OneCoin can not be both a cryptocurrency and a fiat currency at the same time; but that is exactly what it is now attempting to do.
The official OneCoin YouTube account had this to say back in March 2015, in their video titled, OneCoin – Web presentation in English.
At about the 6:30 mark, the screenshare is talking about how the algorithm works and it states:
“The algorithm for a legitimate cryptocurrency has a FIXED or FINITE number of solutions (called coins), unlike an illegal money game in which they make as many fake coins as they want. OneCoin’s algorithm can produce exactly 2.1 billion coins.”
The OneCoin website now says, “With its finite number of 120 billion coins, OneCoin is also the biggest reserve currency worldwide.” (Click the link and scroll down a little to see it.)
As Tim Tayshun comments, “Looks to me like OneCoin just labeled themselves as an illegal money game. And I didn’t say it. They did!”
In other words, OneCoin’s fixed and finite final number of 2.1 billion coins just jumped to a finite final number of 120 billion coins. So what is to prevent this finite final number of 120 billion coins jumping again to 1.2 trillion coins? It’s all at the whim and fiat of Dr. Ruja. She has just morphed her cryptocurrency into a fiat currency. It’s no different than the U.S. dollar, or the Zimbabwe dollar now.
The company is hoping that we won’t notice, since these 120 billion coins don’t yet exist and won’t exist for years. They are hoping that the similarity between the numeric characters in 2.1 and 120 billion will generate enough confusion that we will forget that their finite final number ever changed (by a factor of 50!) from that once very finite 2.1 billion to a very much less finite 120 billion.
It is not only that 120 billion is 50 times more coins (which it is), but more importantly making this change by a simple random announcement sets a precedent which changes everything for OneCoin. The company can try to hide this fact with their double-speak use of the “finite” word, but it isn’t finite anymore. That makes OneCoin a fiat currency.
Now it doesn’t matter whether OneCoin is a Scam or not. It’s fiat!
Posted here by https://icliks.wordpress.com
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