Since mining a whole new currency of your own is cheaper than mining bitcoins AND people who already bought your own new currency alreeady bouht something from you thus seem more like "your customers" than people using other currencies, maybe the fundamentals of coins you create yourself and provide to your customers so that you can peg your prices to them could look better than the fundamentals of bitcoins?
-MarkM-
Actually with the Bitcoin algorithm - it seems that there can only be ONE most economically viable implementation - because as soon as another currency (of higher perceived market value) can be mined at a lower difficulty - miners in the network will point their resource power to the more economically mineable currency - so DIFFICULTY and NETWORK hash size are interrelated to the price of BTC (or one of its forks for that matter). |
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Seems like Banks are trying to play catch-up to Paypal. In future maybe catch-up to Bitcoin.
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Pseudonymity, the interest of a select few for various reasons, is just one of Bitcoin's benevolent properties. The others include, amongst other, the following: - Instant - Vast distances or small distances - Simple (no client needed when using mybitcoin.com , for example) - Mobile (mybitcoin.com for example, can be accessed from a mobile smart phone / internet enabled phone or device) - Secure - Universal - Scarcity - Novelty rewarding early adopters - Owned and managed by adopters and most importantly maybe, - Mercantibility (% of total quantity in existence exchangeable for others over certain period of time) : Compared with Gold (~165,000 tonnes/metric tons ever mined, http://didyouknow.org/gold/ ) of which 772,908 open interest 100 troy ounce contracts on the major exchanges for the current month are reported ( http://www.cftc.gov/dea/options/other_sof.htm ) amounting to 772,908 x 0.003110348 = 2,404.01 mtons (metric tons) in current month trade. This equates to about 2,404.01 / 165,000 x 100% = 1.457% monthly of total Gold in existence. Bitcoins presently in existence is 6.347 million ( http://bitcoincharts.com/markets/ ), and a year ago it would have been 365 x 24 x 6 x 50 = 2.628 million less - giving an average of bitcoins in existence for the year of 4.487 million. For the past 12 months 5,235,547.17 Bitcoins have been traded on the major BTC exchange ( http://bitcoincharts.com/markets/mtgoxUSD_trades.html under Recent Trade Volume 1y ). This is an average of 436,295.60 BTC per month. This equates to about 436,295.6 / 4,487,000 x 100% = 9.724% monthly of total BTC in existence. If the volatile market and exponential growth (maybe attributable to wholesale distribution from existing to new adopters) of BTC is troublesome to a merchant, he may elect to reduce his exposure to BTC by immediately (maybe programmatically) exchanging the received BTC for something else after his transaction with a BTC giving customer has been completed. |
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Assuming all else stays proportionally the same as the status quo the following is an attempt at an evaluation of BTC value: - Total current network hash: 3.913 Thash/s (Source: http://bitcoincharts.com/ ) - Assume typical economical miner's hash : 300 Mhash/s (Source: http://bitcointalk.org mining forums) - Stand to be corrected - Assumed estimate of total economically mining machines: 13 000 approximately - Assume $1000 capital cost per economically mining machine, gives a total network capital cost of $13 million - Depreciating asset capital cost depreciated over a five year term, gives $2,6 million capital cost depreciation per year. - Expected Return on capital investment per year (assume 20% - high risk investment), gives $2,6 million return on investment cost. - Running cost: electricity, assume 0.5kWh power consumption per machine, at $0.15/kWh assumed average worldwide cost, gives 13 000 x 24 x 365 x 0.5 x 0.15 = $8,5 million total yearly electricity running cost - Running cost: rent, salaries, etc, assume just 100% (reimbursing the average miner on a machine only $1000!!! per year!!!! in salaries and rental space) yearly on capital cost, gives $13 million - Maintenance cost, assume 2% yearly on capital, gives $0,25 million. - Bringing us to an assumed total yearly cost to business for the Bitcoin network of $26,95 million. The network generates a total of 50BTC roughly every 10 minutes at present, thus 10 x 6 x 24 x 365 = approximately 525 600 BTC per year. The total cost per BTC generated securely and maintaining the network at present will thus be approximately $26,95 million divided by 525 600 = approximately $51.27!!!! Is it a small price to pay for the owner's rights to secure entries in a global digital cryptographic key accounting system - which subsequently allows the owner of the rights to transfer some/all of those rights securely? Now this cost of $51.27 per BTC is for maintaining a network difficulty of 244139.48158254 ( http://blockexplorer.com/q/getdifficulty ) at present. When more BTC mining machines are added making the network more secure and difficulty increases ( http://bitcoin.sipa.be/ ) but the bitcoin generation rate remains unchanged - this will result in an increase of BTC securing/generating cost. Maximum difficulty never to be reached is 2^224 ( https://en.bitcoin.it/wiki/Difficulty#What_is_the_maximum_difficulty? ) |
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Very interesting. It looks similar to my idea but not exactly the same. This part is very similar: "The purpose of the Beertokens trust is an attempt to create a more stable currency that will not change in value more than between +-3% over time..." The idea I had is simpler I think. I haven't figured out yet the technical solution for how the transactions would be made with the new digital currency though.  Perhaps some kind of simple yet secure public/private key solution that would be very fast, much faster than the bitcoin transactions. Have a look at FellowTraveler's Open Transactions: https://github.com/FellowTraveler/Open-Transactions/wiki |
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Shouldn't Bitcoin's value be adjusted (split/merge factor 10 by moving decimal place) to always reflect a value between 0.5 and 5.0 to one of the dominant fiat currencies to accommodate the human psychological factor?
