Sunday, July 6, 2014

Over-Saturation and the Emergence of the Scam-Coin

Tasking myself with learning the current state of the crypto-currency world might be the single biggest undertaking of my life to date.  I can honestly say, I grossly underestimated how much catching up would be needed from the 1 coin crypto world I had known years before. There hasn't been a day go by since, I haven't learned something new.  And for every new thing I learn, I am reminded of really how little I actually do know.  

I like to think I know a thing or two about quite a few coins out there today.  I have my opinions about certain design characteristics, market outlooks, etc.....but not even the first clue as to how the development of these coins actually takes place.  I'll be the first to admit, I haven't mourned the loss of any failed coin.  To the contrary, I've probably been one of the first on the scene to hypothetically kick sand in the face of the fallen.  Yeah, I know.....not nice.  So why do it?  Well, to put it simply....I think the current path the coin world has taken, tailors itself to this mentality.  

Going out on a limb here, but I'm guessing that you'd be hard pressed to find anyone who knew exactly how many different crypto-currencies there are, at any given time.  Recent additions to the world of crypto may not see the elephant standing in the room.....but from a 1 coin world into a 300+ coin world.....that elephant looks pretty damn big from my seat.  It's no secret that since the coming of the behemoth known as Bitcoin.....similar digital currencies started popping up like zits on a teenager.  

New coins are being developed daily and it doesn't appear to be slowing down anytime soon.  Are there this many people who truly believe the coin they're "developing" has what it takes to even hold a candle to our fat-bellied friend the Bitcoin?  Doubtful.  The vast majority of coins out there weren't really even "developed" by their "developer".  It shouldn't come across as much of a shocker that a lot of coins have some pretty distinct similarities.  This isn't just a coincidence, it's due in part to the fact that all these different coins were at one time....the same coin.  No, this isn't some reference to the Matrix.....there is no red or green pill.  I'm basically saying coin source code is getting ripped off, slapped with some pretty pictures and a new name, then the so-called "developers" change something and coin.  

Now, I'm only a graduate with a Bachelor's I know I can be wrong from time to time....but I'm pretty sure if I went through school trying to pass off someone else's work as my own, under the premise that I changed the title and a few minor other things.....I probably don't deserve the same status people who actually did the work, receive.  That's pretty much your textbook definition of cheating.  What part of changing a block time or reward payout should entitle a group or individual the self-satisfaction of watching their coin gain any following, much less share of the digital currency pie that really only exists because Bitcoin, the true innovator, brought it? 

AKA, scam-coins, pump & dumps, pre-mines.....the only real development going on here is how to develop a developer's bank account.  It would give me great satisfaction to know that I'm wrong here. That the vast majority of coins on the market truly believe they've innovated their product so well, that it could not only hold a candle to Bitcoin.....but might one day be standing on the pedestal next to it. Yeah, 300+ coins out there......not even I believe there are that many delusional developers launching coins.  I think I speak for a lot of people when I say:

 "Just because you know how to launch a coin, does not necessarily mean you should."   

And for the "developers" of multiple such's this kind of shit that is train-wrecking the entire digital currency world.  We weren't exactly welcomed in with open arms to begin with and now we're expecting to attract the masses with our multi-page lists, full of clever names and catchy slogans?  I'm not even going to answer that.  It is embarrassing to think society has come to the point where they feel ripping off someone else's work, making a few changes, and relaunching as a new or better product is somehow desirable to anyone.  I'm sure if you gave me a Magic Marker and a Picasso......I could certainly alter the painting.  This however, does not make me a world-class artist nor an innovator, in any sense of the word.  Even if I think my alterations are a spot-on perfect (which they likely would be)......I'm not doing a whole lot, aside from ruining something that previously had deserved value.

If I get worked up over all this, I can only imagine how developers of the few "real" innovative ideas must feel.  It's their work getting hijacked, pissed on, and repackaged......over and over again.  Bravo to coins like my gem Darkcoin....for being the first coin to focus on anonymity through an innovation known as the "masternode."  Now, how many other coins have come along and said, we too are champions of anonymity.....but we do it a different way.  Although not all lack innovation, the vast majority do......and zero points awarded for originality.  Come up with something different.  There is certainly no current shortage of source code to steal.....but we do seem to be really scraping the bottom of the barrel when it comes to new ideas.  

