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The Problem with Altcoins

70 点作者 gbl08ma超过 11 年前

17 条评论

pyalot2超过 11 年前
The old objections against altcoins are rolled out and paraded again like a good circus.<p>Let me paraphrase what author is saying: &quot;There will be no other cryptocurrency, for whatever purpose, ever, than bitcoin.&quot;<p>That&#x27;s of course complete bunk. Yes, most of the existing altcoins are doomed, because they don&#x27;t add anything of value. The few that do add something unique, are as likely as not to see these features adopted into bitcoin itself.<p>However there are areas where an altcoin can succeed, under the following conditions:<p>- If it adds something unique<p>- If what it adds is useful and liked by people<p>- If what it adds cannot be incorporated into bitcoin<p>Wait, how can it be that something can&#x27;t be incorporated into bitcoin? Well, bitcoin has a certain architecture, which makes some ideas more easy to incorporate, and others hard, or impossible. A few examples of things that would have a difficult time landing in bitcoin:<p>- Colored coins<p>- Blockchain based trade order execution (would also be predicated on colored coins).<p>- Domain name resolution<p>- Trust metrics<p>- Arbitration and reversable transactions<p>There&#x27;s many more. But you get the idea, most of these things are not inherently compatible with how bitcoin works, and is liked by people for working in this fashion. That doesn&#x27;t make this bad ideas, it just makes them ideas where supplemental systems can excel.
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joejohnson超过 11 年前
Very disappointed with the discussion here. The author makes many good points deconstructing the claims made by creators of many of the altcoins. His main argument is that none of the altcoins improve on Bitcoin in any significant way, and most of these altcoins (specifically the Scrypt-coins) were probably created out of greed. Many people who invested in GPU-mining rigs were looking for something like Litecoin to take off and make their massive investments worthwhile.<p>I think the author is dead on. These altcoins don&#x27;t improve on bitcoin, and are all orders of magnitude less valuable as money.
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_delirium超过 11 年前
Interesting to see this at a Mises-related blog. I&#x27;m not deeply into Austrian economics, but I was under the impression that Austrians didn&#x27;t think much of either Bitcoin <i>or</i> other cryptocurrency alternatives. Aren&#x27;t all cryptocurrencies at fundamental odds with Ludwig von Mises&#x27;s &quot;regression theorem&quot; [1], which posits that legitimate currencies can only originate &quot;naturally&quot; as an outgrowth of real commodity trade, and cannot be artificially constructed <i>as</i> currencies?<p>[1] <a href="http://books.google.com/books?id=xFsaVHBXlNkC&amp;pg=PA61&amp;dq=%22regression+theorem%22" rel="nofollow">http:&#x2F;&#x2F;books.google.com&#x2F;books?id=xFsaVHBXlNkC&amp;pg=PA61&amp;dq=%22...</a>
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Jsarokin超过 11 年前
I&#x27;d argue that Altcoins can definitely become a store of value regardless of Bitcoins network effect.<p>Check out <a href="http://ripple.com" rel="nofollow">http:&#x2F;&#x2F;ripple.com</a> - they pretty much solve this problem, although its VERY beta. Expect really cool things from them in ~6 months.<p>Ripple is fiat agnostic and allows seamless conversion between currencies. This means I can buy something in Yen and you can receive payment in LTC. Amazing system if it gets up and running.
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eof超过 11 年前
I agree with most of the problems listed here; but am just as certain of there being long-term viability for alt-coins as I was of bitcoin several years ago.<p>I am surprised though that the author did not make, what to me, is the most obvious and strong argument for or against alt-coins, namely; `there can only be one--per hashing algorithm`.<p>The problem with alt-coins that share bitcoin&#x27;s mining algorithm is that they are inherently insecure; as bitcoin&#x27;s hashing power can be used to 51% attack the alt-coins directly; which is inevitable if the alt-coin is profitable to mine, or if it threatens bitcoin&#x27;s dominance.<p>Consider an alt-coin that is less profitable than bitcoin to mine; people won&#x27;t mine it. Consider again an alt-coin that is more profitable than bitcoin to mine; miners will hash the alt-coin until it is less profitable (profitablility is a direct correlation between hashing power and price-per-coin; as more hashing power chases a static amount of coins, profitability drops)--this dooms any alt-coin that both shares a hashing algorithm with a more established crypto-coin and does not solve any fatal flaw.