Actually not quite because it still doesn't allow for central control, but anyway.  Basically the idea is to have no currency base.  Everything is 100% credit.  Although there are obvious problems with this, but you never know maybe there would be a way to work around them.  So here's how it'd go. 
A lot of people on here are aware that banks are essentially legally able lend money that doesn't exist.  It's purely credit.  Simplistically when they give you a loan, they create an account for you and pretend to put money in it. They can do this since in bank accounts the money is nothing but numbers in a computer.  Then you can transfer these numbers over to another bank or use it to buy a house.  As you pay off the loan the lender essentially throws away the principal part of your payment and keeps the interest as free money.  So basically you are paying the bank interest for them to create money for you, which you will promise to send back to them over a period of time.  That way they can "destroy" the fake money they gave you and they keep the interest as profit.  I say lets cut out the middle man: the lender.
So with Credit Coin, or Credits for short, you are able to make money out of nothing.  The catch is you have to pay it back.  Basically when you create this money you are promising to destroy it over a period of time in small chunks.  This way the money supply would be completely controlled by demand for money.  No single credit would permanent so there would be no monetary base.
So of course what would happen if you were unable pay?  Well the credits you created associated with that payment would go bad or essentially disappear.  Haven't decided if the credits should become "debts" or just simply go away.  It might be a good idea if they became debts, that way if the person responsible for paying them could still pay them back and the unlucky person who was holding them could sell them to someone for less than they would be worth as credits.  The buyer would be gambling that the debtor would eventually make the payment. The holder of the debts could also forgive those debts.
On the other end of the stick obviously people shouldn't be able to create as many credits as they want willy nilly.  Then someone would make an account make a million credits send it to another account and then spend it before it went bad.  Someone would only be able to create a small amount at the start, slowing building up trust with the system through payments back to it. Alternatively someone could just use credits and never make any, but they would never build any trust with the system.  Not sure what algorithm could be used for "trust building".
There could be interest on these loans to be paid to miners for processing all the transactions.  Interest could be dependent on a few things: trustworthiness, loan length and payment periods (how long you decide to put between payments).  Obviously the longer loan times and further payment periods the higher the interest.  If you're new and don't have enough trustworthiness to borrow enough money to say, buy a house, you could always borrow from someone who trusts you and has more trustworthiness with the system.  So there is still room for lenders here.
As for the block chain this is what would be happening.  When you create credits, they are completely new.  Just like freshly mined coins in bitcoin.  When you make a payment back to the system those credits, which you earned, not made, don't go into oblivion, they actually travel to the people who are holding the credits you made and it replaces them.  Miners would be getting credits payed to interest in this system so they wouldn't actually be creating money.  Just getting paid for doing the footwork of the system.
Basically it's possible for the entire system to collapse, although the likelihood of this is low.  Usually there will still be demand for money so the system should always have some volume.  There's a lot more too this but I don't have time to write it all.  Suggestions, thoughts and criticisms are welcome.  I don't have the time to program this so it probably won't happen unless a bunch of people jump into help.

I once read, on twitter I think, it may be possible to mine for lost wallet private keys to get long lost BTC.  Made me wonder would it be possible to steal people's BTC by guessing their private key?

http://bitcoin.clarkmoody.com/order-book/#
http://bitcoin.clarkmoody.com/time-sales/

I noticed there is suddenly a large number of fake twitter accounts tweeting canned tweets about bitcoin.  Several dozen tweets an hour.  Maybe someone is trying to manipulate the price of bitcoin by doing this?

I was thinking some or all of the major exchanges should start a paid subscriber service with 0% commission on trades with a monthly fee in it's place.  So you could trade with the whatever% commission or pay say 1BTC a month to trade commission free.  It would make day trading a lot easier.  Since they canceled my order from the crash, it's so easy for me to make money day trading right now with the 0% commission on MtGox.

Looks like more positive talk about bitcoin is showing up on twitter recently.  I wonder if it will translate into a rally.

So I guess mtgox cleared all the orders.  So where are people going to place their first buys and sells?

take a look, pretty good artilce: http://www.economist.com/blogs/babbage/2011/06/virtual-currency?fsrc=scn/fb/wl/bl/bitsandbob

So this run up from 18.3 to 19.99 was because by me.  I waited till the overhead in the market was a bunch of small trades than bought a few grand worth of btc all at once:



On top of that I made a bunch doing it too

MtGox seems to be down, no trades going on. Trying to buy or sell doesn't seem to work.  Anyone know what's going on?

