Bitcoin Forum
April 16, 2024, 01:35:24 PM *
News: Latest Bitcoin Core release: 26.0 [Torrent]
  Home Help Search Login Register More  
  Show Posts
Pages: [1] 2 »
1  Other / Politics & Society / Nuclear economics: Thorium is Bitcoin - Holy Grail Moment on: June 23, 2011, 05:09:20 PM
I'm on my knees in tears hyperventilating.

In Thorium
1. The hotter a Thorium reactor gets the less efficient it is at energy production. It cools down when it reaches its peak.
2. Thorium is assisted by U-233 which splits into an atom which takes Thorium back to U-233.

In Bitcoin
1. This is obviously analogous to the difficulty parameter.
2. This is the block chain.

I am humbled by this.

Kirk Sorensen lecture on Thorium:
2  Other / Politics & Society / How many BTC for 100g pouch of salt? on: June 23, 2011, 05:36:25 AM
I cannot think of a more accessible and therefore more viral concept than exchanging salt for BTC and back.
Beats even bitbills. Well almost.
Anyone care to throw gas on this fire?

Salt is fungible.
Try putting tracking numbers on salt crystals. Not gonna happen.

So any bids on 100g of salt for BTC or vice versa?

All it takes is one brave soul to start the snowball.
3  Other / Politics & Society / How does a Thorium reactor work? on: June 23, 2011, 05:02:44 AM
What are the reaction products?
Cost of materials?
How does it cool down?
How does it shut down?
Smallest package?

What we do not make IS what we do NOT TAME.
You want these bastards out? Make the SAME toys they do better than they do.
Social evolution requires bridges, half steps, and mixed breeds of solutions.

You first make a better mouse trap.
Then you run the mouse trap makers out of business.
Then you make a more humane mouse trap.

That is reality. Adapt or get out of the way.
4  Bitcoin / Development & Technical Discussion / Theft on the range - Unix style permissions on the wallet contents on: June 15, 2011, 09:45:37 AM
Unix about three different ways to control the manipulation of files:

Firstly, my C programming is awful, but this needs to be done.
Secondly, I realize that the current claims of fraud (not that I doubt) have been VNC based, account hacks, and possibly even socialed / carelessness.
This won't have a direct benefit in those cases. However, this would provide the foundation for implementing anti-theft measures.

The RWX model would be the easiest to emulate.

Think of a generalized version of RWX as non-destructive, destructive, active. The analogs for wallet permissions would be Receive, Send, Operate (addresses) / View (accounts).
Each address and account would have these settings. Operate refers to the ability to combine and split the amounts. For example, if you disable operate permissions you cannot send coins except if you send the whole amount at that address. You also have to receive at that address a steady amount per transaction. Not 5 BTC today and 2 BTC tomorrow. View would be the ability to sum the total contained at all.

This would probably involve a policy key containing the permissions signed with the key for that policy combination plus a timestamp (have fun brute forcing 24 hours of timestamps) and then with the key for that address.

I honestly don't know how well this would work.
5  Bitcoin / Bitcoin Discussion / General stupidity or coordinated psyop? on: June 14, 2011, 10:58:44 AM
The last few days of threads have been ridiculous.
6  Bitcoin / Bitcoin Discussion / Bitcoin is a potentialized representative communication of variable structure on: June 14, 2011, 10:49:47 AM
It's not a currency.

See topic.

7  Bitcoin / Bitcoin Discussion / The bias of circuit breakers (up good, dn bad) - I lost more going up than today on: June 12, 2011, 07:21:09 AM
If Bitcoin were used by 1 billion people, I would say large drops would need circuit breakers.

BUT: Large drops caused by bots forgotten in the last century are the reason for the circuit breakers.

On the way up, I lost $80. $14.4 for every dollar it went up.

Trading in the middle of traffic, I had $250 worth around BTC = $18. I had a buyer at $20. I had a seller at $17.5. I opened up the two trades. I sold at $20. The $17.50 one disappeared. No scam. Just took off. I bought at $23 to complete the sale. I was left with $170 worth.

On the way down, I lost $70. $9.1 for every dollar it went down.

Later, I gave out loans and wasn't able to make the hypothetical trades everyone here is using to support their pet theories. I'd lost from $170 worth down to $100. As well as some due to lending out to someone with a high rating that ended doing something stupid and scamming lots of people. And I actually think he'll pay me eventually.

But we're only going to include the market risk.

