Why should you use or mine Circles?

I don’t know, what are the benefits of using Circles. Sure there is the basic income aspect, but will it be enough? Or which are the other aspects?

And why should someone invest mining power into Circles?

Here are just some Ideas, which maybe could help to answer the questions:

  • Circles are created with Bitcoins together, same addresses, same amount. When new Bitcoins are created, the equivalent Circles are created also. So there is no mining reward for mining the Circles.
  • There is no fee to transfer Circles, but there is an interest rate, which automatically transfers them back. Let’s say the interest rate is about 5% per month. This means, that on all addresses, where are more Circles then Bitcoins, the amount of Circles is decreasing by 5% per month and at the same time on the addresses, where are less Circles then Bitcoins, the amount has to increase by 5% per month. This process stops, when the amounts of Circles and Bitcoins on an address are equal. So Circles are following Bitcoins.
  • The number of transactions per block is unlimited. Every transaction gets into the next block. On the other hand the size of the blockchain is limited, so old blocks get deleted. Let’s say for example the blockchain just saves the last 5 years or so. Transaction conformation has to take less than 1 second. This ability together with unlimited transactions and deleting old blocks makes it possible to use Circles as a payment for everyday needs, like buying bread or milk.

I know this Ideas are not part of Circles, but maybe they shoult be taken into account.The ideas could be silly, too. I am just thinking about, how a new Cryptocurrency could compete against Bitcoin… maybe there is no way other then to use Bitcoin as a background.

I don’t know, what are the benefits of using Circles. Sure there is the basic income aspect, but will it be enough? Or which are the other aspects?

First of all - Circles is intended to run atop of the Ethereum blockchain. No mining at all is necessary to run Circles. So the question remains: why should you use Circles. This is a complex question and I don’t claim to have “the answer”. However - one way of looking at it is because you want to give your personally money (the money you receive a basic income in) value. You could flip the question - why would you ever accept any currency ((like USD or Bitcoin) that you not control or benefit from? Why would you give it additionally value by accepting it?
The only reason why you would accept someone else’s currency (Circles) would be because of a mutual agreement that this “someone else” would accept your currency in exchange. (You set the exchange rate of your currencies to 1:1)

Here is a blog post with more thoughts in that direction: https://medium.com/@ConsenSys/basic-income-on-the-blockchain-fair-money-45662889077c#.zbkvslm3x

Ist das OK, wenn ich auf Deutsch schreibe? Ich freue mich, dass Du noch aktiv bist. Bitte sieh meine Fragen nicht als Angriff. Ich möchte nur diskutieren und verstehen.

Stimmt, das mit dem mining wird nicht notwendig sein. Da muss man auf Ethereum vertrauen. Muss man nicht Ether zahlen, wenn man Ethereum nutzt?

Ich stelle mir vor, ich komme in die Situation, dass ich zwar in Euro bezahlt werde, aber gern Circles nutzen möchte. Circles erzeuge ich monatlich mit meinem Account. Wie wandle ich Euro in Circles um? Macht das überhaupt Sinn, das zu tun?

Generell stelle ich mir das System mit dem Tauschverhältnis schwer umsetzbar vor, da man von jedem verlangt ein Händler zu werden, um seine eigene Währung zu verkaufen und damit haben vielleicht einige große Probleme. Aber vielleicht ist das nur meine Meinung.