left them by now as all the other coins I'm interested in, including DNotes, are carried on other exchanges. This basically proves your point. Since there's a reason the one coin trades only on Cryptsy, I'm clearly not going to be enough glue for them if lots of other people (who don't care about my coin) ditch them over this. But I do hope they continue to exist, because one thing in their favor is that they rarely if ever delist coins. Time will tell whether that can possibly make up for their weaknesses.

Thank you, Wiser. I am finding out that writing a great book is a massive project, especially in this case which includes a number of unique business concepts. It is important that I finish my first draft before I get others involved, and I do have you in mind for some editing help. I am very passionate about using this book to help many struggling small business owners and their employees. Frankly, even Big Vern can use some help, though he may not see it that way.

Cryptsy does have some great features and it is good that they have not delisted any coin. That serves an important service to our industry. I wish them well and will be delighted to be of help if I could.

 

[DNotes]

http://dcebrief.com/airbitz-introduces-a-convenient-new-way-to-buy-and-sell-bitcoins/

[RJF]

Word of caution for anyone hoping to take advantage of arbitrage between Cryptsy and Poloniex: I've been waiting 16 hours for a BTC transfer from Cryptsy, and support is extremely slow to respond as usual.

are they having BTC problems? Apparently they being investigated by SEC.
I am starting to get cautious with storing too much funds on there!

That is apparently still a rumor, Vernon says the following on SEC issue:

"We have never been investigated for anything, period. We have never gotten any letters from any of the agencies that they have stated in their article, nor have we been contacted via phone or any other method.” Quote from CoinTelegraph writing about CoinFire allegations.

As far as storing funds there, you should NEVER store funds on any exchange, period. Send what you need to make immediate trades then, withdrawal. ANY exchange could go offline at ANY time for ANY reason. None are "too big to fail", it can happen to any business in a flash. Forewarned is forearmed.



 

[DNotes]

Word of caution for anyone hoping to take advantage of arbitrage between Cryptsy and Poloniex: I've been waiting 16 hours for a BTC transfer from Cryptsy, and support is extremely slow to respond as usual.

are they having BTC problems? Apparently they being investigated by SEC.
I am starting to get cautious with storing too much funds on there!

That is apparently still a rumor, Vernon says the following on SEC issue:

"We have never been investigated for anything, period. We have never gotten any letters from any of the agencies that they have stated in their article, nor have we been contacted via phone or any other method.” Quote from CoinTelegraph writing about CoinFire allegations.

As far as storing funds there, you should NEVER store funds on any exchange, period. Send what you need to make immediate trades then, withdrawal. ANY exchange could go offline at ANY time for ANY reason. None are "too big to fail", it can happen to any business in a flash. Forewarned is forearmed.



 

From prior experience that is solid advice. I know it can be difficult, but it is the safest bet. We have considered storing other coins at DNotesVault for that very reason. It is a possibility for the future.

[DNotes]

Just read this article, "Brock Pierce: Bitcoin Foundation 'Close To Running Out of Money'", which highlights one of the key factors of why we need the for profit company to support DNotes. It's a different kind of idea that not many would be willing to commit to, it may be hard to believe even now as we close in on our second year, the key will be to stay the course and more and more will believe and understand what we are trying to accomplish through demonstration. As Alan has mentioned many times we need to stand the test of time. We could certainly accelerate our efforts with serious investment, but the timing will be critical.

Here is a snippet from the article:

The Bitcoin Foundation will soon run out of funds, the foundation's board was told at a meeting on 20th October.

The meeting's minutes, published yesterday, show that board chairman Brock Pierce opened the event with the declaration that the Foundation is "close to running out of money".

Further disclosures during the meeting show that it is struggling to generate significant revenue. Its last event, the third instalment of its DevCore workshops series held in San Mateo, California on 16th October, earned just $2,000 in sponsorship fees.

