Peercoin – Digital Money Survives
The mastermind behind two altcoins, Sunny King is the software developer for Peercoin that was officiated in August 2012. It is labeled to be a currency to watch out for by leading economists and there is good reason why. Though inspired by Bitcoin and sharing most of the source code, Peercoin has a set of distinct differences that set it apart from the crowd.
No Hard Limit & Annual Inflation:
One attractive feature of the Peercoin is the absence of hard limit that haunts the Bitcoin crowd. Besides the unlimited possible coins, Peercoin is built in such a way that it allows a 1% annual inflation rate. And what pulls me most towards this cryptocurrency is the belief that this growth will lead to greater and stronger long term scalability too. After all Bitcoin is not currency but rather a commodity.
Peercoin – A Big Deal?
I see the Peercoin to have the upper hand in comparison with Bitcoin mainly because it fixes the inherent flaw that Bitcoin holds. Bitcoin being deflationary in nature was, is and never will be a viable client thanks to its fluctuating prices as well its recurring bust and boom cycle that brings it in the same stance with gold- the constraint being limited supply. Inflation and a food fiat currency go hand in hand. But the question that is of concern is- Is it done fairly? Through special zero to low interest tbills, Peercoin is made accessible as new money to the banks first. It then spreads to the economy via loans. This has been fixed by Peercoin. With the proof of stake, it paves way to fair inflation by means of paying the right interest. The money is also increased in a reasonably without the need for bankers.
With Peercoin, the purchasing power remains in your hand. Consider you are depositing 1PPC (Peer-to-Peer Coin) and you allow it to stay in your account for a period of 90 days. On receiving an interest of 1% you will now hold 1.01PPC. If you decide transact the extra 0.1PPC, you are left with the initial 1PPC giving you full authority and power over your altcoin. This is not possible with Bitcoin which dampens your purchasing power.
Being first in its niche, the Bitcoin suffers from plenty of discrepancies that are overcome by the Peercoin, which offers better features and ample space. As the fifth largest cryptocurrency, Peercoin is definitely heading in the right direction.