Do we really need more cryptocurrencies?

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Do we really need more cryptocurrencies?

Postby Masniff.Hurricane » Fri Mar 28, 2014 10:35 am

Long story short. We have too many cryptocurrencies. Proves: 1, 2, 3, ...

Now it's hard to separate the wheat from the chaff in cryptocoins' world. And I'm sure every user feels the same annoyance about it. I personaly stay for force killing most of cryptocoins (esp. those called "alternative"), cause they are useless. But the real question is

Do we really need new cryptocurrencies even if they are differnt from BTC/LTC?
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Re: Do we really need more cryptocurrencies?

Postby Catherine_Erwin » Fri Mar 28, 2014 12:09 pm

This question is a controversial one. The cryptocurrency world shows that there is a place and the demand for various cryptocurrencies to co-exist. Generally, their opponents believe that they dilute the positioning of the today's leader, the Bitcoin.

CryptoNote's position has been expressed in the conclusion of our whitepaper:

Nobel prize laureate Friedrich Hayek in his famous work proves that the existence of con-
current independent currencies has a huge positive e ffect. Each currency issuer (or developer in
our case) is trying to attract users by improving his product. Currency is like a commodity: it
can have unique benefi ts and shortcomings and the most convenient and trusted currency has
the greatest demand.
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Re: Do we really need more cryptocurrencies?

Postby Masniff.Hurricane » Fri Mar 28, 2014 12:20 pm

Catherine_Erwin wrote: Currency is like a commodity: it can have unique benefi ts and shortcomings


For the average user they are all the same. Some times they even have equal names ;)
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Re: Do we really need more cryptocurrencies?

Postby John(JohnK.) » Fri Mar 28, 2014 1:47 pm

the creation of a new coin now is as easy as creating a new site. we have millions of sites in the Internet and there's nothing bad about it

in fact, it's the natural evolution of Crypto-Currency, and some kind of "natural selection" will kill most of the coins that cannot provide differentiation and value. however it is not so rapid process as you wish, Masniff.Hurricane

to my mind the most important thing about amount of alt-coins is that the creation of new coins may hurt the overall economy of Crypto-Currencies. with each introduction of a new coin into an exchange the value of the other alt-coins tends to decrease, because of the limited amount of money that is spread across coins' market. so each new coin introduction dilutes the value of the previous coins and may be one day all of them will cost nothing
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Re: Do we really need more cryptocurrencies?

Postby a_chester » Mon Mar 31, 2014 12:54 pm

John(JohnK.) wrote:the creation of a new coin now is as easy as creating a new site. we have millions of sites in the Internet and there's nothing bad about it

in fact, it's the natural evolution of Crypto-Currency, and some kind of "natural selection" will kill most of the coins that cannot provide differentiation and value. however it is not so rapid process as you wish, Masniff.Hurricane

to my mind the most important thing about amount of alt-coins is that the creation of new coins may hurt the overall economy of Crypto-Currencies. with each introduction of a new coin into an exchange the value of the other alt-coins tends to decrease, because of the limited amount of money that is spread across coins' market. so each new coin introduction dilutes the value of the previous coins and may be one day all of them will cost nothing


+1

We're all involved in a major economic experiment with cryptocurrencies. After all, altocins allow to play around without threatening Bitcoin. So altcoins may either prove being a lab, or may actually outgrow Bitcoin. Anyway, if you ask me, the more currencies there are on the market, the better for the community.
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Re: Do we really need more cryptocurrencies?

Postby Werner_Albert » Mon Mar 31, 2014 5:21 pm

Let's take a broader view. Having more alternatives in cryptocurrencies is a good thing, just like having variance in the species allows the life to develop and survive. The latter comparison might be too extreme, but the new coins may serve experimental purposes, cover specific geographic areas, or promote the cryptocurrencies to those who were not covered yet by other coins. Taking this perspective into account, I believe that coin pluralism is beneficial for the "cryptonomy".
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Re: Do we really need more cryptocurrencies?

Postby The-rocket-A » Tue Apr 01, 2014 5:47 am

people hardly can choose the toothpaste out of 10 brands presented in store. How can they choose what crypto coin to use/to mine/ to invest in out of 350 existing? such diversity is no longer contributes to the improvement of currencies quality. It even harms consumers!

I think the amount of crypto currencies should be artificially limited. it does not mean that we should organize special authority for this. We just need to introduce some rules. Crypto community can no longer be anarchic, we need a more advanced form of community organization.
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Re: Do we really need more cryptocurrencies?

Postby Maurice.P » Tue Apr 01, 2014 6:38 pm

The-rocket-A wrote:people hardly can choose the toothpaste out of 10 brands presented in store. How can they choose what crypto coin to use/to mine/ to invest in out of 350 existing? such diversity is no longer contributes to the improvement of currencies quality. It even harms consumers!

I think the amount of crypto currencies should be artificially limited. it does not mean that we should organize special authority for this. We just need to introduce some rules. Crypto community can no longer be anarchic, we need a more advanced form of community organization.


In my opinion, any such limitation posed by the community implies centralization and holds back the development of the cryptocurrencies. I can't see any harm in a broader variety of cryptocurrencies as they seem to be pushing small and large changes.
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Re: Do we really need more cryptocurrencies?

Postby crando » Thu Apr 10, 2014 4:52 pm

Maurice.P wrote:
The-rocket-A wrote:people hardly can choose the toothpaste out of 10 brands presented in store. How can they choose what crypto coin to use/to mine/ to invest in out of 350 existing? such diversity is no longer contributes to the improvement of currencies quality. It even harms consumers!

I think the amount of crypto currencies should be artificially limited. it does not mean that we should organize special authority for this. We just need to introduce some rules. Crypto community can no longer be anarchic, we need a more advanced form of community organization.


In my opinion, any such limitation posed by the community implies centralization and holds back the development of the cryptocurrencies. I can't see any harm in a broader variety of cryptocurrencies as they seem to be pushing small and large changes.



it's really hard to choose anything when the distancy between consumer and the product is not enough. Today the advertisement almost makes us suffocate. But we have to buy anyway, we have to choose anyway. A centralization kills the main thought of crypto-currencies. and I agree with opinions here - the nature decides.
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Re: Do we really need more cryptocurrencies?

Postby bbelev » Thu Jul 24, 2014 4:34 pm

The more I read this forum the more excited I get about cryptonote and the cryptocurrencies build on top. Of course we need more cryptocurrencies! Look around in nature...variety creates beauty. It also creates competition for the finite resources (sun, water, soil, food etc.) thus the best performers survive and multiply, while the others are blown away by natural selection. This evolution process got us from a single cell organism in the ocean to a complex, multilayer ecosystem - the human being.

So let there be plenty of cryptocurrencies, thousands are needed to compete for finite resources (users and mining power) so that the market naturally chooses the best. The change of the money system is so fundamental and important for our civilization that we need the absolute best possible currencies to help cushion the earthquake of the system change. Otherwise war and destruction will prevail.

The current system has not collapsed yet, despite of being corrupt, unfair and unsustainable. The reason for this is the lack of alternative. The moment when cryptocurrencies become secure (hardware wallets), user friendly and large (1+ trln USD market cap) enough the shift will quickly take place. Gold as nature's money will remain a safe store of value. Governments will be limited to organizing kickstarer type of crowdfunding for their projects.

Sounds too dreamy? It's possible in theory! Let's work to get there :)
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