Is it possible to revive ‘Dead Coins’?

One of the interesting aspects of the whole Bitcoin or crypto coins is that there are a number of coins that are currently considered ‘dead. Dead as in the sense that the development team no longer seems to exist for the coin or the coin no longer trades anywhere. So while the coins may be dead at the moment, I wonder if it would be possible to start up trading in those coins and get them trading again.

From my experience and observations with the stock of various companies over the years I do think it might be possible to get a coin trading again and maybe some value to it. It seems the easiest solution would be to get it trading on any exchange and then convert the ‘dead’ coin into another more popular coin and solve the problem that way. The other path would be to develop some kind of standardized new blockchain for dead coins and convert dead coins into that and get them trading that way again. While it may not put it back to the old value, at least anyone that holds or held any of them would be able to trading in them again.

The other aspect is if anything can be done with abandoned or lost coins. Apparently, there are a number of coins in the various cryptos that the owners have either totally forget about or lost the keys, so these coins are, in a sense, dead. The last owner has completely forgotten about them or is no longer able to trade them, so the block chain is at an end. It seems it should be possible to try to get those back into circulation or maybe somehow send word to the chain and owner about the status. In some of my recent research Bitcoin has about 100 bytes that is like a comment field and that might be useable to somehow send word to the people with these inactive chains to get them back into circulation.

The last bit of research also talked about SHA-256 (I think that is it) which is the hash routine for the blockchains. One thing that did occur to me is that with enough computing power that it might be possible to have an index of all of the possible hashes, which would make the whole blockchain at risk. There was also some mention by various people that a quantum computer might be able to solve hashes much faster than the standard computers currently in use. From looking around a few months ago I think the largest quantum computer has 2048 Qubits, so it is limited in what it can do and only available at a large scale, like large corporation labs or government budgets would be needed. BUT, I expect as time goes on that the hardware will shrink, the Qubits will go up, and what it can do will far outpace what the standard computing can do for computations on a hash. I did run across one company that seemed to be selling time on a quantum computer, but expect it is still somewhat expensive and impractical, but should improve as time goes on.

NOTE: There are some people who think and talk about a Quantum computer being the path or what is needed to get to an AGI (Artificial General Intelligence) but I think they only think that because of the general path being taken with machine learning; where we basically throw millions of options at the computer so it can ‘learn’ what to do. In one of my prior posts I wrote that this ‘Big Data’ method seemed to be more of a way to try to brute force a solution to the problem instead of going about it the right way and figuring out how people think and learn. While I do expect this brute force Big Data method will get some results, I expect within a short period of time its limits will become obvious and never lead to a true AGI and without a real AGI, we will never get to an SAGI (Super Artificial General Intelligence; a group of AGIs are needed to build a SAGI).

Good Luck and Take Care,

Louis J. Desy Jr. – Wednesday, April 28, 2021

LouisDesyjr@gmail.com

Are Digital Currencies, Crypto Currencies or Bitcoins, Money? Problem with being a store of Value. Part 3 of many

A BIG problem for Bitcoins to be called money is the store of value problem it has.. Even if we overlook all of the other risks and problems of using Bitcoins, a big problem is that over time the value is changing by large amounts. As an example, last December I setup an account with Coinbase and put in $50 USD in Bitcoin. I just checked right now and that $50USD in Bitcoin is now $20.81, for a loss of about 60% in a matter of months. Now, if prices had declined by the same amount, so the purchasing power of the original $50 was in line with prices, that might not be a problem. That has not happened so storing my $50 USD in Bitcoin is down 60%, not exactly what anyone would expect when they ‘stored’ money, in any form, for a while. One of the arguments in favor of Bitcoin is that Bitcoin avoids transaction fees and currency exchange costs, but that sort of does not work, since in this example I lost 60% to avoid a few percent in transaction fees or currency exchange costs.

Hopefully, the problem of having Bitcoins as a store of value will fix itself as there are more in circulation and the prices of the coins become less volatile when compared with other store of value and forms of money, like USD. The amount of volatility that Bitcoin should have when compared to USD should be something like interest rates and/or the real rate of inflation. Most of the recent changes in price for Bitcoins all seems to be driven by speculation, first on the spike up as speculators piled into Bitcoins as they price rose, and now on crash as people panicked and got out of Bitcoins as the prices fell, just like the crowds do in any boom and bust cycle with all market frenzies.

Louis J. Desy Jr.
Thursday, August 23, 2018