bitcoin - currency backed by math

[RobertB]

It's a planned pump and dump to raise money for the starters and those who are smart enough to run the exchanges. Most accounts place the electricity cost required to run a machine to "mine" the bitcoins above their value. In any event, not too far down the line it's going to implode and lots of people will be left holding nothing at all.

[Irving]

I've heard you mention this before and have been meaning to look into it. Thanks for making a thread about it.

[Hoosier]

It's a planned pump and dump to raise money for the starters and those who are smart enough to run the exchanges. Most accounts place the electricity cost required to run a machine to "mine" the bitcoins above their value. In any event, not too far down the line it's going to implode and lots of people will be left holding nothing at all.

Yes I suspect that's partially correct, it certainly would have been easy for the earliest miners to be pretty rich. The real question is how many more people are going to try and get computer cycles in the pool before the curve levels off.

Beyond even "bitcoin" this first version of the currency (and there are already a number of variant bitcoin currencies, e.g. Liberty Reserve, btcEU) the concept is now with us, and as the system ages and proves out the crypto there could be a version of this that sees widespread adoption.

Smartphone apps to send and receive money via btc have got to be in development already. Since the "Address" is just a random string of numbers it could be easily turned into a QR code.

So you go to the gunshow and find a sweet deal on magazines, the vendor displays a QR code on his phone screen, you scan it with the camera on yours and send the money instantly for a one cent fee, with no Paypal or VISA sticking their fingers in the pie. I like that idea a lot.

H.

[DeusExMachina]

The earliest miners would only have something to gain if it took off. So they were really hedging their bets.

They have as much to gain or lose as the late miners, because the late miners are putting value to it.

[colocowboy01]

Cool post Hoosier. Thanks

[Irving]

Seems like this would be a great way to continue online gambling, and replace off-shore accounts as well. Since it is a closed system with set perimeters, it seems like it would be more stable, and a good investment if your country's currency is currently taking a dump.

Of course, all that is assuming that the concept is solid and takes off.