But steelhouse tho

Bitcoin has no productive asset. It is only a collectible. Fortunately it can be used for gambling thus it will be really hard for it not to have some value. If you get 1 million users the price may actually increase, but all this is unknown.

Imagine a capcoin with 21 million outstanding, $500 in value, or $10,500,000,000 in market cap. If that were invested in productive assets, the coin could knock out 2 million coins or 10% of the coins a year. Furthermore there would be a constant grinding away and deletion of the coin. There would by a constant buyer of the coin. Since the coin is infinitely divideable no worry about running out of coins.

capcoin would be identical to bitcoin in virtually everyway, most would not know the difference. capcoin would be capital based, while bitcoin is collectible based. Unlike a stock anyone can vote for board members of capcoin, majority does not rule. You do not even have to a be a owner only a good capitalist. They are subject to fiduciary responsiblity and repurchase requirements.

http://www.panarchy.org/george/capital.html

Basically we have the combination of a stock market and a darkcoin. I noticed another thread some girl wants a $15,000 loan. This actually could be possible in a capcoin.

I disagree with steelhouse's premise, but there are already assets available that could be used as coins if people want. If you look at coinmarketcap.com you'll see Maidsafecoin which is an asset on mastercoin platform. Storjcoin X is an asset on Counterparty. Nxttycoin, j777hodl, MGW are assets on the Nxt platform. Some of these assets are traded on exchanges like bter and polonix. Who knows, Overstock might have an asset before long. If people want to use these assets as transactional coins (and use the underlying value of the company as a floor of value), it may not be much more difficult than using coins for payment. Doesn't seem to be much demand for that so far.

Good news everyone, we are back at ATH:
https://blockchain.info/charts/n-tra...ale=0&address=

steelhouse, you may be interested in URO
(into vid: https://www.youtube.com/watch?v=0oDs...EO7FpHFQSxPIxg)

https://bitcointalk.org/index.php?topic=684972
1 URO = 1 metric tonne of urea (or so 'they' say)

I don't like this coin because there are no profits and no deletion. What I want is say small business coin to collect say $100,000,000 in assets. Then the business coin group would be divided into 10 or $10,000,000 each. The group would find the 10 most profitable capitalists. Suppose inflation is 5%. Thus all profit greater than 5% can be deleted. So you have investors with the following returns. 20,30,15,4,7,11,25,30,50. then one with 4% would be fired. Since they did not generate 5% the fund actually lost 1%. in real worth. The investor that earned 20% really has 15% available for deletion. He or she gets to keep 1.5% (10% fee) or $150,000 and 13.5% or $1,350,000 is deleted.

Deletion of profits is the key to capital coin. It puts demand on the coin. Deletion like AZo is the only way to return profits to coin holders. In effect we now have a new stock market open to everyone.

I never said that cryptocurrencies (there is no such thing) will supplant fiat but that Bitcoin will. Given the difference between cryptocurrencies and Bitcoin is not a subtle one, I'm not sure why people confuse the two. Altcoins/cryptocurrencies are so small to be of no consequence to Bitcoin. You don't think twice about the starving masses when you sit down for a meal; they don't think twice about your full belly as they starve.

Ethereum/fiat/whatever cannot eat from Bitcoin's plate. Those that try, such as our middlemen playing both sides of the coin, will soon go hungry.

The time to convert x% of CC/Paypal transactions to bitcoins was yesterday. Very few have the sensibility to begin today. A business with a plan to start doing so in 5 years time? Who is going to want to trade bitcoins for paper at that point?

and bitUSD, an asset/currency in the Bitshares-X platform is being traded in BTER.

it's a whole new ball game. i wonder what will happen to the oldschool coins like peercoin and namecoin... i would even go far as saying what will happen to litecoin? it seems likely that some other project will get the no. 2 spot. and it's going to be a crypto 2.0 project., i think.

.. or maybe an asset of a crypto 2.0 project? that would be really interesting.

Imo all the altcoin1.0 are certainly dying. Bitcoin has one thing going for it, that is user base. Bitcoin2.0 might have features. But altcoin1.0 has nothing.

Also, localbitcoins hit ATH today:
https://bitcoincharts.com/charts/loc...zxzi1gVolzvzcv

steelhouse, why does it need to be backed by anything? isn't supply and demand good enough?

what is the usd backed by?
what is gold backed by?

Gold is the universal real money.

