[Ultracoin] [Est. Feb 2014] ~ ASIC Resistant & Ultrafast 6 Second Transactions!

[Valpe]

I'm afraid I sold 1000 UTC today and bought 1000 CXC with the proceeds.

thanks for the cheap UTC 

[Namsbreh]

I'm afraid I sold 1000 UTC today and bought 1000 CXC with the proceeds.

thanks for the cheap UTC 

No problem, your welcome.  I had a few too many for comfort and needed to diversify.

Still got a bagfull that your not gonna get......

[king_pin]

I am getting a massive amount of "Rejected shares" today, and I my hashrate is down, but I don't see anyone else hashrate going down??? wtf???

[Valpe]

I am getting a massive amount of "Rejected shares" today, and I my hashrate is down, but I don't see anyone else hashrate going down??? wtf???

mining working for me well. No rejected shares.

[king_pin]

I checked out with a few other friends, I am the only one getting this massive rejected share rates!
My rigs are on 3 different locations, so Internet is not the issue.
Only remaining things, are Kracko screwing up with me on purpose, or someone else attacking me.... wtf??  

 I guess Kracko finally figured out my nick and decided to f**k with me!
You can see the whole UTC2 pool efficiency dropping, cause of my Rejected shares.

[volyova]

I'm afraid I sold 1000 UTC today and bought 1000 CXC with the proceeds.

thanks for the cheap UTC 

No problem, your welcome.  I had a few too many for comfort and needed to diversify.

Still got a bagfull that your not gonna get......

Dollar value is irrelevant atm, and it will only get more irrelevant in the near future, didn't you know that?

[BorisWCR]

I checked out with a few other friends, I am the only one getting this massive rejected share rates!
My rigs are on 3 different locations, so Internet is not the issue.
Only remaining things, are Kracko screwing up with me on purpose, or someone else attacking me.... wtf??  

 I guess Kracko finally figured out my nick and decided to f**k with me!

Or maybe some other one f**k with you because you are not one of the favorite's on this forum....

Many dislike your attitude so there are possible many candidates to attack you 

[dev0tion]

WARNING - contains references to other Crypto-currencies !

Just a tip to the UTC Official UTC team, devs and community.

You MUST announce that UTC will link its blockchain with Ethereum and Ether to achieve limitless utility.

What I am suggesting is an Ultracoin-Ether Bridge (same as Ethereum is doing a BTC-Ether bridge) to allow UTC users all the functionality of Ethereum plus other blockchains that are bridged, that is contracts, messaging, cloud storage, alternative internet networks, trading between different cryptos, commodities and fiat, Ebay like trading of goods, Investment trusts and anything else really because the Ethereum has been built to be able to do anything in the future  etc etc etc.....  Ethereum is keen on cooperation and if pitched correctly UTC could get their dev support to implement a bridge. Its a big job that should not be rushed - but the project should be announced as intended and in the pipeline.

You must announce this at the Conference and start talking with Vitalik and his group to put this in stone and make it work.

You all really need to realise that these guys have got the future covered and UTC can massively benefit from cooperation and linking blockchains to enable all the features of Ethereum.

If you disagree thats fine but let history be the judge in 2 years time.  The $15m injection has enabled MUCH MORE than critical mass and nothing is going to keep up with the mass dev from every angle to create the crypto utopia.  Ethereum has the funds to continue devs for years - BTC is not even in the league in terms of dev power and applications across every sphere.  Ethereum has already stolen the best minds and will continue to do so.


Ethereum will make Bitcoin look like a brick and Ethereum is about to break open in the next few months and its going to be a the most signif step in crypto for a very long time. Ethereum will be the main media item - full stop.  When people realise whats happened here its going to break open crypto and turn it upside down.

Anything associated with Ethereum is going to fly. Bitcoin is going to suffer - this is the turning point I am afraid. I am not saying bitcoin will die - but Ethereum looks like it will make quick ground and will debut about 4th on market cap ($43m just above Bitshares) if the price of Ethercoin is any indication.  I suspect Ethercoin price is greatly discounted because of the perceived conversion risk to ethers.

Miss this opportunity to put UTC in the mix and you have missed the one thing that can make UTC be in the top 10 and above.