There was indeed a time when a coin (Litecoin) could do virtually everything Bitcoin was already doing.....and still somehow make it.  We should be approaching if not already past the point where exact copies of coins using a different hashing algorithm, no longer fool anyone.  I was never really around through the early days of Litecoin but for some reason, it makes me think of a particular Seinfeld episode where George and Jerry are pitching their idea for a sitcom.  After explaining the show is about nothing.....a confused TV executive sensibly questions why anyone would be watching the show, if nothing ever happens.  The answer given: Because it's on TV.  I figure this is about how Litecoin got the "Silver to Bitcoin's Gold" title.  

Because I wasn't around at the time, I don't know for sure.....although I can speculate there weren't any other coins available at the time.  If there were, why would people invest in something that did exactly what the only other crypto in the world was already doing nicely by itself?  Ok, I'll even buy the line, "The new Scrypt algorithm had me mesmerized."  When you're given a choice between Bitcoin and anything else......there will always be those who choose anything else.  When you're given a choice between two.....veteran and's pretty obvious that both sides would develop their own following for whatever reasons.  Although now with some competition....I still like to think of this time as "happy."  Bitcoin got a new little friend to play with for a while.  

This is around the time I can't figure out how things spiraled away so quick.  At what point did every neighborhood coin on the block decide the happy Bitcoin and happy Litecoin wanted any of them crashing the party?  Again, another guess......but it probably started somewhat slow, much the way Litecoin evolved.  First there was one.....then another.......then another.  Now having proof with rise of the Litecoin, nearly identical replicas somehow qualify as a valid reason to invest.  Again, we're still at a low number of total crypto's I can see how people might have been prone to switching from their once beloved Bitcoin or twin sister Litecoin.  I'm sure Bitcoin payouts, to it's once loyal army of GPU shibes, were dwindling.  Maybe this is where ASICs started squashing the little guy out of roaches with the lights on, shibes started running for cover to any coin that would have them.  

While this makes for a good story and the perfect opportunity to incorporate ridiculous analogies into my couldn't have been a good sign for what lied ahead.  Truth told, maybe Bitcoin needed to see a few other coins lurking in the shadows.  You can't much blame these first-edition scam-coins for displaying what I'd now refer to as "bad behavior."  We were practically begging anyone with enough sense to launch a coin, to do so immediately.  We showed that it definitely does pay to be unoriginal, unimaginative, and average (at best) when it comes to mass producing cheap replicas of a very good idea.

It still amazes me how quickly the catalog of coins we display now, must have appeared.  Like I said earlier, gross underestimate of how much I had to catch up on.  If you think I'm going to painstakingly research each and every coin considered digital currency by the loose standard encompassing these 300+ are dead wrong.  It's a shame these markets are taking away from the true pioneers.  For every crap-coin out there.....there are droves of people willing to buy into whatever bullshit they're fed.  Investment money that would arguably be much better off helping secure some sort of original idea-bearing coin.  

Any newcomer to this mess of a market, surely wouldn't know where to start.  The newcomer has a few options.  He can be the brightest and most determined person I've ever met, researching the hundreds of coins available before selecting a portfolio lineup......a stretch, even for this fairy-tale blogger.  He can get some advice from someone he hopes isn't a member of the scam-coin troll rebellion......a devilish creature that runs from forum to forum......raining down lies and deceit, aimed solely at convincing normal investors to liquidate everything for said scam-coin.  Or the newcomer can take one look at this disaster.....turn around.....and never come back.  I know which I'd go with if I was entering now, knowing very little and still a bit on the fence about crypto-currency in general. 

