We should take notes of this interesting coin named Vericoin. I read this article and I was happy that someone else figured out what I was trying to figure out. How do you get people with Safecoins to pay for stuff, at a merchant, that doesn’t want to accept Safecoins yet? If the merchant accepts a different coin, like Bitcoin in the Veribit way it’s possible.
Incase your to lazy to go to the article, this is how it works. You choose the Veribit service, enter a Bitcoinaddress and the amount that you want to pay to it. After that you enter the details, press the submit button, a little hocuspocus happens in the background and your presented a Vericoin amount and Vericoinaddress to send the funds too. You got little under 20 minutes to make the transaction. You pay with Vericoin, to the Vericoin team, they pay the Bitcoins for your product. Hmmmm you also got to pay 2 Vericoin, but that’s a smallchange.
Unfair Exchange
I do see a problem, the problem is the fluctuating price. Basically what the Vericoin team is doing, is take away users from a exchange. But at the end of the day they pay with Bitcoin and end up with Vericoin. If they want to exchange their Vericoins, back to Bitcoins at a exchange, they’ll do this at a lost. Simply because the selling price is always higher than the buying price. Unless they premined a large sum of Vericoins they’ll always end up loosing.
The strength and weakness of cryptocurrencies is that they are on the freemarket and so fluctuate. Some people say that the price is determined by supply and demand, I say it’s a little foggy. The action always happens at a exchange, the Vericoin team could only sell their coins back to someone for Bitcoins at a higher price if they become a exchange. The other way to solve the problem of fluctuating prices is to peg your coin to a fiat currency, but it’s the question if that’s desirable.
Cryptocurrency to Fiat
The logical next step to this, is p2p cryptocurrency to fiat, but that story is for another time…
My thoughts on this is to use real substances and barter. Barter fiat for precious metals, water, food, diamonds, whatever tangible thing you want and then trade that for the cryptocurrency of your choice. If $1,000 = x amount of gold = 1 BTC the exchange is pretty obvious. Ultimately it doesn’t matter what currency you use but rather what you can trade it for.
Substances and barter won’t do it for a merchant. They need fiat to pay their employees and business partners. The problem with fiat is, that you always loose money when you exchange to it. Ideally you want to keep all funds in Safecoin that way you don’t have any exchange fees. They solve this problem with the Chiemgauer by having merchant, pay other merchant with chiemgauer. The good thing about the Chiemgauer, is that your money can loose value, a anithoarding fee.
Oooh keee I will stop talking now because I have to go and do the dishes…
How do you get people with Safecoins to pay for stuff, at a merchant, that doesn’t want to accept Safecoins yet?
You exchange Safecoins for bitcoins or fiat and you’re done.
If you spend online less than 0.1 BTC a month, then you can do this once per quarter. I hope that’s not too exhausting for you.
The logical next step to this, is p2p cryptocurrency to fiat, but that story is for another time…
Exchanges costs money (to echange your coin and to withdraw it, so you loose twice). We could eliminate both by exchanging among eachother for cheaper.
[quote=“janitor, post:7, topic:554”]
There’s realcoin, not exactly the next step.[/quote]
There is also bitsquare.io, Moneyenom (1 coin=1euro), Realcoin is a great step. The part that people don’t see is that they can keep their currency SAFE IN THE CRYPTOSPHERE instead of on a bankaccount (BANK BAIL OUT).
There are decentralized exchanges such as the ones provided by MasterCoin and Counterparty (XCP)) although I’m not sure how the former works. The latter is fully functional and you can buy and sell assets issued on it (e.g. storj.io tokens) now, but it still not free.
There will always be some cost to it because compute resources are not free.
The next step is a standard way to trade ALL cryptocurrency, global reverse “protocol” instead of currency. Where the protocol has no actual value and is not available to trade for goods or services on its own, its just a tool to implement a contractual agreement between two or more distinct cryptocurrencies. Some sort of AI/Machine-learning algorithm based implementation so it can update itself with little maintenance is preferred, but not required… probably something opensource.
@nicklambert
Maybe sometime in the future, you girls/guys can approach the girls/guys @ Shapeshift.io to add our shiny Safecoins. This way Safecoins can be spend everywhere Bitcoin is accepted.
Interesting vid and great concept. So I guess this would be something to speak to them about after we have enabled other currencies on the SAFE Network. Nice spot.
There’s not really much to tell @fergish, as the topic has not been discussed (to my knowledge at least) for some time. Please bear in mind that we have still to implement test safecoin. However, SAFE is an open network and I think that it stands to reason that in time (unquantifiable) other tokens/currencies/whatever will be added to it.
No problem. Yes I really would like the ability for users to buy safecoin without needing another crypto currency first as I think it would make us much more accessible to the masses. We will add Yacuna to our list of people to speak to once our API is sufficiently advanced. Cheers!
Within SAFE? I’m not sure on this point. My thought would be that as there is no chaining of transaction history, the network would only retain previous and current owner and therefore there would be no block to explore.
So Yacuna will be one listed exchange post-BETA when MaidSAFE is live – what about Bitstamp? Will this be up to each exchange to “plug in” to the SAFE API, or do you already have a list of exchanges to speak of?
