BITCON... WHY its totally FLAWED

Discussion in 'Digital Currencies' started by 1for1, Aug 6, 2012.

  1. 1for1

    1for1 Well-Known Member

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    REASON ITS FLAWED...

    Who gets the profit from each bitcoin born into existence? AHA!

    If this automatic generation of coins was given out free (ie: each person in earth gets a turn at recieving a bit coin based on a equal allocation system) similar to the current system (except the current system only beneifts the creator who sells each!) then this would actually work.. as the current set-up sees private hands profiting each time a bit-coin is born into the system bit coin is no better than any other privately created money.

    The whole idea with Fiat money in a working system is that the money is born into the system debt free at benefit of society..

    Anyone here who has purchased bit-coins want to explain how a private indivual making digital currency and selling it at the current PRICE for it is a good working monetary system? To me its just another flawed system designed to benefit the creator (much like the problem with current IMF issued through debt fiat folly).

    1for1
     
  2. thatguy

    thatguy Active Member

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    Bitcoins work on the same principle as mining. You can mine gold and all it costs you is time and resources, not everyone goes out and mines gold because they put their time and resources into something the see as more worthwhile. The price of gold represent the time and resources originally put in and the amount of time and resources it would take to put in now. Bit coins cost time and resources to mine, every one that gets mined makes the next one harder to mine so you need more time and resources to get it.

    But even given all that G&S bitchslap bitcoin IMHO
     
  3. 1for1

    1for1 Well-Known Member

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    I dont buy that for a second... why is each bit coin harder to mine, what are the costs of mining bit coin... answer... my guess... .00001 c basically nothing, it is only as scarce as they want to make it, they could make one trillion in one second if it served there purposes.

    Silver and Gold cost real money to mine, with real resources .. bitcoin is FREE with ZERO resources once the program is written.. ie: some start up cost, virtually no ongoing except managing all the free money the are getting selling nothing to suckers for something. Fiat is at least backed by a govt who declare its worth.

    Props to the bitcoins guys for making a product that costs them nothing that they can sell for $20... HAHA to suckers who spend $20 on nothing.

    1for1
     
  4. scone

    scone Active Member Silver Stacker

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    if your not holding it, it doesn't exist.

    its as good as facebook money
     
  5. thatguy

    thatguy Active Member

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    It is a free market.. no one forces people to buy Bitcoins... if someone is willing to pay $20 for a bitcoin by my definition a bit coins is worth $20
    Apparently bit coins are mathematically limited to 21million units.
     
  6. Guest

    Guest Guest

    I have SMS coin. Pay me and I'll send you a genuine SMS with numbers and dollar signs in it.
     
  7. thatguy

    thatguy Active Member

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    Why are people so deliberately confused about such a simple system??? Seriously ppl I do not and have not owned a single bitcoin, but 2 seconds worth of research will prevent you from looking uneducated
     
  8. 1for1

    1for1 Well-Known Member

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    Hi, what costs are involved in producing.. i dont see any legitimate reason why they would be capped at that quantity stated, as they are a law unto themselves with no government backing id assume as profit maximisers.. they will just keep the free money rolling..

    These guys remind me of diamond traders.. drip feed the supply and claim scarity.

    I have read about all i can.. to me this is worse than a ponzi as no-one benefits except those that PRODUCE the coin (albeit with ZERO overheads)!
     
  9. thatguy

    thatguy Active Member

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    Anyone can mine the coins... YOU can mine the coins. IF YOU think the coins costs 0.00001c to mine, go mine a million and sell the for $20 and go live on some tropical Island in a mansion
     
  10. grinners

    grinners Active Member Silver Stacker

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    The cost is running a computer for weeks on end to mine a coin.

    The people who criticise BitCoins seem to know the least about it :S

    *I do not, nor have ever, owned a single BitCoin, but I think the idea is interesting.

     
  11. 1for1

    1for1 Well-Known Member

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    Its NOT a commodity, its a paper promise except its not backed by any government.. a private citizen has set up a computer system to cronologically create bit-coins.

    I would be VERY interested to see a Cost of production break down for a bit-coin.

    Again, i actually think this system would work if the bitcoins were distributed to EVERYONE for FREE in an equitable way... but as its a for profit its a complete con.

    Example... SScoin ... every week i send a unique code SScoin to EVERY SINGLE SS member... after 10 weeks we could all have 10 bitcoins.. WE would decide what these SScoins would have as trade/fiar/silver value... every week we would each recieve the same... some people may save, others may spend or trade, eventually there would be enough supply we could trade for whole ounces etc..

    In an aggregate way this culd actually work... BIT... only because i am issuing them FREE and disctributing them EQUALLY ... if i kept all of them every week and only SOLD them the system would not be FAIR as its not free.. Also why would someone trust my system when they know im Selling these for profit and you know i have paid nothing for them?

    MY point ... this system COULD be AWESOME.. but we would need it to be EVENLY DISTRIBUTED and not backed by a for-profit individual.

    1for1

    ie: every week

    1for1
     
  12. thatguy

    thatguy Active Member

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    Step 1:
    Approach IBM and ask them hire this for a day
    [​IMG]
    Step 2:
    Hire software engineers to write a decoder to work on the bit coin encryption
    Step 3:
    Work out how many bitcoins can be mined in the 1 day, work out how much the rent the super computer and the write the program will cost. Divide one by the other and if lower the what a bitcoins is selling for at the moment proceed
    Step 4:
    Sell bit coins and pay over heads and invest profit

    OR

    buy some 1oz kooks :p
     
  13. Agauholic

    Agauholic New Member

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    Q: Hi, what costs are involved in producing..
    A: Calculations, and costs of running equipment to perform them.

    Q: i dont see any legitimate reason why they would be capped at that quantity stated
    A: It is embedded into the mathematics... as more hashes are generated it becomes hard to generate them. begin reading https://en.bitcoin.it/wiki/Block_hashing_algorithm

    Q: as they are a law unto themselves with no government backing id assume as profit maximisers
    A: No, it is open. You may calculate your own block-hashes as you wish. anyone is free to. But you will meet economic restrictions, price of energy etc. Wow, thats a neat idea.

    Q: I have read about all i can
    A: Some of us get past the cover.


    LOL spot on... economic darwinsism perhaps?
     
  14. Lovey80

    Lovey80 Well-Known Member

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    Snake oil.
     
  15. Guest

    Guest Guest

    Me moron? You rude!
     
  16. thatguy

    thatguy Active Member

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    Sorry I did not mean to be rude. Again sorry
     
  17. radiobirdman

    radiobirdman Active Member Silver Stacker

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    BIT of a CON what a ffn joke , at least if I mine gold ive got gold not some worthless peice of bitcon

    a sucker born every minute
     
  18. thatguy

    thatguy Active Member

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    [​IMG]
     
  19. RetardedMonkey

    RetardedMonkey Active Member Silver Stacker

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    Blue Gene's are so sexy.
     
  20. spdz

    spdz New Member

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    Bitcoin exchange roughly $10AU, please define 'worthless' in this context?
    People are still handing over 'cash' for USD.... ;)
     

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