Bitcoin Forum

I just created a new video explaining how bitcoin has a use value beyond exchange. It's along the lines of proof of work being used for capcha. But I thought it'd be nice to have the explanation in video form.

http://www.youtube.com/watch?v=N1r7Fcm4pwA

Hope you guy's like it.

Edit: Re uploaded to better audio.

Sorry I deleted the other version, which took your comments off. Feel free to re-comment and re like as well

Interesting concept. But what do you do about the blockchain once "everyone" has to make a bitcoin transaction for captcha?

1.) the blockchain will grow exponentially
2.) the time till your transaction will be verified will grow likewise (taking up to several hours till your captcha is valid)

You could use something like disqus or mybitcoin as a central place to deposit any amount of coins, and then they have an api for forums to use that move bitcoins into their accounts in the ledger.

Saw your video and liked it.  Good point - and of course the more important point is that there certainly other "uses" out there that we don't know of yet. CAPTCHA can't be the only one =)

The video was well-argued, good job.

Thanks I appreciate it. Unfortunately the video already has 2 dislikes. If you liked it, click on that thumbs up.

That high compression noise in background is too disturbing to me.

I'm currently re compiling the movie with a more noise reduced audio.

Edit: It's up

You did a very good job putting your video together from an organizational and production standpoint. I wish I could make videos that good :) However, I really have difficult with the arguments you put forward.

I don't think capcha is an example of use beyond "exchange". I think the reason bitcoin can be used in place of capcha is the low transaction costs of the "exchange" (i.e. it wouldn't work with paypal because paypel has high fees, but if paypal had a $0.01 fee then it probably could work in place of capcha as well). Anyway, regardless, a bitcoin exchange in place of capcha it is still an exchange of something of value between the visitor wanting access and website owner wanting to avoid spam. I agree it is a very small exchange that most visitors consider negligible, but it is still an exchange of high enough value to prevent a spammer from making the exchange.

Also, I don't view "proof is work" as giving money value. Would you rather have a coin that promised “Someone was given this coin as proof they mowed a yard” or a coin that promised “I'll mow your yard when you give me this coin”. There is a very big difference between proof of past work and a guarantee of future work. The thing people value is the guarantee of future work and proof of work does not necessarily correspond to getting future work. For example, if someone dug a ditch, took a picture of the ditch, and then filled the ditch back up, then the "proof of work" picture they took would not really have any value even if the picture were a certified by a notary as legitimate proof that dug a ditch and filled it. Anyway, I think the concept of "proof of work" giving something value does not make sense when you really take time to think about it.

jep, very nice.

Thank you.


Let me see if I can separate the two. What I meant by "exchange" value is that somebody gives it to someone in exchange for a good, and they accepted it because they would be able to exchange it for a good in the future. This type of exchange is value for future value from someone else. Whereas the capcha is a value for value now from that person. They aren't accepting it solely to be able to exchange it for something later, but to ensure something in the immediate. It avoids the greater fool problem some people thing bitcoin has.


Neither do I, I view the future spam blocking applications as giving it value. The proof of work only shows why it has future spam blocking potential.

This critique makes no sense. You are claiming that the non-exchange value doesn't exist because the non-monetary use is useful and valuable and therefore is effectively monetary. WTF? that's the whole point. It's valuable, which is why it can be used as a store of value. 

It's an anti-spam and brute force password hacking prevention tool. That gives it value independent of use as a medium of exchange  or unit of account, but its utility value makes it a store of value just like a bunch of any commodity is a store of value. Its a commodity.