You seem to be admitting that the basic premis of bitcoins being generated by computer power is not worth using and that's fine all I ask is don't promote this way.
The other thing is could you answer my queation:
Where do the bitcoins exchanges get there bitcoins from?


Again the exchanges would of had to generate from a computer the above statement says so

To be honest I expected it to do what it said on the tin. Give up some computer power and get rewarded for it. Well after doing this for 3 months and I'm on my computer a lot 8/10 hours a day but, after 3 months nothing. Now my computer is not a low powered computer nor is it a high powered one about middle so after doing this for a quarter of a year that's the time scale we are talking, nothing. So bitcoin seems to be having a hard time living up to it's basic premise. Now there are other ways of generating bitcoins but, I've not looked into them but, here is the rub it would seem you have to use real money to buy bit coins to start trading in them, sort of defeats the object of  bitcoins as an alternative currency (bit like buying shopping vouchers). This is what the FAQ states would take a year on average to generate 50 coins with a typical PC well after 3 months not a sausage and I have a typical pc. So this rings us back to trading. It would seem you (or a group of people) have to buy the bitcoins with real money to generate enough of them for the community to be able to trade as a community. We are back to the shopping voucher principal.

Question for you guys where do the bitcoins exchanges get there bitcoins from?
If it is from a computer my friend stonetz reckons he has a high powered computer that does little in the way of mining them so I'm just wondering what sort of computers the exchanges have to generate such large numbers of bitcoins.

Why do you think we came off a gold standard. I'll tell because France asked to be paid in gold and America didn't have enough gold.
http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=5881

And by the way I prefer 100% reserve currency.

Think of bitcoin as a cake you keep splitting the cake till you end up with crumbs but, at the same time more and more people are taking a piece or crumbs as they come into the system so your crumbs have to grow in value to be able to buy what you bought before if your crumbs don't gain value and prices remain the same your up the creek without a paddle. This is the opposite of goods loose value as stated before. it does not matter the size of the piece of cake you have if goods go up your cake has to increase in value to keep up. If your piece of the cake gets smaller because it needs to shared out amongst more people then prices need to come done for you to be able to afford what bought previously.

By the way gold, silver are a form of fiat. they derive there value from people (as does paper money) and what value we give it, they have no magic value of there own they are just metals.

If I don't know what I'm talking about then every monetary reformist and every government and most economists on the planet are wrong and you are right. The money supply has to keep parity with goods if you have more goods and services then you need more money or the goods and services have to become cheaper through better manufacturing techniques but, the money has to keep parity in terms of prices as the goods other wise it  results in inflation or deflation depending on the miss match.

Remember the question that bitcoin becomes a major world currency not replace the major world currency!

I live in the real world and if your system is so great then all we need do is spit our currencies and hey presto no more deficits. I'd better get on he phone and tell the worlds leaders you've solved the problem.

Yes that's right bitcoins would have to become exponential. to be used in an exponential system (this is why we use credit, credit has the ability to be exponential). they would have to be able to grow with he system other wise you have two opposites. An exponential system of using resources as in today against a finite resource bitcoin or gold used as money.

Now this statement is different to reality as bitcoin as it is today is not exponential as there are only 21 million of them.

For any monetary system to work it has to have the ability to grow or shrink with the population and the resources being used by those people. it can not be finite. It has to match goods and services being used and keep value with those goods and services. If you were to change the rules on bit coins and allow it to grow and shrink as needed then yes it would work but, not in it's present form. Not unless you change the real world to fit the way bit coins work.


The question was imagine bitcoins became a major world currency.

Forget decimal points and all the rest of it. Think of the more people joining the system as population growth. Now the same amount of money has to feed clothe and sustain more and more people but, we only have a fixed amount of money 21 million bitcoins (remember the original sentence said that bitcoins is a major world currency). Think of it in the real world where you live, no more credit, no more real money, than there is at this very moment but, the population got bigger and bigger over time. that means there is less money to go round but it has to buy the same amount of basic goods and services that we all use. these basic goods and services would need to be dropping in price over time the opposite of what happens in real life today.  bit coins can work with one change and that is not to limit the amount of currency that can be produced but, to match it to the goods and services that it needs to be used for (not for speculation and not paying interest with money that does not exist).

I never said bitcoins grew exponentially, how can they there will only ever be 21 million of them.
I do understand what exponential growth is (that's why I recommend looking at Dr Bartletts videos)!
You are absolutely right it is not sustainable that is the point I'm making in part. Unless we have sudden depopulation then goods and services will need to grow to match a growing population and in doing so the money supply has to grow to match the goods and services that the people want. Splitting a currency is the same as devaluing a currency the only way it can work is for the goods and services to value from what they were previously. Imagine you have a product it cast you 100 bitcoins to make 6 months later you can only sell it for 75 bitcoins that's defaltion.

Forget everything you have read about bitcoin. If the above were to happen every manufactured item and every service would be worth less as time went by. Lets use a farmer as an example he buys all his seeds and plants them now it costs x mount  because, the currency has to cover more and more goods and services by the time the farmer reaps his harvest and sells it. The selling price does not cover what he paid for the seeds and stuff in the first place . Classic deflation. Like I said you can not use a finite resource in an exponential system to two are at odds with each other.

Nope my thinking is spot on. Unless you fundamentally change the way we use money then just splitting bit coins to be smaller and smaller won't work. They have a name for doing that, it's called deflation. Inflation to much money chasing to few goods and services. Deflation is to little money chasing to many goods and services. You have to create as much currency (what ever it is Dollars, bitcoins) to match the the goods and services on offer that people want. I'm a monetary reformist so I'm not against bit coins or any other community currency but, like I said. You can not use a finite resource as a currency in an exponential system.

It only matters if you are talking of bitcoins as being a universal currency. If you are talking about bitcoins as a community currency same as itica hours then no not really.

Let Dr Albert Bartlett explain what an exponential funtion is to you. He does a better job than I ever could.
http://www.youtube.com/watch?v=F-QA2rkpBSY
check out all 8 videos.

Then bit coins is not for me I shall not be wasting any more time on it.

I just can't see bitcoin taking off in a big way, when it is capped at 21 million. Imagine 21 million divided between the facebook population (lets leave country and nationality out of it) 500 million or half a billion users . That's not a lot of bitcoins to go round, it won't buy you a lot. To be honest it mirrors the goldbugs who want to base the real currency of there countries on a gold, or a gold standard. Unless the the world changes it's monetary system from a fractional reserve system to 100% reserves and bit coin does away with the cap, only then could it work.
We live in an exponential monetary system so the money supply has to be exponential in nature and character to fit in with it. If bitcoin were to ever challenge let alone replace our existing money supply it would to change to an exponential currency. The only other way would be to change the worlds money from a fractional reserve to 100% reserve system.

Been using bitcoin since December last year I've generated 114569 blocks 17210 confirmations and 1784 khash/s and only 0.05 of a bit coin which is from the bitcoin faucet. So after 3 months I'm a little disappointed at no bitcoins.  I've checked all the settings and they seem ok . Could you tell me how many blocks needed to generate a bitcoin as the readme says "you receive coins when you successfully generate a

block. "  Unless my blocks are different to yours, I seem to have plenty of blocks but, no bitcoins.