Bitcoins algorithms

Yes, good plan. How about setting it to the price of 1 bitcoin? I mean, pegging it to the price of gold defeats the principle of the bitcoin or makes it obsolete. Setting to 'some constant' as the earth's diameter or so makes totally no sense to me. :)

theat's why the current system can divide them down to

does that somehow make them worthless?

The "dirtcoin" worth 1 cm^2 or real estate, (dirtcent is a square millimetre)

nah, not going to work.

Nope, it makes 'em a rare commodity for which some people will pay way more than their intrinsic value of zero. Bought any rare paintings lately? Or stocks? The whole concept is a speculator's dream. People who get in and OUT before the bubble breaks stand to make a fortune.

No, it doesn't make them worthless, just useless. A currency should not start a tulip craze, just transfer value in a free market. A coin going from 1 to 500 in a short time just scares people away. "Get rich quick through speculation" is not what you want. j

Most speculators lose money. Speculation appeals to greed, and fear is the downside. I used to follow Marty Zweig, who kept a level head while he 'invested' in stocks. I say 'invested' because he is looking for unrealized value in the market, and yes, will bet on momentum, or "mo" as he used to call it. I talked on the phone with him a few times. He just kept at it. Finally, he was worth a billion $, and he died. Chasing the dollar is a waste.

So that energy is not what you want. That energy is what currencies try to counter-act, eliminate. But inevitably kings and leaders steal from it by debasing it. They need money for wars, cronies, etc.

First Principle of Currencies: Keep firmly in mind to benefit the common man and woman. There is obviously a balance there with practicality.

As a practical matter, it just seems necessary to avoid the large increases in value. A currency traditionally does this by referring it's value to something solid, like Gold. Since Gold is priced in dollars, that is not a good idea. Perhaps an hour of labor in a certain market?

I don't know what the answer is, but I believe there IS an answer. AND...the alternative, fiat currencies that fund wars and inflate (lose their value) is worth disrupting.

I'm going to meditate on....Any crazy ideas welcome imo. :)

Is that an advertisement?

joe

I've been turning it over in my mind, a pegging the bitcoin to the dollar may be a smart thing, within limits. Perhaps the dollar in 1970.

No, the price of dollar is NOT backed by gold, so gold has its own intrinsic value, independent of the dollar. It's not the value of gold that increases (albeit against the will of the central banksters), but rather the value of the dollar that has dramatacilly decreased and is still doing that.

How about hours of sunshine captured and converted into electricity? Nah... too technology dependent...

oil? uranium? plutonium? (energy)

joe

It's more 'get rich through deflation'. Anyway, I'm not afraid BTC will tank absolutely, because, contrary to tulips, it can always be used as a currency. And a better one than the (fiat) dollar, because it costs computing time and energy to 'print' them.

joe

Real estate where? Does the "dirtcoin" change value depending on where it (the owner) is?

Try reading what he wrote.

So have all other currencies. That makes no sense, other than another tool to bash the US.

Too optimistic.

The Big Mac. It's been used for decades.

Who gets to decide the inflation factor?

Who's going to defend the peg? If somebody starts short-selling bitcoins to drive the value down, _somebody_ has to have reserves of whatever it's pegged to.

Google "currency crisis" or "Suez crisis".

Cheers

Phil Hobbs

Actually, I did.

The mistake he made was to imply that the dollar does have value. Gold _is_ money _and_ currency and has intrinsic value.

The dollar is not money and the dollar has no intrinsic value, apart from the paper and ink that it's made of.

The dollar is a fiat currency, only (and heavily) backed by the oil that (until recently, that is, since Russia and China just agreed to trade their energy deals in their own currencies) is compulsory traded with it, and the treacherous promises of the US 'government'.

And actually, the perceived value of the dollar is quite sensitive to this being backed up by the oil that's traded with it. That's (one of the reasons) why they immediately removed Saddam Hussein when he announced to start trading Iraqi oil in euros, removed Ghaddafi when he announced to start trading Lybia oil in euros, and wanted to remove Hugo Chavez, because he also aimed at changing the trade's contracts from dollars to something different.

The Russia-China deal is a _new_ contract, is about fuel that was not yet traded previously, and therefore won't influence the value of the dollar as much as a conversion of _existing_ contracts into non-dollars would do.

Still living in a bubble? ;)

Also too inflationary.

Only as a reference of 'value', not as currency, let alone money.

cheers, joe

'The algorithm' of the bitcoin program.

To stabalise it you need a central bank controlling the supply, you might as well just use Euros or whatever.

you can reference it against whatever you want, but if you're minting the stuff you've then got to be demonstrably able to pay up when holders return their currency.

Yes, I'm posting through their free news server and they tack that on the end of my posts. It helps to have a dynamic IP as they occasionalysionally put a temporary block on my IP address. (perhaps this is intended as an incentive to use their paid service. if there are terms of service i have not found them