Call me old fashioned, but I remember a time when this entire community was rallying behind one coin.  Things were easier then.....yes, we only had one coin......but everyone seemed to be on the same page.  From the shibe that awakens in the middle of the night to the sound of a mining rig that needs the die-hard, crypto-currency enthusiast, dead set on one day being able to buy his groceries with BTC's.......we were all on the same team.  Now, increasing the selection available, expanding the markets, and promoting innovation, were all very good upsides to new coin development. Apparently we just didn't know when to quit.  Launching a new coin suddenly became about how fast you could launch em', what nonsense might make your coin seem unique, and how effectively you could incite fear sell-off's in all other markets.  I think it's even progressed to the point we no longer look at ourselves as a crypto-currency family.  

There's no doubt this new world has become a cut-throat business indeed.  A climate so unimaginable, it's hard to believe this is in any way affiliated with the Bitcoin of yesteryear.  The constant jockeying for position and marketcap make clear the high level of competitiveness now present within the system.  While competition can be a plus, going around hamstringing opponents is a pretty lame way to bring new investors in.  The ability to launch a coin with virtually no actual work being required by these self-proclaimed "developer's" has become's even rewarded.  This over-saturation has created an enormous, confusing mess.....which looks to be causing the problem to get worse.  And the icing on the cake.....we did this.  The decentralized nature of crypto-currency has come back to bite us in a most ironic manner.  We don't have some government or central authority figure to pin our problems on.  

Let's give thanks now to all the future enterpriser's out there who wanted another bullet on their resume, a shortcut to quick profits, or would stop at nothing in an apparent quest to leave their dirty skid-marks on every inch of hard fought ground the early Bitcoin community so nicely paved.  There is no doubt in my mind what really caused this situation.....GREED.  I'm sure you could probably add PRIDE to the list, as well as SLOTH and ENVY.  Any way you want to look at it, a select few felt the world owed them more.  Emergence into the mainstream and long term prosperity, cornerstones in the community, were asked to take a back seat for greed and personal financial gain.  It's almost sickening how fast we let it happen.  

Obviously, some type of action should be taken, and quickly.  While I agree that finding, singling out, and punishing each responsible party, individually, would be the most fair (and fun) doesn't do much for our problem.  I guess a #1 on the list would probably include increasing the awareness within the community.  Basically what I'm doing right here.  Acknowledge how bloated the world of crypto has become.  Explain exactly how greedy, "pseudo-developer's" and fly-by-night scam-coins degrade the entire system while simultaneously bilking unsuspecting investors out of every dime.  With help from "old-school" coiners in the community, we can convince those who weren't around back in the day, that this family/team mentality not only existed, but is alive and well.  This is a group of people that can move mountains....I know because I've seen them do it.  Defying impossible odds and overcoming every obstacle thrown at us, the core community never wavered as we continued to push our coin along.  At times neck deep in skepticism, I like to think our community was exactly what Satoshi Yakamoto envisioned.  

Hopefully that was enough to motivate you to do something.  If not, try to remember that at this very moment, someone is dumping a sizable percentage of the entire available supply of any given scam-coin.....making themselves a lot of money and leaving behind investors like you, to deal with the wake.  If you find yourself in this situation, don't panic.  You should be able make some money back betting on these, all too commonalities.  If you own any of the sold-off coins, you can guarantee they're now selling at the lowest price point you've ever seen.  You can pretty much bank on your delicate genius developer not returning......ever.  This should ensure if your coin wasn't already up in won't be much longer.  Lastly, don't hold your breath waiting for your worthless coins to bounce back.  They typically have a hard time staying afloat without anyone behind the wheel.  Bite your lip and sell for what you's better than the nothing you'll get when it's pulled from every exchange.  I'm afraid you just got owned.  It wasn't the first time and doesn't look to be the least not until we find a way to stop or discourage these practices.  

I probably wouldn't be much of a blogger if I sat here, whining about the current state of the market, and provided no suggestions for a solution.  I honestly haven't really given it too much thought, but right off the top of my about some type of council?  I guess it could be considered similar to the United Nations.....except more like a United Crypto-Currency Advancement League.  Basically start with the firsts.  Obviously Bitcoin would be extended a seat, being the first coin ever.  From there, you've got Litecoin......and so on, down the marketcap list.  Of course, I must make clear that not all scam-coins will be so transparent.  There will surely be genuinely deserving coins that are neither the first, nor highest marketcapped.  This is where the council kicks in.  Once an initial list of coins can be created......the council can, through some type of predetermined majority vote, extend a seat to any coin deemed worthy.  We'll also assume the council has the power to remove seats if they see fit.....also through a similar majority vote.  

