The price drop rumor is that the Winklevoss twins had an argument tonight about some twin girls they were dating and both liked the same twin, even though they looked identical! So Cameron in a fit of rage, decided to dump the Bitcoins.

Of course I used a value for E that I could obtain quickly (650 from Blockchain.info) to calculate the first ever estimate of the Satoshi Coefficient. In reality, determining E precisely is quite difficult. The interesting aspect to this new coefficient is that it lays the groundwork for a new network to efficiently compete with the Bitcoin Network by focusing on optimizing H,n and E to get a better coefficient than Bitcoin's. However, the Bitcoin Network quite naturally is working to increase its Satoshi Coefficient. In fact, a certain network topology, node feature set and energy source is the logical outcome. I think that's enough info for now, I've already given away valuable information. Enjoy the Satoshi Coefficient. :-)

Its a calculated number that just uses simple but important metrics. I would speculate that if there was another network right now with a Satoshi Coefficient of 3,000 it would be beating the Bitcoin Network right now. Yes, that network's coins be more valuable than Bitcoin's. Its just an idea, but I think it shows how the Bitcoin Network should be improved: more hash rate, more hashing nodes and less energy. If you follow this thinking out some, it results in a very interesting substrate.

I think energy is an important part of the coefficient because it is a fundamental way in which we measure work. The Bitcoin network brings together mathematics and energy (work) in an amazing process. I think the Coefficient is a way to try to quantify this in an amazingly simple formula.

I am pleased to provide the first estimate of the Satoshi Coefficient using the following values from Blockchain.info about the Bitcoin Network.

http://blockchain.info/stats

H = 110,559 GH/s
(E will be estimated from Blockchain's 650 watts per gigahash)
E = 100,559 * 650 = 71,863,350 W/s
(n is determined from "nodes connected" at http://blockchain.info/connected-nodes)
n= 1175

Satoshi Coefficient estimate = 2,124

I chose to follow Metcalfe's Law:

http://en.wikipedia.org/wiki/Metcalfe's_law

The Satoshi Coefficient can be defined as follows:



Where for any time period:

H is the hash rate
n is the number of hashing nodes in the network
E is the energy consumed to sustain the hash rate

The Satoshi Coefficient is a value that can be used to rate the quality of a distributed crypto-currency network.

Hello Bitcoiners,

If it has not been done already, I would like to propose a new subforum called "Prior Art Disclosure". This forum seems like a good place to host it.

The concept of distributed crypto-currency (DCC) allows a revolution in new ideas. As such the more ideas we can document as early as possible the better. This way, when the patent trolls set in, there will be a good database of Prior Art Disclosure to ward of patents that will limit potential. And, it will be a easy place to go for patent examiners to look for prior art when examining DCC claims.

Thank you.

The cracker is still going:

Jon Matonis ‏@jonmatonis
Sorry about all the confusion, this is my personal address, donations are appreciated: 14yMcPkqUVYrXFLwxJdSS34ae7reFmg5PJ

With the long weekend in the US this could take until Tuesday to resolve.

It looks like the cracker has figured out he has been spotted and he moved his 0.5387 stash of loot to 14yMcPkqUVYrXFLwxJdSS34ae7reFmg5PJ.

I assume it's a he.

Jon Matonis' Twitter feed has been strange. There have been strange tweets that stay up for a few minutes and then are deleted.

For example, something like "I have an emergency situation please send Bitcoin donation to 1NmjJSDfSTRy6Ez4USyKct1mXgwteJvqfj".

And then, "I am selling my personal mining rig DM me for information".

Keep an eye on the feed, it's strange. I'm sure he's locked out of his own account. I suppose the Foundation can confirm whether the donation address belongs to them.

https://twitter.com/jonmatonis

It has been interesting to observe the development of our thread.

My comments so far are:

1. The current US government requires the US dollar. It is necessary for its survival in its current form. Hence, Bitcoin will be made illegal soon in the United States. (With Peter Vessenes organizing a lobby, he will fuck it up. Perhaps there is a reason he will fuck it up).
2. Hemp and certain Mushrooms are illegal in most of the United States. They have been here for millions of years, Bitcoin for about 4 years.
3. The current US government is controlled by a layer above.
4. Most people who in live in the geographical area of the United States are good people. They are not the US government.

Predictions for the future:

1. People will be put in "Crytpo-Camps" for reprogramming by the US government.
2. The idea of distributed crypto-currency is out of bottle, the next stage of economic organization will take place. It will be a difficult transition.

Comment on the dork (troll) SEC Agent:

Where was the SEC for Lehman, Enron, Bear Stearns, Fannie Mae and AIG scams? The SEC is an unnecessary appendage of the US government.

Comment on charters:

These charters are old, they refer to god. There is no god. If god shows up with a charter then we can take a look.
There could be a new charter for the rights of people in this digital age.

Comment on countries:

There should be no countries and no world government. Let's get back to the freedom of the Magna Carta days where you could travel where you wanted without papers. But let's get rid of the Lords too.

Comment on discoveries:

Bitcoin was a wonderful discovery by Satoshi. All the pieces were there and he put them together. Let this be encouragement that there are other great discoveries that can be uncovered to free people from the Lords.

The "Crypto-Camps" have already been built for the reprogramming operation. They have not included Internet access for the patients.

http://www.youtube.com/watch?v=lcQ7mLoFro4 2 minutes 53 seconds

Hi Bitcoiners,

At some point in the not too distant future, the government of the United States will figure out that Bitcoin is a very high risk to its Hedgmony. (See http://en.wikipedia.org/wiki/Hegemony, Alan Greenspan loved this word.) The United States will make cryto-currency illegal because it will threaten the government's form of money (Federal Reserve Notes). Something similar happened on April 5, 1933 with Executive Order 6102. (See http://en.wikipedia.org/wiki/Executive_Order_6102). History tends to repeat itself.

Those who disobey the upcoming Executive Order or new law will learn what truly backs a Federal Reserve Note, that is, the force of its military and growing internal police state.

What is the solution to prevent the United States government from implementing such an action against cryto-currency?

I no longer want to be a member of the Bitcoin Foundation due to obvious reasons.  What is the the process to resign as a member?

It has been stable in the past.  If we look back in history Bitcoin periods of volatility have been shorter than the periods of stability.  In the future, it should stabilize as much as gold and other currencies are stable against one another.

I predict $55.49 on Mt.Gox in the next week.

A  United States corporation vs a  Japanese corporation in a United States court room.  I think it will be difficult for Mt. Gox.

USD $75 million is a big chunk of fiat.  I wonder how they tricked Mr. Karpeles into signing such a bad contract with no financial consideration being paid upfront?