The foundation has embarked on cost-cutting measures to staunch the flow of cash. September board meeting minutes show that it was spending "5 to 10%" of the "previous budget". The foundation was spending $150,000 a month as recently as last May, according to minutes released at the time. It was operating with a different board and staff led by then executive director Jon Matonis.

Burn rates and runway

Current foundation spending would stand at $7,500 a month, based on 5% of a $150,000 monthly budget. The foundation had a balance of $59,000, according to minutes from the July board meeting. Based on these estimates, the foundation has funds until next March.

Foundation executive director Bruce Fenton said at the October meeting:

"We need to do serious fundraising ... Revenue is key, we can't do much more to cut expenses."

The foundation currently employs two part-time staff. Fenton runs the organisation as a volunteer. The board pinned much of the expenditure on commitments made by the previous regime. This included vendor invoices, past employee expenses, paid vacation expenses and legal bills.

A new board was elected in March amid drama. Candidates complained about an overhaul of the voting system, poor voter outreach and allegations that the organisation was bankrupt.

[Dyna]

Just read this article, "Brock Pierce: Bitcoin Foundation 'Close To Running Out of Money'", which highlights one of the key factors of why we need the for profit company to support DNotes. It's a different kind of idea that not many would be willing to commit to, it may be hard to believe even now as we close in on our second year, the key will be to stay the course and more and more will believe and understand what we are trying to accomplish through demonstration. As Alan has mentioned many times we need to stand the test of time. We could certainly accelerate our efforts with serious investment, but the timing will be critical.

Here is a snippet from the article:

The Bitcoin Foundation will soon run out of funds, the foundation's board was told at a meeting on 20th October.

The meeting's minutes, published yesterday, show that board chairman Brock Pierce opened the event with the declaration that the Foundation is "close to running out of money".

Further disclosures during the meeting show that it is struggling to generate significant revenue. Its last event, the third instalment of its DevCore workshops series held in San Mateo, California on 16th October, earned just $2,000 in sponsorship fees.

The foundation has embarked on cost-cutting measures to staunch the flow of cash. September board meeting minutes show that it was spending "5 to 10%" of the "previous budget". The foundation was spending $150,000 a month as recently as last May, according to minutes released at the time. It was operating with a different board and staff led by then executive director Jon Matonis.

Burn rates and runway

Current foundation spending would stand at $7,500 a month, based on 5% of a $150,000 monthly budget. The foundation had a balance of $59,000, according to minutes from the July board meeting. Based on these estimates, the foundation has funds until next March.

Foundation executive director Bruce Fenton said at the October meeting:

"We need to do serious fundraising ... Revenue is key, we can't do much more to cut expenses."

The foundation currently employs two part-time staff. Fenton runs the organisation as a volunteer. The board pinned much of the expenditure on commitments made by the previous regime. This included vendor invoices, past employee expenses, paid vacation expenses and legal bills.

A new board was elected in March amid drama. Candidates complained about an overhaul of the voting system, poor voter outreach and allegations that the organisation was bankrupt.

That sounded worse than I expected; more shocking than "should not be a surprise".

[HORT]

Word of caution for anyone hoping to take advantage of arbitrage between Cryptsy and Poloniex: I've been waiting 16 hours for a BTC transfer from Cryptsy, and support is extremely slow to respond as usual.

I have heard that if you make a small btc transfer they go through, like under 0.1 btc. Maybe give that a try.

[Chase]

Just read this article, "Brock Pierce: Bitcoin Foundation 'Close To Running Out of Money'", which highlights one of the key factors of why we need the for profit company to support DNotes. It's a different kind of idea that not many would be willing to commit to, it may be hard to believe even now as we close in on our second year, the key will be to stay the course and more and more will believe and understand what we are trying to accomplish through demonstration. As Alan has mentioned many times we need to stand the test of time. We could certainly accelerate our efforts with serious investment, but the timing will be critical.

Here is a snippet from the article:

The Bitcoin Foundation will soon run out of funds, the foundation's board was told at a meeting on 20th October.