I'm not entirely sure whether 1 seat should be the standard or multiple seats offered according to some factor such as % of entire crypto marketshare, or something more arbitrary like how well a particular coin embodies the Advancement League's vision of a reputable coin of the future.  I don't think there is any quick way to shutting a coin down.....but I would be careful even suggesting it in regards to this or any other proposal.  We don't want a witch hunt on our hands.....even if the council does not see a coin as "worthy" of a seat at it's initial launch....that doesn't mean the coin can't get back on track, maybe even petition a re-vote at a later date.  The idea of the council is not to exclude any coin from being bought or sold, it would be more like a rating system.  While the system wouldn't guarantee the price of coins occupying council seats by any means, it would reassure investors they're not likely buying into a scam-coin.  I really think something like this could do wonders for good, honest coins, reduce seemingly endless and senseless coin launches, while providing a less-risky environment for newcomers to the crypto-currency world.

This is far from the only solution available.....although I think it's an OK start.  Who knows?  Maybe I'm alone on this whole issue.  It's possible I'm the only person who sees a problem.  It does bother me that there are probably good, innovative, new coins being launched or already on the market that go largely unnoticed.  It is rational to assume that good coins have potentially gone belly up before life breathing investors could properly locate, research, and purchase a single coin.  On the other hand, I wonder how many investors have been methodically swindled using similar strategies outlined above?  If we're not doing anything to stop or deter known vulnerabilities, we are encouraging them. I gladly await hearing your take on any of this. 




Darkcoin and the Dark Markets

It was my plan to keep this blog current with where I'm at in my journey through the crypto-world.  Apparently I must also inform readers of how I come to some of the conclusions I list.  It makes sense.  The problem is that certain forums are pulling my thoughts before I can get them here.  Believe me, I have no problem sharing my opinion.....I just wanted it here first.  This one here was the reason I got back into crypto.  So, without any further a due, the next read is taken from one of my forum posts:  

Right on. I appreciate hearing some opposition. It allows me to get this out on the table before anyone reading my blog or what I'm about to write, has a chance to take anything out of context. My rationalization for this whole DarkMarket/Darkcoin thing stems back from around mid- to late April of this year and I'll lay it out there for you, but I want to clarify a few things first. That's about the time I found DarkCoin and really, as I say, "hit the ground running" back into the world crypto-currency. I was around in the beginning....back in the early days of Bitcoin (all in my blog)....although I'm a more recent arrival to this idea of hundreds of coins, jockeying for a slice of the pie.

I implore you, please help debate this! I'm interested in anyone's take on it. I'm not so sure how much I agree with the outlook anymore, although I've yet to find anyone really talking about it. In my opinion, I think these are valid issues.

When I put this idea together back in April, I thought it was solid gold. Mind you, I didn't know nearly as much as I do today about the hundreds of other coins out there. Up to that time, I knew and previously mined Bitcoin but had only heard of Litecoin. The research began....learning algorithms, scripts, reading forums, watching markets, testing miners, constantly surveying pools and blockchains, Wikipedia, what's this, what's that, how do I do this...........let me tell you, there was quite a lot to catch up on from the days of 1 coin. This is about the time I pieced all the scraps of Bitcoins I could find together......and went all-in on Darkcoin. From that point on, it was all things Darkcoin. 

Oh, this would be a good time to insert my retort to the guy up there who was talkin' his nonsense about those triangles......I respect what it is that you do, I tried getting into it but it's just not my cup of tea. I prefer to invest my own personal stake as I see fit, not according to any magical triangle theorems. I'm sure it works for some people....but for me, I'll stick with true belief in the product I'm buying (or mining in this case).....or for more speculative ventures, through use of my own reasoning.....forecast a scenario that would push the price of a market sky high. These are pretty much my beliefs as it relates to crypto-currency in general. As I have diversified my portfolio, I have tried to include coins I truly believe in, long term. I'm also not opposed to earth-shattering breakouts......especially if they're already my coin of choice.