So I was thinking about what's going to happen if Bitcoin starts getting banned by major governments.  They will no doubt get server's like the one this forum is on shut down.  So I was thinking why not come up with an open source distributed peer-to-peer web server which is on all of the computers which make it up.  Not sure how the addressing would work exactly, but probably you would have a program on your computer that essentially makes your computer a node in the cloud, as well as creates a new protocol (Like telnet, http, ftp) on your computer and allows your browser to connect through it.  

When someone made an allowed change (like making a forum post), the change would be distributed through the network through all the peers.  A person couldn't see the change until it reached them.  This might also work for chat rooms, newsgroups ect.  But it would be very useful for a market like mtgox.  That way even if it was attacked, they would have to take down all of the computers in the cloud instead of just one computer.

I'm not an expert in C however, so I couldn't do this myself.  I'm mostly into the interpreted languages like javascript and PHP.  Any ideas, flaws, improvements?

I've been keeping track of bitcoin on twitter and the last few days the number of tweets has gone way up.  There is usually a three day delay between people hearing about bitcoin before they start buying in. This is due to bank account delays to transfer money into places like Dwolla.  So I think now is the time to buy.  If you wait a few days I think the price of bitcoin will be way up.

Not sure if anyone saw this the the famous US libertarian John Stossel wrote a story on the bitcoin: http://www.foxbusiness.com/on-air/stossel/blog/2011/06/02/digital-currency-libertarian-future-0

Looking at the meteoric rise of the bit coin price in literally minutes I decided to watch the orders as they were coming through.  To me it seems someone may be driving the price up on purpose.  A while back I thought, if I had a ton of money how I could make a ton of money if I drove the price up with two large orders, one a buy and the other a sell and them rolling them up the price dial.  Then moving all my buy orders over to the sell order.  I calculated a person could make a lot of money doing this and from what I saw this may be what's happening.

http://www.cbsnews.com/2718-504943_162-1111.html

Did anyone else notice that currency pair is gone?  It was the most important one.

So I came up with a game people can play with bitcoins, or any currency for that matter I call Musical Chairs.  This is how the game works:

The game works in rounds, a lot like musical chairs.  To start the game someone puts down an initial amount, like one bitcoin.  Everyone else who wants to get in has to put the exact same amount in.  Once the first round ends. One person is booted at random from the game.  The amount he put down stays in the pool.  So now the amount per person goes up.  This continues until there is only one person left, once that happens that person gets the pool.  To add a twist to the game people can jump into the game by putting bitcoins down no matter what round it is.  However the amount they put down has to be what ever the current bitcoins per person is in the game.  Even people who were previously booted from the game can buy back into the next round like this.

Let me give an example:

One person starts the game at one bitcoin.
Three other people join him in the first round, each has to put down one bitcoin.  The total number of bit coins in the pool is four and there are four people playing.
The next round one person get booted out at random.  So now there are only three people, but still four bit coins, so that's 1 and 1/3rd bit coins per person.
Some else decides to join/buy back into the game.  To do so he has to put in 1 and 1/3rd bitcoins.  So now there are four people again, but 5 and 1/3rd bit coins in the pool.
This cycle continues until the buy in amount gets too high and no one else wants to buy in anymore.  Then then one round at a time everyone except one is booted out till one person is left.
That person gets the pool.

To make the game more fun for more people the game can end in various ways besides elimination of all but one person.  Like limiting the game to a certain number of rounds.  Then the pool is split among the remaining people.  Also it could be limited to a certain value, like the game ends once the value gets to 10 bitcoins per person.  Another way it could end would be  the first round where no one buys in is automatically the last round.

If anyone is interested in this game let me know, and I'll moderate one.  If it becomes popular I can make a site where people can play it with bit coins.  Remember this is more of a strategy game than a gambling game since you can just keep buying back in.

19 dollars,  I got in at 9.50, so my investment has officially doubled, and a month sooner than I anticipated.  Who's buying right now?  Must be the Chinese.

I was think as a promotional thing maybe someone can convince Zimbabwe to peg their currency to the bitcoin.  They've got nothing to lose anyway right?  It's cheaper to wipe you A$$ with their currency than use it to buy the toilet paper to wipe with.  Since 99% of everyone in Zimbabwe don't have a computer then actually using the bit coin as a standardized currency would probably be unfeasible at the moment.

I've been thinking about this.  The bitcoin's value will inevitably increase.  If it goes into the triple or even quadruple digit range I think the big holders of bit coins should refrain from cashing out.  I think that would risk crashing the market.  Instead leak the coins out at a steady pace and live off them, or better, use them in direct transactions rather than exchanging them first.  I think if everything goes right bitcoins could become the new gold, a safe harbor investment always appreciating in value.  Basically what the US dollar was supposed to be 65 years ago.