The total number of BTC's remain 21 million. The divisability of BTCd as opposed to BTC just goes to 7 decimal places instead of 8 if 5 USD/BTCd becomes 0.5 USD/BTCd. (BTCd - BTC displayed, In effect if you had 1BTCd on display, you have 0.1 BTC of the total 21 million BTC's ever to be issued).
The opposite happens when 0.4 USD/BTCd is split to 4 USD/BTCd, the divisability for BTCd goes from maybe 7 decimal places at that stage back to 8. BTC's divisability can not be changed as it is fixed at 8. Shouldn't BTCd divisability be dynamic for user friendliness - just like the price of shares split/merge, except maybe those of Berkshire Hattaway?
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Hoarding for the past 5000+ years has done a scarce resource like gold only good. Wheat or other limited supply commodities may also be compared. Eventually the hoarder will swap his hoard for something else he needs. And the new person who swapped will then be the hoarder for as long as he can save that which he hoards, before he needs to swap it for something he needs to fulfill in his more immediate needs. Due to defined scarcity, Bitcoins (when stable over the long term, like other scarce commodities of finite quantity) is a good savings mechanism with a good yield in the most recent past.
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Bitcoin should really be promoted for acceptance by all mainstream Merchants for the fact that it allows for irreversible payments (when a buyer has downloaded an application or some electronic work, for example).
It will be important for the merchant to do an immediate exchange from BTC to his currency of choice though if he would prefer not to be exposed to the BTC exchange rate. Available current BTC market depth on the exchanges will play the biggest role for the merchant to price his goods in BTC. With all this data available and interchangeable online (MtGox.com and bitcoincharts.com), this can all be done programmatically.
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1 year / 2 years from now on the exponential BTC price graph today will look like the start with no visible difference between today's price and last years price. As with anything growing on an exponential scale (long term DOW, Gold, Facebook, Google, etc) the time factor of compounding growth is always benefitting the early adopters. The first humans who collected gold lying around in streams must have looked upon it as fairly useless... And to this day, even if you ate it, it will not fill your hunger; and is used subsequently only as a communication of value as it is valued universally (well, almost).
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If eight decimal places is not enough - everybody with 1BTC will be a millionaire someday when non-BTC currency inflation escalated the price of BTC to that level. If the eight places are for two places of cents and the remaining six for millions...
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Only ease of use, especially now that non-tech savvy people want to join - will prevent Bitcoin from being a niche. Ease of use in exchanges, Bitcoin-otc is not for non-tech savvy people, Liberty Reserve is for people who are willing to jump through a lot of loops. If Bitcoin-otc can have a simple username, password system with a catchy web url and drop down menus of what the user have and wants and then the site gives the match and the transaction is automatically handled through clearcoin - then we are talking mainstream.
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The Bitcoin client rules may be looked at like a Governments laws. Just like the nodes that does not obey the majority elected Client will get kicked out, perceived strays of societal law and order will eventually not be accepted into the mainstream. Bitcoin offers opportunities to both the fringe and the mainstream, but it will be a fork - as the two will not be able to co-exist under the same umbrella economy. As a thought, Bitcoin is foreign to all the nations but communicable with all nations. Actually the Public Relations post for Bitcoin sums it up quite nicely http://forum.bitcoin.org/index.php?topic=8940.0;all |
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It seems that Bitcoin will ultimately fork when Goverments steps in. There will ultimately be the fully disclosing, trackable, legal, regularized, tax-paying Bitcoin client version, and the shadowy, illegal, pseudonymous, banned Bitcoin client version. There will be seperate exchange rates for each (wonder which would be the most valuable?!?) Coins across the fork will not be recognised by either of the other networks' nodes. http://falkvinge.net/2011/05/19/the-information-policy-case-for-flat-tax-and-basic-income/ |
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Can't you donate cash to a campaign. If you fill out the same paperwork whats the difference. Though I do see your point.
For all practical purposes, you cannot donate cash to a campaign. Bitcoin makes the autonomy thing even worse for campaign finance tracking, because even if there were a bitcoin donate button that provided you a newly generated bitcoin address after you identified yourself, those addresses never die. So if an opponent wanted to set you up for a campaign lawsuit, all he would have to do is find one of these addresses and send too much money to it. The campaign couldn't keep it, and they can't really return it either. Creates a huge legal mess, so It's just easier (for now) to ignore Bitcoin for campaign finances. It'll come someday. But not yet. Bitcoin's anonymous properties should not be overestimated. Take the second post in this thread of davout for example, his donation address is 1MvU1veceyyaTkrX4uajKT61fAykoUq1VT , now http://blockexplorer.com/address/1MvU1veceyyaTkrX4uajKT61fAykoUq1VT shows which address donated to him which amount. If he would have to account for every donation, maybe with an accompanying database linking to each of his receiving addresses, he could easily return an unknown/unmatched received amount (which amount is not recorded as an identified pledge in his database) to the sender's address. Bitcoin is pseudonymous if you choose it to be. The whole link/chain of addresses sending/receiving however will never be pseudonymous and some links will not be pseudonymous, revealing identity now and again. |
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