BITCON... WHY its totally FLAWED

[1for1]

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

 

[thatguy]

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

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

 

[1for1]

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

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

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

 

[scone]

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

its as good as facebook money

 

[thatguy]

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

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

Over the years, the rewards (currently 50 coins per block) get smaller, and the incentive to mine switches to collecting small transaction fees and keeping the network secure by verifying network transactions. Also over time, the difficulty level of the mathematical problem re-adjusts based on the addition or subtraction of network power. This figure is, for reasons unsure, called "the difficulty level" which started at 1 and is now 1.89 Million.

In the beginning, miners were able to solve blocks easily with any normal computer. With the difficulty level so low, it was common to produce hundreds or thousands of coins weekly, although they traded at a penny or less each. Since the coins had little value, they were freely given away as tips and experimented with. In May 2010, one miner actually struggled to get someone to send him two pizzas delivered to his door for 10,000 bitcoins, then worth $40. At the recent price of $9/BTC, those coins are now worth $90,000.

Apparently bit coins are mathematically limited to 21million units.

 

[Guest]

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

 

[thatguy]

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

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

 

[1for1]

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

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 like a moron

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)!

 

[thatguy]

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

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 like a moron

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)!

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

 

[grinners]

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.

Difficulty
Nakamoto compared the generation of new coins by expending CPU time and electricity to gold miners expending resources to add gold to circulation.[4]. Without a means of limiting production, however, blocks could be generated more and more easily as computing power increased or more clients tried to mine bitcoins. In order to throttle the creation of blocks, the difficulty of generating new blocks is adjusted over time. If mining output increases or decreases, the difficulty increases or decreases accordingly.

The adjustment is done by changing the threshold that a hash is required to be less than[14]. A lower threshold means fewer possible hashes can be accepted, and thus a higher degree of difficulty. The target rate of block generation is one block every 10 minutes, or 2016 blocks every two weeks. Bitcoin changes the difficulty of finding a valid block every 2016 blocks, using the difficulty that would have been most likely to cause the prior 2016 blocks to have taken two weeks to generate, according to the timestamps on the blocks. Technically, this is done by modeling the generation of bitcoins as Poisson process. All nodes perform and enforce the same difficulty calculation.

In addition to the pending transactions confirmed in the block, a generating node adds a generate transaction, which awards new bitcoins to the operator of the node that generated the block. The system sets the payout of this generated transaction according to its defined inflation schedule. The miner that generates a block also receives the fees that users have paid as an incentive to give particular transactions priority for faster confirmation.

Difficulty is intended as an automatic stabilizer allowing mining for bitcoins to remain profitable in the long run for the most efficient miners, independently of the fluctuations in demand of Bitcoin in relation to other currencies.

Proof-of-work problems are especially suitable to GPUs and specialized hardware. Bitcoin users often pool computational effort to increase the stability of the collected fees and subsidy they receive[citation needed].

The network never creates more than 50 BTC per block and this amount will decrease over time towards zero, such that no more than 21 million will ever exist.[15] As this payout decreases, the incentive for users to run block-generating nodes is intended to change to earning transaction fees.

 

[1for1]

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

 

[thatguy]

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.

Step 1:
Approach IBM and ask them hire this for a day

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

 

[Agauholic]

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

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 like a moron

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)!

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.

thatguy wrote:

geewiz wrote:

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

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 like a moron

LOL spot on... economic darwinsism perhaps?

 

[Lovey80]

Snake oil.

 

[Guest]

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

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 like a moron

Me moron? You rude!

 

[thatguy]

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

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 like a moron

Me moron? You rude!

Sorry I did not mean to be rude. Again sorry

 

[radiobirdman]

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

 

[thatguy]

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

 

[RetardedMonkey]

Approach IBM and ask them hire this for a day

Blue Gene's are so sexy.

 

[spdz]

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

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