The difference for the first loss was $5.5 per BTC higher than $17.50. And it cost me $80 due to the missed connection. Yesterday's drop was $7.5 per BTC down from $17.5 and it cost me $70.

I lost more from it going up and trading in traffic per dollar, $80 / $5.5 = $14.4 per $1 rise, versus lending and having a business on the market, $70 / $7.50 = $9.1 per $1 drop.

I lost 50% more per dollar motion for it going up.
8  Economy / Trading Discussion / Send transaction packets for all currencies on: June 11, 2011, 06:08:33 AM
I have to stop having ideas. Never get em done that way.

All transactions should occur in bitcoin backed currency.

To get BTCs for dollars someone must buy bitdollars. Fuck you paypal.
9  Economy / Marketplace / Fractional Escrow: A way to end paypal fraud on: June 07, 2011, 01:55:25 AM
Think of friction. You have static friction and dynamic friction.

Based on the risk (successful tx / total tx) for a given payment method, someone trying to trade should have in escrow:

dynamic risk = past experience
static risk = risk with reduced participation of scammers
reserve = escrow amount

reserve * dynamic risk * static risk / dynamic risk * user risk for a given rating

There are a few scenarios of scamming:

They don't actually have BTCs. Problem solved.
They don't send BTCs. Escrow awarded.
They don't actually have dollars. This is least likely because no one would send to an unrated user who doesn't put out the cash.
They don't send dollars. Chargeback immediately results in non-reversible escrow award. Never allow the chargeback until BTCs are returned.
10  Economy / Economics / I started a country. Right here. on: June 06, 2011, 08:44:48 AM
You all owe me 1 BTC now.
11  Economy / Marketplace / Loan contracts offered - must have ratings on #bitcoin-otc on: June 06, 2011, 06:58:11 AM
Terms and rationale:
Volatility is high, liquidity is low. Being able to repeat the cycle quickly is the first priority.
Unlike most loans these don't run forever. As there is a likelihood of loss for both lender and borrower, it seems some mutual concessions are in order.
Interest, especially compound interest, is ludicrous right now. Loan fees are used instead. All loans shall end and not be renewed. The service may be reused.

There are three periods:
Repayment period: During this time the full loan amount will be repaid with only fees remaining on the balance sheet.
Fees period: After the full amount is repaid, the fees are paid over a longer period of time.
Settlement period: Any outstanding fees or principal not paid shall be cancelled after this time.

The settlement period is one. Larger loans have lower fees compared to principal.

Loaned    Repayment   Days     Total fee    % fee  Days   Collateral
Personal loans   Settlement 15 days
1BTC       0.2000BTC   5 days    0.2500BTC  25.00   2 ds    0.2250BTC
3BTC       0.5000BTC   6 days    0.6900BTC  23.00   3 ds    0.5950BTC
6BTC       0.7500BTC   8 days    1.2600BTC  21.00   6 ds    1.0050BTC
Miner loans      Settlement 30 days
10BTC      1.0000BTC  10 days    1.9000BTC  19.00   4 ds    1.4500BTC
30BTC      2.5000BTC  12 days    5.2500BTC  17.50   6 ds    3.8750BTC
60BTC      3.7500BTC  16 days    9.6000BTC  16.00  12 ds    6.6750BTC
Trader loans     Settlement 45 days
100BTC     5.0000BTC  20 days   14.5000BTC  14.50   8 ds   10.7500BTC
300BTC    12.5000BTC  24 days   40.5000BTC  13.50  12 ds   26.5000BTC
600BTC    18.7500BTC  32 days   75.0000BTC  12.50  24 ds   46.8750BTC
Business loans   Settlement 60 days
1000BTC   25.0000BTC  40 days  115.0000BTC  11.50  16 ds   70.0000BTC
3000BTC   62.5000BTC  48 days  330.0000BTC  11.00  24 ds  196.2500BTC
6000BTC   93.7500BTC  64 days  630.0000BTC  10.50  48 ds  361.8750BTC
Fee:       0.1000BTC per remaining BTC
Minimum:   0.0100BTC per principal BTC per day
12  Economy / Economics / Nobody takes bitcoin seriously: rises 10x in month drops 50% in 10 days? I do. on: June 06, 2011, 01:26:17 AM
Bitcoin is behaving exactly as it should. Everyone is beginning to feel the heel in their backs.

We are failing. Not bitcoin. There's the problem.

As a result, I'm loaning my bitcoins to traders and miners with good ratings and turning to coding enough trend quaking software to justify the market cap. And I'm not the best. All I have is sheer fury.

