If Paycoin Succeeds, It Could Be More Dangerous Than If It Fails...

[Bit_Happy]

...You don't get to be a big shot though if you lack the creativity, inspiration, and brains to do it. 

Former "Big Shot" George W. Bush comes to mind, but I suppose that would be too far off topic.
You are correct that Josh was in the right place at the right time.

[Coin Brief]

As I have mentioned in this thread about Paycoin I would like to reiterate how this coin has Federal Reserve 2.0 written all over it.
https://bitcointalk.org/index.php?topic=896893.0

Notice how it is not going away?

Back in 1913 the Federal Reserve note was backed by Gold.

Slowly it started decoupling.

If we let it happen it again it will happen again.

Perhaps it is all a test to see if the BTC community folds and bends to the will of the squid?

The more duality fed at this the more it will grow,

People love choosing sides.

It is in their nature.

Better to squash this and do so quickly.

Yep.  I started planning for this article, and wrote partial drafts of it a few times, a bit over a month ago.  The massive article you see today is the culmination of a ton of stuff happening between then and now, but I wish I had just written the original article I was planning to write.

You are exactly right that this is the Federal Reserve in Cryptocurrency form.  Whether GAW manages to pull it off with Paycoin or not, the idea behind Paycoin is bigger than anyone here is giving them credit for.  A successful Paycoin, or something similar, would effectively be a digital version of our current banking system with an algorithmic Federal Reserve.

Luckily, even if the code for Paycoin was perfectly written according to the Whitepaper specs, it DOES have a few flaws that will hold it back...but if corrected, would amplify it's potential danger.  However, I refuse to say what these flaws are, or how they could be corrected, as I would prefer that they do not get fixed (and/or no one else tries to make a similar coin without these issues).

[Tommo_Aus]

On launch day, Paycoin broke and the blockchain got stuck.  Mining was put on hold for a day while it was fixed.  Seems like pretty amateur work for a supposedly revolutionary new coin backed by millions of dollars of investment.  You'd expect any possible bugs to be ironed out in testnet long before launch.

Hybrid Flex Blockchain?  Whatever that means, nothing of it is in there. Paycoin is just another PPC clone.  Nothing unique or revolutionary about it.

There was a massive security breach on Paybase the day it launched.  Again, more evidence of the amateur nature of the project.

Has anyone read this shit?  https://paybase.com/paysave-faq  Paysave.  Literally the stupidest most fucktarded shit I have laid eyes on in ages.  It's a Chrome extension that just orders shit for you from a different store if it is cheaper elsewhere.  You won't even know where your stuff is coming from before it gets to you.  Oh and right now it only works on Macy's, Wal-Mart, and Target.  It has a grand total of 3 merchants it actually works on.  If you could just add a few dozen THOUSAND or so more merchants, this would be a marginally beneficial feature for people who don't know how to search for the shit they want in google to find the lowest price.

Stripe cancelled Paybase for violating their terms of service.  All this time to prepare, and they launch their credit card processor and essentially give the message "Psssst.....Hey guys, you can buy Paycoin with your credit card now.  But you can't buy too much at a time!  We gots to keep this shit on the down low!".

Numerous statements from Josh about the banks and analysts and investors who used a mysterious calculation to determine that a clone coin with zero infrastructure or merchant acceptance was somehow worth AT LEAST $20.  Of course the calculations used to come up with this figure, and the mysterious banks, analysts, and investors have never stepped forward.

The branding, logo, and aesthetics of the coin and paybase and related sites are also extremely generic, and show that little time was wasted on crafting a product that felt unique.  Going on paybase.com feels like a mash-up of paypal and coinbase.  I suppose all the big investors couldn't spare more money to hire a decent team of graphic designers.

What is my point?  I have zero fear that Paycoin is going anywhere but down because no one beyond the niche culture of alt-coins would take this coin seriously.  It is so clearly an amateur shit show from head to toe.  I have no fear this will appeal to the banking sector or any real investment firm because the entire thing is a massive joke and an utter failure.  

