Decentralized currencies

Discussion in 'Politics, Religion, Social Issues' started by chris200x9, Jan 22, 2011.

  1. chris200x9 macrumors 6502a

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    #1
  2. ravenvii macrumors 604

    ravenvii

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    #2
    Very interesting concept, basing the currency on CPU cycles, like some currencies are based on gold.

    While the concept is very interesting, and I wonder if it'd ever succeed, I do hope there'll be some discussion here.
     
  3. Sydde macrumors 68020

    Sydde

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  4. chris200x9 thread starter macrumors 6502a

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    #4
    I actually don't like that part, it really doesn't go into it deep enough. I'm not an expert but I'm a user to my understanding there will only be 21 million coins, ever. Right now a little over 5 million are out, you basically use your cpu (or gpu) to "mine" or run the network you can get 50 coins if you are lucky and "mine" the right block (this is nothing more than an incentive to help the network run). Finding a block of 50 progressively gets harder, and the 50 halves every 4 years, so it'll top out as 21 million bitcoins outstanding.
     
  5. chris200x9 thread starter macrumors 6502a

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    you help the network run, you might "win" 50 coins eventually this will diminish to nothing at which time there will be 21 million coins. So it's a finite currency, no just printing up more money, no hyperinflation.

    I disagree , the only thing that and this have in common is the word currency. I couldn't even follow what the hell he was saying.
     
  6. renewed macrumors 68040

    renewed

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    #7
    So it has no backing? (not that we do nowadays anyway) '

    Also, isn't it just points redeemable at a few "merchants?"

    What I don't get is how this is considered currency or how it is relevant to anyone other then cyber geeks who exchange points underground for networking help.
     
  7. ravenvii macrumors 604

    ravenvii

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    #8
    Right now, yeah. But this only came into existence back in ~July (I think). Right now it's worth ~$0.40 to a BTC.
     
  8. chris200x9 thread starter macrumors 6502a

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    I wouldn't say a few. That's not even all of them, but I don't think its that bad for how new bitcoins are.
     
  9. OutThere macrumors 603

    OutThere

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    #10
    An ugly name and an complicated and difficult to understand mechanism give me the impression that this won't go particularly far. Also, doesn't a theoretically anonymous and unregulated commodity like this run some risk of someone cornering the market? It would appear that there is little more than $500,000 worth of bitcoin in existence right now. A malicious or greedy person could, unless I'm mistaken, destabilize the currency enough to destroy any utility it may have, no?
     
  10. ravenvii macrumors 604

    ravenvii

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    #11
    That's one thing I'm wondering. Once the BTC hits the maximum, what if it's still not enough to buy something? Would it become so valuable per coin?

    In real world terms, if, say, Moneyzakastan releases a new government currency, and only has 10 coins maximum, and it is worth $1 per coin (this is completely theoretical), what would happen to the currency? Hyperdeflation, hypervaluation or just die out?
     
  11. chris200x9 thread starter macrumors 6502a

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    #12
    I dunno you might want to go here I'm a fairly new user, I would think hypervaluation.
     
  12. iJon macrumors 604

    iJon

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    #13
    Anybody still messing with this. Just starting to get into.

    Noticed that here recently Bitcoins are trading around $20, which is quite a jump from even months ago. Looks like a simple way to make some money if you play your cards right.
     

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