With the creation of Bitcoin, Satoshi Nakomoto essentially opened up a new stream of innovation. We have seen a number of alternate crypto-currencies or Alt-Coins emerge over the last year – Litecoin, Namecoin, Peercoin, Dodgecoin, Mastercoin and many more. Frankly it was getting suffocating to hear of all those Bitcoin clones. Auroracoin however, seems to be different. The much awaited Airdrop commenced at midnight on 25th March 2014, and the first ever nation based cryptocurrency is currently being distributed amongst the 330,000 Icelanders.
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. Each citizen of Iceland 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.
Krona has lost 99.5% of its value against the US Dollar in the past five years due to poor monetary policies. With Auroracoin, the country hopes to bring its economy back to a stable state. “The Icelandic government and banking system has engaged in frantic money printing in the past, resulting in devaluation of the krona. This has happened at the expense of the common man," said Baldur. “The whole point of auroracoin is to provide Icelanders with an alternative to the króna, a currency they are forced by pain of imprisonment to use. Icelanders will be free to sell auroracoins anywhere they like and buy anything they like, be it dollars or other foreign currency on offshore currency exchanges. They won’t need permission from the Central Bank or politicians.”
- Airdrop, if successful could also have a major impact on the way future cryptocurrencies are created.
- Last week a a joint statement was issued by five government bodies entitled ‘Public warning concerning virtual currency’ in which the Central Bank states that the use of auroracoin is not a threat to financial stability in Iceland and does not fall under the jurisdiction of the bank according to law.
- Aurouracoin (AUR) will work just like bitcoin citizens.
- They will use their private ID numbers to check in and receive their coins. Mining is performed through proof-of-work operations, just like bitcoin.
- The goal mainly is to enable the citizens of Iceland to once again engage freely in trade outside of their country.
- If this works, It could be sort of like a Mascot for the adoption of country based virtual cash systems in other places.
- The few coins in circulation right now are trading at approximately 0.02 BTC i.e around $11.
About the Airdrop:
Aphroditecoin is another one that is aiming to be the national cryptocurrency of Cyprus. It is based on litecoin and will have 75% of its coins pre-mined. The developer behind the latest country-based coin, Costa Themistocleus, says he was inspired to take the step following the actions of the Cyprus government in recent years.