Comment: Value based on population

(See in situ)

Value based on population

From what I know about it, which is limited, It benefits the early adopters because as more people use it the more each coin is worth. Each coin has a limited divisibility down to micro bit-coin which may not be enough if it had world wide acceptance and use. So ultimately the currency value is linked to usage or population.

Another problem is the block chain keeps growing and the more usage the faster this grows. Currently it takes about 8 hours to download the current block chain. Expect that to grow exponentially as it gets adopted by more and more people.

Another problem is the one of "mining". People mine the transactions into blocks to add to the block chain and for this they receive a share of the new coins as they are added to the system. In about 80 years the system will stop adding new coins as all of the coins will have been created. There is a fixed maximum number of coins in the system which are slowly added over time. (This causes a minor amount of deflation during this period) Anyway, after this there is no incentive for people to run the maintenance of the system.

Seems to me like another currency system that is designed to self destruct in the future.