Author Topic: Bitcoins  (Read 43986 times)

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Offline Alastair

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Bitcoins
« on: May 16, 2011, 11:07:14 AM »
I haven't read enough to fully understand this yet, but it looks like something that could take off, a peer to peer currency invented by the users.

If nothing else it'll be interesting to see where it goes - http://launch.is/blog/l019-bitcoin-p2p-currency-the-most-dangerous-project-weve-ev.html

or watch the video:


Offline Oblomov

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Re: Bitcoins
« Reply #1 on: May 16, 2011, 01:19:39 PM »
Haha, that's brilliant.

Virtual gold. I think I might get mining.

I wonder if it's really not hackable though....

Offline discodown

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Re: Bitcoins
« Reply #2 on: May 16, 2011, 01:24:04 PM »
Haha, that's brilliant.

Virtual gold. I think I might get mining.

I wonder if it's really not hackable though....
Its not much different to what underpins the whole banking system
“Let us read, and let us dance; these two amusements will never do any harm to the world.”

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Offline Alastair

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Re: Bitcoins
« Reply #3 on: May 16, 2011, 01:36:24 PM »
I already got my free 0.02 Bitcoin. Is it a bubble or is it worth putting some money into? There have been big returns for people who bought early.

If you really want to go mining you need a setup like this -




Offline Alastair

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Re: Bitcoins
« Reply #4 on: May 17, 2011, 05:37:05 PM »
Its not much different to what underpins the whole banking system

What does underpin the whole banking system? As far as I can tell money is a series of ones and zeros on a banks computer only held up by the faith of the people who use the system.

So no different to Bitcoins in principle.

Offline Oblomov

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Re: Bitcoins
« Reply #5 on: May 17, 2011, 08:20:54 PM »
Except the supply of bitcoins is completely finite.

Offline splodge

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Re: Bitcoins
« Reply #6 on: May 17, 2011, 10:05:45 PM »
Except the supply of bitcoins is completely finite.
Only because of a rule in the generation algorithm, from what I've read. This is surely the same as the old gold standard?

Another difference seems to be that BitCoins are not loaned into existence?
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Offline Oblomov

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Re: Bitcoins
« Reply #7 on: May 18, 2011, 12:28:58 PM »
Precisely.

To produce valid bitcoin out of thin air, you have to expend considerable resources. You can't do the fractional reserve trick and just add a zero to your balance when you want to lend it.

But here's a thing - because it's open source, what's to prevent a fork project, adjusted to different parameters - let's call it bitgold?  What would happen with a proliferation of digicoinage?

But I really like the decentralized, non-hierarchical structure of the idea. It's almost better than cash.

I've yet to discover how to put it on a pendrive though - as otherwise it's tied to the client on your computer.



Offline Alastair

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Re: Bitcoins
« Reply #8 on: May 18, 2011, 02:20:03 PM »
You can transport the wallet with you on a pendrive as the wallet.dat file, but you still need to copy that onto a computer to spend the Bitcoins.

The main problem I see is that they can't be spent on much so far and there's a deflationary tendency to the currency in that the currency is becoming worth more so there is no incentive to spend it. Maybe Bitcoins are the ultimate Tulip?

Offline splodge

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Re: Bitcoins
« Reply #9 on: May 18, 2011, 03:14:19 PM »
Interesting counter points to BitCoin's technological claims...

http://www.pds.ewi.tudelft.nl/~victor/bitcoin.html
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Offline discodown

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Re: Bitcoins
« Reply #10 on: May 18, 2011, 05:58:17 PM »
What does underpin the whole banking system? As far as I can tell money is a series of ones and zeros on a banks computer only held up by the faith of the people who use the system.

So no different to Bitcoins in principle.
That is it effectively. Belief in the system sustains it
“Let us read, and let us dance; these two amusements will never do any harm to the world.”

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Offline splodge

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Re: Bitcoins
« Reply #11 on: May 20, 2011, 12:37:59 PM »
There's a new javascript bitcoin miner available - TS could make you rich yet, Oblomov :)

http://forum.bitcoin.org/index.php?topic=9042.0
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Offline Alastair

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Re: Bitcoins
« Reply #12 on: May 24, 2011, 12:24:11 AM »

Offline Alastair

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Re: Bitcoins
« Reply #13 on: June 04, 2011, 12:48:47 PM »
The Bitcoins I bought just over two weeks ago for £250 are now worth £615. Not bad, eh?

Offline Oblomov

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Re: Bitcoins
« Reply #14 on: June 04, 2011, 04:13:35 PM »
That's the problem though, isn't it.

Bitcoins won't take off so long as everyone is sitting on them, and not spending them - and why spend today when they will be 'worth' more tomorrow?

If I had your means Alastair, I'd buy in for more as a currency speculator, and then get out early! Reinvest profit in more BTC and see how it goes!