Please consider seriously.

Steve - thanks for your update - rest assured that the community is behind UTC - but please take this one VERY seriously.

This is the big one.

This should really be taken into consideration!

[king_pin]

I checked out with a few other friends, I am the only one getting this massive rejected share rates!
My rigs are on 3 different locations, so Internet is not the issue.
Only remaining things, are Kracko screwing up with me on purpose, or someone else attacking me.... wtf?? 

 I guess Kracko finally figured out my nick and decided to f**k with me!

Or maybe some other one f**k with you because you are not one of the favorite's on this forum....

Many dislike your attitude so there are possible many candidates to attack you 

The problem comes from the pool, I have no such problem mining @ ultrablockparty
btw I know that many dislike what I say especially cause I tell them the truth? 

[Valpe]

I checked out with a few other friends, I am the only one getting this massive rejected share rates!
My rigs are on 3 different locations, so Internet is not the issue.
Only remaining things, are Kracko screwing up with me on purpose, or someone else attacking me.... wtf?? 

 I guess Kracko finally figured out my nick and decided to f**k with me!

Or maybe some other one f**k with you because you are not one of the favorite's on this forum....

Many dislike your attitude so there are possible many candidates to attack you 

The problem comes from the pool, I have no such problem mining @ ultrablockparty
btw I know that many dislike what I say especially cause I tell them the truth? 

could you try other pool?

[king_pin]

Yes I have no problems mining at:
www.ultrablockparty.com
www.ultracoins.info

But I get 10-20% rejected when mining at tumblingblock pools!!!
I havent touched anything, and this has been going on for a few hours now!

[Valpe]

Yes I have no problems mining at:
www.ultrablockparty.com
www.ultracoins.info

But I get 10-20% rejected when mining at tumblingblock pools!!!
I havent touched anything, and this has been going on for a few hours now!

strange..

[king_pin]

I guess, someone was attacking me LoL , Changed my IPs and now everything is getting back to normal.

I guess someone thought that if he DDOS or something the biggest miner in the pool, it will increase his earnings...
I will be expecting the same thing around the same time tomorrow,  I guess I will set up a few proxys just in case
I really am laughing and had fun with this today

[rapture333]

Hello ladies and gentlemen of the Ultracoin community,

In recent times, you may have noticed our price has suffered, and I would like to address this issue. We as the management team can blame ourselves for the blockchain incident, and partially the Cryptsy incident that followed (although we cannot carry all the weight of Cryptsy's incompetence). We accept our failures and mistakes, and we will do whatever we can to address them, make them right and learn from them. What I would like to bring to the attention of the Ultracoin community however, is what piece you all play in this puzzle.

Recently we were contacted again by coinpayments due to low trade volume across the merchants using their payment processor. That means that many people who hold Ultracoin do so in a speculative matter, this means that community members would rather hold on to their Ultracoin than spend and use it in the Ultracoin economy. Although there is a deflationary aspect to this, there is also a negative one as well. As merchants who accept Ultracoin see low volume and users do not use the coin, there become no reason to replenish their coffers or stimulate the Ultra-economy, hot hands begin to buy and sell coins through a speculative perspective and outpace organic economic growth. Without real trade, all exchange volume is based on speculation rather than signs of a growing economy.

Although investors are greatly needed for a new cryptocurrency by promoting liquidity for merchants, it is not organic enough to sustain a cryptocurrencies value alone. What the Ultracoin community must understand and take to heart, is that I alone cannot as one person or even a team of persons remedy this issue ourselves. Ultracoin must be used for commerce to encourage growth. I am encouraging all investors, miners and holders to do their best in stimulating the Ultracoin economy, not by simply holding on to Ultracoin as a form of investment, but by using it to buy goods and services. What many people don't realize is that unlike a stock, a cryptocurrency itself is the product of your investment. If you invest in 10 shares of Apple, and the corporation does well, your shares will grow in value. The value of your shares are determined by factors such as the companies performance, increase in profitability and other factors, this also includes dividends. However, with cryptocurrency, your shares ARE the investment. This is a new paradigm that many new investors may not fully grasp. Cryptocurrencies are much more about community and commitment than relying on the management team or "corporation" to grow their investment for them. If you didn't truly believe in cryptocurrency, than why are you moving beyond fiat in the first place? How could the Dogecoin community become so successful for what was essentially a satirical cryptocurrency? Why do coins based on celebrity personalities alone seems to fail, while other more neutral coins seems to grow long term? Because it takes more than a good name a few large investors to create an economy.

