Bitcoin Forum

Would anyone be interested on mining USD, if it was possible, @ $0.01  per block (scrypt)?

Only BANKS can do that

USD is loser currency. Who would want any ;D

Hypothetically speaking, of course.

For what I know, it's  stable and accepted anywhere...

I don't think much anyone takes it around here...

Banks do it all the time when they buy Treasuries from the Federal Reserve that are destined to be converted to currency.

In my wonderland case, i'm talking about regular bitcoin miners.
Imagine the Fed starts issuing dollars through mining, 0.01 USD per block. Would you be interested on mining?

just keep imagining...

why would they pay you for mining...

when they can just PRINT MONEY right away?

does not make sense...

To provide the illusion of a well-designed currency, of course.

For that to happen, it would basically put the Federal Reserve and the Banks out of business because there would be no more centralized book keeping.

Bitcoin completely decentralizes the books by giving everyone a copy of the books.

Personally I would not put any extra effort into a currency scheme with centralized book keeping.

I mean I already participate in a currency scheme with centralized book keeping...why would I need another one?

 Please forget about all the rest,  books, politics and all. My question is: if it was possible to mine real dollars, would you mine them @ 0.01 per block? A decentralized alt currency that gives you REAL dollars.

Ok so we are going to get rid of the Federal Reserve and all the banks because we won't need them any more.

I guess the next issue I have is the Treasury itself since its activities (print money) are based on confidence in the government.  I might mine USD but it would depend on my confidence in the government at any particular time.

So in response to your question, yes I would mine USD as long as the Federal Reserve System including the banks where abolished but it would still depend on how confident I was in the government at any particular time.

Ok, so you would be willing to mine it @ 0.01 USD per block. Let's say there is a new block every 10 minutes. What would be a fair difficulty for "dollar miners"?

A penny for each block, split between all the miners in a given pool would be less than a penny reward for each block; you burn more $ in electricity for that ten-minute block than you earn that $<0.01

You'd have to be making some sort of patriotic sacrifice to go along with this.

You cannot set difficulty arbitrarily...it is a function of network hashing power and number of dollars in circulation.

As the other poster mentioned, you are assuming that there will be enough hashing power out there from folks who want to support the network.

There are 3 kinds of miners out there:
1. Miners that will stop mining when they stop making money
2. Miners that will mine as long as they break even
3. Miners that will mine no matter what

So your arbitrary 0.01USD may not be appealing to all 3 groups which will affect the network hashing power and the ability to confirm transactions in 10 minutes.

This is actually no different than the current situation we are in however, Bitcoin doesn't have "Legal Tender" stamped on it so who cares.

What about solo mining @ constant low difficulty?

Introduces the double spend problem and reduces the security of the network.

Hmmm because the higher the difficulty, the higher the security?

The easiest way to illustrate this is by looking a typical credit card transaction as follows:
1. You hit the 'Buy" button at an online store.
2. An encrypted request for authorization goes to your bank.
3. Your bank unlocks the request with a key.
4. Your bank examines the request and your account.
5. Your bank sends an encrypted response to the online store either authorizing or denying the transaction.
6. The online store unlocks the response with a key.
7. You either get or don't get your stuff.

If the encryption scheme or difficulty of the message was easy to break then you could theoretically intercept a request or a response, craft your own request or response and send it on its way.

 Thanks, pjviitas. So the difficulty DOES have to be variable as done in bitcoin.

I'm already mining alternative currency AUD, but it's very time intensive. I work 9-5 and get rewarded fortnightly. Difficulty has been pretty stable.

What's AUD?

AUD - Australian Dollars
He's just saying he works a job 9-5 so that he can "mine" some money.

lol indeed :)

I use the low usage preset in GUIMiner Scrypt. The high usage makes me uncomfortable with the way it makes my entire system hang for 2-3 seconds at a time.

I would quit mining and put throwaway_value dollars into it instead. There's no coin that will be comfortable for you, you'll have to either invest into some mining gear or just buy some coins directly :S that's how it is yo.

.01 USD per block or 25 BTC...

Even at $5000 usd a block I'd mine BTC...

I'm running 720 GH/s, nothing amazing.

USD is a proof of stake coin.  The stake is often called "collateral" and the coinbase transaction is called a "loan". 

If you are serious about this then it would be an alt-coin not the United States Dollar.

I didn't even think it was possible to mine USD? There are so many regulations regarding USD that I am sure it would be impossible to mine. I personally would not even consider mining USD even if it was possible because of the regulations behind it.

get a pickaxe and mine gold instead

Is there any block reward for realcoin?

http://www.coindesk.com/brock-pierce-announces-dollar-backed-cryptocurrency-realcoin/

they steal it actually, but whatever

Yes I would mine USD but only if I could have some btc profit from that.
Btw you can mine USDe, an altcoin which was created some months ago.

Is this topic related to the troll army draft in the service forum?

https://bitcointalk.org/index.php?topic=695428.0

Only central banks can "mine" dollars, unless you want to practice a federal crime that can give you 10 years in jail

Let us say the creator of an altcoin deposited a stash of dollars, from which miners would be gradually rewarded.
Works similar to 'mining' of USD.

The created of the altcoins would have no reason to do this. And the miners would need to trust that the creator would actually payout the dollars.

The closest thing to mining dollars would be to mine bitcoin or some other alt and convert your mined coins into dollars.

Actually, it is the US mint that does it for coin.

The cost of producing each dollar coin is less than 20 cents based on the metal and labor cost, and they are selling them at 1 dollar each, which you can use anywhere in the US.

I don't think this would make very much sense to me. How would the creator of the "dollar coin" be compensated for doing this? What incentive would he have?

Why would anyone hold a currency, that is GUARANTEED to depreciate in value. And there is nothing you can do about it, as long as you hold it!

I'd mine the shit out of it then dump it into BTC.

Its easier for the federal bank to print them, 100million a minute...

And if the difficulty gets too high, they can just change the blockreward :D

1000 USD notes will come back :p

and we all know that centralized currency with unlimited amount of coins (paper) will be worthless garbage ;D
hope people understand this and leave that shitty worthless paper for economic transaction

You have to procure that worthless garbage, at least to pay your taxes.  ;)

USD can't mined  ;D
they only can created by print it / edit it  ;D

i hope you don't mean Altcoin USDe  :P

Yes, and the average life for a reserve currency is only 80 years. For normal currency it is even shorter. Good future ahead of us :D

This idea better applies to power utilities... They pay you $0.01 per block and you pay them $0.02 per block at the end of the month for power usage... Perfect business model :)

The incentives look much better if you consider the creator to be a large portion of the mining capacity of the network.  By backing the blocks he doesn't earn, he gets to float the blocks he does.  An open market will really back things in the long term as the initial seed USD runs out.  In addition, he can gain transaction fees if the network becomes popular.  After the seed USD runs out, it may have to break the peg and USDcoin would possibly become more valuable than USD unless more backers are found to keep mining more USD.

I think this would really amount to paying others to mine their altcoin by buying the coins miners mine back from the miners at a fixed rate. Once the fund to buy the coins back is dried up the miners would no longer have an incentive to mine and since you were the only buyer the price of the coin would drop to near zero (or more likely to zero).

The network could run on transaction fees alone. Retailers could adopt it as it removes price volatility totally. If the number of transactions is high, miners would have a lot of incentive to keep their clients running.