My arrival on the idea of DarkMarkets/Darkcoin came in great deal to this article:

Now I'm not going to lie, I have fractured a law or two in my life, and indeed I had heard of these illegal darknet sites. I was never really involved with them directly, but I do know that they did work......and pretty effectively from what I hear. I can also recall from back in the day......when SilkRoad first hit the national news. I was already into Bitcoin, knew about Silk Road, and the time.....really couldn't believe "this" was just now making the news. Silk Road really wasn't much of a secret.....I mean they weren't exactly putting up billboards.....but it was pretty common knowledge in just about every Bitcoin related circle I traveled. Anyway, this news about Silk Road caused was one of the first HUGE price increases Bitcoin had seen to that time. 

Whether you believe in the goods & services Silk Road offered is beside the point. It did help surge an infant Bitcoin through some potentially dangerous time. It could be argued that Bitcoin may not have ever become the behemoth it is today without Silk Road. Even today, people all over will look at me like I've got a penis growing out of my head when I tell them I'm into crypto-currency. You don't have to explain it to me.....I get it, but most people won't take the time to listen or truly understand why cryto is good. The learning curve is so high before you get to that "ah-ha" point.....swarms of people are unlikely to ever come flocking at once. Once you throw a niche in there like Silk Road was to Bitcoin, you suddenly give a large group of people, who would otherwise be unmotivated to learn or care about a Bitcoin, reason to start buying them up hand over fist. 

I can understand Bitcoin wanting to distance itself from the DarkMarkets now, as it is the mainstream in the crypto-world. It made it. King, Chief, Head N@gga' in Charge. I would guess investors in Bitcoin during the Silk Road breakout may not have wanted to distance themselves too far from something that was catapulting their investments skyward. I could hardly be considered an investor at the time but my coins were worth more and we (Bitcoiners) were getting some exposure. This may be a topic for another thread but I don't really see the Dark Markets as a force so terrible, they must be stopped. And for a coin like Darkcoin, this is the niche your coin was intended to fill. I don't really care if you intended it (no offense). 

I am the son of a I know exactly what it's like for someone to watch every dollar you spend. Yeah, he could see where, when, and on what every dollar in my account was spent on. It's not exactly an oppressive government.....but it makes me especially receptive to anonymous transaction currency. Although I still don't see such a vast need for it that swarms of people will decide to defy the learning curve and start buying into something they have no idea about. Who do people have to hide from? What are you trying to hide? Anonymity is a right, I agree.....but why is it suddenly such an issue that you're willing to adopt a new currency over it? I mean, when my dad was watching my transactions.....the only thing I cared about were the late night cash withdrawals of hundreds of dollars. Quite frankly, I didn't want him to see them because they were for things I shouldn't have been doing. Point being, I could care less about anonymous long as the transactions aren't for anything that could potentially get me in trouble. 

I'll try to finish this up. I personally hope Darkcoin makes its way to the darknet markets. Not so I can buy things my coins get red hot. I not only hope they make it there.....I would love to see Darkcoin as the exclusive coin of the darkwebs. Don't just fill the niche for the drug and gun markets.....big picture.....the entire darkweb. I don't think I'd by any means consider the slogan: Darkcoin, for all your illegal desires. It would be lunacy to proclaim Darkcoin condones anything illegal.....but let's not be so quick to discourage the use of Darkcoin anywhere. Those markets start taking DRK......DRK will go up.....and it will gain exposure, much the way Bitcoin did. It was good enough for Bitcoin, why wouldn't it be even better for a coin that was engineered to be better than Bitcoin in that particular niche?

Friday, July 4, 2014

Crypto-Currency Speculation and Discussion

Bitcoin, Darkcoin, & the Crypto-Currency


     Brought to you by Bitcoin poker legend, Dr.Gil

I decided to start this blog as much for myself, as for the 2-3 idiots that are dumb enough to listen to my ramblings. This keeps my "crazy" confined to one central location. 
Here.  Gift.  Blog.

