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.