Questions asked by People ?

[kreno777]

Hi Everyone.

I have been asked a few questions and would like to be able to give clearly defined answers :

1. What gives Bitcoin / Goldcoin its value ?

2. Why is it assumed that Goldcoin will follow the same pattern as Bitcoin, ie: why do we talk of a 1 dollar and 100 dollar range per coin ?

3. Will the new Wallet come out supporting any other coins, or only Goldcoin at the start and plugins will have to be written for the others ?

4. Why doesnt Goldcoin approach online gaming eg: Dota 2 as a payment option for in game purchases ?

I will post more questions as i think of them or get asked.

[MicroGuy]

1. What gives Bitcoin / Goldcoin its value ?

Cryptocurrency values are primarily a function of supply and demand. The more useful the currency, the more desired the currency, the greater the number of adopters, etc. - the greater the demand (aka network effect). The supply on the other hand is a product of the coin generation rules. Goldcoin has a fixed number of coins to be generated at a declining rate, a rate which decreases annually.

The markets work as a price discovery mechanism. Currently, there are but a handful of merchants accepting Goldcoin, there are probably only 25 active, real, community adopters/speculators, and the Goldcoin currency is entirely unknown to the outside World. These attributes have resulted in a price discovery of $0.01 per coin.

Since we know that inflation rate is declining, if the adoption rate remains constant, the price will increase moderately over time.  However, if the adoption rate increases (demand), as inflation declines (supply), the price will rise dramatically.
 

2. Why is it assumed that Goldcoin will follow the same pattern as Bitcoin, ie: why do we talk of a 1 dollar and 100 dollar range per coin ?

I'm not sure this is assumed, but if we can gain some traction and grow the community, continue to evolve technically, gain the interest of outside developers to contribute to the project, and work hard to promote the coin, I think we can compete with Bitcoin.

Since Bitcoin is currently priced at $400 and has a similar history and underlying characteristics, then it is reasonable to think Goldcoin has the potential to reach $100 per coin if we continue to execute, organize, and grow.

Goldcoin has a much more brandable name than any other crypto, a name that tests well with consumers, and we have a superior developer. If Bitcoin becomes commonplace in the mainstream, consumers will look for options, and Goldcoin would become a sensible, viable, and attractive option.

3. Will the new Wallet come out supporting any other coins, or only Goldcoin at the start and plugins will have to be written for the others ?

It is my understanding that the new client will be 100% open source, allowing software authors to write plugins for various other coins and applications. I think at the start, it will support Goldcoin only. But we'll need to confirm this with Akumaburn.

4. Why doesnt Goldcoin approach online gaming eg: Dota 2 as a payment option for in game purchases ?

This is an excellent idea and one the community should consider pursuing.

[CryptoFreedom4Me]

1. What gives Bitcoin / Goldcoin its value ?[/b]
I think Bitcoin / Goldcoin is a hybrid of three things with which we're all pretty familiar: a currency, an equity, and a social network.

1a. Currency
The currency part is pretty easy to understand. Someone is offering something for sale like a bike or a month's rent, and they might give you a quote in dollars, yen, bitcoins and Goldcoin. Bitcoin / Goldcoin basically acts like a currency then.

2a. Equity
Bitcoin / Goldcoin also has equity-like characteristics in that the value seems to grow as the whole Bitcoin ecosystem grows.
You can think of it as equity in a hot startup.
Bitcoins also have market cap.

3a. Social networking
And most crucially, there's a social networking element to it (this is something Antonis Polemitis has written on). Bitcoin / Goldcoin is something that's valued because lots of people use it. It's not that different from Napster. Napster was game-changing technology in terms of how people get music, but it only had value once it was used by a lot of people. Same with Facebook. The technology may not have been better than its predecessors, but it got a lot of people using it, and suddenly the platform became tremendously valuable.
Strong, robust network effects are crucial for making the whole thing work.

Let's go through why ...

