Currency backed by gold, not an illusion.
what can you do with gold that you cannot do with bitcoins? it has value because is rare, period can be used in manufacturing of some electronic components, but it is not only option... ~90% (?) of its value come from limited supply not from any kind of actual usefulness same with diamonds Gold does not have value "because it is rare, period." There are many rare things - for example a blue cactus is rare, why has it not become the foundation of the global monetary system? Gold is valuable in part because it is rare, but rarity alone is not a sufficient condition for value. The real reason gold is valuable is because it has a unique set of characteristics that make it effective as a money (and there are wonderful parallels to Bitcoin in this regard). This piece explains it: http://bit.ly/dk0VzYSimilarly, Bitcoin's value comes only in part from its rarity - but the larger part of value is its effectiveness as money due to its characteristics (secure, private, decentralized, diminishing rate of inflation, etc.) |
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as a suggestion against short-term self-interest (and against the interests of enough other early adopters that it won't be popular), i am convinced that the absolute best thing for the bitcoin technology at this moment would be for gavin to release a version of the client that restarts the block chain.
a controlled popping of the speculative bubble now would be better for the technology's perception than the uncontrolled one that is more likely, and it would help put to rest (or at least delay) the 'get rich quick' mentality that mike rightly criticises.
Yikes, bad idea. An artificial "popping" of a bubble is just as bad as an artificial inflating of one. Let the market work, my goodness! The extent to which Bitcoin can simply be "reset" is the extent to which it will fail. I can't think of a worse thing for Bitcoin than to start "socially engineering" it to adjust its distribution "more equitably." Laissez-faire. Let things be. Let markets and prices deal with markets and prices =) |
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We need a miners union to enforce liveable wages. *cough*
Wow I can't tell you how refreshing it is to be reading comments like this and know that they're sarcasitc!!! Thank you Bitcoin for allowing me to find other people who actually understand money and economics!!!  |
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It is a longstanding myth that a constant/fixed money supply is "bad" for an economic system. The amount of money in a system is irrelevant, so long as it doesn't change unexpectedly (and so long as there are enough units to facilitate trade). Prices are set according to supply/demand of money vs. the good, and a set amount of money simply means the price adjustment occurs in the price of the good.
Those who think money needs to be "added" to a system over time to permit economic growth are confusing nominal growth with real growth. Probably every politician in America save Ron Paul doesn't get this.
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People will hoard until the value of Bitcoin reaches a point where they'd rather spend. This is a self-correcting situation. Not a problem.
This! +1 "Hoarding" is just a slanderous term for "saving" and savers build capital reserves to fund investment. If money is "hoarded" and becomes scarce, interest rates rise and the incentive to lend is increased, thereby correcting the problem. Hoarding is a non-issue in the long term. It is self-correcting. In the short term, Bitcoin speculators may hoard coins but they risk severe losses proportional to the extent of such hoarding. Free markets work - we just need to stay out of their way, and not concern ourself with the sometimes uncomfortable or even painful short-term fluctuations. |
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Dude, that font kerning on "Memory Dealers" is IMHO really terrible.
Agreed, I've fixed it now. |
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Throwing this idea out there: If you're giving out Bitcoins to get people excited and curious, perhaps don't tell them exactly how many Bitcoins they've "won." Instead, the card should say "find out how many you've won by visiting xxxxxxxxxx.com" or something similar. This curiosity element may yield better response rates. A truly scientific group would take two cities and distribute fixed amounts in one city and unknown amounts in the other city, then track response rates and adapt the program accordingly.
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 Was looking for an excuse to procrastinate my other work this morning! Here's a first draft, I tried to stick to your branding look and feel. Roger, feel free to PM me or email at erikvoorhees@gmail.com. Obviously don't use this JPEG for the billboard... I'll make you a vector print ready version. BTW- I always hear your ad on Free Talk Live! =) |
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Bitcoin transactions are anonymous, but that doesn't mean banking systems using bitcoins need to be. I can imagine a bitcoin bank would not lend anonymously for obvious reasons. The solution is simply that the bank needs to know who/where the person is, and have a reasonable expectation that the loan will be repaid. Some banks will have higher thresholds for "reasonable expectation" than others, and you'll see this risk reflected in the interest rates they offer. A bank which required proof of identity and/or collateral will be able to offer a lower interest rate and the market will decide what model works best, or perhaps multiple types of banks would exist concurrently.
Also, regarding fractional reserves... there is nothing wrong with them SO LONG AS bank losses are not insured by a government agency AND so long as the bank makes this fractional policy known to its depositors. A fractional bank can offer higher interest rates than a 100%-deposit bank, and individuals can choose their risk/reward accordingly.
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My point being: for every cent spent, there's a huge lobby or audience that is going to cry "We will vote for whoever continues spending this!". Nobody accepts cuts. That doesn't change, debt doesn't change.
Simple. But want your cake and eat it, too? Does not work.
