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Sunday, November 23, 2014

Hashcoin's Name Revealed: Paycoin Is Here

This past week or two has been crazy, hence the lack of updates, but I did want to take a moment to cover some of the major news coming out of GAW. The biggest announcement of course is the official name of "the coin formerly known as HashCoin": say hello to Paycoin. So what can we make of this name?
It's actually one of the better names I'd say. Combine a new cryptocurrency with features from Coinbase, mix in a bit of PayPal, then sprinkle in a bunch of other stuff and you get... Paycoin. It's been so long since PayPal launched that I'm not sure most of us remember the early days any more, but it was not an immediate overnight success story. It was something that sounded cool at first but a lot of people were skeptical -- send money via the Internet? What if someone scams you? How do you get the money into your bank account? Why not just pay with a credit card? -- these were all relevant questions, and they were answered over time. And then eBay bought PayPal and the rest is history.

Well, let's just put it bluntly: Josh and the GAW team have far greater ambitions than PayPal. They've looked at the Bitcoin pie and have decided that for one, it doesn't always look so great and needs some better presentation, and while they're reworking things it might not be so bad to improve the quality of the ingredients and hire a professional pastry chef. What we don't know is if they hired the right chef or not, but we should have a better idea in the next couple of weeks. Here's the outline of the Paycoin launch, and if you haven't seen this it can be quite telling:
The first round of the ICO has apparently completed, and tomorrow is the official HashPoint ICO. That will last until December 8, and Zen Hashlets and Prime Hashlets will now be able to mine additional HashPoints for two weeks -- originally the ability to mine HashPoints was going to end at the start of Round 2 of the ICO, but that was extended "due to popular demand". Round 3 is next, which is an invite-only ICO at $10, and then all of the money so far gets split three ways with one third going into the Trust Fund.

Here's where things start to get far more nebulous. You'll not there's still no dates on anything beyond the Round 3 ICO. When does Hashbase launch, and when is the public launch of Paycoin? We don't know. But a bit further out we see the "At-Cost Hash Power" which sounds promising. And then finally, we get to the real meat that will determine whether Paycoin succeeds or not: retailer adoption and credit card processing. And then we end with a lovely "....... Profit!"

GAW has actually fleshed out a lot of things at this stage, and the full Whitepaper is up (though still undergoing minor edits it seems). Perhaps more importantly, they now have officially created a referral system for people to use to get others into cryptocurrency. It's about freaking time they ditched the "email invite only" aspect and made a way for others to directly link to the site!

With all of the announcements and the HashPoints ICO nearly ready to start, I think it's also interesting that Hash Market pricing on the Hashlet Primes and Zen Hashlets has gone up. Zen Hashlets are selling at $12.60 now, though where they go after Round 2 is over isn't exactly clear. Hashlet Prime meanwhile is starting at $40.21, but only in relatively limited quantities -- if you want to purchase $10,000 of Hashlet Prime, you can do so for a price of under $42 per MH, but the next $10,000 would get the price closer to $48, and I'd say there's less than $50,000 total of Primes available for prices people are likely to pay. (Note: I haven't actually added up every Prime for sale, so I might be off a bit, but there are definitely not tens of thousands listed on the market.)

Other Hashlets are taking a beating, though. Genesis is more or less holding steady at around $0.50 per GH, but Multi Hashlet is down to $4, Clever Hashlet is at $6.18, and Waffle Hashlet is at $6.30. None of these are available in large quantities, but they're also down to the point where you're making the "guaranteed" $0.01 per MH per day" in most cases (all have had negative earnings on several days in the recent past that GAW had to correct/subsidize, apparently). Josh has stated there will be a Hashlet upgrade path offered at some point, though, so it's possible you could buy one of these other Hashlets and at some point upgrade to a more useful Zen or Prime for less than the current price of a Prime... maybe. My advice: just stay away from anything that's not a Prime at this point, until we have a real idea of where Zen Pool is going.

The good news is that one way or another, things are moving forward at this point. People will own Paycoins in large numbers starting tomorrow, and by the beginning of next year we might see a decent level of adoption. Or we might see the Coin Adoption Fund fail and the price plummet once Paycoin hits an exchange, but if nothing else it has far more money backing it than any other cryptocurrency. Let's hope it succeeds, as the combination of instant payments, staking, and an enhanced blockchain all sound promising.

1 comment:

  1. I've been doing some research on Paycoin and the company behind this. It looks like CEO Josh Garza runs a tight ship and is "dotting all the i's and crossing all the the t's" on this one. Hopefully he can replicate some of his past success and this Paycoin thing will really take off!