Thursday 2 January 2014

b.Passion Business VII - Cryptocurrency

The last part is here:   Passion Business I - Taste

One of the latest trends now in internet is the creation of cryptocurrency. The most famous being Bitcoin. Search it, read about it and digest it in full from the internet. There are millions of literature on it.

This trend is the next wave in internet. Learn it, master it and lord over it.

Although I have ear-marked it as the passion business VII, my hands are so full now that I can't really exercise this business-type with personal attention.

So if you are reading this topic, done research totally on it and concluded that it is the next wave. Then, write to me. I might be interested to create another cryptocurrency with some of my small funds.

The key problems faced by the bitcoin are:
  • It is highly speculative. It goes from US$13 in Jan 2013 to US$1,100 (Dec) and then plunged back to US$800 right now (Jan 2014). Merchants don't like such volatility.
  • It has very low volume, i.e., 10 million coins in circulation.
  • Since each coin is so expensive now, merchants would shy away from transacting in it.
  • Low merchant penetrations.
  • It doesn't have a good conversion table against other currencies. A cryptocurrency is only good if it can easily be convertible into other currencies.  
Our cryptocurrency must solved the above short-falls:
  • It must not be speculative, its value must be deterministic for a reasonable period of time.
  • It must be able to grow according to demand for use of coins.
  • A good deterministic conversion table against other fiat currencies.
  • Able to trade and accepted by common merchants.
  • Must have deflationary features.
This my dream coming true for micro-payment system. I have been playing with this idea for at least 20 years. Maybe now is a good time to pull the rabbit out of its hat.

This project if placed in an after-burner may not take off. So be warned. Internet is a fast-paced business, which I don't always like. That is why I am not too keen to participate using my personal time. Off-handed fund is alright for me though.

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