We do realize as the management team that we are still a large part of that solution, we are working tirelessly to raise the level of commerce and acceptance. The Ultracoin mobile wallet and lite wallet will be one important project that allows quick and easy transactions using Ultracoin on the go without a computer. Our shopify and wordpress gateway plugins will allow merchants to seamlessly accept Ultracoin through their online shopping carts. We have also been researching a BitPay type solution for Ultracoin, which would boost acceptance by lowering merchant risk. Lastly, a drop kit for to the community for businesses which contains materials on Ultracoin acceptance, merchant and consumer benefits of cryptocurrency, but will require action on the communities part. The rest is up to you.

I would like to leave you all with a good example of how currencies increase value. As you know, even if Ultracoin was worth $1,000 per unit, it does not help our mission as a cryptocurrency if we cannot build an economy. That starts with a healthy dose of positivity, and taking advantage of coinpayments.net and useultracoin.com, also let businesses know that you demand them to accept Ultracoin! Below is a thought experiment on reputation and its role in currency acceptance. In the part I have added brackets is where I have added the cryptocurrency parallel to the experiment and will be using Bitcoin as my example.

Code:

Currency Explained Via A Thought Experiment:

Phase 1:
Imagine a young, poor, college student who writes a check for 5 dollars. Will that check bounce? Do you feel as though that check is actually redeemable for the 5 U.S. dollars? The answer is probably "yes" or "most likely."

Now I want you to imagine that same poor college student writing you a check for 50,000 dollars. Would you trust THAT? Would you accept that check in exchange for goods or services knowing full well that you couldn't turn it into a bank and receive dollars? The answer is likely, "no." 

This demonstrates how "reputation" factors into the establishment of an accepted currency. [Bitcoin is created and backed by the market set conversion rate to fiat using exchanges. Bitcoin also has alternative uses such as its blockchain technology and decentralized P2P node system, this is similar to how gold and silver have value in art, industry and fashion as well as currency.]

Phase 2:
Imagine a similar scenario except substitute Bill Gates in place of the poor college student. Would you, just on reputation alone, trust that both small and large checks written in Bill Gates' name would be redeemable for cash? The answer SHOULD be a resounding, "Yes, of course." [Consider Bitcoin as the Bill Gates Checks, at first it was merely cashed for fiat, but its reputation and value grew to the point where liquidity became higher and higher where anyone could buy in and cash out.]

Phase 3:
Say he wrote several 1 dollar checks, several 5 dollar checks, 10 dollar checks, 20, 50, and 100 dollar checks and began distributing them among the population. (So many that you started realizing your friends and family receiving them as well.) Up until this point, everybody has simply been taking their Bill Gates checks to the bank and cashing them in for U.S. dollars. [Liquidity for Bitcoin shot up in the market by an increase in supply and demand, both from speculation and market activity. At this point enough people hold Bitcoin to conduct commerce. Since Bitcoin is easily divisible, anyone can use it to purchase a number of things.]

Phase 4:
After it becomes well established that the Bill Gates checks NEVER bounce, people trust exchanging them directly for services and realize they can save themselves the effort of converting them into U.S. dollars. [At this point Bitcoin can be used to purchase many goods and services that could traditionally be purchased with fiat, although it can also be easily converted to fiat at any time as long as the amount being cashed out is never greater than the amount being cashed in.

Phase 5:
The public starts routinely paying for transactions in their Bill Gates checks, which have become an accepted medium of exchange and therefore a currency. Imagine that the public begins to call them "BG bills." [Bitcoin comes to the point where its USD price begins to become irrelevant, as it is so widely accepted it is routinely used as currency for a wide variety of goods and services and price becomes less volatile. At this point Bitcoin is bought less for speculation and more for actual use.]