The meeting's minutes, published yesterday, show that board chairman Brock Pierce opened the event with the declaration that the Foundation is "close to running out of money".

Further disclosures during the meeting show that it is struggling to generate significant revenue. Its last event, the third instalment of its DevCore workshops series held in San Mateo, California on 16th October, earned just $2,000 in sponsorship fees.

The foundation has embarked on cost-cutting measures to staunch the flow of cash. September board meeting minutes show that it was spending "5 to 10%" of the "previous budget". The foundation was spending $150,000 a month as recently as last May, according to minutes released at the time. It was operating with a different board and staff led by then executive director Jon Matonis.

Burn rates and runway

Current foundation spending would stand at $7,500 a month, based on 5% of a $150,000 monthly budget. The foundation had a balance of $59,000, according to minutes from the July board meeting. Based on these estimates, the foundation has funds until next March.

Foundation executive director Bruce Fenton said at the October meeting:

"We need to do serious fundraising ... Revenue is key, we can't do much more to cut expenses."

The foundation currently employs two part-time staff. Fenton runs the organisation as a volunteer. The board pinned much of the expenditure on commitments made by the previous regime. This included vendor invoices, past employee expenses, paid vacation expenses and legal bills.

A new board was elected in March amid drama. Candidates complained about an overhaul of the voting system, poor voter outreach and allegations that the organisation was bankrupt.

That sounded worse than I expected; more shocking than "should not be a surprise".

What was the foundation doing that warranted a $150,000 a MONTH budget??  Have they accomplished anything or was it just a collossal waste of people's money?  

[wiser]

What was the foundation doing that warranted a $150,000 a MONTH budget??  Have they accomplished anything or was it just a colossal waste of people's money?  

I had a similar question in mind.

[DNotes]

Just read this article, "Brock Pierce: Bitcoin Foundation 'Close To Running Out of Money'", which highlights one of the key factors of why we need the for profit company to support DNotes. It's a different kind of idea that not many would be willing to commit to, it may be hard to believe even now as we close in on our second year, the key will be to stay the course and more and more will believe and understand what we are trying to accomplish through demonstration. As Alan has mentioned many times we need to stand the test of time. We could certainly accelerate our efforts with serious investment, but the timing will be critical.

Here is a snippet from the article:

The Bitcoin Foundation will soon run out of funds, the foundation's board was told at a meeting on 20th October.

The meeting's minutes, published yesterday, show that board chairman Brock Pierce opened the event with the declaration that the Foundation is "close to running out of money".

Further disclosures during the meeting show that it is struggling to generate significant revenue. Its last event, the third instalment of its DevCore workshops series held in San Mateo, California on 16th October, earned just $2,000 in sponsorship fees.

The foundation has embarked on cost-cutting measures to staunch the flow of cash. September board meeting minutes show that it was spending "5 to 10%" of the "previous budget". The foundation was spending $150,000 a month as recently as last May, according to minutes released at the time. It was operating with a different board and staff led by then executive director Jon Matonis.

Burn rates and runway

Current foundation spending would stand at $7,500 a month, based on 5% of a $150,000 monthly budget. The foundation had a balance of $59,000, according to minutes from the July board meeting. Based on these estimates, the foundation has funds until next March.

Foundation executive director Bruce Fenton said at the October meeting:

"We need to do serious fundraising ... Revenue is key, we can't do much more to cut expenses."

The foundation currently employs two part-time staff. Fenton runs the organisation as a volunteer. The board pinned much of the expenditure on commitments made by the previous regime. This included vendor invoices, past employee expenses, paid vacation expenses and legal bills.

A new board was elected in March amid drama. Candidates complained about an overhaul of the voting system, poor voter outreach and allegations that the organisation was bankrupt.

That sounded worse than I expected; more shocking than "should not be a surprise".

What was the foundation doing that warranted a $150,000 a MONTH budget??  Have they accomplished anything or was it just a colossal waste of people's money?  