As this is my first attempt at a blog, I feel I should begin by announcing to any readers that I have no formal business training whatsoever.  I'm no stock expert, I don't trade precious metals, and couldn't name you anything ever traded on Forex.  If I didn't learn it 10 years ago in my required, college level micro/macro econ classes, it's probably self-taught bullshit, most likely from a YouTube video.  I assume absolutely no responsibility for financial gains or losses.  

I guess we should start with the rise of the $600 Bitcoin.  I've been into Bitcoin long enough to remember $2 Bitcoins.  The early days saw $20/coin or maybe $50/coin peaks......then the price would fall next to nothing.  It was beginning to appear that Bitcoins had become the "Carnival Arcade Token of the Internet".  Remember, Bitcoin launched in 2009.......roughly around the same time Apple's iPhone was becoming the hottest thing on the planet.  At that time, it was pretty easy to dismiss Bitcoin as just another dot-com bust.  Honestly, next to mainstream titans like Apple and Google....Bitcoin does seem tiny.  I highly doubt even proponents of Bitcoin could have told you 1 coin would cost more than a share of either of those two tech giants.  

I, like many others, gave up on Bitcoin and crypto-currency altogether....until 2013 when I'm informed that my once worthless Bitcoins are suddenly worth $1,000 a piece.  At $2/coin, I was pretty sure I didn't have any Bitcoins left.....but at $1,000/coin, it became an obsession trying to find any "misplaced" coins.  As the $1,000 peak stabilized around $500-$600, I collected the coin fragments I had strewn all over the internet.  I also felt I owed this whole crypto-currency thing another shot.  

Now post graduating college and a few "shit just got real" life events later......I'm feeling a little more (for lack of a better word) "seasoned" going back into Bitcoin.  I already kind of "get it" but with pointless schoolwork no longer staring me in the face, tackling the algorithms behind crypto's became less of a task.  That was when the clouds lifted and I could finally "see it".  Bitcoin isn't some fly-by-night dot-com, fluke.  Setting aside all economic aspects, Bitcoin does exactly what it was intended to do:

"Transfer something of value from one person to another without middlemen needing to make sure that the item is not copied or, in the case of money, spent more than once."

That seems like a reasonable request.  Let person A, pay person B, without some third party like PayPal or VISA needed.  Companies that oversee this simple task have produced some of the highest corporate revenues on the planet.  Those tiny fees, usually invisible to the consumer, have made online financial transaction institutions a lucrative industry.

Interestingly, Bitcoin (as well as other crypto-currency) manages to oversee those same transactions with 100% accuracy.  It does so without a CEO, office building, customer support center, or high-dollar advertisement during the Super Bowl.  There are no employees, board-of-directors, janitors, or account representatives.  This is what blows my mind about Bitcoin.  The program was created so perfectly, that all one had to do was "Press Play".  If you haven't taken the time to learn how this process works yet.....I suggest doing that now.  It took me roughly 5 years to really understand the brilliance behind Bitcoin.  

Future postings from this point are to likely appear even more absurd if you're not yet a believer. I'll probably be jumping around a lot because I don't want to bore everyone with past events, so I'll get up to speed with the last 2 email updates I've compiled for my local "coiner's".  This blog is meant to spark debate, help answer questions, and spread information/ideas throughout the community.  Hope you enjoy and contribute.

Thanks for stopping by!

**7/2/2014 Email bringing friends up to speed on Darkcoin
(Starting from the hardfork/softfork that occurred around June 27th.)

At that time, the wallet was updated again (mostly for the purpose of adding another wave of masternodes as well as raising the masternode payout to 20%).  If you use the previous hardfork (occurred in May) as a guide for what might likely happen to the price during this hardfork, you would assume that a flawless execution of the update should have pushed the price up (Successful Implementation should = confidence in buying market.....i.e. Willing to pay more).  The new wave of masternodes have been successfully paying out for a few days now and for some reason......all these good signs for the coin have resulted in the lowest price drops we've seen for quite a while.  This is the thing that has baffled me and caused me to basically glue myself to the forums until I can find some answers.  

