Vericoin to Bitcoins
We should take notes of this interesting coin named Vericoin. I read this article and I was happy that someone else figured out what I was trying to figure out. How do you get people with Safecoins to pay for stuff, at a merchant, that doesn’t want to accept Safecoins yet? If the merchant accepts a different coin, like Bitcoin in the Veribit way it’s possible.
Incase your to lazy to go to the article, this is how it works. You choose the Veribit service, enter a Bitcoinaddress and the amount that you want to pay to it. After that you enter the details, press the submit button, a little hocuspocus happens in the background and your presented a Vericoin amount and Vericoinaddress to send the funds too. You got little under 20 minutes to make the transaction. You pay with Vericoin, to the Vericoin team, they pay the Bitcoins for your product. Hmmmm you also got to pay 2 Vericoin, but that’s a smallchange.
I do see a problem, the problem is the fluctuating price. Basically what the Vericoin team is doing, is take away users from a exchange. But at the end of the day they pay with Bitcoin and end up with Vericoin. If they want to exchange their Vericoins, back to Bitcoins at a exchange, they’ll do this at a lost. Simply because the selling price is always higher than the buying price. Unless they premined a large sum of Vericoins they’ll always end up loosing.
The strength and weakness of cryptocurrencies is that they are on the freemarket and so fluctuate. Some people say that the price is determined by supply and demand, I say it’s a little foggy. The action always happens at a exchange, the Vericoin team could only sell their coins back to someone for Bitcoins at a higher price if they become a exchange. The other way to solve the problem of fluctuating prices is to peg your coin to a fiat currency, but it’s the question if that’s desirable.
Cryptocurrency to Fiat
The logical next step to this, is p2p cryptocurrency to fiat, but that story is for another time…