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I would stress to Tyler and other economists that the ability to have a completely distributed currency (backed by no one in particular) is an amazing mathemati

by hugh3 16y ago

I would stress to Tyler and other economists that the ability to have a completely distributed currency (backed by no one in particular) is an amazing mathematical/technological accomplishment Not really. The real-world example is if my friends and I get together and decide that pine cones... or rather, pinecones with exactly 45 microsporophylls (yes, I had to look up what the little thingies on a pine cone are called) are a new and exciting currency that everyone should use. Then we could all go out hunting for pine cones and trading them with each other and convincing all our friends that collecting quinquadridecal-microsporophyllic strobili was the greatest thing ever. It would be surprising if we succeeded in doing this (that is, in raising the value of pinecones above their natural near-zero value [NB pinecones are unlike bitcoins in that they actually do have a mildly nonzero value]) but it's no technological achievement.

mike_esspe 16y ago
Actually amazing accomplishment is a "distributed currency", that solved the double spending problem without backing by central authority.
- hugh3 16y ago
  Well, currencies have been "distributed" for most of history -- they're distributed into your pocket and you can't spend 'em twice because they're physical objects. An electronic currency without a central database is admittedly novel. Though didn't I hear there's a terrible scaling problem? That every single bitcoin user needs to have a database of every bitcoin transaction that has ever taken place?
  - mike_esspe 16y ago
    No, only miners need to have the whole database. Currently ordinary users have it too, but protocol allows for the "light" client.
- rick888 16y ago
  It has a central authority, it's just not as obvious. The The Bitcoin app developer chooses the algorithm for distribution and mining. Otherwise, there would not no way to stop someone from generating millions of Bitcoins and destroying the value. Because of this, I'm not going to bother with it. I don't want to leave this sort of responsibility in the hands of someone with little experience and or proof of success. Especially when it comes to my hard, earned, money. One mistake and it's gone forever. I feel like they will run into all the same problems various governments have already dealt with years ago when currency was first adopted. It also seems like the system can be gamed too easily.
  - mike_esspe 16y ago
    But app developers need to convince all bitcoin users, when they want to change the rules. If they don't convice them, they will just fork the project.
    - rick888 16y ago
      There will most likely be 1 or 2 very popular apps that 90% of the people will be using (which happens in almost any mature market). Will these app developers be classified as banks (and have to go through all of the regulations and restrictions involved with a bank)? If not, what happens when there is a "bug" and I lose $1000. How do I get it back?
      - deleted 16y ago
        [deleted]
      - mike_esspe 16y ago
        "This software provided as is..." :) If you are afraid of such situations, you shouldn't use open source software.

by hugh3 16y ago

mike_esspe 16y ago

Actually amazing accomplishment is a "distributed currency", that solved the double spending problem without backing by central authority.

hugh3 16y ago
Well, currencies have been "distributed" for most of history -- they're distributed into your pocket and you can't spend 'em twice because they're physical objects. An electronic currency without a central database is admittedly novel. Though didn't I hear there's a terrible scaling problem? That every single bitcoin user needs to have a database of every bitcoin transaction that has ever taken place?
- mike_esspe 16y ago
  No, only miners need to have the whole database. Currently ordinary users have it too, but protocol allows for the "light" client.
rick888 16y ago
It has a central authority, it's just not as obvious. The The Bitcoin app developer chooses the algorithm for distribution and mining. Otherwise, there would not no way to stop someone from generating millions of Bitcoins and destroying the value. Because of this, I'm not going to bother with it. I don't want to leave this sort of responsibility in the hands of someone with little experience and or proof of success. Especially when it comes to my hard, earned, money. One mistake and it's gone forever. I feel like they will run into all the same problems various governments have already dealt with years ago when currency was first adopted. It also seems like the system can be gamed too easily.
- mike_esspe 16y ago
  But app developers need to convince all bitcoin users, when they want to change the rules. If they don't convice them, they will just fork the project.
  - rick888 16y ago
    There will most likely be 1 or 2 very popular apps that 90% of the people will be using (which happens in almost any mature market). Will these app developers be classified as banks (and have to go through all of the regulations and restrictions involved with a bank)? If not, what happens when there is a "bug" and I lose $1000. How do I get it back?
    - deleted 16y ago
      [deleted]
    - mike_esspe 16y ago
      "This software provided as is..." :) If you are afraid of such situations, you shouldn't use open source software.