Pre-mining of electronic money
A lot of experts wonder whether the creator of digital money has the right to pre-mine. This big question creates a list of reasons to stop such practice. However, pre-mining is a beneficial practice that allows digital money to develop and become popular around the world.
It does not matter whether the product is passed out or sold, the creator of electronic money has the right to pre-mine or not. Also, not every product has to cost cash. Nowadays, more and more things cost digital money which is definitely a convenient way to save money and pay for things.
The problem arises when you understand that digital currency applications are free. It makes people think that such applications are false and can make a damage. Whether you use digital money or not, you have no control and power over pre-mining. Even though a lot of experts believe that pre-mining should be unlawful, we can only decide whether we are interested in using electronic money or not.
Anyone can do anything that he or she wants with the code, for example, to waste it or turn it into a financial balance. All digital currencies are intentional and we all use them off the chance.
Are there benefits to pre-mining?
Whether the idea of pre-mining is beneficial or not depends on your program. The result may change according to your app being an open source, whether it is recreated and changed.
There are two organizations that practice pre-mining. Their names are Swell and Stellar. The first one is controlled by the current money world, while the second is more concentrated on attracting the masses. Both organizations have impressive achievements is separating blockchains.
At first, Bitcoin was not pre-mined, however, its creator Satoshi Nakamoto started practicing pre-mining and was followed by others. The accomplishment of Bitcoin by its founder would have never been released if Nakamoto had put aside in obvious million “BTC”. The creator was really interested in seeing the results of his work, therefore, he asked everyone to use the application and start mining. We know the outcome and it shows great results since 2009. By now, this digital currency definitely has a success. Whether it will develop and prosper, this is a different question.
The possibility of landfill
Probably, the landfill is the best contradiction against such practice. The makers can create their own market with their own coins. However, they also will have a risk to destroy their own coin. Then they will offer a new coin and so on. Finally, this process will be over.
Let’s imagine if there was 10% pre-mining. It means that someone would have 10% of a number of coins himself. This is a lot. There were attempts to close such sources as Stellar and AuroraCoin. However, their development is still uncertain. However, to give away digital money completely is not a smart decision.
Nowadays, various digital money creators use pre-mining for updates. However, there is a threat to it because they are usually in control of their semi-incorporated block chains like DASH. It also used pre-mining which helped them to be successful continuously for 6 months. While DASH began to decrease, a new name in the industry called Monero had luck.
Pre-sale of digital currency
Some of the digital currency practice pre-mining a big number of coins and after they sell them to financial experts to make profits before the official dispatch. This causes coins to discharged to the population. What control pre-mine, also has a control over the coin. It probably explains why Ethereum (ETH) now has a companion which is called Ethereum Classic (ETC).
If you want others to take participation in getting cash for you, you must make sure that you follow the mineworkers. You will have to follow excavators that maintain your blockchain, partners in your structure, makers of your coin, customers of your API’s and financial experts.
If others things that you have too much of advantage, your participation can be reduced. You will have a success if you start with others from the “same point”.
Another reason to pre-mine is to show how a digital currency operates. People who use crypto currency and believe in its prosperous future are mainly interested in fast exchanges, blockchain reserve funds, secure message, and private markets.
What is a free-mine?
One of the reasons why experts deny using pre-mining is to avoid others making money when they send electronic money. They aim to code local cash. They believe in this case, the creators of digital currency will not have a possibility total share the profit between excavators and hidden financial specialists.
Probably, one of the best ways to create digital currency and make people trust it and use it is to make it possible to use it more than one time. For example, gold can be used more than one time. Therefore, it is one of the most stable monetary standards.
When the coin is mined is can be used from the outside of its blockchain. This will offer better perspectives for the coin, such as private exchanges and open receipts. Unfortunately, digital currency can not provide a stable good result, however, it can work perfectly in a settlement system.
Coins pre-mining definitely has a success, otherwise why a lot of creators of crypto currencies felt envious about other coins being pre-mined. Digital currency does not lose a value. For example, Zcach is still in the process of establishing its position, Swell is getting supported by various financial experts and Bitcoin is still carrying its position even though going through ups and downs.