<p>No.
Mastercoin clients form a bridge between the bitcoin network and the mastercoin network riding on top of it.
When Alice sends Bob one bitcoin in exchange for, say, 2 Mastercoins, the Mastercoin client recognizes a <em>standard</em> bitcoin transaction from Alice to Bob <strong>and</strong> a mastercoin transaction (encoded as a negligible amount bitcoin transaction) from Bob to Alice.
No bitcoins are created.</p>

<p>This type of transaction is the basic way to create value in the mastercoin network.
Note that the same answer doesn't hold for other currencies, say US dollars, because there is no direct way for the mastercoin client to know that US dollars changed hands.</p>

CC BY-SA 3.0
2013-11-26T11:56:46.070Z
2013-12-01T16:45:21.440Z
2013-12-01T16:45:21.440Z
Assaf Shomer
<p>If Alice sends Bob one bitcoin on the mastercoin network, this transaction is <em>technically</em> implemented using a standard bitcoin transaction with a negligible amount.
Isn't that equivalent to creating bitcoins from thin air?</p>

<omni>
Is mastercoin a perpetual bitcoin machine
Assaf Shomer
# Is mastercoin a perpetual bitcoin machine

(Asked by: username_0 on 2013-11-26)

If Alice sends Bob one bitcoin on the mastercoin network, this transaction is *technically* implemented using a standard bitcoin transaction with a negligible amount.
Isn't that equivalent to creating bitcoins from thin air?

**Tags:** omni


---

## 1 answers

### Answer by username_0 on 2013-11-26. Score: 1 | Accepted answer

No.
Mastercoin clients form a bridge between the bitcoin network and the mastercoin network riding on top of it.
When Alice sends Bob one bitcoin in exchange for, say, 2 Mastercoins, the Mastercoin client recognizes a *standard* bitcoin transaction from Alice to Bob **and** a mastercoin transaction (encoded as a negligible amount bitcoin transaction) from Bob to Alice.
No bitcoins are created.

This type of transaction is the basic way to create value in the mastercoin network.
Note that the same answer doesn't hold for other currencies, say US dollars, because there is no direct way for the mastercoin client to know that US dollars changed hands.


---

