Interesting Bitcoin thread

[Jay]

since the head of Mt. Gox was just arrested

http://www.reddit.com/r/Bitcoin/comments/3fe92x/im_ashley_barr_aka_adam_turner_the_first_mtgox/

 

[Penn]

I made the mistake of buying it recently. it takes 4 days to come and 4 days to go.

 

[Jay]

I made the mistake of buying it recently. it takes 4 days to come and 4 days to go.

I don't get it. I thought it was electronic?

 

[ancona]

I could never get my head wrapped around the whole idea of invisible money. When that guy managed to let a shit pile of it get stolen from "Mt. Gox" I think it was called, that's when I said Nope! I guess I'm too old and too traditional. If I can't hold that stuff in my hand, it doesn't really exist. Not in the actual existential sense of being anyhow.

 

[11C1P]

I could never get my head wrapped around the whole idea of invisible money. When that guy managed to let a shit pile of it get stolen from "Mt. Gox" I think it was called, that's when I said Nope! I guess I'm too old and too traditional. If I can't hold that stuff in my hand, it doesn't really exist. Not in the actual existential sense of being anyhow.

I've never understood it either, and to me it's even more mind boggling when supposedly the people that are into this form of currency get into it cause they don't trust Govt. fiat currency. Now having a private form of fiat currency that can go poof anytime a server goes down, or your power goes out, no thanks. I was also further mystified by finding out how they "mine" the money for this stuff. You get a computer & program that are devoted to counting and keeping track of the currency, and that makes more currency!?!? When I read that I was wondering what nigerian prince you would have to mail the money orders to if you want to get in on it.

 

[pmbug]

... I was also further mystified by finding out how they "mine" the money for this stuff. You get a computer & program that are devoted to counting and keeping track of the currency, and that makes more currency!?!? ...

As I understand it, the mining program runs an app similar to a brute force cryptography cracker. It tries to identify very, very large prime numbers or something like that. Each prime number is used to create a single, unique bitcoin.

For me, bitcoin has a few major flaws:

• transaction blockchain - anyone with the computing power can follow the transaction flow of a bitcoin or a wallet
• centralization - this was news a while back when an operator captured 50+% of the computing backbone for bitcoin
• infrastructure - it requires a functioning electrical grid and internet access - it's no good when times are most desperate (natural disaster or SHTF)

 

[11C1P]

As I understand it, the mining program runs an app similar to a brute force cryptography cracker. It tries to identify very, very large prime numbers or something like that. Each prime number is used to create a single, unique bitcoin.

For me, bitcoin has a few major flaws:

• transaction blockchain - anyone with the computing power can follow the transaction flow of a bitcoin or a wallet
• centralization - this was news a while back when an operator captured 50+% of the computing backbone for bitcoin
• infrastructure - it requires a functioning electrical grid and internet access - it's no good when times are most desperate (natural disaster or SHTF)

So that doesn't seem to be any more logical to me. Could you imagine someone saying U.S. currency is valuable, because the govt. spends lots of time creating very unique serial numbers for each dollar printed? They would lock you up in a loony bin, which itself is damn near impossible these days.

Also, the 3rd point you mention, was also one of my big problems with it.

 

[pmbug]

It isn't valuable because of the time spent identifying the numbers. Scarcity (relative to market size) is what drives value. It's the computational limits of identifying these huge prime numbers that enforce a limit on the existence/growth of bitcoins.

It's a bit like saying that owning a bitcoin is like owning a (blockchain verified) claim to a (specific) huge prime number.

 

[11C1P]

It isn't valuable because of the time spent identifying the numbers. Scarcity (relative to market size) is what drives value. It's the computational limits of identifying these huge prime numbers that enforce a limit on the existence/growth of bitcoins.

It's a bit like saying that owning a bitcoin is like owning a (blockchain verified) claim to a (specific) huge prime number.

Which is about as valuable as saying you own drawing of magical creature you created. Only IMO the picture would be more valuable to me, cause at least you could hang it on your wall and have something real to look at. By all means if you like bitcoin, go for it, it's just not for me, I'd just as soon try collecting smoke from campfires and call it valuable.

 

[pmbug]

Well yeah, that's the issue #2 I mentioned above. The claim is only as good as the integrity of the blockchain system. When an operator (or a collusion of a handful of operators) can manipulate the blockchain, it's not the same as a "bird in the hand".

 

[11C1P]

Hmmm, 2 posts so far both links to some site I wouldn't click on if you paid me. Welcome to forum!

 

[ancona]

Hmmm, 2 posts so far both links to some site I wouldn't click on if you paid me. Welcome to forum!

Ya......definite doosh bag.:judge:

 

[11C1P]

Ya......definite doosh bag.:judge:

 

[rblong2us]

http://sd.keepcalm-o-matic.co.uk/i/keep-calm-and-off-with-his-head-17.png

then rblong is content

 

[pmbug]

We apologise for the spam in the discussion thread. Those responsible have been sacked (and the spam deleted). Mynd you, møøse bites Kan be pretti nasti...

 

[11C1P]