philisophical question on bitcoin-do you think the profit in mining has hurt

[kevinnem]

so I first heard about bit coin about... 6 years ago or something like that , . didn't really "get it", or get in to it.  About a year ago a friend bought in to it, and so I re-researched it and bought a small amount of coin.

but I have come to question where the future of bit coin is? I certainly see the value in bit coin, .. how it allows things "normal" money doesn't. I can see a future there.

I am not really sure there is any inherent advantage between inflationary and deflationary currency. I am not *that* well informed on economics. I can see arguments both ways.

Fundamentally though, I have a problem with bitcoin in so far currently it seems that there is no economy- it seems there are plenty of printing presses MAKING money, but no value being generated. There are truly staggering sums of money being made by people, but no value for their work. "I plugged in a asic and waited a year", has not made the bitcoin future, or economy any better.  Furthermore with large numbers of BT in accounts, we have industry kingpins, that have no industry.

I think PART of this issue is the fact that bitcoin are given out to quickly and easily. ROI should be comparable to other typical private industry lets call it 15%. This idea of getting your money back in 3 months is crazy, and is due to everyone else jumping on board. There was a concept called the "tredgity of the commons" that speaks to this issue.


Does this bother you at all, .. anyone else feel like money bad so far in bitcoin mining, is the biggest thing holding it back?

[1714314984]

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[BombaUcigasa]

so I first heard about bit coin about... 6 years ago or something like that

http://blockchain.info/block-index/1

Height   0 (Main Chain)
Timestamp   2009-01-03 18:15:05

Yeah, something like that...

Bitcoin has not yet expanded to it's mature market size. And unfortunately it has to start at 0 value, so what you are seeing is a rapid expansion phase.

The difference between inflationary and deflationary currencies, one has an economy because people are biased to use their money value quickly before it dissipates so the economy growth is falsely inflated, the other type of economy exists because people choose carefully and reluctantly the best and most important products and services to spend their money on so it is somewhat more appealing.

[byronbb]

The profit has not hurt because it created ASIC which secures the network. Of course we are going to see a massive contraction in ROI and a lot of disappointed people who aren't getting huge returns or even recover their initial investment.

[jspielberg]

The profit has not hurt because it created ASIC which secures the network. Of course we are going to see a massive contraction in ROI and a lot of disappointed people who aren't getting huge returns or even recover their initial investment.

It will be interesting to see what happens in the next 10 to 12 months.  There seems to be lot of money being thrown around towards asic projects.  The number being thrown around don't make sense for the amount of potential return in the future. 

There is no getting around that the network is self adjusting every 2016 blocks, and as the network grows larger, the 2016 x 25BTC shared during that macroblock interval smaller per hash.

I agree the network is going to be very safe in the near future and there will be lot of disappointed miners/investors.  I am most likely going to be one of them

[byronbb]

The profit has not hurt because it created ASIC which secures the network. Of course we are going to see a massive contraction in ROI and a lot of disappointed people who aren't getting huge returns or even recover their initial investment.

It will be interesting to see what happens in the next 10 to 12 months.  There seems to be lot of money being thrown around towards asic projects.  The number being thrown around don't make sense for the amount of potential return in the future. 

There is no getting around that the network is self adjusting every 2016 blocks, and as the network grows larger, the 2016 x 25BTC shared during that macroblock interval smaller per hash.

I agree the network is going to be very safe in the near future and there will be lot of disappointed miners/investors.  I am most likely going to be one of them

Well get ready. Rumours of Avalon getting access to 20nm chip making process.

http://bitcoinexaminer.org/avalon-might-be-getting-a-200-million-investment-and-20nm-technology-to-become-the-leader-of-the-mining-market/

[BitCoiner2012]

Don't worry about ROI for small guy, https://blockchain.info/charts/hash-rate. That concern is taken care of.