Let's say you're a Chinese millionaire, and you're looking to take a big hunk of your fortune out of the country. The Chinese government has strict controls about wiring money out of the banking system. One way to get money out is to give your money to something called a "junket operator." That junket operator will give you a bunch of chips to go gamble with in Macau. Then after you're done gambling you take your remaining chips, cash them out for the local Macau currency (the Pataca) and then deposit those Pataca in a bank in Macau where that money is not burdened by capital controls. But that's difficult in part because you're dealing with a shady junket operator who might have ties to the criminal underworld. Then you have to gamble and play a huge cut to the casino. And then there's all the travel.

Another way you can get money out of the country is by buying a bunch of Rolex watches and putting them on all your wrists and ankles, and then flying out of the country and selling them to someone outside of China and then depositing that cash in a foreign bank. But like all luxury goods, the Rolexes are likely to lose a lot of value the second you take them out of the store. And do you really feel safe traveling with all those watches on you? It's a dicey enterprise.

The hot new way to evade capital controls is to buy Bitcoin / Goldcoin, and then slip them to another wallet connected to a bank account in some other country. Then use them or sell the Bitcoin / Goldcoin to a buyer and deposit that money in a bank somewhere. The government would have an extremely hard time tracking this down (which is why lately the governments of China and India) have grown more negative on Bitcoin / Goldcoin. This is a low-cost solution.

This also doesn't satisfy what gives Bitcoin / Goldcoin a "floor" in value — but then an equity never has a floor.
Equity can grow in value making them into a desirable investment.



2. Why is it assumed that Goldcoin will follow the same pattern as Bitcoin, ie: why do we talk of a 1 dollar and 100 dollar range per coin ?

In my opinion it will take three things for GoldCoin to follow Bitcoin and see a value of a 1 dollar and 100 dollar range per coin .
Advanced Technology, Simplicity and Popularity.

We have a 51% defense system. The new wallet is going to make it very simple to use and integrated other coins. It will have the ability to mine a variety of coins through the wallet. There is some hidden functions that has not been revealed yet.

We still need to work on the popularity. With all that is happening with GoldCoin it is just a matter of time for the popularity to sit in. This is where the community comes in we must as a community spread the word and play our part.
As the popularity sets in our community will grow bringing more members that have very special talents.

It is member's like you that play these important parts for GoldCoin to become a force to be reckoned with.

3. Will the new Wallet come out supporting any other coins, or only Goldcoin at the start and plugins will have to be written for the others ?

I am going to let Amir answer this question for you.

4. Why doesnt Goldcoin approach online gaming eg: Dota 2 as a payment option for in game purchases ?

We do have some online gambling sites that except GoldCoin I've seen them around. I do believe that Goldcoin need to expand into these areas. I think it's just a matter of time as GoldCoin increases in value we will see more and more places like these accepting GoldCoin.

I would like to see a member of the GoldCoin community approach these sites. And see if we can't speed up the process of them accepting GoldCoin. If the sites where to start accepting GoldCoin now it would only be to their benefit before the price rises.


Hope this helps and I would like to see other members opinions.

[kreno777]

Thanks MicroGuy & CrytoFreedom4me for the excellent answers. I have already used them in email communications with some people that are interested in crypto currencies.

Approaching gaming platforms to support Goldcoin is something i really think we should look into.

Eg: I have been playing Dota 2 recently and have noticed that allot of the items are really cheap for in game purchases. Im sure to integrate Goldcoin as a payment option would be quite easy and also the marketing we would get with the younger generation would be massive !!!

 

[CryptoFreedom4Me]

Thanks MicroGuy & CrytoFreedom4me for the excellent answers. I have already used them in email communications with some people that are interested in crypto currencies.

Approaching gaming platforms to support Goldcoin is something i really think we should look into.

Eg: I have been playing Dota 2 recently and have noticed that allot of the items are really cheap for in game purchases. Im sure to integrate Goldcoin as a payment option would be quite easy and also the marketing we would get with the younger generation would be massive !!!

 

I agree Dota 2 is really a must for GoldCoin it would open a lot of doors up.
I wish one of our members would take this on as a project that would be nice.
We could also hit more gambling sites up to accept GoldCoin. With the new multi wallet coming out this would be perfect timing.
It would make it very convenient for them to store all of their different currencies in one place.