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Comment: Re:BTC != Napster (Score 1) 221

by Glock27 (#46473331) Attached to: The Future of Cryptocurrencies

very few built the bit coin mining network. it was all just hackers throwing cpu power at it. however it is to the point where it is no longer cost effective to throw CPU power at it as the # of coins you get is worth less than the power to run them.

You should take a look at the Mining Dasboard (it's a great resource in general, with the best mining profit calculator I've seen). You'll note that the total compute thrown at mining continues to grow, and just hit 35 petahashes per second (that is, 35,000,000,000,000,000 hashes per second). Clearly a lot of folk think there's value in mining bitcoins, and the increasing rate shows no sign of slowing down. On January 1, the rate was only 11 PH/s, so it's more than tripled in 3.5 months. Why are they doing it when for almost all of them it's not profitable now? Clearly they think the value of BTC will rise - a lot!

The problem of bit coin isn't whether or not it is useful but of it breaking down.

There are 44 quadrillion potential bit coins(21 million to the 8th power), but at the rate at which they are being permanently lost is just as staggering. every time someone loses 1 coin due to a lost password, bad hard drive etc, you really lose 8 potential coins.

You're conflating two different things. A "coin" is one bitcoin. Each coin may be subdivided into 100,000,000 "satoshis" currently. The Bitcoin Foundation could allow further subdivision in the future. So, the supply of BTC is not of any concern in the long run.

Real world currencies don't have to deal with "bit rot" (pun unintentional) You lose the combo to a physical vault there are other ways of opening it. even if the physical cash is destroyed you can always print more to replace.

Once a bit coin is gone. it is gone forever.

True, it's more like having gold destroyed (say in an explosion) than burning paper money. BTC was designed to have a limited amount, to prevent inflation. Given its divisible nature, that's not really a problem, although it will tend to drive up the value of integral BTC over time (thus the allure to investors).

Lastly we are already having to do transactions in milibits. what do we call .0000001 of a bit coin?

As mentioned above, a "satoshi".

Bit coin value has to go up in order to compensate for the inflation of number of coins and % of coins . however that means today's laptop at 1 BTC is worth .5 BTC tomorrow. People are already getting annoyed by such things.

What people? Certainly not investors.

Why is that a problem? Gold is currently worth four times (400%) what is was just fourteen years ago, and that's after taking a big hit a while back. Does that mean nobody wants to buy and hold gold now? When they need to buy something, they exchange some gold for dollars (or bitcoins) and make a transaction. BTC has nice attributes of both commodities and currencies.

Purchase a product for 1 bit coin and two months later that one bit coin is worth 10 times what it was. Bitcoin might be a transactional currency, but it won't ever be a stable one. it's very design prevents such a situation from lasting more than a couple of years.

There are a couple of factors that affect BTC price. The first, and the main cause of extreme volatility, is its newness and novelty. There have been giant "buyins", as when the Chinese became aware of it. Those things drive prices up. In the longer term, I expect it will stabilize quite a bit...but of course it will be worth more and more dollars over time if for no other reason than dollars are constantly inflating by design.

I expect BTC will do fine in the long run as long as the protocol remains secure.

Comment: Re:is there an xkcd comic for this? (Score 3, Insightful) 138

by Glock27 (#46407291) Attached to: The Rise and Fall of Supersymmetry

True, but when the "authority" is a Nobel Prize winning physicist specializing in the exact area being discussed it means something. Further, "appeals to authority" invite the reader to investigate the claim, including detailed arguments made by the authority.

So, while not conclusive, an "appeal to authority" in this case is of interest.

Comment: Re:Gee, color me surprised (Score 1) 240

by Glock27 (#46362255) Attached to: WV Senator Calls For Ban On All Unregulated Cryptocurrencies

.... or they could simply refuse to accept them, or any transaction that's taken place involving them.

They don't "accept" them now, and banks don't have control over external transactions. Thanks for playing! ;-)

Sure, they'd still be valuable to people who don't seem to realize what they're backed by, and their actual value, is the same: absolutely nothing.

Almost no modern currencies are "backed" by anything. Go buy some gold or silver and have fun! They're not nearly as convenient for Internet transactions as BTC though...

Comment: Re:But ... FREEDOM! (Score 1) 240

by Glock27 (#46362205) Attached to: WV Senator Calls For Ban On All Unregulated Cryptocurrencies

Banks are insured against such losses so at least most customers won't lose most of their money. Who do you think is responsible for the regulations that require such insurance? Oh snap, that's right: THE GOVERNMENT.

There is no insurance for gold in safety deposit boxes. That was the analogy I used, with good reason.

