Bitcoin Forum
October 21, 2020, 01:56:29 AM *
News: Latest Bitcoin Core release: 0.20.0 [Torrent]
  Home Help Search Login Register More  
  Show Posts
Pages: [1]
1  Economy / Economics / Re: The Double Benefits of High Demand on: April 09, 2010, 03:44:44 AM
There are two benefits to creating high demand for bitcoins. The first and obvious benefit is that you'll end up with a wealth of bitcoins. The second and more subtle benefit is that as demand outstrips supply, people will exchange local currency for bitcoins which will allow you to more easily exchange your bitcoins for local currency.

however, exchanging other currencies for bitcoins won't create more bitcoins ... so as more people use it, there will be a hoarding of coins [at least according to what we learned in economics, but this may be inaccurate].

to be an "open currency" where the supply increases as user-base/uasage increases is important. at the same time, it should not be controllable by a central source (ex. a "closed currency"), and not be 'faked' into making money, ... so the quesiton is HOW is this done with a peer2peer setup?

2  Economy / Economics / Economic Value of Bitcoins on: April 09, 2010, 03:30:24 AM
Guys, first off, I want to say this is AWESOME. I read about "currencies" and other forms of "value exchange." A great way to learn about "value exchange" systems (like moneys, credit systems, etc) is this book:

The Future of Money: Creating New Wealth, Work, and a Wiser World

ALL of the currencies in the world today are closed ones; created and managed by a small group of people. Which means they control the "creation" of wealth, and since they create at will, they can guide the world in the direction they want. For example, they guide the rules of banks and thus control the banks; the banks then use leverage and can "create" money simply by accepting deposits (and then loaning out 100x what is deposited).

SO a system to globally track value-exchange between people that is not centralized (and easy for these above stated people to close down), can actually allow people to exchange value (goods, consulting fees, etc) between each other without the interference of governments.

That being said, in economics we learn that the amount of the currency should grow basically with the number of transactions between people -- if there are only 21 million "bitcoins" and there are 21 million people wanting to buy stuff work 100-bitcoins, then there will be a scarcity of currency and so the "value" of that currency would go up. we need to have a way that is peer-2-peer verified, but allows the currency quantity to grow proportional to need (example, each time a new person joins, then the community gets X additional coins distributed to everyone).

The way this currency grows must be fool-proof, so a person with a network of computers can create currency by having a set of their computers verify transactions, etc... I don't know how this will be done.

Having an exhcnage system to real-currency is a good idea. However, keep in mind, that governments around the world keep a very strong eye on this (ex. thing the Linden dollar [Seocnd Life] or the chinese QQ [virtual currency]), and they will most likely try to shut down any systems they cannot control (because they perceive themselves/bankers loosing control if people use alternative value-exchange/currencies) ... so the liquidity/exchanges for currency must also be peer2peer and not easy for courts/governments shut down.

There is hope but lots of smart people and work needed to over-come these challenges!

3  Economy / Marketplace / Re: We accept Bitcoins on: April 09, 2010, 03:04:32 AM
Link2VoIP ( accepts Bitcoin as payment.

Now you can get phone service for Bitcoins.

How's that for useful? Tongue

that rocks madhatter. i love link2voip. progressive!
Pages: [1]
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!