Value and Controversy
For many years now, Jerry, Bob and I have pondered some simple questions when it comes to Bitcoin and Cryptocurrencies:
-What value do they add?
-What problems do they solve?
-What are the risks and limitations of the technology?
The point of this post is not to answer all these questions, we have written thousands of words diving into these questions and more. And for the most part, many of these questions are answerable. Whether you believe in it or not, there are use cases for all crypto. There are also achilles heals and real problems with crypto.
One things now seems certain, there is a future for crypto and it’s use. There will be winners and losers, but some form of this asset class is bound to survive and perhaps change the way humans engage with assets and trading value forever.
What will emerge as the dominant crypto?
There are some issues and limitations with current cryptos. There are also great advantages. In a world of rising inflation, who doesn’t like the concept of a currency that is capped or restricted in its issuance? Who could not like the idea of making transactions more seamless and with less middle men taking a cut? Who would not love masses of people pushing back on abusive regimes, giving people power over their money and trading of assets?
Elon, you already developed PayPal, now go to the next level…
As Elon cleverly reminded “haters” this week on social media, he did co found PayPal. Therefore he knows a little bit about how money works. he just wanted to remind the so called “experts” out there.
Tesla Coin Vs. Doge
So Musk is now famous for hyping and supporting Dogecoin, the so called “people’s coin.” But Doge has it’s issues as well. First of all, I think too many are made, therefore it does not solve the inflation issue. And Doge lacks all the “bells and whistles” that can be placed on the Ethereum network. ETH has been my favorite for years because it can continually be improved and built upon. Most recently it has enabled the Non-Fungible Token art world to flourish. I think this is just one example of areas that ETH can disrupt.
So, Elon, why not assemble a team of developers, write a white paper, and release Tesla Coin? Here is our wish list of features to make this the most valuable crypto currency ever.
Back to Basics
So, back to the original questions at hand. Here are some potential features of Tesla Coin:
Playing With Blocks
- Controlled supply, there should be some limit on the amount made each year, so that the currency retains its value over the long run…
- DeFi potential, should be able to decentralize finance in many ways, remove middle men and allow humans to more easily transact value…
- Can be improved over time, must be improvable as technology and human systems evolve…
- Environmental sustainability: must be processed using clean renewable energy.
- Has real world applications, must have practical applicability for everyday people…no ivory tower stuff…
- Solves and improves problems that people face, can be used to make smarty borrowing, can be used to own and transfer assets, improves the transact ability of buying real world things like cars and houses…
- Is fun, anything Musk works on should have some level of fun or whimsy. The world is a pretty magical place, why not have an interesting new way for humans to trade, invest, purchase and add value to each others lives.
- Must serve humanity. The problem with fiat currency and some crypto is that it greatly serves elites. Crypto should have functions that flip the script in some way and send value back to everyday holders and users.
Excerpt from Benzinga article on ways that Musk could improve Dogecoin:
Cryptocurrency transactions are processed by including them in so-called blocks where they are saved forever. Changing how this is done could bring several advantages to the network.
The lower block time means blocks could be created more frequently and transactions could be processed more quickly. A larger block size would allow more transactions to fit into a single block. And with lower fees, transactions would be cheaper.
That being said, those changes also have their downsides.
With a shorter block time and larger block size, the processing power and memory required to run the network would increase, potentially decreasing Dogecoin’s decentralization by forcing network maintenance into the hands of a smaller number of individuals with more resources.
While lower fees would in theory decrease the incentive given to miners to secure the network, this is not as much a clear-cut conclusion. With the other changes made to the network, the coin would be able to support many more transactions…