Now run along and get fucked, boi.

How eloquent! (Kids these days...smh)

Comment: Re:Gee, color me surprised (Score 2) 240

by Glock27 (#46358021) Attached to: WV Senator Calls For Ban On All Unregulated Cryptocurrencies

You think the banks can't gain control of bitcoin?

Excuse me while I go laugh my head off.

I suppose "they" could if they started one hell of a mining operation...that would take quite a bit of effort though, and presumes there wouldn't be a mining arms race. Sounds farfetched to me.

Comment: Re:But ... FREEDOM! (Score 2) 240

by Glock27 (#46357807) Attached to: WV Senator Calls For Ban On All Unregulated Cryptocurrencies

Bitcoin just suffered a loss of 6% of its total currency

No, Mt. Gox just lost (most probably) all of its currency. It is similar to a bank with insufficient security getting robbed. That is no reason to ban US dollars. BTW, those BTC are out there and will no doubt be spent over time.

, if I understand the Mt.Gox math properly (and even if I don't, the loss was significant). One of the reasons governments came into being -- one of the reasons most people tend to agree that they should exist, is to protect property rights. There may be nothing wrong with Bitcoin inherently (mathematically), but if there are holes in the faucets -- the bitcoin banking system in this case -- then it's in everyone's best interest to patch the holes.

Indeed. However, other exchanges were smart enough to protect against this well known technique. Mt. Gox is the equivalent of a bank with a faulty vault and no security guard. Rumor has it that Mt. Gox hadn't balanced its books for months. Inexcusable.

If someone steals my money, then the taxes I pay go, in part, to pay for the legal system, rules, and police whose job it is to try and get it back or at least punish those who took it.

Bitcoin has had four years of freedom, and it has proven that it is as susceptible to abuse as traditional cash currencies, if not more so. While I don't want to see it crushed, and I'm in favor of limited government oversight, it seems to me that those limits should be non-zero.

The Japanese authorities should be making some effort to track the crime. Unfortunately, it's about the same as if a bunch of gold had been stolen from safety deposit boxes and shipped out of the country. There's likely no recourse, but that's no reason to ban gold ownership. Personally I think it's wiser to keep one's gold in a safe at home - and there is a BTC equivalent for that.

Comment: Re:surely someones considered this. (Score 1) 695

by Glock27 (#46338211) Attached to: Mt. Gox Gone? Apparent Theft Shakes Bitcoin World

reigning system of currency/government considers it a threat

Outside of tinfoil hat land, there's absolutely no shred of evidence this is true. None, zip, nada. (No matter how much the tinfoil hat nutters would love it be true and their existence thus justified.)

I responded to some of your other points elsewhere, but as far as this goes I guess you missed Russia outlaws BTC. Russia hates it for the same reason it hates all currencies it doesn't control...

Comment: Re:Sad (Score 1) 695

by Glock27 (#46338111) Attached to: Mt. Gox Gone? Apparent Theft Shakes Bitcoin World

Kind of sad that a new currency - whose main idea was that it should be easy for private people to transfer money over the internet, free of charge - actually need these big "exchange-places"

Bitcoin is only a currency courtesy of the fact that it's creators and supporters don't actually grasp what a currency is. This repeated "calling a tail a leg" has lead to confusion because said supporters can understand why a legless dog can't walk - after all he has one leg!

Dictionary.com:

currency
[kur-uhn-see, kuhr-]
noun, plural currencies.
1. something that is used as a medium of exchange; money.

So, in what way exactly is BTC not a currency? It is clearly used as a medium of exchange...

Call it USD or BTC, same thing.

No, they aren't. They aren't even close to the same thing. That's my point, so long as you fail to grasp that Bitcoin is a trade token (on par with casino chips or trading stamps), you won't grasp why events have transpired as they have.

BTC are a "trade token" on par with gold coins. They don't have "state backing", but more importantly they're not controlled by any state. They have advantages as well as disadvantages compared to USD.

Do you think the first big bank robbery invalidated the dollar? Does it bother you that a dollar today is worth less than half of a dollar circa 1987?

Comment: TOR (Score 1) 120

by Glock27 (#46218219) Attached to: 3 Reasons To Hate Mass Surveillance; 3 Ways To Fight It

I'm very surprised to see that the article and all posts fail to mention TOR.

TOR may not be perfect, but it's a lot better than any readily available alternative. I'd suggest using it for any browsing you think might be the least bit controversial. The more people that use TOR, the better it works. It's a bit slow, but it's livable.

http://www.torproject.org/

"Text processing has made it possible to right-justify any idea, even one which cannot be justified on any other grounds." -- J. Finnegan, USC.

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