jaydeeaich at gmail.com
Tue Mar 15 03:05:47 EDT 2011
On Mon, Mar 14, 2011 at 10:34 AM, David Kuehling <dvdkhlng at gmx.de> wrote:
>> On Sun, Mar 13, 2011 at 10:04 PM, Sebastien Bourdeauducq
>> <sebastien.bourdeauducq at lekernel.net> wrote:
>>>> On Sun, 2011-03-13 at 14:49 -0700, Ron K. Jeffries wrote: My mind is
>>>> open, but it's not clear to me Bitcoin will prove to be a practical
>>>> method of making payments.
>>> Why not? Basic Monetary Economics, They give out bitcoins for
>>> free. money
>> functions as a medium of exchange, store of value, and unit of
>> account. Bitcoin terrible for all 3 of those fuction
> The current rate at which one can generate bitcoins is so that it takes
> more electricity to run the algorithm than the amount of bitcoins you
> get out of it (you may get slightly better than parity when using a very
> modern computer or dedicated hardware). I feel that this is what
> defines the current value of bitcoins.
Go read the ****ing Bitcoin FAQ
"It's a common misconception that Bitcoins gain their value from the
cost of electricity required to generate them."
> How is that different to mining for gold, when using gold-backed
> currency (like the dollar has been, a few years back)?
Despite President Nixon “closed the gold window”, ending
convertibility between US dollars and gold on August 15, 1971, the USD
is still, de jure, a gold(and/or silver) coin.
Under US law the paper bills and coins the US mints are technically
cheques (a document/instrument that orders a payment of money) for the
face value and not actually the money itself. But as the US has
stopped converting the cheques for the actual gold how much gold is in
1 dollar is as unimportant as the percentage of real life unicorns
that are pink.
Becouse there is no bank that is backing up the Bitcoins with
electricity and/or computation.
But even in your fantasy world where it is the equivalent of mining
for the species of a species backed currency.
You are for getting why every one used gold to back their currency.
their has been(or at lest not before the world went to fait money) any
significant amount of gold being mined. (meaning that the amount of
gold in circulation was relitivly constant as the gold being mined was
being canceled out by the gold being lost in ship wrecks or turned
into electronics and made into jewery and and fiat money coins and
So the answer to you quest, "How is that different to mining for gold,
when using gold-backed[sic] currency", is that the 2015 moment
happened a long long time ago for gold and we still have around 4
years until it happens for bitcoin.
The answer to "How is bitcoins different to a fiat currency?" the
bitcoin community want lock you in jail or seize your assets is you
don't pay their fees like Protection
Racket^H^H^H^H^H^H^H^H^H^H^H^H^H^H^H^H^H Government issued fiat money.
What is Seigniorage?
The different to mining for species, when using species commodity
money and bitcoin is that bitcoin is not a currency. as Wolfgang
pointed out bitcoins are not a medium of exchange that has general
acceptance in any community.
Wakan will use a Floating Exchange Rate
like these guys do:
> Also note that the total number of bitcoins that can exist is limited,
> and finding new bitcoins gets exponentially harder, the closer we get to
> the limit. Sometime around 2015 the number of bitcoins will be close to
> constant, so no inflation.
And they could have 0 inflation from day 1 if they choosed to to make
the coin the solution to something like the previous block's solution
they choose to make a system that is ****ed up after all the bitcoins
The minting process IS NOT to CREATE " the solution to a certain
calculational problem (i.e. creates a new block), for which an average
solution time can be calculated."
Nor is it to find out all the solutions to the magical calculational problem.
It is to decide the coin value of the
The minting process is to FIND THE COIN VALUE of the block.
They could have just designed is with all the coins some Federal Bank
of Bitcoins wallet and then sell then for at some fixed value. which
would have funded the bitcoins project and given the coins an initial
value. or they if they still wanted to do that could have but them in
easter egg wallets and have people brute force the keys to open them.
> This feals much more robust than dollar or euro.
That why I don't use dollar or the euro.(as money, I do use US
dollars for dollargami :P )
"How does Bitcoin work?
Bitcoin utilizes public/private key digital signatures (ECDSA). A coin
has its owner's public key on it. When a coin is transferred from user
A to user B, A adds B’s public key to the coin and signs it with his
own private key. Now B owns the coin and can transfer it further. To
prevent A from transferring the already used coin to another user C, a
public list of all the previous transactions is collectively
maintained by the network of Bitcoin nodes, and before each
transaction the coin’s unusedness will be checked."
No other currency REQUIRES you to publish that you report every singe
transaction to the whole internet.
> Didn't read the rest of your mail. Too long. Can't you express your
> thoughts in one page of text?
How about one sentence? You are a complete idiot.
Panthera Tigris Altaica
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