<p>For this reason, I think litecoin will have long term success; while feathercoin (et al) are doomed; bitcoin hashing power cannot be pointed at litecoin. Total network hashing power is very analogous to mass and gravity; like draws like in this regard, the more hashing power pointed at a block-chain, the more secure it is, the more peopel trust it, the value it will have, the more people will mine it.<p>There is room for infinite crypto-coins, despite the authors hand-waviness around bitcoin competing &quot;with the dollar and paypal&quot;; fiat currencies have shown (to the most freshman of history buffs) to be exploited for the benefit of the elite at the expense o the masses; something a well-designed cryptocoin (bitcoin included) cannot be subject to. People will choose to use cryptocoins as their benefits become more viscerally tangible; and competing blockchains will forever come in and out; and some will stay.<p>But, if you ever want to bootstrap your <i>own</i> blockchain; you must use a new hashing algorithm or it is doomed.
Aqueous超过 11 年前
PPCoin gives you the new concept of proof of stake and it introduces monetary policy where the production of new currency is tied to how much hoarding is going on.I f it ever takes off it will probably be more stable than BitCoin. That alone could make it ultimately more attractive than BitCoin to mainstream traders and users. BitCoin is a truly libertarian coin with no monetary policy and nothing to get in the way of deflation.<p>People are going to have a hard time converting their fiat dollars into a currency that changes value by +&#x2F;- $150 every week.
damon_c超过 11 年前
Given the relatively small overall market cap and even smaller circulation of bitcoin, if McDonald&#x27;s decided to issue change in &quot;McCoin&quot; it would probably take days for that to surpass bitcoin in the metrics on which his arguments rest.<p>Corporation branded crypto credit... Sounds like something from the future.
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DennisP超过 11 年前
He ignores a key goal of proof-of-work, which is to get consensus without burning all those cpu cycles. If it works out it could be much more energy-efficient.<p>Another new idea with a similar goal is proof-of-burn: <a href="https://en.bitcoin.it/wiki/Proof_of_burn" rel="nofollow">https:&#x2F;&#x2F;en.bitcoin.it&#x2F;wiki&#x2F;Proof_of_burn</a><p>Scalability is another goal of some alt-coin ideas. The finite blockchain idea is one example that couldn&#x27;t be simply layered onto Bitcoin itself. Here&#x27;s a paper (pdf): <a href="http://www.bitfreak.info/files/pp2p-ccmbc-rev1.pdf" rel="nofollow">http:&#x2F;&#x2F;www.bitfreak.info&#x2F;files&#x2F;pp2p-ccmbc-rev1.pdf</a>
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galactus超过 11 年前
I think the author is overestimating the weight of bitcoin&#x27;s network. It would only take a really major player to back any of the altcoins to kill bitcoin
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oakwhiz超过 11 年前
Altcoins could be made more valuable if a) they performed some function that Bitcoin cannot feasibly perform, and b) if some type of atomic inter-cryptocurrency trade protocol could be produced which would allow low-friction trade between cryptocurrencies, and without the use of centralized exchanges.
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vbuterin超过 11 年前
Strongly disagree.<p><a href="http://bitcoinmagazine.com/6926/in-defense-of-alternative-cryptocurrencies/" rel="nofollow">http:&#x2F;&#x2F;bitcoinmagazine.com&#x2F;6926&#x2F;in-defense-of-alternative-cr...</a>
mst超过 11 年前
Network effects make competition pointless ... um ... while it&#x27;s very much apples to oranges, people said that about MySpace too.<p><i>hands out pinches of salt</i>
31reasons超过 11 年前
TLDR: Altcoins won&#x27;t be successful because Bitcoin is successful!
ck2超过 11 年前
Litecoin is at a respectable $3, that&#x27;s not too shabby?
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ferdo超过 11 年前
The first altcoin to utilize and implement M-of-N-signatures will take over. Bitcoin is close but not quite.
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ye超过 11 年前
What a bullshit article. Many altcoins already succeeded:<p><a href="http://coinmarketcap.com/" rel="nofollow">http:&#x2F;&#x2F;coinmarketcap.com&#x2F;</a>
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consonants超过 11 年前
The problem with Altcoins is that they prove to be a perceivable threat to Bitcoin true believers and the perceived long-term value of their holdings.