So there it is. As long as the value goes up, we should be covering the gains by being able to reap what we sow. If I have to do it all by myself so be it. But I know everybody from cuddlefish to Xenland are also putting in the hours.

My motto is if Silk Road is full of Mafia Wars wannabes then an invasion by soccer moms should do the trick. In fact, I'd say what makes Silk Road vulnerable is the limitation of categories of products. Of course some self-hating conflationary minds would rather have nothing to do with it while hating the fact that it is what it is.

We ain't started yet, gentlemen.
13  Bitcoin / Project Development / Forkless Towncoin Subnet proposal - final sketch - please tear it apart on: June 03, 2011, 05:24:32 AM
All righty, then. This is it.

The purpose of "towncoin" is decentralization, participation, and circulation. If bitcoin crosses the soccer mom barrier all the "SCAM! PONZI! NO EXPERTS!" wankers will eat their words. Now instead of imposing demurrage or inflation, we use natural analogies. Your heavy Monster Truck isn't worth as much as my heavy farm equipment. I hate arbitrary ego inflating decisions.

Mainline wants blocks to trade. Speculators in mainline do most of the trading. This increases prices but increases instability. Difficulty corrects this process.
Town wants products to use. Producers exchange recycled bitcoin to create products. This gives value to bitcoins and reduces instability. Difficulty interferes with this process.
The benefit to the town is something that works for them. The benefit to mainline is that once a few town pools are up operating on productivity, real bitcoin value will rise many times which benefits everyone.

What I'm proposing induces the feedback loop that people think won't ever happen. They are trying to saddle bitcoin with all sorts of elitist crank modifications. I may be wrong but I won't impose anything on bitcoin. This is just a way to interact with subnets.

The hard ratio: A reference not the actual value
The purpose of lowering difficulty is to reduce the time that CPU miners need to find a block. The town economy is small so entry time is important. High difficulty reduces trade volume. I can build 10 widgets with the same bitcoin if it circulates 10x as fast. But participation doesn't guarantee recycled bitcoin. Shorter entry time is more important than payout. People need circulation and entry ability. Mainline miners sell to currency traders. Town miners buy equipment and sell produce, products, and services to town buyers.
Higher participation and higher trading per participant will lead to higher recycling. Bitcoin which purchases things people need adds value to the coin itself which helps the global value.

Mainline miners increase recycling between currency traders.
Town partcipants (miners and product traders) increase recycling which creates wealth by producing more for less total bitcoins.

So we argue that as a reference and not necessarily the actual value.
A. 50 BTC at difficulty 500,000 = 5 BTC at difficulty 50,000. This is statistically correct.
B. 50 BTC at 1000 traders for every miner is worth 5 BTC at 100 to 1. A reference only.
C. 500,000 difficulty at 100 trades per participant is worth 5,000,000 difficulty at 1000 trades per participant. A reference only.

A. This is like splitting a stock.
B. This is like offering free samples.
C. This is like selling advertising.

B and C will lead to more recycling. Neither is guaranteed to do so alone so they are only reference values. Instead of dropping reward in C we increase difficulty because it avoids speculation at the expense of production and because more drops in reward would cause chaos for prices in stores.

For A we use the hash rate ratio between pools to drop the difficulty and reward. We want more blocks so more can enter the market.
For B we use the mining participation ratio to drop the reward. The increase in participation is natural. We want more people producing to get more recycling.
For C we use the trading participation ratio to increase the difficulty. More people will trade to get more recycling going.

Typically a GPU gets 100x the hash rate of a cpu.
Typically a town pool needs 10x the participants compared to mainline.
Typically a town will have 10x the trades per parti compared to mainline.

In A, drop in reward balances a drop in difficulty.
In B, drop in reward balances an increase in mining participation.
In C, increase in difficulty balances an increase in transactions.

All these favor the town. The town then boosts real world value of bitcoins.

A. 100x drop in reward for change of difficulty = effectively no change at all
B. 10x for change in participation = effectively no change in long term, but an immediate 10 fold drop for short term.
C. 10x for change in circulation = effectively an improvement in bitcoin's value, but another 10 fold compounded drop.

The attractive ratio.
Now we have a problem. Payout is fast for CPU miners who do not want to buy GPUs nor care nor sweat nor drool over them but it undercuts the benefits GPU miners might have expected. So none of the big guys want to join.

