Surely as more of these currencies come into circulation, their presence in the market will devalue the ones already in use? Because competition drives down price, right? And the whole thing is completely unregulated, which appears to be part of the attraction. Sounds like a recipe for financial piracy.
heres a use for the populus coin. It sounds good but what i don't understand is why you would even need the alt coin, why not have the software in place and then have it charged using FIAT currencies https://populous.co/ one thing i know the "advantages" of a super fast alt coin is that nowadays transfers take days to transfer your money from bank to bank (especially internationally). Some altcoins this will be minutes to hours and the transaction costs are far lower supposedly. I don't know enough about it to understand if it'll ever work though
Competition for what ?? Bitcoins are awarded for doing the "hash" computations that underpin the security of the associated blockchain. If another reward currency is more widely used than bitcoin (on the same and different blockchains) , then people will start asking to be paid in that for their mining work. If the compute requirements for a different blockchain are less than the bitcoin one, then the reward currency for that blockchain will be worth less than bitcoin.
Doesn't your 2nd sentence answer the question in the 1st? So if another currency becomes more popular, surely the value of Bitcoin decreases?
The current issue is that if different blockchain systems have their own reward currency, and reward rates, then popularity (who accepts what currency as a payment means) comes to the fore. But something being more popular doesn't elevate its financial value beyond things like basic supply and demand.
Yeah, but these crypto currencies have a monetary value, in the non digital world. Won't that value be determined by the number of people who trust and want to use them?