Josh Garza is just a stupid kid who was in the right place at the right time to service the needs of miners during the scrypt ASIC boom, and he did that well.  I still have a couple of Black Widows hashing away to this day.  He got greedy, and wanted to be a bigger player.  You don't get to be a big shot though if you lack the creativity, inspiration, and brains to do it. 

I started to write a reply dissecting each paragraph to show how wrong every 'fact' is but wondered why bother, you've obviously got your own opinion and can't be swayed.

How could they possibly test the full network hashrate on testnet? Over 1/3 of the BTC hashing power went straight onto XPY within hours of launching, no other coin has gone under that much stress so quickly, you obviously don't understand any of the complexities involved in coding. Its not just the coin but its the ecosystem being developed around this coin, one that abides by laws and doesn't have a primary purpose of drug trading.

Stripe never cancelled PayBase, GAW chose to temporarily suspend PayBase to confirm they complied with the ToS. Interesting how CC purchases are available right now given you state their account was cancelled. The $20 valuation is based on implementation of the surrounding infrastructure, PayBase is still in BETA, it only just launched and its only the beginning.

How can a coin like this be called a failure when everyone knows about it, and it seems many fear it because it has a real chance of taking over from BTC. Its only been around for a month and its created an insane amount of discussion and adoption. While BTC fades and the druggies cry because their silkroad currency loses value, PayCoin is building value and in a good position to take first place. So much more to go for PayCoin yet its already this popular.

And another thing... actually I can't be bothered, keep on posting expletive ridden hearsay and basing your arguments against PayCoin without any facts, it just discredits you even further and shows what level you're really on.

[unusualfacts30]

It took me over a week to put this together, and I am sure there are mistakes in it.  Paycoin becoming successful could be very dangerous, as it is the first time I have witnessed a currency that is quasi-decentralized with the potential to appeal to the banking sector.  If this thing actually takes off, it could truly take over...and it doesn't even need the majority of the cryptocurrency community to do it.

Anyway, I highly suggest that people read over this, and take it seriously.  I know many people think GAW is a joke, and Paycoin is a scam...which is quite possible.  However, it is also possible that they have supporters with deep pockets (explaining the willingness to do things that are unprofitable in the short term).  If Paycoin is even moderately successful, it will be an extremely powerful proof of concept to use to get financial institutions onboard.

I'm posting this here, in the Bitcoin Discussion forum, as I feel like this is a danger to Bitcoin.  I have no idea what to do to stop it, but maybe someone that has written GAW off as 100% scam, or has just ignored Paycoin, will consider this possibility and think of something to prevent this if it begins.

I think it'll succeed for few reasons:

1.) I'm not sure what Josh had planned before but lot of people have pissed him off. Now he'll do all he can to make sure XPY succeeds. We're talking millions of dollars spent on XPY development.

2.) Josh needs to gain back trust of lot of people and buying back their paycoin for $20 is the best way to do it from business point of view.

3.) Long term profit is more lucrative than short term. He knows very well that if he tries to run away with quick profit he'll burn lot of bridges with loyal customers who brings him monthly profit and they'll be lifetime loyal customers as long as paycoin delivers what was promised.

4.) If XPY succeeds it'll give him an opportunity to create more cryptocurrency in future therefore more profit.

5.) XPY has been on news too much that means it has more visibility than any other altcoin have. It also means more buyers.

6.) It is very possible that XPY ends up becoming next Bitcoin.


People are retarded to think it's a scam at this point. All they're doing is pissing him off and he is going to prove them wrong regardless if it was a scam or not because it's hurting his business. Since launch XPY has had highest volume on two of the biggest exchange that's a HUGE progress for any altcoin. Most crypto wish they could be XPY and have highest volume in top exchanges.