To make this more acceptable we take the square root of the ratio:

10000x drop in reward is a bit nuts, even at the lower difficulty. It's an effective 100x drop in output. The town's people don't care. Bitcoin in town means something else from what it does at MtGox. They see the entry time reduced which is a plus. They also see more currency recycling which creates more products for a given amount of currency. This effectively drives up the price of global bitcoin and everybody wins.

Square root of 10000 is 100. So for an effective 100x drop originally, you get a 100x drop in output. As the town gets stronger, it becomes more and more like a classic GPU pool but backed by commerce as well.

Viva la Renaissance.
14  Bitcoin / Project Development / Forks! Towncoins! Credit unions! A plethora of plethoras! What to do about it! on: May 29, 2011, 10:48:04 PM
From the bitcoin fork discussion:
So why try to limit who can use it? If you open it up to the world then the townfolk, as earliest adopters, could bring a lot of wealth into the town as out of town people discover it and adopt it.

It would even have one advantage over bitcoin: an entire town that accepts it in return for real goods and services.


I have had blistering arguments over the idea of separating into mini-networks (I'm for btw) and it doesn't have anything to do with "flaws" in Bitcoin.

Bitcoin storage is decentralized (yay freedom.)
Bitcoin production is heavily consolidated (like corporate mergers just a bit less evil.)
Bitcoin dynamics affect everyone at once (big fat self-righteous mentality of IMF and World Bank).

All these factors should be such that independence of effects is encouraged. Proximity or distance is hard to define in bitcoin, but this towncoin idea is the perfect way to experiment with it.

This can be corrected.

Proximity would use neighboring towns' difficulties like control valves.
1. Award amounts per block to networks based on the square root of the ratio of their difficulty compared to the mainline.
2. Update the local difficulty more often.
3. Implement an adapted version of the bitcoin daemon with cuddlefish's modifications. Can be done later.

I say square root rather than by the straight ratio itself for two reasons:
1. A straight ratio would attract control freak administrators who want to add more ratios under control of some official department.
2. Square root allows everyone to experience 'early adopter' opportunities which reduces the rush to create new crypto-currencies with few differences.
3. Square root avoids a hard drop between subnets making transfers between more "stretchy".

Some of the innovations coming to us are going to be motivated by the excitement of Bitcoin multiplied by the jealousy of opportunities lost, real or perceived. That's going to hurt Bitcoin and sister currencies' credibility.

Having said that the plain square root should probably replaced with a more dynamic value.

If we care about decentralization, bitcoin subnets should behave somewhere between separate currencies and a single currency.
The difficulty variations should encourage global and local decentralization. Bitcoin vs bitcoin (a kind of self-awareness on top of the self-correction).

It's much more advisable right now for new incompatible blockchains to start rather than be at the mercy of specialists (hobbyists with meaty GPUs). One internet is worth 1000. One cryptocurrency is worth 1000. Validating the Internet protocols allowed millions of sites and communities to flourish. Same thing with Bitcoin. The concept is proven even if the implementation isn't. It wouldn't make sense to force new subnets to start from scratch any more than it makes sense to force everyone to send email through fido.

A. Differences in hashrates for groups, of people who have similar hashrates, should not punish late comers.

B. Having fewer miners per pool means less consolidation.
We multiply A * B to encourage mainline and subnets to compete with smaller pools. We amplify things we need to fix.

C. Having more pools means more choices.

D. Having more miners per network means decentralization of power.
We multiply C * D to encourage subnets to have more of their users participate.

E. The trades / difficulty update for mainline.

F. The  trades / difficulty update for subnets.
We divide E / F to encourage subnets to move money quicker.

Now for the conversion factor: This is where we encourage mainline participants to move into subnets.

X = A * B = the relative internet influence factor.
Y = C * D = the relative intranet influence factor.
Z = E / F = the relative activity factor.

X = A) avg hashrate of mainline pools / avg hashrate of subnet pools * (avg participation in mainline pools / avg participation in subnet pools)
Y = C) pools in mainline / pools in subnet * (ratio of traders to miners in mainline / ratio of traders to miners in subnet)
Z = D) trades per day in mainline / trades per day in subnets weighted by the diff update time ratio

Example: Whole network versus 36,000 (numbers are out of thin air but should be close)
36 Ghashes / 25 Mhashes * (100 miners per pool / 25 miners per pool)       (trades per day in mainline / trades per day update period in subnets)
-------------------------------------------------------------------- * --------------------------------------------------------------------
10 pools / 4 pools * (1000 traders per miner / 100 traders per miner)         update time in mainline / update time in subnet

144 * 4 / (2.5 * 10) * 25 = 576

Now the actual value of a gpu versus a cpu is on the order of 360 Mh/s / 2.5 Mh/s = 144x

Square root of 576 = 24 = 6 times the actual output value
Square root of 144 = 12 = 12 times the actual output value

Towncoin being worth 12x as much as "really" is too much of a boost. 24x makes it 6x.

