THIS ARTICLE IS SOLELY AN ANALYSIS OF THE MARKET. THIS IS NOT TRADING ADVICE. THIS IS NOT INVESTMENT ADVICE. I OWN A SMALL PORTION OF P3D THAT I PURCHASED WHILE WRITING THIS ARTICLE

(Edit 7/30/18 — As predicted, someone did make an ETC version, P3C.io currently has over 1098 ETC!)

What is a store of value? A store of value is an object that we look to put wealth in, and pull that wealth out in at some point in the future. Throughout history we’ve had a number of stores of value:

Jewelry, and precious shells.

Gold

Bitcoin

All hail the King

Another store of value is insurance. Think about a life insurance policy that pays $100,000 on your death, and that you pay $30 a month to be a part of. The value you are storing is $100,000, and what you pay is $30 * months of your life. Now here is why insurance is cool: it’s because it gets together enough other people like you, and through the magic of large numbers is able to share risk between everyone. So now you and a group of people can also share value through this contract. Even though you haven’t stored $100,000, the policy still entitles inheritors to this amount of money. This is actually far more valuable than just a rock, because it allows you, by taking a small amount of risk, have assurance that at some point in the future you will be able to restore more wealth than you put in.

Lets compare that with Bitcoin. The current thesis of the Bitcoin core community is that Bitcoin is virtual gold. There is a finite supply of it, you put money into buying some, wait, and then the same Bitcoin will be worth more stuff in the future. Now the problem with this is that it assumes a market exists of people that will either accept or value Bitcoin in the future. This is assumed because people value it now. See the circular logic? A Dutch merchant probably though the same thing, that “these tulip seeds will feed my children!” Currently 16+ million out of the 21 million have been mined. This means that the more than 75% of all the wealth in the future has been allocated, and if you don’t have some we’ll all look up to some of the world’s richest people, not Elon Musk, but luminaries like Roger Ver, or Luke DashJr /s. Good luck getting most nocoiners to accept that…