One possibility I've considered is the emergence of numerous other "anonymous" coins....although none of them seem to have the strong community backing that DarkCoin has produced.  You have to remember, 480 masternodes are set up, at 1,000 DarkCoins per node.  That's $10,000 at $10 a DarkCoin or $480,000 total. Now that we're in the $7 range.....masternode owner's are taking one hell of a hit on their investments, if you consider DarkCoin was around $17 not too long ago. These masternode owner's can't sell their 1,000 coins needed to make up the masternode like we can......although they make roughly 1.4 DarkCoins per day, per node.....which they can sell or do whatever with.  My take on this......right after the May hardfork, investors saw that the first round of masternodes went out without a hitch......convincing some skeptics that had been holding out, to go ahead and buy enough DarkCoin to start their own masternode.  Result, the price skyrocketed (we were seeing it around 0.024/BTC or roughly $17) as "investors" scrambled to buy their spot before the price of DarkCoin went any higher.  

In my opinion, DarkCoin got overbought in May and the price had to trend down a little (just to make up for this investor speculation and sudden surge in buying).  I think if there were investors out there.....they bought in during the first round of masternodes and that's why we didn't see such a surge when this second round was implemented.  The developers are doing everything major bumps in the road......everything that has been done with the coin has been right on par with DarkCoin's whitepapers.  In my opinion, there is honestly no way Litecoin should be anywhere close to the price of DarkCoin (as it brings nothing new to the table from Bitcoin aside from a different script). 

Now, in late July.....the last scheduled update to the wallet is going to roll out.  When this happens, the developers are going to remove the 10 DRK minimum to use DarkSend feature.  That basically means people will finally be able to send any amount of money (even very small amounts) anonymously.....the whole reason the coin was invented.  To this point, DarkSend only works on transfers over $100+.  The DarkMarkets (illegal Tor websites) like Silk Road couldn't accept a coin that forced vendors to sell their wares in quantities over $100 (and potentially more if the price went up).  My prediction is that the DarkMarkets pick up DarkCoin shortly after the RC4 release (and it still may take a couple months--kinda why I say don't sell until August or September).  If I'm right......DarkCoin could completely replace Bitcoin on the Darkweb, cementing it's place in the niche market it was created for.  This is the point you want to sell.  

I could sit here all day and propose price marks and speculate trends......but in the end......DarkCoin is really going to boil down to --  Will the DarkMarkets switch? The developers of DarkCoin also created the source code for known as Open Bazzaar (a Silk Road that runs from an executable...there is no one, single server you can shut down to stop it).  Every vendor on OpenBazzaar will be running, through Tor, their portion of the website.  It's pretty apparent the developers of DarkCoin are no slouches....if they say they're going to make a Dark Market, it'll probably happen.  They even stated that they think someone will probably do it before they can get to it (as much of the source code is already out there).  

Oh, almost forgot to mention....Cryptsy opened up US dollar markets today around noon.  The catch is, to put money have to mail them a personal check (at least for a few weeks until they get a better method implemented).  The result, people can sell their coins for USD....but can't buy anything yet unless they already sold coins for USD.  So the price of BTC, DRK, LTC, Doge were, and currently are, selling way under market value.  Give it a few days....when people start mailing in those checks and they get credited.......price will stabilize to the rest of the markets.

**7/2/2014 Email to friends regarding Darkcoin and Proof-of-Stake coins

Ok, I think we've all been in the Darkcoin market long enough to understand that we're probably going to see a few of these price swings as we move closer to the RC4 deployment.  Rest assured, there is immense support behind Darkcoin.  I found this coin around $1.50 and sometimes I find myself questioning whether that move to $17 should have been our get-out point.  No matter what the price does, the sentiment in the forums is pretty clear.....people aren't selling Darkcoin.  When Cryptsy opened up USD/DRK, there were tiny amounts of DRK selling for USD (around $7).....but very little action.  Any transactions were right at or slightly above market value (as per  It will take some time, but eventually the tradebots will come into these new USD markets with their small, incremental buy/sell orders.  That will likely up the trade volume and create some much needed liquidity but it hasn't seemed to affect price in any of the newly opened USD coin markets.  So in a nutshell, my current strategy: Continue to hold out....even if I start getting cold feet when I see price falling.  I do have some future strategies in the works for after my anticipated Darkcoin breakout.....but we'll cross that bridge when we get there.

