Interesting new money

[poopgiggle]

Do they only have enough bouillon to back that value? Is this form of currency even backed by bullion?

Are there any national currencies backed by bullion left? They have currency exchanges for bitcoin->dollars so I imagine it's valued in terms of traditional currencies.

I would love to see currency backed by bouillon though. Goodbye Gold Standard, helllooooo Chicken Soup Standard.

 

[Talacker]

I have wondered how long it will take someone to come up with a paypal-like system based on gold or silver. An end-around the national currency system. Get around legal tender laws because its not an actual currency.

 

[LightningCrash]

I'm going to go out on a limb and guess that you don't know anything about cryptography.

No but he watched a thing about crypts and mausoleums once at a Holiday Inn Express.

 

[poopgiggle]

No but he watched a thing about crypts and mausoleums once at a Holiday Inn Express.

oh yeah well i own all the tales of the crypt episodes on dvd so pwwwwnnnnnndddddd

 

[Hobbes]

I know nothing about electronics or software so I will let those more savvy try it first and see if I hear about anyone getting bitcoin jacked. The line I have quoted makes me curious. So this form of currency is capped at 21 million? There are people who make more money than that in a single year so what if that person decides they want to use this money? I guess I don't understand the cap at 21 million. Do they only have enough bouillon to back that value? Is this form of currency even backed by bullion?

The way I understand it is, it's a mathematical algorithm that makes it more and more difficult to create more bitcoins as that limit is reached.
So yes, the total number of bitcoins is capped at around 21 million roughly.

 

[Isha's Pa Pa]

Sounds like a crock of sh*t to me !!

 

[Hobbes]

Sounds like a crock of sh*t to me !!

That's kind of what I thought at first too.

But think of it this way:

Prime numbers are difficult to generate; They are more and more difficult to generate as they get larger.
So there is a mathematical limit to the amount of prime numbers we can 'discover', realistically.
We don't create prime numbers. They are created by God or Nature or whatever you believe in but they are not man made.
Since prime numbers are limited by nature to a certain level of discoverable elements they become a finite resource, like the number of ounces of gold or silver that exist on this planet.

Now, what makes them valuable as currency?
Well, what makes paper currency valuable?

And the difference is, there is no limit to the amount of paper currency that can be produced.
BUT, there is a limit to the prime numbers that we can discover.


I think it is an interesting concept that will evolve, over time, to a new form of currency.
I remember about 10 years ago trying to explain this new computer OS concept called Linux.

 

[perfor8]

Up about 6,674% since thread inception.

 

[Werewolf]

Nothing new about bitcoin. I read about it 1st time at least 10 years ago and maybe as long as 15 or more ago. Don't remember exactly but it's been around a very long time.

It may have died and been recently resurrected. When I 1st noticed it all those years ago there was lots and lots of activity and lots of stuff available for sale. Never participated; got tired of watching the market for it.

A reasonably good idea IMO but one that won't ever really take off or be more than a flash in the pan. Human nature is such that I don't believe enough people will ever trust the system enough to use it for real.

 

[jmike314]

Sounds like a crock of sh*t to me !!

People said the same things about Paypal.
Been looking at Bitcoin for some time now. Interesting enough but I haven't taken the leap yet. With Paypal starting to govern who they will/will not allow purchases from, I think Bitcoin will fill a niche.
Still, I'm on the wait & see side of this tree.