I'm happy to accept all cuts of all US Federal Government "services" in return for my taxes back. I don't want their cake. |
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(It appears there are some maximum transaction amounts on Mt. Gox.)
The "maximum transaction amounts" are simply limits of bid orders, correct? And the bid orders is hypothetically unlimited if price is variable (ie- I'd offer to buy an infinite number of bitcoins for $0.00 each). So people can always "cash out" back into dollars, but the question is "at what price" and this dynamic is true of any currency. The larger the Bitcoin community grows, the more stable the bid price will become over time and the easier it will be to "cash out" at a given price. |
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50 x $7.20 = $360
dude, you are an ass. there is a guy on this forum raising capital for his company, the whole of which (including the domain name) he has valued at $490.
you really think that domain is worth 360 dollars? I certainly don't.
build something with it or give it to the dude for a nominal fee. I hate cybersquatters.
Don't get your panties in a bunch. I purchased the domain, along with a dozen others, because I thought their current market price of $11 on GoDaddy was lower than their true market price. This is called speculation, or arbitrage, or investment. I had no "unfair" or corrupt advantage in acquiring the domain - anyone could purchase it as easily as I. Nor do I have intentions of "gauging" anyone who needed the domain to operate their business. It's a generic name that I thought may be valuable, so I purchased it. If that makes me a "cyber-squatter" then I'm also a stock-equity squatter, a car-squatter, a currency squatter, a business-squatter (since I've bought a small business on the same arbitraging principle) and a squatter in precious metals. I guess I'm a Bitcoin squatter as well. Of course the crucial definition of a "squatter" is someone who uses property not belonging to them. Before you called me an "ass" for engaging in a voluntary market-based transaction which you didn't approve of, I was going to post here that I'll offer to do the brand identity design for the domain/credit union if someone was interested. I build brands professionally and usually charge much more than what amounts to 50 btc. However, I love the Bitcoin concept and am happy to work with others to help build it. I'm still happy to build the brand if approached for such. But please don't call me an "ass" or a "troll," if for no other reason than that it degrades these forums. And do trolls typically use their real names or hide behind pseudonyms? My name is Erik Voorhees, I'm not an ass nor a troll, and if you'd like to discuss with my why purchasing domain names is illegitimate, please do so without devolving into personal insults. |
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There is one project: bitcoiners.org I think I'll start developing competition to that site soon... Oh sweet! Checkin' it out now. |
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There is nothing special about gold. The only reason it has lasted as a money for 5,000 years is because there was no superior alternative for certain financial needs.
False. There is something special about gold. No other commodity possesses its particular blend of characteristics - and these characteristics make it desirable as a money, thus it is used as such. Lumber and coal do not possess the same benefits as gold, and thus they are not used as money. Same with stuffed animals, buckets of water, and raw iron. Gold is unique in its properties, and its use as money is derived precisely from these properties. That doesn't mean it's the ONLY good money, or that it will ALWAYS be preferred as money, of course. And indeed a few of us on this forum believe Bitcoin possesses special characteristics which make it a superior money even to gold! =) I wrote a piece about this if anyone wants elaboration - understanding money is very important for anyone who wants to encourage the growth of Bitcoin. http://bit.ly/dk0VzY |
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So let me guess. The politicians and media people are going to yabber about the ceiling and blame the other party for the debt. Then they will procrastinate in actually raising the debt ceiling until the very last minute. Then they will threaten a government shutdown and try to frame the other party as being responsible for why any of your friends who work for the US are stuck without a job. Then they will miraculously stitch together a hideous bill that no one actually likes, but they manage to pass it by strategically adding pork, strangely-worded clauses, and appending entirely unrelated bills to it. They they will tell us that they didn't want to do it, but that they were forced to and had no choice.
You make it sound so simple! Why is it that so few people understand that that is exactly what's going on? Oh right, because they were educated in a school system run by the same people. |
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A congress that banned BitCoin would have to be sure that such a ban did not violate The Constitution, in particular the First Amendment.
A Federal ban would probably instigate legal cases against the ban, putting the value in limbo, especially if there are injunctions. It may pit the Executive branch against the Legal branch given the communication aspect of BitCoin transactions clearly make it a form of expression.
Ahahahaha this made my night. As if the US Congress respected the Constitution! The very dollars they now print are unconstitutional, and such hangups as "the Constitution" will never prevent them from assaulting Bitcoin, unfortunately. |
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Making coins dissolve serves no good purpose. If coins are lost or go to waste, that hurts nobody but the holder of those specific coins. Holders of all other coins benefit from the reduction in coin supply as their coin value increases. The economy doesn't care, as prices merely re-adjust to the new quantity of money. I suppose it would hurt debtors because the value of the currency the owe has increased, but that's a great reason to not be a debtor =)
And, if Bitcoins truly respect property rights, then I have the right to sink my coins to the bottom of the ocean forever. Usage ought not be a pre-requisite of ownership.
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