Why does the world need another cryptocurrency?
Many reasons. . . .
- Bitcoin and Ethereum (”gas”) transaction fees are ridiculous whenever the network gets congested. This video illustrates how $100 worth of gas was required just to use Bancor to convert $10 of ETH into KIN tokens. Bitcoin is notorious for its high transaction fees, which is why it has never been used for small-value transactions. And if for some reason the transaction fails, you don’t get the transaction fees back! This is the same problem for all tokens that don’t operate on their own cryptocurrency platforms, which is true for over 99% of all the tokens in circulation today. That automatically puts Gini in the top-1% if you care about transaction fees.
- Currently, there is no cryptocurrency that is a truly stable cryptocurrency. The projects that call themselves “stable coins” are typically linked to fiat currencies, which defeats the purpose of having a cryptocurrency if you’re concerned about the fact that all fiat currencies are constantly debased and losing their value. The Gini team has decades of experience building payment systems for real commerce. We are using the lessons learned from our real-world experience to design a cryptocurrency platform that is much more stable for real-world commerce.
- The concentration of wealth on all other cryptocurrency platforms is even worse than the concentration of wealth in the fiat currency world. Gini was named after the famous Gini Index, which economists use to measure the concentration of wealth in any fiat or crypto economy. For context, the average OECD fiat economy has a Gini Index of about 0.3. In contrast, the average crypto Gini Index is over .75, which is the equivalent of a despotic regime where only a few kings and oligarchs have any meaningful wealth while everybody else is in poverty. Anytime an economy has a high Gini Index, you know it’s suffering from a poorly designed ICO and monetary policy. The only way to fix this is to launch a new cryptocurrency based on proven technology but with a more equitable and sustainable monetary policy.
- Bitcoin is Substantially Influenced By The Chinese Government.Approximately 70% of bitcoin is now mined in China. A very large (but unknown) number of bitcoin trades occur in China. The Chinese Government imposes strict capital controls, which means that Chinese citizens are often compelled to convert their Yuan into bitcoin so they can then convert their bitcoin into other fiat currencies to escape the capital controls. This has a huge and direct roller-coaster affect on the market price of bitcoin, especially whenever there is a major monetary policy event in China.
- Market Manipulation. Here’s an excellent debate between Roger Ver and Richard Heart explains how miners are front-running normal smaller holders, poor design decisions, the big mining pools are favoring transactions submitted through their own BTC wallet over other wallets, and many other problems have essentially doomed Bitcoin and Ethereum to failure.
- The Visa/MasterCard System is Vulnerable to Hacks & Disruption. This was confirmed most recently here.
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