In the case of Bitcoin and other cryptocurrencies, digital coins are only created through a network of computers, which must expend inordinately large amounts of energy to confirm transactions (that is, “mining” coins); receiving coins is a reward granted to those who use their computers to do that work. A project that created coins out of thin air like Mastercoin was bound to get criticism from the Bitcoin community. Not only was ownership of Mastercoins concentrated (J.R. owned about 30 percent of the total) but the Mastercoin Foundation was a privileged party, as it was the only entity
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