Some might call it scam on basis that they stole logo and codes but guess what? Bill Gates is one of the biggest thief in the history and everyone is using his OS. Average joe who have never heard of digital currency don't care as long as it's easy to get hold of 

[Coin Brief]

It took me over a week to put this together, and I am sure there are mistakes in it.  Paycoin becoming successful could be very dangerous, as it is the first time I have witnessed a currency that is quasi-decentralized with the potential to appeal to the banking sector.  If this thing actually takes off, it could truly take over...and it doesn't even need the majority of the cryptocurrency community to do it.

Anyway, I highly suggest that people read over this, and take it seriously.  I know many people think GAW is a joke, and Paycoin is a scam...which is quite possible.  However, it is also possible that they have supporters with deep pockets (explaining the willingness to do things that are unprofitable in the short term).  If Paycoin is even moderately successful, it will be an extremely powerful proof of concept to use to get financial institutions onboard.

I'm posting this here, in the Bitcoin Discussion forum, as I feel like this is a danger to Bitcoin.  I have no idea what to do to stop it, but maybe someone that has written GAW off as 100% scam, or has just ignored Paycoin, will consider this possibility and think of something to prevent this if it begins.

1.) I'm not sure what Josh had planned before but lot of people have pissed him off. Now he'll do all he can to make sure XPY succeeds. We're talking millions of dollars spent on XPY development.

3.) Long term profit is more lucrative than short term. He knows very well that if he tries to run away with quick profit he'll burn lot of bridges with loyal customers who brings him monthly profit and they'll be lifetime loyal customers as long as paycoin delivers what was promised.

These 2 points do worry me.  Even if GAW has been a scam all along, if Paycoin succeeds, no one will ever know that, as it will end up making money for it's customers, and everyone involved will be happy.  That alone would lead to the other point, which is that Paycoin succeeding would create an even more fanatical base of supporters for GAW, as well as potentially changing the mind of people on the fence.

When I say "If Paycoin Succeeds" I am not referring to the entire cryptocurrency community adopting it.  It only needs to make it's current users some money, increase it's marketcap, and stabilize (or increase in value) for a while.  If it still exists, and is doing "ok" at the end of the first 6 month Prime Controller "leases", then that is the time to truly worry.  That is when I expect that some group or company may make a move...but only if it stabilizes it's base during that period.

Then again, as I said before, it has some big flaws that were overlooked.  GAW has a 2/3rds majority of Primes, and could fix them, but they have to figure out what the issues are first (on top of cleaning up the rest of the code, and making everything function as intended).

[Creampuff]

You see their logo.

I see two towers.

http://www.cryptocurrencyminingreport.com/wp-content/uploads/2014/11/hashcoin2.png

I believe we were warned about this.

http://lunaticoutpost.com/showthread.php?tid=499036

Your seeing a logo... much like any other logo really. If all you can see is 2 towers when you look at that, then i'll assume you have a nuclear bunker stocked with food and goods for the imminent collapse of society as well.

A little extreme don't you think?

[Coin Brief]

You see their logo.

I see two towers.

http://www.cryptocurrencyminingreport.com/wp-content/uploads/2014/11/hashcoin2.png

I believe we were warned about this.

http://lunaticoutpost.com/showthread.php?tid=499036

Your seeing a logo... much like any other logo really. If all you can see is 2 towers when you look at that, then i'll assume you have a nuclear bunker stocked with food and goods for the imminent collapse of society as well.

A little extreme don't you think?

I think/hope that was just a joke.  Conspiracy theories aren't always crazy, as conspiracies do exist (I'm not talking chemtrails...but people conspiring to do something without others knowing about it).  However, if Paycoin is built to be appealing to banks, I don't expect that it goes much deeper than exactly that...being built to show banks that cryptocurrency can be developed in a way that they can exploit.  It may have a banker (or a small group of bankers) already involved, but who knows for sure.

The potential consequences is what worries me about this idea, along with at least some connection between Josh Garza and a high level investment banker.

In my opinion, that logo looks like a stylized, metallic H  

Edit:  Or, maybe a stylized, metallic H on a gold and silver "Captain America"-style shield.  I have to say, I actually like that logo more than the Paycoin logo.

[Sir Alpha_goy]

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