Okay, there's something I've been struggling to make sense of with neoliberal economic policy for the past several months that I'm sure some smart economist must have addressed in more detail.

I understand the low level theory as this: maintaining a small amount of annual inflation (2-5%) through bonds at the central bank prevents deflationary and inflationary crisis, creates the incentive to spend cash and should cause perpetual economic prosperity while increasing income inequality.

Okay, that's fine, but the main problem I've never been able to comprehend:
1. Entities with more disposable income will no doubt buy bonds or better yielding equities, which will result in, overtime, the accumulation of wealth in an exponential fashion in these entities.
2. Entities with less disposable income will never benefit from this as they can not invest or can only invest less, with the bulk of their income being spent on necessities.
3. Eventually, just by having progressively saved money, the wealthy entities will accumulate exponentially more wealth than the non-wealthy individuals, likely forcing the non-wealthy individuals into severe debt and eventually poverty.

I did some basic calculations based on the current percent increases in the wealth of the top 1% of individuals in the year 2011, and it appears that by the year 2100 that 99% of all the world's currency (which we might assume to be related to their wealth) will exist in the hands of that 1%.  At that rate of increase, it's easy to see that within a short time we'd reach 0.1% with 99% of the wealth, then 0.01%, and so on.

I made up the name "low-level inflationary hoarding" because I don't know how else to call this, though someone probably has a better name for it.  It's seems just an insidious and slow-working form of rapid inflation that increases the wealth of the central players in the system, similarly to countries in which absurdly high inflation rates are common which eventually strip the middle and lower class of their savings and reward the highest of the higher class (who usually have possession of inflation-proof goods or bonds that the lower classes can not afford).  The hoarding refers to the possession of financial attributes that are investments that people who are lower class can generally not afford.

tl;dr: I don't understand how long term, small amounts of perpetual inflation can, over time, be any more successful of an economic policy as compared to short term, large amounts of perpetual inflation.  The latter of which I refer to as short term because the government usually collapses before the policy could be considered long term.

Well, technically, for lack of a better term to describe the composition of other (which you can determine generally using the block chain).  Using the term dark pool is also confusing because it already has a definition in algorithmic trading.  The composition of other, though, is either pools that are private or solo miners, so I'm not sure what term we should use to refer to it.

It appears that some of these pools/solo miners are either gone or have collapsed

How do I buy shares?

News at 11

Luke Jr. can't take down LTC so he 51% attacks a new GPU currency

On the windows version, I get ~11.34 kh/s per core on a 2600K @ 4.5GHz, or a total of 45.36 kh/s

Pretty fast!

Now that it's the holidays and people have turned off their computers, the botnet has collapse by 33% and now only makes up 50% of the hashing power 

http://pool-x.eu/net

Got the card, nicely packed

If I have any problems with it I'll post again, otherwise this shit is legit 

performance gain is typically 25-30%

modern virtualization uses barely any overhead on the cpu.  intel VT-x is fast (this was the whole point of hardware virtualization).  virtualbox is kind of slow because of the java reliance, but vmware player is generally pretty fast.


I'm not sure why it is, even compiled in 64-bit binaries for windows it has tended to be slower.  The Intel compiler may just choke on the scrypt code in terms of optimizations.  I guess you could always try compiling with mingw-w64.

download vmware player
install x64 ubuntu using an iso
do this:
avoid running minerd on windows altogether, even if it runs it tends to be much slower

Bitcoin is generally not an investment.  It's made to deflate or inflate as necessary and acts as a medium of exchange.

If you want solid, likely rates of growth, why not invest in some blue chips?

Okay, I'll snag one.  PM me your PP.

Do you take PP?

bump, you still have these?

Yep, see above post.  The miner themselves gave that message alongside the validation of the wallet where most of this LTC is going to.  The hashing power seems to be centralized into one or a few dark pools.


edit:

The dark pool or pools have been operational since roughly 10 days after the release of Litecoin.  Historically, almost all the LTC mined by the dark pool appears to be immediately released to the market at BTC-e for sale.

The dark pool provides a major advantage to LTC, which is that is is extremely difficult to attack (unless the dark pool chooses to).

On the flip side, there is the inherent problem of, aside from an unlikely 51% attack, these two scenarios:
- The dark pool is being mined by computers infected with trojans (botnet).  The release of virus definitions for these trojans would result in the rapid collapse of the hash rate by 80%, requiring weeks to lower the difficulty.  This is a likely scenario, as the hash rate here does not vary with the price of LTC (as you might expect for someone who has to worry about the costs of electricity).
- The dark pool decides to contract the supply by not bringing any LTC to the market for a long time, hence manipulating the market.  The possibility remains that the dark pool is attempting to assemble as large a mining network as possible before heavily constricting the supply, resulting in only a tiny amount of new coins being mined per day by others.  The result would be massive deflation.

The strange thing is that so far, the dark pool appears to have decided to sell as much as their LTC as possible.  With 80-90% of the mining capacity, the dark pool can act as a "central bank" for LTC; so why are they inflating it so intensely?

See the present dark pool size here: http://pool-x.eu/net

And historic network hash rates here: http://www.litecoinpool.org/charts

Android includes most of the standard Java classes in its SDK, so all you need to do is port the litecoinpool source to an app and run it.

No one attacks these currencies because you effectively lose most of your invested money into mining if you do.

Way to FUD it up CH.  The "dark pool" has had 50+% of the hash rate from day 10 of Litecoin's existence, I would think that by now they would have already 51% attacked the chain if they so wanted to.  My thoughts are: they know know they are the ones securing the chain and they also know they'll make the most money dumping into the market if the coin is secure, not if it's insecure.  The dark pool is only enhancing the security of the chain as it has been from the beginning.

Loan/borrow your coins?

"I will distribute it out (setting price)"

lol?  By distribution, you are in effect centralizing the currency.

But really, the security of the bitcoin network is due to the number of people mining...  I can't see any advantage to the system you describe, well, at all.  There is no output based on work, no large network backing, no logical distribution of the currency.  Why mine off transactions when I can get xxx coin from you for free?  Better yet, why would you ever give the majority of your coin away, or the people you gave it to give it away when you can hoard it?  The idea sounds like, "Why don't I just print my own bank notes and because the bank notes exist and they are scarce, they must be valuable".  The value of gold is mostly based around a decreasing rate of return for the amount of effort put into mining gold and the decreasing supply of gold.  I don't see how this makes a lot of sense, sorry.  I just don't see how it could ever get the kind of computing power required to be "secure" either.

The only way people would ever mine en masse is if you made the transaction fees enormous too, which is an obvious problem due to the fact that the item is intended to be used for trade.