@HopeHK ok how long do you think it will take for the current generation of cryptos to fade out and be replaced? I would argue that Bitcoin has such a strong “brand” that it will be like AOL and have many iterations before finally decaying into non-use
Looks like will start to see second-generation cryptos (like chainblx) pretty soon. But as you said, Bitcoin has such a strong brand that it will linger around for a long time. A semi-educated guess would be a year or so before 2.0 cryptos really take over for 1.0 cryptos
what will ‘second-generation’ crypto currencies do that Bitcoin doesn’t??
Be backed by real assets, which will foster stability and crediblity
Solve the issue of scalability, decentralization, transaction speed… we need all three!
Increased security for the user.
This is just a starter… there are many many little flaws that will have to be overcome in order to achieve wider adoption
YES!! for me it’s security. As it stands, it’s about as safe as filling your mattress with cash. There are so many ways to blow it and have your money stolen or just outright lose it. I don’t know how they can overcome this though, and maintain the things that are great about digital
This is an old argument. You can’t have all three of those things, at least not yet.
You didn’t read the thread. We are saying that this generation of cryptocurrencies CAN’T do all three and THAT’s why we a new generation of cryptocurrencies will replace the ones we have now which are basically prototypes.
Unless you change the laws of physics the trilemma of Decentralization, Scalability, and Security cannot be resolved. You will always have to choose a sweet spot of balance between the three depending on what your goals are. This is just the way it is.
Here’s a great article by an economist explaining the shortfall of cryptos that are not asset-backed. Some great points:
“The investment case for (non-asset backed) cryptocurrencies is weak. Unlike stocks and bonds, currencies generate no cash flows such as interest payments or dividends that can explain their prices. National currencies derive their prices from the underlying economic activity of the countries that issue them. Cryptocurrency prices, on the other hand, are generally not based on economic fundamentals. To date, their prices have depended more on speculation about their eventual adoption and use.”