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Author Topic: BitCoinTokens - an alternative currency approach.  (Read 2494 times)
Haplo
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March 22, 2012, 01:23:41 PM
 #21


If you have a large starting capitalization value (billions of fiat dollars), any one of the participants who have seeded the system with their fiat will likely not effect the price in any particular direction when they withdraw or deposit (on the average). This is why you start out as a bailment provider prior to the float.

It's a one-to-one scenario. You give me a unit of fiat, I give you exactly one BCT token representing that fiat unit (for redemption purposes). Let the vault grow it's fiat reserves. When you hit the fiat reserve quota, you trigger the float (an IPO as an analogy) at which point your "shares" or BCT "scrip" is now floating freely.

What vault? Owned by who? Where?
If one person generates the coins and then sells them at a "1:1 ratio with fiat", isn't that just a fiat ponzi scam?

Another thing, probably just as relevant: the inflation rate for BTC is 33% for FY2012, or 4x the USD inflation rate (per shadowstats). At that rate it's honestly shocking that BCT trades for ~5 benny bucks as is. For FY2013, the inflation rate falls of a cliff to 12.5%, or only 1.5x the USD rate, and by 2017 it will be half the USD rate. If you're worried about the BTC being "too cheap", wait a year and see what happens.

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March 22, 2012, 02:24:53 PM
 #22

How to distribute these coins ?
What about the early adoption unfairness?
Without new coins, who will mine it , before it grows through 1000k txes per day ?


+3.  The system the OP outlines might look stable as a running currency but there is simply no way to start it, well, other than something like the way Satoshi implemented.  Unless of course, you can find a different answer to fin's three questions.   




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March 22, 2012, 02:31:16 PM
 #23

This has been proposed many times the issue comes down to centralization and trust.

Say I start D&T Coin.  1 USD buys you 1 D&T coin.  Lets ignore the risk of 51% attacks, etc.

I promise to buy D&T Coins back for 1 USD.  I sell D&T Coins for 1 USD.  If people have confidence it will exchange at roughly 1 USD per D&T Coin (minus friction costs).

You buy 1 D&T I put 1 USD in the bank.  = good.
You buy 100,000 D&T coins I put 10,000 in the bank and buy myself a 90K sportscar = bad.

Worse I cheat on my taxes and IRS seizes the bank account holding the reserve of coins.

If you trust me (and you trust my employees, and my govt, and my security, and my bank) and I don't break that trust well everything is fine but if I break that trust you are screwed.

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