GamerChronic

First BitCoin – Now PotCoin | Potheads create new crypto-currency

Know about Bitcoin? Then you may have guessed something like PotCoin would come out…

Wait… what the hell are Potcoins and Crypto-Currencies?

In case you missed the news there is a new type of digital money know as a crypto-currency. This digital cash is a “peer-to-peer, decentralized, digital currency whose implementation relies on the principles of cryptography to validate the transactions and generation of the currency itself [1]“. Invented specifically for the digital age the program which operates this new digital money is open source. Which means the currency operates in a transparent ‘open’ manner and anyone with enough technical now how can use the source code to create their own digital money.

This is why I love open source so much!

The first cyrpto-currency released was Bitcoin and was released by an anonymous hacker know only as Satoshi Nakamoto. Because the currency is decentralized there is no central bank. Coins are made or minted through a process known as mining. To do this a computer is used to run a ‘mining program’ which solves complex mathematical algorithms. Whenever a piece of the mathematical puzzle is solved a ‘block’ of coins is released and these are distributed to the miners digital  ‘wallets‘. 

It takes a little bit of time to entirely wrap your head around how this new digital currency technology works.

Learn MORE about Crypto-Currecies | Khan Academy – Bitcoin Overview

Once coins are mined they can be stored in an infinite number of digital ‘wallets’. The digital wallet can reside on a harddrive, usb stick or printed out on a piece of paper to be stored offline. Coins can be sent and received between wallets nearly instantaneously and for free. You just need an internet connection. Finally coins can be exchanged into dollars, gold or other world currencies through an exchange such as mtgox.com or coinbase.com.

Where do PotCoins come from then?

Since the release of Bitcoin the coins source code has been altered to create close to a hundred new digital currencies and counting. Potcoin is just the latest and I have been happily mining my Potcoins with an old shitty PC. Potcoins don’t have much value yet… and I can’t buy any pot with them yet… but that could change very quickly as we have seen with the price of Bitcoin. Going from $8 per coin to over $1200 in less than a year. Right now the price of Bitcoin is sitting around $650 a coin.

Why were Potcoins created?

According to it’s creators PotCoin was created to ” empower, secure and facilitate the Cannabis community’s daily transactions.”

What is the current state of PotCoin / Crypto-Currencies and what is the future?

Right now the currency is tricky to use both in terms of the technological skill required to actually acquire PotCoins as well as finding somewhere to spend them. You’re unlikely to find someone outside the tech community who really understands it in detail or let alone accepts it as payment. This will change as the technology matures and begins to penetrate online stores and retail Point of Sale systems. The number of companies taking PotCoin/Cryto-Currency payments is increasing from a small base and will continue growing as more and more people adopt this technology.

What are the fundamental benefits of using a Crypto-Currency like PotCoin?

• Unlike credit cards PotCoin provides users a level of anonymity online much like cash
• Coins can not be counterfeit
• PotCoins bypass normal central banking and/or merchant fees
• You can pay anyone, anywhere around the world instantly for free without any additional charges

The technology is not without its flaws but does present an interesting look into the future of money!

How do I get some FREE Potcoin!?

Visit PotCoin’s website and download their ‘wallet’…

Then visit this Reddit link and follow the Guide…

READ MORE – Get the 101 Basics and Benefits of PotCoin and other Crypto-Currencies