|
If new technology comes around that hashes faster than anything else, the Bitcoin network must embrace it. The new technology can be used to either strengthen the network or it will be used to attack the network. I heartily suggest that we promote the former.
|
|
|
|
Bitcoin: not a ponzi scheme.
"It gets promoted by its users" is not a sufficient characteristic to classify something as a Ponzi scheme. True. There are many people who are casually acquainted with it and think it's some kind of a ponzi scheme, or scam, or conspiracy, or whatever. Just giving out bitcoins for the sake of giving out bitcoins is nice, but the faucet already does that. If I'm understanding it correctly, OPs plan reinforces that ponzi thing - "Come get yer bitcoin! Get in on this thing, NOW!" without really demonstrating the utility of this kind of payment system. Youtipit is awesome-er. Firstly, as an introduction to bitcoin it can immediately demonstrate the usefulness of the currency - get money anywhere at any time. Secondly, it can immediately demonstrate the power of the bitcoin - get money anywhere at any time and for any reasonl; quality posts are rewarded, and a much wider audience is reachable. You dig me? It does seem like the original idea from this thread is pyramid-like. (not Bitcoin itself.) However, it seems to me to be the inverse of a pyramid scheme: With a normal pyramid scheme, an exponentially-increasing number of people funnel money to an exponentially-increasing but always smaller number at the top of the pyramid. With this idea, he proposes an exponentially-increasing but small amount of people funneling money to an exponentially-increasing but large group of new people. (That was worded awkwardly, I know.) So instead of having huge amounts of involved people generate money for a few people, it's a few people spending money in order to generate huge amounts of involved people. |
|
|
|
That's 21 trillion dollars. Double the size of the US economy.
And not all of the economy is in dollars. Due to velocity of money, you don't need 21 trillion dollars floating around to do that. We got plenty of digits for a LONG time. in the USA is currently $9 trillion. I'm not going to worry about all the problems Bitcoin will have when it is more than double the US dollar money supply. Eight decimal places is ridiculously overoptimistic. It is a not a problem. Period. |
|
|
|
|
I think we're 'what-iffing' a bit too much in this thread. Yes it can go up and down. No, we can't predict which will happen when or what will be the result.
|
|
|
|
The biggest risk from hoarders is a severe panic that would wipe out the value of Bitcoins.
You mean, the biggest risk from hoarders is if they all stop hoarding at the same time? |
|
|
|
Bitcoin: not a ponzi scheme.
"It gets promoted by its users" is not a sufficient characteristic to classify something as a Ponzi scheme. |
|
|
|
No-one will migrate to an inflationary currency. It's simple game theory: I stick here and my relative purchasing power goes up, or I go over here and my purchasing power goes down. Humans are selfish, and bitcoin fortunately supports that while keeping things fair  You are assuming government never gets into the business of regulating the Bitcoin economy, as they did with the regular, formerly gold economy. |
|
|
|
|
I see her point.
Let's say Bitcoin becomes as popular as the dollar. Banks start accepting it for deposits and making loans with it. At first you can cash out into your personal Bitcoin wallet.dat, but eventually banks start lending out Bitcoins from demand deposits. Bank runs occur. The US government institutes Federal Bitcoin Deposit Insurance and a Federal Bitcoin Reserve, institutionalizing fractional-reserve Bitcoin banking. Federal Bitcoin Reserve Notes are issued which are not redeemable in actual Bitcoins. And then we end up exactly where we are now.
The two solutions to this are
a) education about the problems of fractional reserve banking and the benefits of hard money
b) Making sure the default Bitcoin client is so useful that people don't feel the need to ever use banks in the first place.
|
|
|
|
|
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.
|
|
|
|
You seem to be unable to understand that I cannot give out loans without any funding. I also would like to note that one bitcent for ten bit coins is a very low rate (0.1%) and does not apply to values less than 10BTC
Since you all seem so pessimistic, here's an incentive:
If you deposit at least 50 bitcents, than you will get a discount when loans go live.
I'm still working out the JavaScript, but a site will be up soon with accounts and so on.
What benefit or service do people get for depositing in your bank? People with bitcoins to deposit in a Bitcoin bank are not going to be the same people who desire to borrow bitcoins. |
|
|
|
All this does is making the market depth useless and put small traders at a disadvantage.
Yup. They should be eliminated, and all orders should require a CAPTCHA to eliminate trading bots. My humble opinion. |
|
|
|
However, I think 1k is far too low to use the darkpool now.
Please elaborate. mtgox says that orders of over $1000 usd can be in the dark pool. That's only 134 BTC nowadays. |
|
|
|
Hm. Paypal has banned currency exchange, but have they banned payment to sites that only facilitate currency exchange?
As in, I PayPal some dollars to Mt. Gox, "an e-wallet service". Then I exchange those dollars for bitcoins there. Does this count as using PayPal for currency exchange? I mean, banks do currency exchange, but I'm sure PayPal wouldn't stop Bank of America from opening an account as a convenience to its customers.
Not that Mt. Gox seems interested in accepting PayPal. But with their volume they probably could---the proportion of dishonest people is not that high.
I don't think the problem is so much that PayPal has "banned" sending to currency exchangers like MtGox, but that they are very pro-sender when it comes to disputes. Too many fraudsters have sent money to Mtgox, and then later claimed they never received their goods, and it was impossible to convince Paypal that the purchaser was scamming. |
|
|
|
|
Many stocks pay no dividends.
|
|
|
|
Hmm, that site lots good- barely anything for sale on it though, which makes me think it's unlikely I'd ever sell anything.
Can you vouch for its legitimacy?
Also, they charge an insertion fee- which, seeing as I have no bitcoins, I wouldn't even be able to pay!
Any other tips?
Standard auctions are free, you only pay for highlighting/"Featured Auction" type promotions. But things do sell on there. |
|
|
|
Mining on a CPU is not time or cost effective. It will take probably 5 years or so for you go mine a single block on a CPU. Mining is only worth the effort if you are using high-end GPUs, and even then it is debatable whether it is profitable. If you want to get into Bitcoin, I would suggest selling some of your old stuff on Biddingpond, a free auction site that operates with Bitcoin. http://www.biddingpond.com |
|
|
|
|
Microsoft stock is designed to go up in value. Early adopters were greatly enriched at the expense of late adopters. Is Microsoft (or any successful stock-issuing business) a pyramid scheme?
"Increasing value" is not a sufficient requirement to classify anything as a pyramid scam or Ponzi scheme.
|
|
|
|
Ok, so I'm going a bit off topic here but there would also be an issue where people can't know what other traders are setting prices at (because those kinds of websites are illegal). If you are going to buy something in a competitive market then you usually research which alternative gets you the most bang for your buck. How would this be accomplished?
Look at what price in Bitcoin things are being sold at anywhere in the world, look up the dollar value of those goods being sold for Bitcoin, and there's your going market rate. Even if Bitcoin becomes 100% illegal and subject to a bloated federal War on Bitcoin, it will still be legal for people to publish going exchange rates. |
|
|
|
|
Show Posts