Phase 6:
Seeing that this new currency has gained wide spread confidence, Bill Gates opens banks around the country and begins allowing people to create savings accounts to accumulate their BG bills. For the time being, these bills are still redeemable for the, now less popular, U.S. dollars. [Bitcoin to fiat exchanges actually begin to lose some liquidity into fiat because people are willing to hold just Bitcoin alone (legal tender laws would make it mandatory to pay taxes in the native currency still). However fractional reserve banking with Bitcoin is much more difficult as there is no "lender of last resort" or central
bank window controlling interest rates, also banks aren't needed by holders of cryptocurrency and customers would only hold their bitcoin in the most trusted banks for a market set interest rate.]

Phase 7:
Concerns over the redeem-ability of this new currency drastically change. For instance, say Gates had issued roughly 50 Billion Dollars worth of BG bills throughout the world. Being that his fortune was only around 50 Billion to start with, if he continues to issue BG bills, they would no longer all be redeemable for dollars. (since he would lack the ability to exchange them for dollars) Hypothetically, if EVERY individual went to cash said BG bills in at the same time, some of those checks would start to bounce. Luckily, that's not a concern in a world which trusts that BG bills are always valuable. Thus, Bill Gates decides to keep issuing lines of credit to people by lending new bills he merely creates out of thin air - simply by writing bad checks. The currency is beginning to function on its reputation alone. [Luckily for us, Bitcoin is decentralized and does not come from any centralized authority. There is also a supply limit of 20,000,000 coins, therefore this point is mute when applied to crypto. However, Bitcoin does survive based on its reputation as gold and silver does. If Bitcoin were to reach this stage, that means demand for fiat becomes so undesirable that you can no longer liquidly exchange your Bitcoin for fiat currencies large easily.

Phase 8:
The public no longer cares about the U.S. dollar. At this point, the country is running entirely on BG bills. The original 50 billion U.S. dollars that started this experiment is now backing a whopping 5 trillion BG bills. Most of that currency cannot physically be exchanged for dollars anymore. The U.S. government decrees that BG bills are no longer exchangeable for dollars and takes us off "the dollar standard." This mirrors what happened when we left the gold standard and began functioning with a reputation-backed currency. [At this point, Bitcoin or any cryptocurrency could take over fiat by pure reputation alone, finally, a voluntary, decentralized and bank free alternative to manipulative fiat currencies. This can be true for Bitcoin, Litecoin, Ultracoin and any other cryptocurrency that makes it to through these stages. What is important is acceptance, aka reputation.]

Conclusion:
This - in concept - demonstrates how a public can come to accept a currency on reputation alone. Whether that be beneficial or detrimental is hotly debated, but it's where we stand today. Our dollar is backed 100% on the reputation of our government. In the past, it was backed by gold, but gold's value was in turn backed by its own reputation. When it comes down to it, it's all about what people think others will accept. Reputation has a lot to do with making that determination.

Sincerely,

Steven "Rapture"
Management Director
Steven@Ultracoin.net
Ultracoin[/color]

[Beave162]

Hello ladies and gentlemen of the Ultracoin community,

In recent times, you may have noticed our price has suffered, and I would like to address this issue. We as the management team can blame ourselves for the blockchain incident, and partially the Cryptsy incident that followed (although we cannot carry all the weight of Cryptsy's incompetence). We accept our failures and mistakes, and we will do whatever we can to address them, make them right and learn from them. What I would like to bring to the attention of the Ultracoin community however, is what piece you all play in this puzzle.

Recently we were contacted again by coinpayments due to low trade volume across the merchants using their payment processor. That means that many people who hold Ultracoin do so in a speculative matter, this means that community members would rather hold on to their Ultracoin than spend and use it in the Ultracoin economy. Although there is a deflationary aspect to this, there is also a negative one as well. As merchants who accept Ultracoin see low volume and users do not use the coin, there become no reason to replenish their coffers or stimulate the Ultra-economy, hot hands begin to buy and sell coins through a speculative perspective and outpace organic economic growth. Without real trade, all exchange volume is based on speculation rather than signs of a growing economy.