We've heard a lot of complaining about:

this approach resolves these "issues" without adding arbitrary purely rhetorical one size fits all solutions (inflation, demurrage, high transaction costs, begging the system to like us). and it creates true decentralization. deflation is not an issue - it controls overreactions. hoarding is a natural reaction to market forces but can be self-defeating. speculation can cause epileptic fits. legalities have to cross the soccer mom threshold. the minute bitcoin becomes soccer momcoin, the threat of banning drops to near zero.
15  Bitcoin / Bitcoin Discussion / Spinning wasted cycles is necessary for bitcoin to be nimble objective currency on: May 27, 2011, 11:43:11 PM
If bitcoin were backed by
1) any commodity or
2) by performing a useful function,

the whole network would collapse the minute that
3) commodity or
4) useful function

were no longer desired.

Diskcoin, bandcoin, cyclecoin, and servcoin are coming and they will be anchored to commodities and work that may lose value at any time.

They will also be available for exchange in bitcoins.
16  Economy / Economics / MTGOX doesn't control the price - the interface does - Job exchange board on: May 24, 2011, 06:24:45 AM
The notion that MTGOX controls the price of bitcoin is incorrect. That's like saying buying a domain name controls the price of all domain names.

I'm in the process of building a job market exchange. A MTGOX for employment.

Having differentiated exchanges solves the decentralization goal without causing hyperbolic paranoid competition for MTGOX.

Alternatively MTGOX could become a reference platform for trading with various features. The price fluctuations would go across the board there.

Differentiation has the feature that bitcoin prices can fluctuate much less for those who want to use them as a means of exchange for work. Those who like to speculate can have all the nailbiting they want without affecting the rest of us.

Arbitrage between various general and specialized exchanges could be a good means for those who understand the dynamics to benefit from their knowledge.

If anyone wants to help me prioritize this project (life eet eez what eet eez!) loans and donations are welcome: 1CyRHgBAyj2edshrdidM8pz1e6z1p8SVR
17  Economy / Economics / Bubble only exists where lack of culture (and criminal elite behind the bubble) on: May 14, 2011, 08:03:45 PM
We can prevent the Bitcoin crash of 2013 by using Bitcoin to produce valuable items.

I am creating several assets on GBLSE to this effect.

Drop ideas here or create a thread.

Are we a community of ADHD traders or a culture of well informed citizens?

18  Bitcoin / Development & Technical Discussion / What is holding up Debian wxblah 2.9? on: May 13, 2011, 09:20:14 AM
Just curious.

Bitcoin gui on 64bit needs it.
19  Bitcoin / Mining / Mass Anti Fraud Intervention Action - Bitcoiners voluntary compact discussion on: May 13, 2011, 08:40:57 AM
I'm new to bitcoin, but I notice the discussion on doublespending attacks and I'm a bit disturbed by how quickly people want to create a monitoring panopticon rather than commit to our shared culture and act on a few strategies without prompting thereby creating the mass force necessary to discourage such tricks.

The first line of defense is already in place as bitcoiners responded correctly, with little incentive other than common sense, and broke off from allowing any one pool to have 50%+.

I've seen Anonymous destroy their own operations if they became dangerous. One minute there's a chatroom, the next suddenly flood from many directions. The pranksters grew up.
They rein in the nutters. There's no reason we can't rise to the occasion.

It's very encouraging to see people do what's necessary. But let's have more spontaneous fraud intervention by being educated rather than look at a critical problem and try to wish it away with more systems and tweaks.

Myself, I am prepared to raise hell if people try to even suggest violating the 21 million limit. Make variants. We should be preparing for it and begin dealing with it when it hits 7 million. This will mean a portion of bitcoin will have to be traded for common necessities and services to give us all a benchmark that we can all relate to.
20  Economy / Economics / Need twelve step program for getting IRS employees addicted to bitcoin on: May 12, 2011, 11:31:42 PM

Nail 'em on the hypocrisy.
Pages: [1] 2 »
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!