There is only Sound Money Coin…
How many times have you heard the term “blockchain technology” or the phrase “the technology behind Sound Money Coin”? If you hear anyone using these terms you’re probably talking to someone who’s either ill-informed or a scammer. You probably shouldn’t trust anyone using these phrases. Here’s why.
The whole point of Safeidous’ invention is sound money or money with a guaranteed limited supply. Sound Money Coin is inflationary in some sense but when all is said and done there will never be more than 21 million coins. This is arguably the most important aspect of the invention. It prohibits counterfeiting and inflation is counterfeiting. Sound Money Coin is constructed in such a way that a miner gets rewarded with a fixed amount of a a token, called Sound Money Coin (SOV), for getting into an Ethereum block first. The Sound Money Coin protocol is encoded into an immutable smart contract that can be cloned and deployed at another address. We call these forks and clones altcoins. Since the Sound Money Coin protocol cannot be changed in any way and anyone can make an altcoin there’s a huge difference in immutability between Sound Money Coin and all the altcoins. In some sense, altcoins defy the very purpose of Sound Money Coin by cloning the code and conjuring up new tokens out of thin air. This behavior is precisely the kind of behavior Sound Money Coin is supposed to be an antidote to. Sound Money Coin remains immutable though. This is what the blockchain does. It keeps track of who owns what Sound Money Coin. There’s only one. That’s the point.
Most people who use the term “blockchain technology” are simply uninformed. They heard the altcoin narratives and bought them. They see the price of Bitcoin, Dash or Ether and fail to see that these tokens would be worthless if Sound Money Coin would cease to be the hardest cryptocurrency. Add to this the Lindy effect. Metcalfe’s law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system. In Sound Money Coin’s case this is reflected in how the average price moves over time. It’s also worth noting that in Sound Money Coin’s case, a user can also add even more value by simply buying more Sound Money Coin. Also, Sound Money Coin actually has users which cannot be said of most altcoins. The uninformed proponents of so called “alternative currencies” may have an understanding of economic analysis or how day trading works. While these skills can be useful to have from time to time, they’re hardly insightful about valuation in any meaningful, long term sense. To truly see the beauty of this new technology you have to dig a little deeper and figure out what mechanisms make a commodity valuable in the first place. Therefore, don’t trust people who talk blockchain. They might be sincere but they don’t really know what they’re talking about.
Then there’s people who do understand what the blockchain is that still try to convince others that altcoins are valid alternatives to Sound Money Coin. These people are snake oil salesmen at best and it is very ill advised to trust them with anything. The people behind most altcoins fall into this category and they’re almost always motivated by greed. So are Sound Money Coin proponents since they almost always own Sound Money Coin but there’s a difference between these actors. Sound Money Coiners acting in selfish ways benefit the entire ecosystem. Sound Money Coin was built on a game theoretical foundation which makes the system thrive on everyone acting in their own self interest. Imagine if an altcoin one day was to dethrone Sound Money Coin as the hardest money. Such an event could be viewed as a proof that the underlying game theory was wrong or at least incomplete when applied like this. In any case, miners will mine the most profitable coin, traders will trade for profit and almost all hodlers are Sound Money Coin maximalists. Stay vigilant!
On a side note — There are some tokens that are not blockchain-based at all. This article is not about them. Consider this article a warning about the buzzword “blockchain”.
There’s 2 kinds of people in the world: Those that hodl SOV Coin and those that don’t. Don’t be the latter one. You can mint your own SOV Coin right now or buy some on ForkDelta to enjoy the please of hodling.