March 6, 2014
We all know how Bitcoin has taken off in the last year - the extensive publicity and meteoric rise of value above $1200; big names such as Richard Branson & Andreessen-Horowitz getting on board; and retailers such as TigerDirect.com & Overstock.com began accepting the currency. A number of Alternate crypto currencies have popped up around this technology, most popular among them being Litecoin. Beginning 25th March 2014, Auroracoin, a crypto-currency based on the Litecoin protocol, is all set to be distributed to the entire population of Iceland.
Auroracoin is a litecoin-based digital currency, 50% of which is pre-mined. It is already the third largest in terms of market capitalization after Bitcoin and Litecoin at around $380 Mn. On March 25th, each citizen of Iceland (Population: 330,000) will receive 31.8 Auroracoins. Entrepreneur & Programmer Baldur Friggjar Odinsson can be credited for the idea to distribute millions of digital coins to the country’s citizens in a bid to hasten the understanding, engagement and adoption of virtual cash.
Giving people Auroracoin is a way of introducing the nation to cryptocurrencies, currencies that can’t be controlled by politicians and central bankers. This is an attempt too bootstrap a network effect, said Baldur Odinsson. The government will not be able to control how people use their money if the people choose to use Auroracoin rather than the króna. This could turn Auroracoin into a catalyst for Bitcoin trading.
Why Iceland you may be wondering though? Well, their website says:
The power must be taken away from the politicians and given back to the people. Cryptocurrencies are a very important milestone in this fight for liberty, says Odinsson. They bring the hope of a new era of free currencies, immune to the meddling of politicians and their cronies.