Although investors are greatly needed for a new cryptocurrency by promoting liquidity for merchants, it is not organic enough to sustain a cryptocurrencies value alone. What the Ultracoin community must understand and take to heart, is that I alone cannot as one person or even a team of persons remedy this issue ourselves. Ultracoin must be used for commerce to encourage growth. I am encouraging all investors, miners and holders to do their best in stimulating the Ultracoin economy, not by simply holding on to Ultracoin as a form of investment, but by using it to buy goods and services. What many people don't realize is that unlike a stock, a cryptocurrency itself is the product of your investment. If you invest in 10 shares of Apple, and the corporation does well, your shares will grow in value. The value of your shares are determined by factors such as the companies performance, increase in profitability and other factors, this also includes dividends. However, with cryptocurrency, your shares ARE the investment. This is a new paradigm that many new investors may not fully grasp. Cryptocurrencies are much more about community and commitment than relying on the management team or "corporation" to grow their investment for them. If you didn't truly believe in cryptocurrency, than why are you moving beyond fiat in the first place? How could the Dogecoin community become so successful for what was essentially a satirical cryptocurrency? Why do coins based on celebrity personalities alone seems to fail, while other more neutral coins seems to grow long term? Because it takes more than a good name a few large investors to create an economy.

I don't think you are quite grasping the medium of exchange aspect...
YACoin was accepted at CoinPayments.net a looonng time ago. It too was removed for low volume. I didn't even attempt to fight it because I realized that it does almost nothing. You can just as easily take your UTC and exchange for BTC and use BitPay. Where do you think the UTC goes when it is process through CoinPayments?

It's funny how people look toward the 'success' of Dogecoin. It is at a marketcap of 15 million. Is that a lot to you? It would be a penny stock in the financial market. It is all relative, and Bitcoin is the relative King of Crypto. The problem is that even the King of Crypto is nothing compared to the 'economies' of the world.

What using UltraCoin as a medium of exchange does is MARKET the coin as popular, dependable, reputable, desirable. Perhaps by spreading word, people may exchange Bitcoin to be part of the 'club' holding UTC. The hope should be that at some point it might be comparable to Bitcoin as a real alternative. It will be speculative for a long time because what does UTC offer in terms of being a medium exchange over Bitcoin? There are more than a thousand coins that use a decentralized blockchain as a 'public' ledger. You need to figure out what makes UltraCoin BETTER than Bitcoin, ie NOT UltraFast 6 second (not different), NOT faster confirmation time (10 minutes isn't practical for a coffee, 1 minute isn't practical for a coffee, 2 seconds not practical for the blockchain. The real difference is scrypt-chacha, but even that is merely about marketing and speculation--it doesn't improve it's use as a medium of exchange over Bitcoin. I also think the PeerCoin feature of PoS/PoW is a great marketing difference.

Meanwhile, the price of UTC and pretty much all of the alts will be highly subject to the price of Bitcoin, which is currently losing luster. Although a 'Bitcoin' is limited in supply, the characteristics that make bitcoin a great alternative to money can be cloned, forked, recreated.

I like your interest in economics. But remember it is all pretty much theory. I believe in dollar hegemony. It's not that I use dollars because I have a faith in its reputation. I use dollars because I HAVE to. There are laws that won't allow me to just live off of cryptocurrencies, and those laws have guns behind them (btw those guns are operated by a decreasingly reasonable, professional force).

[dan_and_shan]

Do we have our own block explorer and richlist that can be explored, to see how coins are being consolidated, and accumulated?
 http://ultrabex.com/  as far as i can tell this one only explores a single address or tx id, and you cannot see how coins are being redistributed?
am i missing something?

[Beave162]

Code:

Currency Explained Via A Thought Experiment:

Phase 1:
Imagine a young, poor, college student who writes a check for 5 dollars. Will that check bounce? Do you feel as though that check is actually redeemable for the 5 U.S. dollars? The answer is probably "yes" or "most likely."

Now I want you to imagine that same poor college student writing you a check for 50,000 dollars. Would you trust THAT? Would you accept that check in exchange for goods or services knowing full well that you couldn't turn it into a bank and receive dollars? The answer is likely, "no." 

