Mining USD?

[natd]

Would anyone be interested on mining USD, if it was possible, @ $0.01  per block (scrypt)?

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[papaminer]

Only BANKS can do that

[Ekaros]

USD is loser currency. Who would want any

[natd]

Only BANKS can do that

Hypothetically speaking, of course.

[natd]

USD is loser currency. Who would want any

For what I know, it's  stable and accepted anywhere...

[Ekaros]

USD is loser currency. Who would want any

For what I know, it's  stable and accepted anywhere...

I don't think much anyone takes it around here...

[pjviitas]

Banks do it all the time when they buy Treasuries from the Federal Reserve that are destined to be converted to currency.

[natd]

Banks do it all the time when they buy Treasuries from the Federal Reserve that are destined to be converted to currency.

In my wonderland case, i'm talking about regular bitcoin miners.
Imagine the Fed starts issuing dollars through mining, 0.01 USD per block. Would you be interested on mining?

[papaminer]

just keep imagining...

why would they pay you for mining...

when they can just PRINT MONEY right away?

does not make sense...

[Kreigyr]

just keep imagining...

why would they pay you for mining...

when they can just PRINT MONEY right away?

does not make sense...

To provide the illusion of a well-designed currency, of course.

[pjviitas]

Banks do it all the time when they buy Treasuries from the Federal Reserve that are destined to be converted to currency.

In my wonderland case, i'm talking about regular bitcoin miners.
Imagine the Fed starts issuing dollars through mining, 0.01 USD per block. Would you be interested on mining?

For that to happen, it would basically put the Federal Reserve and the Banks out of business because there would be no more centralized book keeping.

Bitcoin completely decentralizes the books by giving everyone a copy of the books.

Personally I would not put any extra effort into a currency scheme with centralized book keeping.

I mean I already participate in a currency scheme with centralized book keeping...why would I need another one?

[natd]

 Please forget about all the rest,  books, politics and all. My question is: if it was possible to mine real dollars, would you mine them @ 0.01 per block? A decentralized alt currency that gives you REAL dollars.

[pjviitas]

Please forget about all the rest,  books, politics and all. My question is: if it was possible to mine real dollars, would you mine them @ 0.01 per block? A decentralized alt currency that gives you REAL dollars.

Ok so we are going to get rid of the Federal Reserve and all the banks because we won't need them any more.

I guess the next issue I have is the Treasury itself since its activities (print money) are based on confidence in the government.  I might mine USD but it would depend on my confidence in the government at any particular time.

So in response to your question, yes I would mine USD as long as the Federal Reserve System including the banks where abolished but it would still depend on how confident I was in the government at any particular time.

[natd]

Please forget about all the rest,  books, politics and all. My question is: if it was possible to mine real dollars, would you mine them @ 0.01 per block? A decentralized alt currency that gives you REAL dollars.

Ok so we are going to get rid of the Federal Reserve and all the banks because we won't need them any more.

I guess the next issue I have is the Treasury itself since its activities (print money) are based on confidence in the government.  I might mine USD but it would depend on my confidence in the government at any particular time.

So in response to your question, yes I would mine USD as long as the Federal Reserve System including the banks where abolished but it would still depend on how confident I was in the government at any particular time.

Ok, so you would be willing to mine it @ 0.01 USD per block. Let's say there is a new block every 10 minutes. What would be a fair difficulty for "dollar miners"?

[Mike Christ]

A penny for each block, split between all the miners in a given pool would be less than a penny reward for each block; you burn more $ in electricity for that ten-minute block than you earn that $<0.01

You'd have to be making some sort of patriotic sacrifice to go along with this.

[pjviitas]

Please forget about all the rest,  books, politics and all. My question is: if it was possible to mine real dollars, would you mine them @ 0.01 per block? A decentralized alt currency that gives you REAL dollars.

Ok so we are going to get rid of the Federal Reserve and all the banks because we won't need them any more.

I guess the next issue I have is the Treasury itself since its activities (print money) are based on confidence in the government.  I might mine USD but it would depend on my confidence in the government at any particular time.

So in response to your question, yes I would mine USD as long as the Federal Reserve System including the banks where abolished but it would still depend on how confident I was in the government at any particular time.

Ok, so you would be willing to mine it @ 0.01 USD per block. Let's say there is a new block every 10 minutes. What would be a fair difficulty for "dollar miners"?

You cannot set difficulty arbitrarily...it is a function of network hashing power and number of dollars in circulation.

As the other poster mentioned, you are assuming that there will be enough hashing power out there from folks who want to support the network.

There are 3 kinds of miners out there:
1. Miners that will stop mining when they stop making money
2. Miners that will mine as long as they break even
3. Miners that will mine no matter what

So your arbitrary 0.01USD may not be appealing to all 3 groups which will affect the network hashing power and the ability to confirm transactions in 10 minutes.

This is actually no different than the current situation we are in however, Bitcoin doesn't have "Legal Tender" stamped on it so who cares.

[natd]

A penny for each block, split between all the miners in a given pool would be less than a penny reward for each block; you burn more $ in electricity for that ten-minute block than you earn that $<0.01

You'd have to be making some sort of patriotic sacrifice to go along with this.

What about solo mining @ constant low difficulty?

[pjviitas]

A penny for each block, split between all the miners in a given pool would be less than a penny reward for each block; you burn more $ in electricity for that ten-minute block than you earn that $<0.01

You'd have to be making some sort of patriotic sacrifice to go along with this.

What about solo mining @ constant low difficulty?

Introduces the double spend problem and reduces the security of the network.

[natd]

A penny for each block, split between all the miners in a given pool would be less than a penny reward for each block; you burn more $ in electricity for that ten-minute block than you earn that $<0.01

You'd have to be making some sort of patriotic sacrifice to go along with this.

What about solo mining @ constant low difficulty?

Introduces the double spend problem and reduces the security of the network.

Hmmm because the higher the difficulty, the higher the security?

[pjviitas]

A penny for each block, split between all the miners in a given pool would be less than a penny reward for each block; you burn more $ in electricity for that ten-minute block than you earn that $<0.01

You'd have to be making some sort of patriotic sacrifice to go along with this.

What about solo mining @ constant low difficulty?

Introduces the double spend problem and reduces the security of the network.

Hmmm because the higher the difficulty, the higher the security?

The easiest way to illustrate this is by looking a typical credit card transaction as follows:
1. You hit the 'Buy" button at an online store.
2. An encrypted request for authorization goes to your bank.
3. Your bank unlocks the request with a key.
4. Your bank examines the request and your account.
5. Your bank sends an encrypted response to the online store either authorizing or denying the transaction.
6. The online store unlocks the response with a key.
7. You either get or don't get your stuff.

If the encryption scheme or difficulty of the message was easy to break then you could theoretically intercept a request or a response, craft your own request or response and send it on its way.