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Precisely. Bitcoin has value because people have agreed it is a viable form of currency and can be used to trade assets.
The only reason any currency is viable is because everybody agrees that it has a perceived value
Mining is even less exploitable. Everyone is subject to a certain degree of difficulty when mining for Bitcoins. If one person hacked it and changed the difficulty, then everyone would be mining at that difficulty level, and the BTC would still get evenly dispersed, just at a much faster rate. It's throttled so that 21 million BTC will exist by the year 2140. I think that will be the maximum amount of Bitcoins able to exist.
But what about the mining aspect? That can't be hacked to produce BCs in 1/20th of the time as normal? I think it can.
Originally posted by ChaoticOrder
Just because it is "virtual" doesn't make it less valuable than real physical money which you can hold. .
Originally posted by ChaoticOrder
And all money is actually stamped with various codes and numbers which are stored on computers.
Originally posted by ChaoticOrder
Bitcoins could easily be stored on electronic cards. The advantage is that it's an electronic commodity, unlike normal money which can continually be injected into the money pool.
Originally posted by ChaoticOrder
If one person hacked it and changed the difficulty, then everyone would be mining at that difficulty level, and the BTC would still get evenly dispersed, just at a much faster rate.
You can buy much more than tee shirts and contraband. And the more it gets recognized, the more uses it will have. You are trying to say a new technology is useless, essentially because it's so new. People need understand it could be used to exchange any assets, just like any other currency, if only accepted wide enough, and not simply dismissed as you are doing. there are too many benefits to throw it away, and people know that.
sure it does because I can walk outside and spend it. a million bitcoins in my virtual wallet would be useless to me as I cannot buy anything I want, or need, with them. When I'm in the market for tee shirts, contraband and chemicals, perhaps they'll have value to me but, for now, they are nothing more than a means of transacting without a paper trail and that, to me, is a design set up for illegal commerce.
There are actually ATM hacks which can steal your money, but again, that is plastic cards. Physical cash can still be stolen, you could indeed be mugged. You can't encrypt the money in your pocket either, making it virtually useless to thieves, and even to viruses. And once your physical money gets stolen, you don't have a back-up of it which you may be able to transfer into another wallet quickly enough, making the stolen funds invalid. And At least there are records of every Bitcoin payment, you make it clear how easy physical cash could be used for illegal payments, without any traceable route.
there's no record of the cash in my pocket, beyond my personal memory. the only way for the money in my pocket to be taken would be via mugging, accident or stupidity. there's no virus out there that can take my cash from me, there's no hacker that can shut down my pocket, making it impossible for me to retrieve my money.
Mt. Gox is an independent website used for trading Bitcoins, and there are many others, it is not actually a part of Bitcoin, or needed for Bitcoin to function. It is their fault, and does not prove Bitcoin is insecure. And one little trojan is nothing, I'm sure there will be many others. But it's nothing to worry about if you have half a brain and know how to protect your PC properly, as well as your digital wallet. The chances of getting your wallet stolen in that situation is near nothing.
there are, clearly, issues in the safety of this currency, as has been evidenced by the Mt Gox issue and the trojan that is designed to steal your money. Also, you can carry all the plastic you want, if you cannot use bitcoins in the world beyond the internet, the cards are pointless.
You're over thinking things. First of all. The companies wouldn't simply store up all the Bitcoins, that's not how businesses work in reality. They would have a constant inflow and outflow of Bitcoins used to pay for business expenses. And they wouldn't simply store up all their profit, share holders and employees would be spending their Bitcoins also.
This whole thing sounds like a neat idea but the limitations are concerning. What happens with the whole 21 million is mined, everyone who was in the thing got their piece and start spending it. Companies start making bitcoins off all the people that got them and eventually everyone uses up their bitcoins and the companies that offered things for bitcoins have them all........then what?
No one would ever own them all, as I explained. And even if a few entities managed to gain and then withhold a large amount of Bitcoins, the value of Bitcoin would adjust according to the total size of the remaining money pool, proportional to demand. Bitcoin has a precision of 8 decimal places, so even with a small amount of Bitcoins in existence, it can still adjust accordingly (they will also get lost over time).
If the 21 million is gone (through mining and lost bitcoins) does the value still hold from the last coin mined? What do these companies do with 21 million bitcoins solely in their possession and how do they profit from it at the end of the day? It seems kind of complicated when I start to think of these things.
I was waiting for you to get to that, and to be honest, I don't know enough about the technicalities to tell you that. However, I would guesstimate that, yes, the creators do have the ability to exploit Bitcoin a lot easier than anyone else, but the degree to which they can exploit it is not known to me. I have watched several interviews with the Bitcoin creators and programmers, and they seem like fairly genuine and sincere characters. But if the difficulty level is generated on a P2P level, according to the amount of miners etc, then the difficulty factor may have to be verified in a similar way to payments, making it free from exploitation by anyone.
So BCs are all created by the same central location, with other places/computers interfacing with it?
If this is true, then it seems the guy(s) who own the server/software could manipulate it any way they wanted to, with just their word that they won't.
Originally posted by ChaoticOrder
I have watched several interviews with the Bitcoin creators and programmers, and they seem like fairly genuine and sincere characters.
Okay, so there will be constant flow of bitcoins (ideally I suppose) though limited, and this is better then normal currency how? It seems to promote greed even more then our paper money does today. Because of the limited amount and everyones perceived value of them, won't hoarding these coins be detrimental to the blossoming economy they were designed for
Originally posted by Crakeur
reply to post by yellowbeard
I don't make my living off this site. I'm just grounded in reality. It's fantasy money that cannot be used in a real society to purchase necessities such as rent and the fact that someone can creat a virus to steal your precious WoW money makes it that much less desireable.
There are a plenty of ways to protect your real money and there are systems in place to protect individuals from theft of real money, such as insurance. Try filing a claim with the FDIC or the police when someone steals your platinum and your +3 sword of ogre slaying.
I bet they are just investing in Bitcoins. They seem like they have money to spare. It doesn't always have to be something illegal. I'm going to use any Bitcoins I earn for day to day stuff (by converting it into regular dollars first obviously, but I will buy the stuff that I can with Bitcoins). If Bitcoins were to become widely used and accepted due to their clear benefits, then you could hardly claim that everyone using them is a criminal.
although I wouldn't be surprised to find out that the owner of said property was using those bitcoins for something somewhat less legit.
there are shady deals listed through Craigslist all the time