Another Bitcoin Review and Why DasCoin is in the Box Seat!

I came across this article published in the CryptoCoins News, author Justin O’Connell. I have added some comments (italics) that place DasCoin into the conversation.

The Price of Bitcoin Needs to Increase for the Digital Currency to Survive

Justin states….”Seven years ago, Bitcoin had essentially no price. For a time, bitcoins were worth pennies. Mining them was far more simple, as one could even use CPUs. These days, a Bitcoin costs over $750.coin-10

This is a trend that will need to persist if the decentralized network wants to continue existing, and here’s why.

Miners in the Bitcoin system mine (produce) the bitcoins. Their process also helps to secure the network from attackers. They don’t do this for free, however, as for each mined block, a miner (many of which are now industrial) can earn 12.5 bitcoins. Over time, however, the block reward decreases as the rate of bitcoin’s mined decrease.

In 2044, the block reward will be 0.195 BTC. This might not be enough bitcoins to entice people to mine the digital currency, which is a hardware intensive and a costly process. There are also many other current “alt-coins” people might wish to mine instead, easier and less expensive such investments may prove to be. He is referring to coins such as DasCoin.perfected

To be sure, in part thanks to the deflationary nature of Bitcoin’s mining schedule, resulting in fewer bitcoin’s being produced over time, it’s reasonable to suspect the Bitcoin price could increase sufficiently where that 0.195 BTC block reward in 2044 is worth more, maybe even a lot more, than it is today. If Bitcoin is worth $750 now and $7500+ in years to come (some say sooner than the professionals are forecasting)…what will DasCoin be worth…where is is more widely used around the globe…8.6 Billion coins distributed over 12 years!

A Princeton Researchers Report published in August 2016 details the two types of incentives for miners, including block rewards and transaction fees. Block rewards earn miners far more than transaction fees currently. Over time, transaction fees are anticipated to increase.

“There has been an implicit belief that whether miners are paid by block rewards or transaction fees does not affect the security of the block chain,” the researchers write. “We show that this is not the case.” DasCoin’s proprietary centralized BlockChain addresses and solves this issue. 

They add:

Our key insight is that with only transaction fees, the variance of the block reward is very high due to the exponentially distributed block arrival time, and it becomes attractive to fork a “wealthy” block to “steal” the rewards therein. We show that this results in an equilibrium with undesirable properties for Bitcoin’s security and performance, and even non-equilibria in some circumstances. We also revisit selfish mining and show that it can be made profitable for a miner with an arbitrarily low hash power share, and who is arbitrarily poorly connected within the network. Our results are derived from theoretical analysis and confirmed by a new Bitcoin mining simulator that may be of independent interest. We discuss the troubling implications of our results for Bitcoin’s future security and draw lessons for the design of new cryptocurrencies.

The above crypto gobbledygook in simple terms means bitcoin mining is complex and getting more so…DasCoin is a Centralized Coin Distribution process, that is stable, secure and certain.ctrwk59xgaakc71

While the Princeton research outlines that decreasing mining profitability might inspire fraudulent activity against the mining apparatus of Bitcoin itself, the lack of incentives overtime could by then have led to the adoption of another blockchain, such as Ethereum or otherwise...very interesting comment by Justin….the “otherwise” is DasCoin. 

Excellent article and gives me more reason to talk DasCoin as the the only credible alternative to Bitcoin.

W.McCarthy

8th December 2016