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Struggle to understand  

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ChristianVirtual
(@christianvirtual)
Eminent Member Customer

Please help me to understand the whole concept; I struggle to get it already for BC; same as for your project CureCoin.

Where does the value come from ? What can I do with the coins ? Can I pay my electricity or a liter milk with it ? Is it taxable income ?

I understand the current folding aspect; I'm folding 24/7 with 3 GPU and 1 CPU and like it. It's simple: it's donation.

My brain is just not getting the virtual money and how it can help in real life. Please help me to understand. This should be not a rant or something like this. Just (still) don't get it.

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Posted : 16/11/2013 5:31 am
arkanaprotego
(@arkanaprotego)
Active Member Customer

Short answer: crypto-currencies are unforgeable and in limited supply. Their value is determined by offer and demand.
The process of issuing the coins in an unforgeable way also has a cost (that of hardware and power). Therefore, the people who expend resources to create the coins are unlikely to sell them at a loss. This contributes to giving the coin "real world value".

Bitcoin is the first and most popular crypto-currency. But as you probably noticed, it is still not very wide-spread: you cannot buy your newspaper with it. However you start being able to buy things with it, mostly online. I found this website that lists places where you can spend them: https://www.spendbitcoins.com/places/
You can also always exchange them against dollars or other "real world" currencies (called fiat currencies in the jargon).
So you can pay your electricity and milk with Bitcoins, but probably not directly. You will have to exchange them first.
Depending on the value of Bitcoin and the price of your electricity, producing (mining in the jargon) Bitcoins can be profitable or not.

When it launches, Curecoin will likely not be spendable anywhere, and probably not exchangeable against other currencies. But when it picks up, it will gradually become possible. The first step will be that you will be able to exchange them against Bitcoin, and thus, indirectly, against dollars.

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Posted : 16/11/2013 12:10 pm
ChristianVirtual
(@christianvirtual)
Eminent Member Customer

Thanks; getting a bit clearer now. Still wonder how much grey zone this is: currency, income tax, VAT etc.
I would expect that once started folding for money/CureCoins I would have a reoccurring income (as low as it might be). But depend on the jurisdiction that might require to pay tax on it. Or even worst: the "owner" of the service have to pay withholding tax. This can become nasty with the international environment we are in. Is there some good resource with hints on legal issues in different countries ?

Further: do I understand correct that we would need to be all in the same folding team ? Or can one remain in their current teams. And I'm sure other teams wouldn't like to loose their members.

Who would take the risk in case of bad work units or "bad luck" in WU assignments; those happen. Is there some TOS describing risk distribution ?

ReplyQuote
Posted : 17/11/2013 6:10 am
arkanaprotego
(@arkanaprotego)
Active Member Customer

Ah taxes... good question 😛 I'm afraid I cannot help you much with this. I can refer you to this link, about Bitcoin and taxes: https://en.bitcoin.it/wiki/Tax_compliance
This is rather a new issue, since Bitcoin was the first crypto-currency and only gained mainstream popularity this year, so there isn't much about it yet.

One thing I didn't mention in my previous post is that crypto-currencies "accounts" (called "addresses") are anonymous, so it would not be easy for someone to prove you did earn some until you spent them.
Regarding this, there are 2 schools of thought: those who cherish this anonymity and strive to keep states and other authorities out of crypto-currencies to preserve their freedom, and those who think improving the traceability of crypto-funds would help crypto-currencies see a wide-spread use someday, through recognition by states. We have yet to see how this will evolve.

For the folding aspects, I think you will have to wait for an answer from the Curecoin team. The details are not known yet (afaik). I also don't know what you mean about the risks of bad WUs or bad luck.

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Posted : 17/11/2013 8:12 am
ChristianVirtual
(@christianvirtual)
Eminent Member Customer

Bad WU: sometimes Workunits fail due to issues/conditions inside the folding data or whatever external reasons (like temperature, overclocking). As a consequence a WU might can't be finished which will cause the feeling of: done the work and no money earned. And the search for: who is to blame. Today is simple: doesn't matter too much and just lost some symbolic points.

Bad luck: as you might know the backend server from FAH distribute work units based on some load balancer and pool of WU. Which means sometimes you get "better" WU (higher PPD); sometimes you get "worse" WU (lower PPD, longer time). This again could cause "emotional" stress for some participants in case money is involved.

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Posted : 17/11/2013 9:49 am
CygnusXI
(@cygnusxi)
Reputable Member Customer
"ChristianVirtual" wrote:
Bad WU: sometimes Workunits fail due to issues/conditions inside the folding data or whatever external reasons (like temperature, overclocking). As a consequence a WU might can't be finished which will cause the feeling of: done the work and no money earned. And the search for: who is to blame. Today is simple: doesn't matter too much and just lost some symbolic points.

Bad luck: as you might know the backend server from FAH distribute work units based on some load balancer and pool of WU. Which means sometimes you get "better" WU (higher PPD); sometimes you get "worse" WU (lower PPD, longer time). This again could cause "emotional" stress for some participants in case money is involved.

Thanks for your interest in our project

The group of people that Curecoin aims to gain are mainly GPU miners that already have had their own experiences  with difficulty mining coins, and miners also understand that the best ( well the only good way ) to mine is to leave gpus / cpus etc going 24/7 for months on end. In the long run bud luck from a few bad work units would be much like a miner choosing a pool that gets a ddos attack at goes down and their miners go idle for a night.

As far as any emotional distress, hopefully the fact that they at least tried to contribute to the folding at home network will ease their mind. Plus will have many people here in the forums willing to help, and of course there is already other folding forums with tons of help and support.

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Posted : 17/11/2013 9:59 am
ChristianVirtual
(@christianvirtual)
Eminent Member Customer

What is the plan for team assignments ? Could we stay in our current teams ?  ???

And if the top ten of the leading team oins your team no one else get any share ... 😮

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Posted : 21/11/2013 2:31 am
ChristianVirtual
(@christianvirtual)
Eminent Member Customer

Any update on progress, details ?

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Posted : 01/12/2013 4:11 pm
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