So, about a week ago, I wrote an article about how to buy RaiBlocks. That article, however, relied on buying BTC through Coinbase (or GDAX or whatever) and waiting for it to transfer to BitGrail. When I did that (got in at .60c, will probably double today + 10% and withdraw the principal), it took 12 hours for the transaction to go through.
Instead, you could buy LTC through whatever exchange you want, transfer that LTC to BitGrail, and then exchange the LTC for BTC (so you can exchange the BTC for XRB, of course).
Just a quick tip that didn’t warrant a full article, but whatever. It’s not like anyone’s reading this, right? I’ll just make some predictions that will make you think, “Shit, I should’ve been reading this a couple years ago.”
I’m confident that, if the overall market stays bullish, XRB will see a 10x gain in a few months. If it proves its unlimited scalability with no coordinator and gets some proper marketing, it has an opportunity to make it to the Top 5. The hype train is taking off for this one, and the growth so far has been completely organic. Just take a look at their site right now:
It doesn’t look good. At all. In fact, if you compare it to IOTA’s site, it’s downright ugly.
Yet it’s taking off because the tech is there. People are buying because it’s good. They’re not buying because they have a cool website; they’re buying because they realize this has a potential market cap of at least $1 billion.
A Short History of Rai Stones
That’s all I have to say about that, really. A little bit of background on the name, “RaiBlocks.” They’re named after these guys:
Big stone disks from a tiny island called Yap, Rai (pronounced, “ray”) Stones were a wildly impractical form of currency. The creator of RaiBlocks thought it would be somewhat ironic to name his currency after one that was horribly impractical.
Should go to show how little these devs have thought about marketing. It’s like naming, “Burger King,” “Shitty Old Burgers,” or something.
In 1991, Nobel-Prize winning economist Milton Friedman wrote an essay on Rai Stones called, “The Island of Stone Money,” which is where, I’m willing to bet, the creator Colin LeMahieu first heard of them. In the article, Friedman mainly relates the perceived value of Rai Stones to the perceived value of other currencies, specifically the US dollar. Since Rai Stones were by nature difficult to physically transport, the only requirement for a transfer of ownership was mental: the transaction was acknowledged by marking the coin with a cross in black paint. In that way, one neighbor could give another neighbor a Rai Stone without going through the pain of moving it ten yards, and the whole community acknowledged the true owner. Friedman points out that the practice isn’t as illogical as most people assume at first; it isn’t taking into account the irrational nature of currency. As many in the cryptocurrency community have pointed out to skeptical non-believers, currency only has the value we give it, and the same can be said for Rai Stones. Friedman ultimately compares Rai Stones to the U.S.’s gold standard, pointing out how the Banking Panic of 1933, caused by the “lack of gold” in American ownership when the Bank of France demanded that the US separate its gold into different drawers marked for French ownership (without ever actually moving any of the gold outside the Federal Reserve Bank of New York, because that would be too cumbersome) is similar in nature to the perceived transfer of ownership of Rai Stones. Whether it’s a cross or a drawer, it’s no different.
In other words — and more generally — we spend countless resources mining and refining and transporting stones and metal and gold from the deep recesses of the underground only to claim ownership by storing them back underground.
It isn’t any different from the islander’s collective agreement that one family was by far the richest family on Yap, owning the biggest Rai Stone of them all, even though it sunk to the bottom of the sea when they were attempting to transport it.
What’s the difference between a vault and the sea as long as everyone knows its yours?
In that vein, RaiBlocks is a perfect name. You only need to recognize the value of your currency of choice in order for it to be a viable currency. Rai Stones didn’t have a 2% inflation rate. It wasn’t infinitely divisible. Limestone isn’t inherently valuable. It was missing most of the factors that make currency currency, yet it still functioned as currency.
But it does take a lot of explaining, doesn’t it? And it doesn’t sound legitimate. It sounds like an inside joke:
“Hey, let’s name our currency after a currency that doesn’t even work. Maybe people will still buy it.” In reality, I don’t think that much thought was given to the name. If I had to guess, I would say the devs talked about it and said, “You know, Rai Stones were call, weren’t they? Let’s name it Rai Blocks.”
And now I’m trying to do mental gymnastics to make it sound better than it is.