This demonstrates how "reputation" factors into the establishment of an accepted currency. [Bitcoin is created and backed by the market set conversion rate to fiat using exchanges. Bitcoin also has alternative uses such as its blockchain technology and decentralized P2P node system, this is similar to how gold and silver have value in art, industry and fashion as well as currency.]

Phase 2:
Imagine a similar scenario except substitute Bill Gates in place of the poor college student. Would you, just on reputation alone, trust that both small and large checks written in Bill Gates' name would be redeemable for cash? The answer SHOULD be a resounding, "Yes, of course." [Consider Bitcoin as the Bill Gates Checks, at first it was merely cashed for fiat, but its reputation and value grew to the point where liquidity became higher and higher where anyone could buy in and cash out.]

Phase 3:
Say he wrote several 1 dollar checks, several 5 dollar checks, 10 dollar checks, 20, 50, and 100 dollar checks and began distributing them among the population. (So many that you started realizing your friends and family receiving them as well.) Up until this point, everybody has simply been taking their Bill Gates checks to the bank and cashing them in for U.S. dollars. [Liquidity for Bitcoin shot up in the market by an increase in supply and demand, both from speculation and market activity. At this point enough people hold Bitcoin to conduct commerce. Since Bitcoin is easily divisible, anyone can use it to purchase a number of things.]

Phase 4:
After it becomes well established that the Bill Gates checks NEVER bounce, people trust exchanging them directly for services and realize they can save themselves the effort of converting them into U.S. dollars. [At this point Bitcoin can be used to purchase many goods and services that could traditionally be purchased with fiat, although it can also be easily converted to fiat at any time as long as the amount being cashed out is never greater than the amount being cashed in.

Phase 5:
The public starts routinely paying for transactions in their Bill Gates checks, which have become an accepted medium of exchange and therefore a currency. Imagine that the public begins to call them "BG bills." [Bitcoin comes to the point where its USD price begins to become irrelevant, as it is so widely accepted it is routinely used as currency for a wide variety of goods and services and price becomes less volatile. At this point Bitcoin is bought less for speculation and more for actual use.]

Phase 6:
Seeing that this new currency has gained wide spread confidence, Bill Gates opens banks around the country and begins allowing people to create savings accounts to accumulate their BG bills. For the time being, these bills are still redeemable for the, now less popular, U.S. dollars. [Bitcoin to fiat exchanges actually begin to lose some liquidity into fiat because people are willing to hold just Bitcoin alone (legal tender laws would make it mandatory to pay taxes in the native currency still). However fractional reserve banking with Bitcoin is much more difficult as there is no "lender of last resort" or central
bank window controlling interest rates, also banks aren't needed by holders of cryptocurrency and customers would only hold their bitcoin in the most trusted banks for a market set interest rate.]

Phase 7:
Concerns over the redeem-ability of this new currency drastically change. For instance, say Gates had issued roughly 50 Billion Dollars worth of BG bills throughout the world. Being that his fortune was only around 50 Billion to start with, if he continues to issue BG bills, they would no longer all be redeemable for dollars. (since he would lack the ability to exchange them for dollars) Hypothetically, if EVERY individual went to cash said BG bills in at the same time, some of those checks would start to bounce. Luckily, that's not a concern in a world which trusts that BG bills are always valuable. Thus, Bill Gates decides to keep issuing lines of credit to people by lending new bills he merely creates out of thin air - simply by writing bad checks. The currency is beginning to function on its reputation alone. [Luckily for us, Bitcoin is decentralized and does not come from any centralized authority. There is also a supply limit of 20,000,000 coins, therefore this point is mute when applied to crypto. However, Bitcoin does survive based on its reputation as gold and silver does. If Bitcoin were to reach this stage, that means demand for fiat becomes so undesirable that you can no longer liquidly exchange your Bitcoin for fiat currencies large easily.

