The coins are used to Sell and get BitCoin for them. Then you take the BitCoin and buy things or sell BitCoin to Fiat. If the coin had a Use that Merchant would have to sell to BitCoin and then to Fiat so it is the same principle just no need for a middle man. Really the ones making money will be the Miners of the PoW coin. If you buy their coin to speculate in the market you can make some money too I suppose. 40 Year project though it will take some time to get the PoW coin distributed so it can't dump down the price after the Claimers sell off continually. This is a gateway to BitCoin, it is like SLR is strapped to the back of a BitTowTruck doing 100 MPH on the freeway spewing black smoke and cutting people off in their Hybrid cars, SLR can only wave and say sorry its just the way the world works.
Such pessimism. There's always going to be a need for Bitcoin or some technology like it as a mainstream to trade with.
What are the use cases of this coin? Im a big Solar energy fan, and it would be cool if I had my own place and was generating solar and got some coins. BUt beyond that (and then selling them). what can I do with them / what are its use cases? What drives value in it? Thanks
The philosophy on how Solarcoin derives it's value is through solar production with distribution and encouraging clean energy use. That's it's primary function however there is more going on in development behind the scenes. It's still growing, and there are a handful of merchants. In my opinion it would be fantastic if solar merchants accepted the coin, even as a percent coupon. That would fuel even more sales of solar panels, inverters, grid ties, etc.
There's much going on as Nick would say "Under the hood" I can't comment on. Needless to say just read the news section of the solarcoin.org website if you're looking for more information.
That isn't pessimistic it is reality, and also SolarCoin didn't cut the people off in their Hybrid cars or near miss bicyclists as they choke on black fumes when The BitCoin Tow Truck that SolarCoin is being towed by goes on a road rage.
It is BitCoin doing that stuff, but SolarCoin is trying to say it is green... only in the face now, because it is about to throw up from being on the back of the Swerving Speeding Tow Truck BitCoin that it hitched on to.
This makes little sense to me. SLR is green because it incentivises solo production by rewarding solar power generators. If SLR was to then be traded for USD would you then say it's being towed by debt, the federal reserve system and quantitative easing.
It represents Green on the Face exactly what I said yeah, SLR is traded to BitCoin that then gets traded to USD etc. I wouldn't say it is being towed by USD at all or could be ever, even if it could go to USD which it can't, and still be within the guidelines of the Securities Exchange Act.
Products cost Merchants money but the only way to empower SLR is to only accept SLR and never sell it but trade it. I had argued many times for an internal Trade value Magic Number 1MWH=$200 or $120 wholesale power price, and then used products can be bought at retail to show the entropy lost in their cost, now regained by Solar Production. This would incentivize usage and adoption, but someone somewhere at the end will have to value SLR more than the product they gave for it. Read on to find out why they may value it if they want to buy SolarPanels with my latest idea...
If the only market were to BUY PANELS then yeah good incentive. But it just enriches people other than what it was intended for, like staking and selling the coin. They can buy panels from the staking so you may say that it reciprocates but generally I think this is not the case. Why would someone buy a panel to make a few cents right now in SLR? If they already made the purchase then yeah sure claim away, but to go out and buy panels just to claim is not equitable at the moment.
So I have an idea that I thought up for a different coin just recently. I was trying to mediate and found a good way to make a paradigm shift for their coin. I hope they adopt the idea and any coin could actually do this. They had to do a Swap because of the coin stolen by Cryptsy and block bloat wallet problems etc. They then transitioned from PoW to PoS only much like SolarCoin did a while back only as PoST. There was a disparity of excess coin and I suggested that since it was about 50% of the coin that the Dev would have that this coin would be used as a Perpetual PoS Product Purchase fund. Instead of allowing the Exchanges to PoS the majority of traders coin this PoS would benefit the coin and be the heavy weight wallet in PoS instead of the Exchange. It would be 49% of coin and never touched ever. Only the PoS reward could be spent on products. Now what the products were to buy wasn't really obvious as it is with SolarCoin. The other aspect to keep everything in the open and on the up and up is to write everything to the blockchain. It is a ledger of course what else should we do with it lol. Then the Market data goes to the chain also. This way the Median price can be taken by the chain and anyone can see it real time. Once a PoS coin is created it would be placed by a Bot in the market at 10x Median Price. These would be sprinkled throughout the market.
Now the incentive! People buy the PoS coin and it builds up the price while filling the product orders. If the Products are not bought, the price of the coin is allowed to move up continually. Soon people realize the value of the products since the price has moved up so much for the coin. They decide to do a leveraged buy of a product as a way to hold value. Well now this puts all of that Product coin out at 10x the median price to wait for a buyer. Soon there would be a good sized wall but liquidity could be accomplished at the Median price anyways so it is of no concern to people who have invested in the coin. I had suggested a discount for the products at 51% of retail for incentive to buy them. This could be worked out to a solar panel and the price can build and build. The higher the price of the coin the more leverage the Market has. Each increment has a portion of market cap that is of real worth and value to show a limit.
If people could get Solar for Cheap they may come in from BitCoin. There is incentive now but the PoW coin is not a part of the equation and the only other coin is the 500 million in the Dev fund. It would have too much PoST but perhaps the math could be done and a reserve could be met to make this work as a true market should. Meanwhile your BitCoin is building into astronomical leverage since we know that there is huge demand for Solar and we now have a market to sustain within SolarCoin as a place for BitCoin to go and build up as a constant. The Cap must grow to meet the demand etc. It self propels the market or stagnates but allows liquidity or a level off. But at a certain point it is a safe haven and market backer to boot. It puts the money where the Green Faced Mouth is.
Everyone is standing around waiting for some Solar Panel Installer to accept SLR or sell products with it etc. When the market is already there but SolarCoin doesn't even trust itself to sell the Panels why would anyone else trust to use the Crypto and have to hedge against the sliding scales of BitCoin to get liquidity for their risk. Why do this when they could just own BitCoin instead of SLR and have that much more exposure?
There may be a ceiling on this idea but I know there are people here who are smart enough to make it work. I know iFloorWalker could make this a reality in no time we just have to test the best market scenarios out and margins to create incentive. As the cap grows these margins change so better deals happen instantly so maybe no deal is needed and just growth is spurring the spending and buying. But brighter minds can game this and test it to make it viable. And they have 500 Million SLR to start it with, go figure that was going to be spent on PR or Development, that is a lot of PR lol!
