posted on Jun, 7 2011 @ 06:32 PM
Those are valid concerns, however the bitcoin software is open-source, so it is pretty much impossible that the encrypted data we are all breaking in
to is anything but random, meaningless data. The source code is freely available, and there are many articles out there concerned with methods of
cheating the system or exploiting the computing power made available by bitcoin. I haven't read about or heard of any ways to exploit the system, much
less exploit it by having the computers all break encryption on something the NSA was having trouble with.
The bitcoin system is far too transparent and public for such exploitation.
edit: regarding the pyramid scheme, yes, I agree. I am participating in bitcoin with a similar expectation of getting back more than I have put in,
dependent on greater adoption of bitcoin in the future. However, this pyramid scheme part of bitcoin is not taking into account the fact that bitcoin
already has an economy built up around it which is not dependent on the pyramid scheme aspect of things. If anything, bitcoin will experience some
troubles when the value of bitcoins rises so fast that NOBODY spends any, but not because too few people get in on the "scheme". I hope that last bit
makes sense, not sure I worded it correctly.
edit on 7-6-2011 by tetsuo because: (no reason given)
edit on 7-6-2011 by tetsuo
because: (no reason given)
another edit: Is not the US dollar's value dependent on how many people are getting in on the action? Just a thought experiment: Pretend that no huge
corporations used the USD, and that it was an infant currency. Those who purchased large amounts of the currency (or traded for it, however you want
to say it, they acquired it) at the very beginning enjoyed very low exchange rates, acquiring vast reserves of USD while it was cheap. Fast-forward
one hundred years, and big corporations are now using USD, and the currency has increased greatly in value. This is a good time for you to spend the
USD that you have been sitting on over time. This is all dependent on there being other relatively stable currencies or commodities (and there almost
always are), because individual currencies not backed by a physical resource are dependent on relative values of other currencies. OK, that might not
make much sense, but I am passing out over here, need some rest. I'll come back tomorrow and rewrite it if it's unintelligible.
7-6-2011 by tetsuo because: (no reason given)