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Why the Bitcoin Founder is a Genius and the Litecoin Founder Is a Second Class Genius With Aspirations

18/07/2013 15:34 BST | Updated 16/09/2013 10:12 BST
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Day 1

You wake up and decide to print out a million of pieces of paper with your face on the front. You've been very clever and made it so that these pieces of paper cannot be forged because the quality of the image is so remarkably high. You try selling these pieces of paper to other people in return for real money. Low and behold, people start to buy your paper off you and trade it amongst themselves. You are pretty pleased with yourself.

This is fun. But you want more people to use your currency. So you make it possible for other people to print out pieces of paper with your face on it. Being the mastermind that you are, you realize that you need to limit the amount of your currency in circulation and so make it increasingly difficult to print out your face. Every time your face is printed, the level of detail and complexity needed to make another print increases. The public goes wild. Super printers are used to print out ever more detailed pictures of your face, until it no longer becomes possible to print another valid picture of you. Your currency is limited to 21 million pieces of paper.

Amazing things start happening. Your so-called "cryptocurrency" is used to buy luxury cars, its value quadruples in three weeks and the Winklevoss twins (of Facebook fame) are trying to get it regulated. You realize that you are a genius, a multi-millionaire and the founder of Bitcoin.

Day 2

You wake up in a world of Bitcoins. You kick yourself for not being the genius who invented them. But you're a bright, enterprising person and understand that there is space in the market for more than one cryptocurrency. You decide to print out a million of pieces of paper with your face on the front. You've been very clever and made it so that these pieces of paper cannot be forged because the quality of the image is so remarkably high. You try selling these pieces of paper to other people in return for real money. Low and behold, people start to buy your paper off you and trade it amongst themselves. You are pretty pleased with yourself.

This is fun. But you live in a world of Bitcoins and you need more people to use your currency to make it competitive. So you make it possible for other people to print out pieces of paper with your face on it. Being the mastermind that you are, you realize that you need to limit the amount of your currency in circulation and so make it increasingly difficult to print out your face. Every time your face is printed, the level of detail and complexity needed to make another print increases. The public are impressed. Super printers are used to print out ever more detailed pictures of your face, until it no longer becomes possible to print another valid picture of you. You know that you need to differentiate yourself from Bitcoin. You allow your creative juices to flow and in a flash of inspiration decide to limit your currency to 84 million pieces of paper.

Amazing things start happening. Your so-called "cryptocurrency" is hailed as the younger sibling of Bitcoin. Its value starts to rocket. You realize that you are a second class genius, a millionaire and the founder of Litecoin.

Day 3

You wake up in a world of Bitcoins and Litecoins. What do you do?