BitCoins!

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Luke-Jr
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BitCoins!

Post by Luke-Jr » Tue Jan 04, 2011 3:18 am

Neat new crypto-currency: http://www.bitcoin.org/

And yes, I accept it for hosting payments... ;)

Concord
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Re: BitCoins!

Post by Concord » Tue Jan 04, 2011 3:39 am

it's basically like every other form of currency. I mean a dollar bill doesn't have much more intrinsic value than a little piece of data.

Luke-Jr
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Re: BitCoins!

Post by Luke-Jr » Tue Jan 04, 2011 5:08 am

Concord wrote:it's basically like every other form of currency. I mean a dollar bill doesn't have much more intrinsic value than a little piece of data.
Except governments (really a bank) print dollar bills, creating inflation. There can never be more than 21mil BitCoin, so inflation is non-existent once those 21mil exist.

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Jonathan
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Re: BitCoins!

Post by Jonathan » Tue Jan 04, 2011 5:16 am

Before anyone mentions it, the FAQ said bitcoins can be split in 10^8. That means 21 million isn't as small as it sounds.

I wonder how this will hold up.
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Re: BitCoins!

Post by Hoax » Wed Jan 05, 2011 10:44 pm

Luke-Jr wrote:
Concord wrote:it's basically like every other form of currency. I mean a dollar bill doesn't have much more intrinsic value than a little piece of data.
Except governments (really a bank) print dollar bills, creating inflation. There can never be more than 21mil BitCoin, so inflation is non-existent once those 21mil exist.
Ignorant theory as there are many things that affect an inflation rate

syllabear
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Re: BitCoins!

Post by syllabear » Wed Jan 05, 2011 10:52 pm

If you go by the monetarist view of things, the formula to denote inflation is

P = (MxV)/Q

If what is said is true, M is constant since there is no increase in quantity of money, and V is (fairly) constant since the velocity of transactions should be instant (over the internets), hence inflation will be defined (unsurprisingly) by the level of economic activity, Q.

However, as Q also rarely changes by most policies, using a monetarist view on things, that only the volume of money will change inflation, is in fact, correct. So hoax, its hardly ignorent, its more likely that luke jr is simply a monetarist, and you are a keynesian.
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Re: BitCoins!

Post by Hoax » Wed Jan 05, 2011 11:15 pm

Yeah correct, I'm suprised you posted that actually unless you just educated yourself. I think it's a flawed theory but I guess it will be interesting to see it play out without politics getting involved

Luke-Jr
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Re: BitCoins!

Post by Luke-Jr » Thu Jan 06, 2011 3:38 am

syllabear wrote:If you go by the monetarist view of things, the formula to denote inflation is

P = (MxV)/Q

If what is said is true, M is constant since there is no increase in quantity of money, and V is (fairly) constant since the velocity of transactions should be instant (over the internets), hence inflation will be defined (unsurprisingly) by the level of economic activity, Q.

However, as Q also rarely changes by most policies, using a monetarist view on things, that only the volume of money will change inflation, is in fact, correct. So hoax, its hardly ignorent, its more likely that luke jr is simply a monetarist, and you are a keynesian.
Actually, transactions are not instant. The time it takes varies greatly, in part dependent on how much of an (optional) transaction fee you offer, and how many verifications your recipient considers to be "complete".

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Lord Pein
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Re: BitCoins!

Post by Lord Pein » Thu Jan 06, 2011 5:06 am

Interesting, especially considering how the concept is the same as the green masks I have on Runescape.
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syllabear
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Re: BitCoins!

Post by syllabear » Thu Jan 06, 2011 6:53 am

@hoax, no I am a fan of economics, did it for IB (AS equivilant). Was my best subject even.
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Re: BitCoins!

Post by Van-hayes » Fri Jan 07, 2011 12:50 am

So what happens if someone decides to hoard as many of them as they can, to where they become rare? Do they just create more, become more valuable or do they lose all worth once no one else can get any and people stop using them?
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Re: BitCoins!

Post by Luke-Jr » Fri Jan 07, 2011 1:48 am

Van-hayes wrote:So what happens if someone decides to hoard as many of them as they can, to where they become rare? Do they just create more, become more valuable or do they lose all worth once no one else can get any and people stop using them?
Well, nobody can create more (short a major leap in technology rendering all present-day cryptology worthless). If they hoard merely "a lot", I imagine the value would adjust over time. If they hoard too much (like 90+%), then it might render the currency useless and lose all value.

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Van-hayes
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Re: BitCoins!

Post by Van-hayes » Fri Jan 07, 2011 2:10 am

Ah ok, I didn't read through the whole thing first time through.
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2020
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Re: BitCoins!

Post by 2020 » Fri Jan 07, 2011 3:02 pm

i think a new currency is a false option

better to add a weighting system and/or a recommendation system
ie
a multidimensional economy
hold the line

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wap
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Re: BitCoins!

Post by wap » Thu Aug 14, 2014 1:40 am

Funny to read this back, but also a little sad :(

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