Ben laurie bitcoin price
If I can run , nodes which is trivial versus your 1 node I would earn , times more than you. I have every confidence that your assessment of Bitcoin is correct, Ben, however I cannot resist pointing out that the Royal Mint is an anachronism dating back to the days when coins had intrinsic worth.
I find very few people understand how our current money system works, which makes me somewhat cynical of attempts to replace it. In the long run however, blocks will only be rewarded with transaction fees and a market equilibrium will form where the cost of producing the hashing power needed to find a block will be equivalent to the total of transaction fees in that block.
Assuming transaction fees are much lower than the value of transactions in a block, the cost of forking a block are then much lower than the rewards of the double-spended coins. Comment by Steven Mooij — 4 Jul No country today could resist an invasion by a coalition of the rest of the world, and that coalition could easily abolish its currency. With Bitcoin, the equivalent of 1 is that any group that had the resources to do that would gain much more from mining Bitcoins, and 2 probably no single group can out-compute the Bitcoin network right now — it has more computing power than the top supercomputers combined.
While your point makes sense, it is unlikely to be a practical problem for Bitcoin, just as a foreign invasion is unlikely to be a problem for the U. If you refer to the total computing power of Bitcoin right now, please realize that about I think it would be reasonable that if normal bitcoin operation is discussed that rewards new blocks with only transaction fees to only refer to the part of that computer power that is payed for by current transaction fees about 0.
Comment by Steven Mooij — 5 Jul Of course, doing that and catching up with the current state of the system would probably take quite a bit more than 1.
Comment by Ben — 6 Jul There are a lot of talk going on around the world about virtual currency such as Bitcoins and others. Bitcoin is probably the most known and talked virtual currency in these days. From what we can see in the exchange markets, that have been created to trade Bitcoin, there is a lot of daily activity in the trading environment.
What we cannot see is a similar activity in the retail environment either for on-line or real world transactions. Aside from a few examples, this virtual currency does not seem to be taking off. This means that if you want to have some of this Bitcoin , you can exchange them for your fiat currency on the exchange markets. Because Bitcoin allows you and the seller to have a cost free transaction in the same way you would have if you would hand over your cash money to the vendor.
In addition handling cash money is also a cost both for you and the vendor. Third, is the vendor giving you any additional advantage if you pay in Bitcoin like, for example, a small discount?
Not that I am aware of. But might be possible that same are doing it. What I know for sure is that if you pay with real cash money instead of your credit card, you have a very high possibility to get a small discount if you dare asking for it. Fourth, there are the exchange markets that makes the conversion rate change and it is difficult for you and the vendor to forecast its future value. Or it has increased.
This uncertainty, surely complicates the matter even more. Unless you see into Bitcoin a form of investment in the hope that its value will go sky high someday. All fiat money of course are subjected to inflation and deflation. And the conversion rate between them vary daily. Some might also argue that fiat money might collapse and that you would end up having a bank account filled up with numbers that have no purchase value at all.
So, it seems that what we need for a virtual currency to become a usable currency is a sort of stability of its value.
In order to accomplish this, we have to reduce the trading and increase the actual use of our beloved virtual currency. It is my opinion that the present monetary system is just a paradigm, a model. Both mechanisms complement each other. Consensus between people is less vulnerable to attack, but it cannot be automated. Consensus between computers based on proof-of-work might be vulnerable to an attacker with a large amount of CPU power, but it can be automated.
Check these out http: Comment by Michele — 3 Jul What the attacker can do is block my attempts to spend my bitcoins by ignoring my transactions.
Now if profit is irrelevant, then yes — a big bank or rogue state initiative could pay the millions to some ASIC company to build the hardware necessary, operate it and cause some temporary grief to Bitcoin. So instead of the proof of work being based on the block chain hashing you propose the proof of work being the existing of a node. Of course, the result is spinning up multiple nodes. If I can run , nodes which is trivial versus your 1 node I would earn , times more than you.
I have every confidence that your assessment of Bitcoin is correct, Ben, however I cannot resist pointing out that the Royal Mint is an anachronism dating back to the days when coins had intrinsic worth. I find very few people understand how our current money system works, which makes me somewhat cynical of attempts to replace it.
In the long run however, blocks will only be rewarded with transaction fees and a market equilibrium will form where the cost of producing the hashing power needed to find a block will be equivalent to the total of transaction fees in that block. Assuming transaction fees are much lower than the value of transactions in a block, the cost of forking a block are then much lower than the rewards of the double-spended coins.
Comment by Steven Mooij — 4 Jul No country today could resist an invasion by a coalition of the rest of the world, and that coalition could easily abolish its currency. With Bitcoin, the equivalent of 1 is that any group that had the resources to do that would gain much more from mining Bitcoins, and 2 probably no single group can out-compute the Bitcoin network right now — it has more computing power than the top supercomputers combined.
While your point makes sense, it is unlikely to be a practical problem for Bitcoin, just as a foreign invasion is unlikely to be a problem for the U. If you refer to the total computing power of Bitcoin right now, please realize that about I think it would be reasonable that if normal bitcoin operation is discussed that rewards new blocks with only transaction fees to only refer to the part of that computer power that is payed for by current transaction fees about 0.
Comment by Steven Mooij — 5 Jul Of course, doing that and catching up with the current state of the system would probably take quite a bit more than 1. Comment by Ben — 6 Jul There are a lot of talk going on around the world about virtual currency such as Bitcoins and others.
Bitcoin is probably the most known and talked virtual currency in these days. From what we can see in the exchange markets, that have been created to trade Bitcoin, there is a lot of daily activity in the trading environment. What we cannot see is a similar activity in the retail environment either for on-line or real world transactions. Aside from a few examples, this virtual currency does not seem to be taking off.
This means that if you want to have some of this Bitcoin , you can exchange them for your fiat currency on the exchange markets. Because Bitcoin allows you and the seller to have a cost free transaction in the same way you would have if you would hand over your cash money to the vendor.
In addition handling cash money is also a cost both for you and the vendor. Third, is the vendor giving you any additional advantage if you pay in Bitcoin like, for example, a small discount?
Not that I am aware of. But might be possible that same are doing it. What I know for sure is that if you pay with real cash money instead of your credit card, you have a very high possibility to get a small discount if you dare asking for it. Fourth, there are the exchange markets that makes the conversion rate change and it is difficult for you and the vendor to forecast its future value.