Latest posts of: marcus_of

Show Posts
Pages: « 1 ... 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 [429]

8561

on: February 10, 2011, 07:04:09 AM

Quote Cost and value are two different concepts. Heh thanks, I was well aware of that and your recommended reading but you must have missed (misunderstood?) what I was saying two posts above. The premium captures the difference between cost and value of an object I believe. Unless there is some enduring quality that demands a premium upon any item it will tend to its cost of production in the long term ... it is a thoroughly "Austrian" concept also, demonstrated by the observation that all fiat paper money has eventually been valued at around the cost of paper and printing involved in its production. Gold has never been far from its cost of production plus some premium for its utility as money, although this premium can vary by several multiples of cost of production depending on economic circumstances. Bitcoins are unique right now in that they serve all the historic roles of money; fungibility, divisibility, scarcity, store-of-value (we'll see) in a market where most flavours competing fiat currencies (paper and digital) fall down on one or several of these roles. In any case, I'm sure that the free market will eventually give us price discovery in the long term for the value of bitcoins. Other crypto-currency P2P networks that spring up in competition to bitcoins will ensure it.

8562

on: February 10, 2011, 05:35:59 AM

Yeah, that's what I thought too ... however so far I have got three of the PROOF OF WORK RESULT: true (yay!!!) outputs but no BTC in my bitcoin pooled mining account, unconfirmed or confirmed reward ... something is not as we think here.

8563

on: February 10, 2011, 04:23:46 AM

Running cpuminer, minerd linked to mining.bitcoin.cz and following output comes up HashMeter(1): 5588607 hashes, 1041.79 khash/sec HashMeter(1): 4996890 hashes, 1058.61 khash/sec HashMeter(0): 5488607 hashes, 1005.54 khash/sec PROOF OF WORK RESULT: true (yay!!!) HashMeter(0): 5488607 hashes, 1082.40 khash/sec HashMeter(1): 5688607 hashes, 1073.70 khash/sec HashMeter(0): 5488607 hashes, 1009.25 khash/sec HashMeter(1): 5688607 hashes, 1069.18 khash/sec should I expect bitcoin rewards at this point or is it just a marker along the way?

8564

on: February 10, 2011, 01:29:51 AM

Did anyone forward a piece to Tyler Durden and get it up on zero hedge www.zerohedge.com ? They would be interested I think.

8565

on: February 10, 2011, 12:20:07 AM

Hypothetically speaking, if I made available 25, modern dual processor, quad core, servers for 2 hours per day, roughly how many, on average, bitcoins could be expected from joining this pool?

8566

on: February 09, 2011, 08:48:51 PM

You boyz look like you got yourselves a live one .... There is massive dam full of fiat currencies stocked up in places like Switzerland, Panama, Cayman Islands, Singapore, etc, that is desperate to be able to move anonymously. If it becomes convinced bitcoin or similar crypto-currencies can do this for it ... well you get the picture, it could easily spell the end of traceable national fiat digital currencies. Wrap you head around what that means for bitcoin values. Anybody have a swiss franc to bitcoin exchange up and running? ...

8567

on: February 09, 2011, 08:08:36 PM

Whatever it is, bitcoin is absolutely not a fiat currency. Fiat means by decree, dictate, statute, law, legal tender, etc ... http://www.thefreedictionary.com/fiat Quote It can't be quite that straightforward, because in the early days bitcoins were created using much less energy than the most recent bitcoins. Even though we can distinguish them, we don't value them any differently. But they are fungible, each currently circulating bitcoin is indistinguishable from any other (unless the block chain ever gets unravelled ), so in that sense they are worth the average energy needed to create a bitcoin. Take total hash power spent to date creating them divided by the number of bitcoins created to get average hash power per bitcoin .... intrinsic value due energy spent anonymisation/securing. Anonymity is the key to making digital currencies fungible. A trace of transactions attributed to digital currency makes each unit distinguishable from another. E.g: I do not want that dirty terrorists, money-launderer, paedophiles (pick one) digital units in my account.

8568

on: February 09, 2011, 11:06:15 AM

The intrinsic value of a bitcoin is the total energy and computational/informational content that went into creating it (incl. energy to produce computing resource materials, silicon, etc, human labour, brainpower, encryption difficulty). The market value will tend toward the intrinsic value in the long term. I expect bitcoin values to become strongly correlated with the underlying kiloWatt-hour electrical energy price and oil, gas, coal (fossil fuels while they are still around) or fissile nuclear materials, etc. Depending on the independent circumstances of the markets in each of these energy generating fuels they correlate with gold, silver and other metal ratios over long periods. Metals are correlated with energy because that's what it takes to prospect for them and dig them up (it is not rocket science just economics). In the short and medium terms premiums will probably be placed on bitcoins for various reasons; uniqueness, scarcity, anonymity, security. Also possible market manias or euphoric bubbles could erupt to distort values temporarily. Money and energy have been joined at the hip since the beginning. Money is simply stored energy in some instances. Bitcoin is moving up the evolutionary ladder like atomic energy is to burning wood in caves.