I'll also touch on a few other things I've been reading into.  Most of it deals with "Proof-of-work" coins vs. "Proof-of-stake" coins.  Simply, POW coins are like Bitcoin/Darkcoin....rewards are based on our machines slamming out hashing functions to prove they are doing the work of the x11 script, or whatever algorithm.  POS coins work somewhat differently.  Proof-of-stake coins are frequently mine-able through the usual POW method......although many times this is allowed for a limited time.  So we'll say I acquire 100 coins this way.  Now, with my 100 coins....I can set those aside (via an option on the coin's wallet).....they can't be moved or sold during this time......and I'm pretty sure you can decide how long to set them aside.  When this predetermined period of time ends, you get rewarded with more coins.....usually a percentage of the set-aside amount.  This percentage typically rises as deposit increases and/or length of time increases.  Let's say I wait 12 hours for a 2.5% stake on my 100 coins, after 12 hours I have 102.5 coins.  This type of interest is called compounding interest and from what I recall from econ class, compounding interest can really start adding up if the turnover times/payout periods occur pretty frequently.  A lot of banks compound my coins would have to wait a year to get the same 102.5 coins before I could set them aside again.  The second compounding period would yield 2.5625 coins if 2.5% stake was reapplied......the third, 2.6265626.......forth, 2.69223.  I'm sure you can see how this continues to grow.  The idea is similar to Darkcoin's masternodes except you can keep putting more coins in.....there is no set 1,000 coin ceiling. While you could certainly acquire another masternode or invest in a pooled masternode at pre-defined increments of 100 or so coins, this method allows the coin holder to reinvest however much and however long they choose. 

A lot of the Proof-of-stake coins are also anonymous like Darkcoin.  They use the set aside coins to somehow make the requested transfers.  I'm not entirely sure how these proof-of-stake algorithms work....but I do know they require our set-aside coins.  So it's similar to acquiring coins mining, but you don't have to mine. Which brings me to the question:  Can I mine something else while I'm setting aside various other coins, making interest on them?  I don't know yet.  I am going to move my CryptCoins from Cryptsy to my new CryptCoin wallet as a first, proof-of-stake trial run.  I downloaded a few other wallets last night before going to bed.  I've set my account at TradeMyBit to keep Darkcoin, Cryptcoin, GuerillaCoin, and TrustPlus (everything else swaps for BTC).  

*TrustPlus was listed as "SPECULATIVE" last night and today (probably because it's not traded on exchanges yet).  The coin launched last night at midnight with the "Proof-of-work" reward around 500 coins.  They have been systematically increasing the reward payout, which will finally land at a 6,400 coin reward for blocks 6,401 through 12,800.  They are considering this Proof-of-work period their "pre-mine".  After that, at 3,439,788 coins produced, it shuts off and the only way to obtain more coins is buy them or Proof-of-stake interest.  I have no idea if this coin will hold any just happened to be the lucky new coin to hit the market at the same time I learned how POS works.  TradeMyBit x11 multipool seems to have been mining it about 45% of the time in the last 24 hours.......and it's only been around since it's getting hit pretty hard by my multipool.  TrustPlus Whitesheet (Check out the POS payout, 18% over 30 days.)
*GuerillaCoin is another POS coin that has been around for a little bit, but touts itself as the evolution of Proof-of-stake, calling it's method Proof-of-Strength.  Interest rates are somehow determined by network strength (which boils down to how long coins sit in your wallet).  I don't really know much about this one, although Cryptsy picked it up yesterday.  I'm pretty sure it's offered in my x11 multipool, so there's a chance I may unintentionally come across some and they'd be easy to sell because I have a Cryptsy account (only reasons I'm involved).  I can tell you, they have the coolest wallet I've seen to date.  Not the typical opensource hy-jacked,  cookie cutter, crap-wallet.  It's got this little status bar that I guess is supposed to show you how much you're getting paid via POS. GuerillaCoin Whitesheet

All I got for now.