After a quick look, this is what I was able to find:
http://bitcoinfoundation.org/forum/index.php?/topic/1284-the-truth-about-the-bitcoin-foundation/

I'm not entirely shocked at the number. However, I too would question where it actually went.


Some snippets:

Everyone has the right to know the truth:

- The Foundation has almost no money left, and just fired 90% of its people. Some will stay on as volunteers.
- Core dev can no longer be funded by it, and Patrick Murck is trying to re-create a new Foundation just for core dev, because the current name is tarnished. Do not fall for this.
- The current Executive Director (Patrick Murck), will be gone in 2 weeks, and they are trying to find the next person to blame everything on.
- Jim Harper was threatened for doing a press release which was (barely) critical of the Foundation after he got elected. The Foundation tries to make sure we hide the truth by subtly threatening us on a regular basis.
- If I get asked to leave the Foundation for telling the truth, so be it. The truth is being told.

[Dyna]

This is an interesting interview with Vitalik Buterin, co-founder of Ethereum  about the Next Generation For digital currencies.

What caught my attention is that some of his ideas are not that far from what we have in our long term plan, starting with the for profit company next year. Technically zero volatility = perfect stability. That is extremely difficult to achieve but important for large scale global commerce.

In our case, having a group with sufficient invested interest in DNotes does give us the “monetary policy advantage” Buterin referred to. We may have to introduce a dual currency model to achieve a near perfect volatility. This is not likely to happen for a few more years.       


“It needs to offer some kind of monetary policy advantage over bitcoin proper.”

“Come up with an asset which is designed to have lower (or possibly zero) volatility against something like the dollar or SDR by having another high-volatility asset "absorb" its volatility.”


CT: What should new features be in cryptocurrency in order for it to succeed?

VB: Regarding cryptocurrency specifically, I think that right now in order for a new cryptocurrency to really succeed in the payments space specifically, it needs to offer some kind of monetary policy advantage over bitcoin proper. One route here is the "stablecoin" approach: come up with an asset which is designed to have lower (or possibly zero) volatility against something like the dollar or SDR by having another high-volatility asset "absorb" its volatility. Otherwise, the best thing to do to help small-scale coins get adopted is better development of "universal gateways": services that make it easy for customers and merchants to pay each other in different currencies and convert as needed.

“My vision for the crypto consumer-merchant-payments infrastructure architecture of the future is one where the customer declares the set of currencies S that they are willing to pay in, the merchant declares the set of currencies T they are willing to accept, then if S and T have an intersection you pay in whatever both are happy with and otherwise you use pathfinding algorithms over decentralized markets to find the cheapest way to exchange between something the customer is happy to give and something the merchant is willing to accept.”

CT: Scalability is Bitcoin’s main issue - What are your thoughts on this?

VB: Particularly, note that scalability isn't just a problem that we will have some far day in the future, it's a problem now. The reason is that if we can solve scalability today, then we can reduce the cost of a blockcain transaction by 100x, say from $0.04 to $0.0004. At those levels, using blockchains for many things will become dirt cheap, and people will start using blockchains as high-reliability application deployment infrastructure just because they are lazy. Imagine blockchain-based encrypted email. Very simple to write, with scalable blockchains it could be done in only 100 extra lines of code.
Scalability and also price volatility. Normal people do not want to be paid in volatile crazy tokens that can go up or down 2x in value before they have a chance to spend them.

CT: In what application will the next generation Blockchain be used for?

VB: In the longer term, I actually see blockchains and other decentralized technologies like distributed hash tables merging together into a kind of decentralized super-operating-system. Essentially, this dOS (not the same as microsoft's DOS) will be used not just for high-value stuff like payments but also as an infrastructure for very many kinds of web applications for perfectly mundane aspects of daily life. You could be conducting zero-knowledge privacy-preserving job searches on a blockchain of the future with a decentralized reputation system. E-commerce, IoT, everything.

Read More:
http://cointelegraph.com/news/115828/interview-with-vitalik-buterin-about-next-generation-for-cryptocurrencies