This is what is going to happen with Bitcoins for new users in a few months:
You see this type of new posts? They are typical of new comers:
https://bitcointalk.org/index.php?topic=248517.0Now lets see how this would play in the future:
Newbie: So how do I get BC and mine then?
Bitcoiner: Mining
Newbie: So, I have my PC, how do I mine?
BitcoineOr f: Forget it, you can´t really mine anymore with your PC
Newbie: He? Why, I read Bitcoins are mined with computers.
Bitcoiner: That was years ago, when Bitcoins was new. Today you would mine 0,0000000000000000001 bitcoins in a one year. Today Bitcoin is mined with specialized ASIC chips in specific hardware.
Newbie: Ahh, well, I don´t want to buy anything new. I have 3 computers, so I can´t mine?
Bitcoiner: Nop.
Newbie: So how do I get this ASIC device?
Bitcoiner: You can´t. Its on a special pre-order list, they are produced very rarely and you can be months on hold.
Newbie: Ah, no problem, I can wait, I assume I would make bitcoins eventually.
Bitcoiner: Not really, once you get your ASIC device, the mining hash increased so exponentially that you would need 10 devices to even break costs at the point, and since you will be on hold again, good luck....
Newbie: So who is mining bitcoins?
Bitcoiner: Well, there is this XX corporation that has 50 clusters in a datacenter full of ASIC servers and that other foundation that also has a huge cluster that they where growing over the year. They hold most of the bitcoins this days.
Newbie: So only this 2 are mining bitcoins?
Bitcoiner: Yes. Miners are history. They don´t exist anymore.
Newbie: Ok, thanks, this surely looks like a scam
You see the problem? Trust. If bitcoins started like this, today they would not even exist.
This post resumes more or less my point of view as well:
https://bitcointalk.org/index.php?topic=180020.0Im not the only one that thinks this is going to destroy the essence of P2P on which Bitcoins is being build.
Its supposed to be our network.Personally I have to admit that more I research Litecoin it not only seems 100 times more secure than Bitcoin but its also designed to prevent this flaw, and reward a P2P system. Its basically improves on Bitcoin itself.
And I have also read several articles about math calculations which show LiteCoin is not even allot more secure but will there be ASIC devices for it? In the future, probably, but they will not be amazingly more powerful than standard computing, to the point it would not deserve investment.
The biggest flaw LiteCoin is attacked now is that their network is small and so more insecure, but this is changing amazingly fast. In particular when all those Bitcoin miners move off to mine LiteCoin.
Also, it seems that LiteCoin was created in particular for being used with standard computing which is what a digital currency should be faithful too.
Also, if this things with ASIC goes bad or good with Bitcoin, regardless of what happens, LiteCoin will be second, so it can learn on the errors of Bitcoin. I see a future where Bitcoin will be used as gold, people are going to hold it, its going to cost allot and its going to be like an investment, and LiteCoin could be actually be the real currency that people use to buy and sell on the Internet.
The second is what I want. Or it could turn really ugly to Bitcoin to the point most people start to lose interest all together, and prices start to plumb more and more.
We don´t know, its all speculation. What is not speculation is that miners which are the foundation of Bitcoin are now building LiteCoins. This is amazingly bad for Bitcoin. Their first users that promoted them are betraying the system, as they see they are kicked out by ASIC devices. Some will buy ASIC devices, some will not bother, some will lose allot in them.
On the end, only the future can tell, but all I know is this. A digital currency which is supposed to be created by users, by a P2P network should be maintained by its users in the long run. Not everyone, I understand that it can´t for ever, but Bitcoin is very new, its not even mature and theirs users are already being alienated. And those buying ASIC devices are really shooting themselves in the foot, if they think they are going to pull out anything off with a few devices.
You need to spend allot on this devices, and even so, you have your days counted. The difficulty at which ASIC devices increases the network is just absolutely ridiculous. Maybe a 50%/50% in the future would could work like suggested in that other post, but right now its moving to full and complete monopoly and by those that where supposed to protect the bitcoins. The same people are destroying it in their needs of unlimited greed.
Clap clap very good text.
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