Bitcoin sparked a revolution that has spawned numerous digital currencies. For example:
ARCH Archcoin Miner Fee: 0.002 ARCH
BTC Bitcoin Miner Fee: 0.0001 BTC
BLK Blackcoin Miner Fee: 0.0002 BLK
BTCD BitcoinDark Miner Fee: 0.01 BTCD
BCY Bitcrystals Miner Fee: 20 BCY
BTS BitShares Miner Fee: 0.5 BTS
BitUSD BitUSD Miner Fee: 0.01 BitUSD
CLAM Clams Miner Fee: 0.001 CLAM
DASH Dash Miner Fee: 0.003 DASH
DGB Digibyte Miner Fee: 1 DGB
DOGE Dogecoin Miner Fee: 1 DOGE
ETH Ether Miner Fee: .01 ETH
FLO Florincoin Miner Fee: .01 FLO
FTC Feathercoin Miner Fee: 0.1 FTC
GEMZ Gemz Miner Fee: 1 GEMZ
HYPER Hypercoin Miner Fee: .01 HYPER
LTC Litecoin Miner Fee: 0.003 LTC
MAID Maidsafe Miner Fee: 10 MAID
MINT Mintcoin Miner Fee: 0.3 MINT
MONA Monacoin Miner Fee: .001 MONA
MSC Mastercoin Miner Fee: 0.1 MSC
NBT Nubits Miner Fee: 0.01 NBT
NMC Namecoin Miner Fee: .005 NMC
NVC Novacoin Miner Fee: 0.01 NVC
NXT Nxt Miner Fee: 1 NXT
POT Potcoin Miner Fee: 0.05 POT
PPC Peercoin Miner Fee: 0.01 PPC
RDD Reddcoin Miner Fee: 0.02 RDD
SDC Shadowcash Miner Fee: 0.0001 SDC
SJCX StorjcoinX Miner Fee: 0.01 SJCX
START Startcoin Miner Fee: .01 START
UNO Unobtanium Miner Fee: 0.0001 UNO
USDT TetherUSD Miner Fee: 0.5 USDT
VRC Vericoin Miner Fee: 0.0002 VRC
VTC Vertcoin Miner Fee: 0.001 VTC
XCP Counterparty Miner Fee: 0.1 XCP
XMR Monero Miner Fee: 0.02 XMR
Source: ShapeShift
The concept of value exchange is really decades or even centuries old, depending on how you look at it. Obviously currencies by their nature were designed to allow a trusted transfer of value between two parties. This third-party source of value allowed one to trade without the unwieldy requirements of the barter system that was the basis or original trade. Trading two cows for a shovel has problems when you try scaling up to 100 cows for 25 shovels, some sheets of marble, and the services of a stone mason. Solution: Money, Of course!
Decades ago, the non-exchange movement of value such as securities is a phenomenon that has evolved at companies like Instanet, which was created to allow private transfer of securities between institutions. Mostly to avoid fluctuations and fees incurred going through the exchanges. Today Dark Pools are all over the globe, which also avoid exchanges, but use standard settlement systems to close on these trades. In the near future, with the aid of the internet, coupled with Blockchain technology, people will be able to easily buy and sell securities directly without a third party for trading or settlement. One can do this today, but it is like the barter system, very unwieldy.
The arrow though the Bitcoin is a representation of the prediction that it will be replaced by a ‘son of Bitcoin.’ The Trillion Dollar question is … who? There are examples already in play as noted above in the variety of digital currencies that have evolved. Also with companies like SWIFT seeking a digital solution for traditional currencies, it is clear that the market is ripe for evolution. We also need to consider concepts like “Smart Contracts” that allow us to go beyond simple currency exchange, to exchange of assets and securities. Resource Bank of Sullivan Country in New York has a ‘barter like’ system that used a value like currency to allow local vendors to buy and sell among each other. Itbit, a newly formed trust company is the first blockchain member of SWIFT and does swap transactions. This list is long and interesting. But … there are services like Orbian and Billtrust who can move credit value from client to client – – – This is where the future may well develop – – – credit markets using corporates.
Corporates as the future currency: Just as nations moved off the gold standard and now use the value of their land, people and corporations to determine their FX value, Corporates alone can do the same via blockchain. These “Corp-Creds” can be used like bitcoins. A corporation can use its value* to add to a currency pool. It would be a win-win – – – Users of the currency would enjoy a coin that has a real underlying value (like Dollars or Euros), and contributors to the credit corporate currency basically have interest free loans with no payback date. Yes, this is an oversimplification, but it gives one the initial concept of how such a system would operate. The main idea is that a ‘currency’ with a real value rather than a ‘perceived’ value such as Bitcoin would be more sustainable and scalable. Or ?????
* These ‘exchanges’ would pool the credits of various corporations into one ‘crop-cred’ coinage. The key would be that participants would have a requirement to join – only AAA rated multi-billion dollar entities like Walmart or Unilever would be creditworthy and secure enough to be allowed to contribute credits to this blockchain. Anyone could be a recipient or holder of this currency, much like Bitcoin users.