Phase 8:
The public no longer cares about the U.S. dollar. At this point, the country is running entirely on BG bills. The original 50 billion U.S. dollars that started this experiment is now backing a whopping 5 trillion BG bills. Most of that currency cannot physically be exchanged for dollars anymore. The U.S. government decrees that BG bills are no longer exchangeable for dollars and takes us off "the dollar standard." This mirrors what happened when we left the gold standard and began functioning with a reputation-backed currency. [At this point, Bitcoin or any cryptocurrency could take over fiat by pure reputation alone, finally, a voluntary, decentralized and bank free alternative to manipulative fiat currencies. This can be true for Bitcoin, Litecoin, Ultracoin and any other cryptocurrency that makes it to through these stages. What is important is acceptance, aka reputation.]

Conclusion:
This - in concept - demonstrates how a public can come to accept a currency on reputation alone. Whether that be beneficial or detrimental is hotly debated, but it's where we stand today. Our dollar is backed 100% on the reputation of our government. In the past, it was backed by gold, but gold's value was in turn backed by its own reputation. When it comes down to it, it's all about what people think others will accept. Reputation has a lot to do with making that determination.

Sincerely,

Steven "Rapture"
Management Director
Steven@Ultracoin.net
Ultracoin[/color]

I find it ironic that to refer to the reputation like that. You make it seem like the reputation of a college kid is nothing compared to the reputation of Bill Gates because Bill Gates is extremely wealthy? UTC was started by bumface, who should have a reputation of street rat, but people still bought into it. I'm not saying your point is invalid though. I think the scams that are still plaguing crypto may be the largest factor that is devastating the price/marketcap.

[dan_and_shan]

Code:

Currency Explained Via A Thought Experiment:

Phase 1:
Imagine a young, poor, college student who writes a check for 5 dollars. Will that check bounce? Do you feel as though that check is actually redeemable for the 5 U.S. dollars? The answer is probably "yes" or "most likely."

Now I want you to imagine that same poor college student writing you a check for 50,000 dollars. Would you trust THAT? Would you accept that check in exchange for goods or services knowing full well that you couldn't turn it into a bank and receive dollars? The answer is likely, "no." 

This demonstrates how "reputation" factors into the establishment of an accepted currency. [Bitcoin is created and backed by the market set conversion rate to fiat using exchanges. Bitcoin also has alternative uses such as its blockchain technology and decentralized P2P node system, this is similar to how gold and silver have value in art, industry and fashion as well as currency.]

Phase 2:
Imagine a similar scenario except substitute Bill Gates in place of the poor college student. Would you, just on reputation alone, trust that both small and large checks written in Bill Gates' name would be redeemable for cash? The answer SHOULD be a resounding, "Yes, of course." [Consider Bitcoin as the Bill Gates Checks, at first it was merely cashed for fiat, but its reputation and value grew to the point where liquidity became higher and higher where anyone could buy in and cash out.]

Phase 3:
Say he wrote several 1 dollar checks, several 5 dollar checks, 10 dollar checks, 20, 50, and 100 dollar checks and began distributing them among the population. (So many that you started realizing your friends and family receiving them as well.) Up until this point, everybody has simply been taking their Bill Gates checks to the bank and cashing them in for U.S. dollars. [Liquidity for Bitcoin shot up in the market by an increase in supply and demand, both from speculation and market activity. At this point enough people hold Bitcoin to conduct commerce. Since Bitcoin is easily divisible, anyone can use it to purchase a number of things.]

Phase 4:
After it becomes well established that the Bill Gates checks NEVER bounce, people trust exchanging them directly for services and realize they can save themselves the effort of converting them into U.S. dollars. [At this point Bitcoin can be used to purchase many goods and services that could traditionally be purchased with fiat, although it can also be easily converted to fiat at any time as long as the amount being cashed out is never greater than the amount being cashed in.

Phase 5:
The public starts routinely paying for transactions in their Bill Gates checks, which have become an accepted medium of exchange and therefore a currency. Imagine that the public begins to call them "BG bills." [Bitcoin comes to the point where its USD price begins to become irrelevant, as it is so widely accepted it is routinely used as currency for a wide variety of goods and services and price becomes less volatile. At this point Bitcoin is bought less for speculation and more for actual use.]

