I’m a newbie to the MaidSafe forum and I’d like to pose a question that seems not to have been fully addressed in any of the posts on “what-gives-safecoin-value-and-differentiates-it-from-altcoins/411/34”. First some background:
We’re living in most unusual times, nothing is normal: not the economy, not the financial system, not the financial markets and not the political system. Financial crises in USA, Europe and elsewhere have already spilled over into the wider global community and threaten to intensify. Many are questioning whether the economic model of the Western World may be irreparably broken. Governments and central banks seem to be unable to reverse or mitigate the imminent advance of a global financial contagion, and some are accused of aiding and abetting the problem. The drums of WW III are increasingly audible and governments’ propaganda machines are running hot.
So against that backdrop we ask ‘what gives SafeCoin value and differentiates it from altcoins’?
The simple answer is that SafeCoin is: i) intended to be a restricted issue and that ultimately will introduce the concept of scarcity which will drive the value up; and ii) backed by a proven resource – that of computing facilities of the entire network; and iii) it runs on a truly decentralised anonymised network that has many appealing attributes.
The MaidSafe facility is not intended to incorporate an exchange for SafeCoin, fiat or altcoins and neither it should, but in the world of commerce there is a need for such and I assume that as soon as SafeCoin pushes into view on the ‘radar’ independently operated exchanges will appear as they have in Bitcoin’s case.
Now here is the fatal trap! Lurking in the shadows of these ‘independently’ run exchanges will be a mix of the ‘silk road’ traders and gun-runners to give the whole MaidSafe facility a bad name (don’t forget you’re also prodding the NSA hornets’ nest with a short stick). But worst of all, entrenched in these independent exchanges will also be the market makers and creators of ‘flash crashes’ led and funded by the US Fed and their Wall Street and London hedge funds and bullion bank vassals with derivative leveraged manipulation of SafeCoin up or down and each way taking a handsome arbitrage for their algorithmic dark pool trades. Under these circumstances I think it matters not whether SafeCoin is backed by a proved resource, hot air or the perfume of a tulip. As soon as it seems to have traction it will be controlled by the central banks of the world in an effort to maintain the present status quo.
And that is exactly what is happening NOW with regard to global market for gold and precious metals, key commodities, government bonds and currencies in a desperate effort by the Fed to maintain its exorbitant privilege as the reserve currency of the world. Brazil, Russia, India, China and South Africa (BRICS) are now well advanced in establishing a parallel IMF and World Bank and that will be enraging Washington. But it’s also important to remember that In 2009 Zhou Xiaochuan Governor of the People’s Bank of China warned against dual use of a national currency as a reserve currency for global trade citing the Triffin Dilemma principle.
WWIII is presently being desperately fought over currencies and trade and sooner or later there will be a “black swan” event that will trigger the greatest sell off (dump) of the major fiat currencies of the world, starting with the US dollar. But this time there is no safe haven to which the savings of the people can flee.
I see that our challenge and responsibility is to provide that safe haven and that will require either a rework of the SafeCoin or an alternative such as the TelelinkGlobal negotiable trade credit (NTC).