They seem to be a very well-funded project with some big crypto names (Jackson Palmer, Brock Pierce) on their team as âstrategic advisorsâ. I find it almost impossible to believe they havenât heard of the Nu project by this point, but perhaps they havenât.
The bigger problem is that their strategy is nonsense. Theyâre using a tried-and-true start-up approach of using lots of trendy words like âFreemiumâ, âMicropaymentsâ, âCloud Consumer Miningâ, etc, as well as dropping big names all over their website.
This doesnât change the reality that their economic model will never gain widespread adoption. Here are two statements which are completely at odds with each other:
- Unlike most other digital currencies, purchasing NeuCoin is not simply speculating that one will be able to sell later to another speculator at a higher price. It is participating in a thoughtfully designed plan to create real utility in a digital currency, starting with a solution for micropayments on a broad scale.
- NeuCoinâs economic model uses very high PoS awards, starting at 100% per year in year one and gradually declining to 6% by year ten. The total coin supply begins with a 3 billion pre-mine and will grow to an estimated 100 billion over ten years.
In short, they are using the same âwait and prayâ method of solving volatility that Bitcoin employs. Neucoins are indeed âsimply about speculating that one will be able to sell later to another speculator at a higher priceâ. With each new project (pun intended) introduced to the world Iâm amazed how few seem to realize that the critical flaw of Bitcoin is not that it is too complicated to use, itâs that BTC cannot and will never hold a stable value.
Stability leads to utility in currencies; utility doesnât lead to stability.