Phase 6:
Seeing that this new currency has gained wide spread confidence, Bill Gates opens banks around the country and begins allowing people to create savings accounts to accumulate their BG bills. For the time being, these bills are still redeemable for the, now less popular, U.S. dollars. [Bitcoin to fiat exchanges actually begin to lose some liquidity into fiat because people are willing to hold just Bitcoin alone (legal tender laws would make it mandatory to pay taxes in the native currency still). However fractional reserve banking with Bitcoin is much more difficult as there is no "lender of last resort" or central
bank window controlling interest rates, also banks aren't needed by holders of cryptocurrency and customers would only hold their bitcoin in the most trusted banks for a market set interest rate.]

Phase 7:
Concerns over the redeem-ability of this new currency drastically change. For instance, say Gates had issued roughly 50 Billion Dollars worth of BG bills throughout the world. Being that his fortune was only around 50 Billion to start with, if he continues to issue BG bills, they would no longer all be redeemable for dollars. (since he would lack the ability to exchange them for dollars) Hypothetically, if EVERY individual went to cash said BG bills in at the same time, some of those checks would start to bounce. Luckily, that's not a concern in a world which trusts that BG bills are always valuable. Thus, Bill Gates decides to keep issuing lines of credit to people by lending new bills he merely creates out of thin air - simply by writing bad checks. The currency is beginning to function on its reputation alone. [Luckily for us, Bitcoin is decentralized and does not come from any centralized authority. There is also a supply limit of 20,000,000 coins, therefore this point is mute when applied to crypto. However, Bitcoin does survive based on its reputation as gold and silver does. If Bitcoin were to reach this stage, that means demand for fiat becomes so undesirable that you can no longer liquidly exchange your Bitcoin for fiat currencies large easily.

Phase 8:
The public no longer cares about the U.S. dollar. At this point, the country is running entirely on BG bills. The original 50 billion U.S. dollars that started this experiment is now backing a whopping 5 trillion BG bills. Most of that currency cannot physically be exchanged for dollars anymore. The U.S. government decrees that BG bills are no longer exchangeable for dollars and takes us off "the dollar standard." This mirrors what happened when we left the gold standard and began functioning with a reputation-backed currency. [At this point, Bitcoin or any cryptocurrency could take over fiat by pure reputation alone, finally, a voluntary, decentralized and bank free alternative to manipulative fiat currencies. This can be true for Bitcoin, Litecoin, Ultracoin and any other cryptocurrency that makes it to through these stages. What is important is acceptance, aka reputation.]

Conclusion:
This - in concept - demonstrates how a public can come to accept a currency on reputation alone. Whether that be beneficial or detrimental is hotly debated, but it's where we stand today. Our dollar is backed 100% on the reputation of our government. In the past, it was backed by gold, but gold's value was in turn backed by its own reputation. When it comes down to it, it's all about what people think others will accept. Reputation has a lot to do with making that determination.

Sincerely,

Steven "Rapture"
Management Director
Steven@Ultracoin.net
Ultracoin[/color]

I find it ironic that to refer to the reputation like that. You make it seem like the reputation of a college kid is nothing compared to the reputation of Bill Gates because Bill Gates is extremely wealthy? UTC was started by bumface, who should have a reputation of street rat, but people still bought into it. I'm not saying your point is invalid though. I think the scams that are still plaguing crypto may be the largest factor that is devastating the price/marketcap.

That was a year ago, the landscape is a bit different now eg, bumfaces latest undertaking https://bitcointalk.org/index.php?topic=873436.new#new

[Beave162]

That was a year ago, the landscape is a bit different now eg, bumfaces latest undertaking https://bitcointalk.org/index.php?topic=873436.new#new

Yes, thank god he is gone. I was saying it was ironic. I'm pretty sure Steven, you would be insulted if I compared you to that guy. Unfortunate factors can affect reputation.

[Kracko]

@kingpin I actually laughed out loud at this- thanks for that.  It's amusing that you think I have the time.  But don't flatter yourself-  you're hardly worth the effort it took to type these three sentences.

I checked out with a few other friends, I am the only one getting this massive rejected share rates!
My rigs are on 3 different locations, so Internet is not the issue.
Only remaining things, are Kracko screwing up with me on purpose, or someone else attacking me.... wtf??  

 I guess Kracko finally figured out my nick and decided to f**k with me!
You can see the whole UTC2 pool efficiency dropping, cause of my Rejected shares.