Why do you want the value to be raised? If it was lower, more people might start using bitcoin. Is that not what you want?

That's right. But it will not happen suddenly. It will come as a gradually increase in the doubling time for computing efficiency. This only means a sligt anti-inflationary bias for the coin. No problem.
That happens because of jumping to different technologies - CPU-->GPU-->ASIC. We can be pretty sure that after arrival of ASICS, Koomey's law will rule.

I'd also like to emphasize more clearly a few advantages this supply mechanism will have:
1. Price cannot swing to much - too high and everybody will start mining, too low and people stop mining, meaning supply gets limited, driving price up.
2. People can start using the coin without any exchange. The simply can mine it themselves without very advanced hardware. The electricity company works as your exchange. Provide A gigahashes to network, and you get paid A coins in reward.
3. Mining will always be profitable, for someone. No need for transaction fees.
4. When someone buy this coin from you, they know you also have paid for it. No-one could print it easy because they knew about it early. This fairness of acquirement is a prerequisite for any crypto to achieve broad adoption.  

Bitcoin's and other altcoins limited supply is what stops them from becoming a true free currency for the people around the world. We are loosing the opportunity, in spite that the solution is very simple:

One simply need to adjust how new coins are coming into being:

block-reward = C * difficulty    (meaning: money supply= hashing power)

The constant C is halved every 1.5 years - because that means you will always have the same amount of new coins given the same amount of energy. (see Koomey's law)

Even if the whole world started to use this coin, it would not give price explosions. Value would always be tied to energy in some more or less predictable way.
Cruptocurrency technology has two core features; proof-of-work and money supply. Why have they not been connected? This mechanism connects them, and does not need any man-made ideas for the money supply. This reward mechanism is the natural one for crypto, and is the same as we live after every day: The more you work, the more money you get paid.

This is not a new idea, and has been around for long time, in several posts, for example here: https://bitcointalk.org/index.php?topic=178140.0 and here https://bitcointalk.org/index.php?topic=64637.msg759250#msg759250

UTEX: Coin with work proportional money supply

Utex (utility for exchange) is a coin with a tie between coin value and price of energy. This is obtained by letting the block reward be proportional to the difficulty. This means that miners get paid according to the work (or hashes) they put in, independent of network hashrate:

           Block reward = c * Difficulty

The constant, c, is halved every 1.5 years. This is consistent with Koomey's law that predicts a doubling of computing power each 1.5 years, given the same amount of energy. The reward policy will ensure that the cost of producing 1 UTX requires the same amount of energy, over time. Beware that this does not mean halving of the money supply, as is the case for coins with fixed supply. Koomey's law is essential here, and has proven stable for several decades.

Key features:

• Mining cost per coin remains constant, in terms of energy
• Total money supply is unlimited, and non-predictable
• Energy cost put a limit on price - if too high everyone can profit from mining
• Supply will grow with increased adoption

Utex will not benefit early adopters on the cost of the later community. Hence, it will not behave as a commodity, or subject for speculation, and it does not encourage hoarding. The objective is to create a coin that can achieve common acceptance as a utility for exchange. The coin is inflationary, but the inflation rate will be self-regulating because if the value drops, the incentive to main will drop accordingly. I have given some more arguments about economics here: www.gigahash.blogspot.com

DEVELOPERS/MINERS:
Utex-a is a litecoin clone version with the following features:
Block reward = 0.01 x Difficulty (--> 429 gigahash per coin) - but never less than 1 UTX.
TCP/RPC = 31510/31511
Minimum monetary unit (satoshi) = 0.01 UTX
Github: utex/utex-a
addnode: 188.226.144.128
Time between blocks & retargeting similar to litecoin.

Only the genesis block is created. Anyone can create the first block. The minimum difficulty limit is 1. The minimum block reward is 1, meaning coins are discounted for difficulty below 200.

I seek developers that share interest in this project. I am not an experienced coder, and I did this work only to check that this concept is possible, and to attract attention and interest for a cryptocurrency with a different monetary policy.

 

Hi
I made a litecoin clone for experiments & learning. I have compiled and started the headless client (mycoind) at two different machines:
1. My home machine, with ip1
2. My workplace machine with ip2
I have a VPN connection, so I work on machine 2 using ssh.
In each of the mycoin.conf files I have added the line connect=ip, where ip=ip for the other machine. I also do the same with rpcallowip=ip (not sure if it is needed though)

But the debug log files only goes like this:
2014-05-18 11:45:03 trying connection xx.xx.xx.xx lastseen=0.0hrs
2014-05-18 11:45:03 connect() failed after select(): Connection refused

If I start the client without specify connect, it get many connections (I use litecoin ports), it seems to be happily mining, not bothering that it is mining coins on its own different chain.

EDIT: SOLVED: Use the Bcast ip, get it from $ifconfig:

Is there any advange using bitcoin-scrypt vs litecoin for this?
(I tried to build new block chain using litecoin, but get into same problems, the tips above did not fix)

Seems so! I have plotted a closeup of the same graph as benjyz showed here:


upload image

As I understand, the difficulty is the number of hashes, divided by 2^32, required (in average) in order to get a SHA-256 below a target value T. And further, that the target value is actually what is adjusted in the algorithm. Is it then correct that D*(2^32)=(2^256)/T ? Or have I got it wrong here?

I checked the numbers at  http://blockexplorer.com/q/nethash/ : after Dec 29 2009 the difficulty is given in decimals but before that date, it is exactly 1. Why?

Thanks TierNolan!

I understand that the bitcoin algorithm adjust difficulty by measuring the time it took to find the last 2016 blocks. What clock is used?

I did too. Does not really matter. Life goes on;)

And how many persons holds those 250 adresses? I would guess very few.

A pity that so much cleverness and creativity is wasted on carrying forward such a completely stupidmessage. Jesus Christ! Bitcoin vs financial crisis!

Bitcoin is not a currency. It can best be compared to rare football game card collecting. It has no value except for the imaginary value assigned to it by a small flock of enthusiasts. (Of course there is an very interesting and new technology behind it, but that is a completely different story)

So many people hee complaing about the problem of diluted values, no backing etc. This is not a problem unless you have a lot of cash. Then go change it into stcks or bitcoins or whatever. And use cash only for exchange of goods. Problem solved.

Interesting, though:
1. If internet reliance fail, I think bitcoin would only be a footnote in the list of problems.
2. You do not need to store the blockchain locally. There already existvservices that stores blockchain that is accessed by locallystored wallets.
3. Who are the fewindividual that contol thevsource? Bitcoin foundation? Not sure I get what you mean.

But is it the job of currency to be pre-distributed unevenly? Should that not be the job of capitalism?

Thanks. Yes, I agree with everything you say. However, I would like to see a crypto challenging the fiats, but I doubt btc ever will.

Yeah, Ive seen that video earlier. I also seen Bill Stills video on the money masters and Money as Debt. I am not completly blank when it comes to monetary systems. However, itvseems to me that many people on this forum are, knowledge limited to belive that limited supply is thevsalvation. It is not. I am trying to explain people that it is bitcoins kill switch. Those who understand that is also the same people who have personal interest in extending bitcoins life, before its unavoidable demise.