Gold is backed by the price people are willing to pay for its non-monetary uses. But this may be quite low, as we have seen in the 80's and 90's. Even then, a good fraction of gold's price was based on monetary and investment hoarding. Imagine if all the world's gold were made available for jewelry, industrial, and electronic usage.

U.S. dollar 6% inflation
Gold 2% inflation
Bitcoin (eventually 0%) inflation
Equity Coin -10% deflation

Equity has demand as a collectible and as a return to capital. Imagine if there was a blackbox destroying $500 million worth of bitcoin a year (1 million coins). If the price dropped to $50 like peercoin, then it would be destroying 10 million a year. It is just another source of income for the coin.

When you go to work you are suppose to earn wealth. Wealth is suppose to be a material object most likely for consumption. Capital is wealth used to make more wealth. Capital makes labor more efficient. Labor splits the difference in added wage with the capital owner. Capital interest is a means to add move value to a cryptocurrency and pay for development and security.

the average u.s. citizen has been brainwashed the world operates by socialism and communism. we go to school at very young age thinking government is our friend they built the schools and parks. But it is the individual worker that pays for everything.

so just what are these crazy canadians thinking...
http://www.cbc.ca/news/business/sala...nada-1.2752441

also, sorry to be nitty, but if you think about it, bitcoin inflation is not 0% after mining is finished. For all-time, coins will be lost or "burned" at some non-zero rate.

for ex, http://cointelegraph.com/news/112388...s-beta-release

People are responding to STEEEEEEEEEEEEEEELHOUSE? LOL.

bitcoin doesn't require a central party to secure the code. This is just STEEEEEEEEELHOUSE.

https://www.youtube.com/watch?v=ZC-E9LVjzJo
Somewhere in this talk he mentioned the original code was not secure. The core needs to be maintained. 12:00 danger of one person controlling code. 17:32 If bitcoin was put in coca cola equity it might be big enough to change the logo on the can for free as owner. Furthermore, it would provide tremendous amount of funding to core.

what i was trying to say that the miners verifying/securing the blockchain can itself be considered a productive asset.

steelhouse is close to going on ignore. the lolz are kind of worth it though.

I think he means the bitcoin foundation. For example:

http://en.wikipedia.org/wiki/Gavin_Andresen

Gavin Andresen is the Amherst, Massachusetts-based chief scientist at the Bitcoin Foundation.[1][2] He has access to the alert key that allows him to broadcast messages about critical network problems to all clients.[3]

I took a lot of time to answer your question, I will not write anymore in this thread without a question. I have a thread under the economics section at bitcointalk. The miners getting a reward is a cost, presently about 9% a year. In two years or so the cost will be 5%, if bitcoin was a capital coin it could cover the cost of also paying miners forever without increasing but decreasing the amount of coins.

There is a very good chance bitcoin is already controlled, pegged, or manipulated to profit off the volatility.

There are literally thousands of people with the source code to Bitcoin. Yes, there needs to be maintenance. You are clueless on how open source software works.

I have submitted software to open source project. I do worry about a lot of these alt coins as I am sure only the developer has looked at the code. A lot of time you hear everything is hard coded, there is no such thing as hard code in software.

"Satoshi Release Bitcoin in January 2009 and nobody knew if it was secure or not, we did not find out it was horribly insecure until bitcoin started having a value." Gavin Andresen 18:00. He believes it is secure now, at least that is what he says. As wrote in a sticky in the alt forum it is dangerous to run alt coins blindly as there could be viruses, worms, and they could possibly even go after you wallet. Some of these alt coins try to do too much and I would not use it for something important like running a stock or DAC unless I would review the code. In summary stick with the bitcoin base. I talk about a capital coin and this could be done with existing bitcoin. Capital coin does not involve any software. Ideally we create a non-profit organization to delete bitcoin.

You are clueless. The code is secure. Any changes to it are reviewed by hundreds of people. Then after the review the miners have to use this code. If someone changed it in a way that made it hackable or insecure it would be noticed and not implemented. One foundation does not have the ability to single-handedly change the code.

And even if for some strange reason "bitcoin" was hacked, it doesn't affect all non-bitcoin-qt users very much. Bitcoins in cold storage would still be safe. If the chain forks and fixes are done it is likely that the only loss would be bitcoin being down for a few hours/days and some few transactions are reversed.

Downtime sucks, but Dow Jones have downtime every night and weekend and still seem to survive for some strange reason, so I am pretty sure bitcoin could survive a hours downtime every 5th year or something.