The inventor doesn't matter, its the code and algorythym that matter. Its solid as a rock. Yes your producing currency that easily transferrable and has no fees that has alot of value right there. How else do you put a peer to peer currency? Just give it to anyone who signs up? Without people mining the network would be hacked. Mining keeps the network strong and secure.
As posted in this thread, lots of stores are already accepting it for payment in NYC. Once one store sees someone doing it, they will copy in order to get more business. So its already working as a currency "dumb fuck". I'll hire you to wash my toilets for some bitcents one day in the future if you need some food.
Of course you can have more bitcoins if they are used as money. You're another one of these fucking idiots, aren't you.
You understand 0 about economics.
It doesn't matter what you use for money, you can have inflation or deflation.
Look at gold in the year 1000. In a given community there was a fixed amount of gold. And yet they had massive inflation, deflation, booms and busts.
Do you know why? Because even though the currency in a monetary system is finite, you can ALWAYS print as much of that currency as you want unless you put restrictions on the economy. Since there are no restrictions on bitcoins, if they are ever actually used for money, they will have massive inflation, deflation, booms and busts just like gold in 1000+ A.D.
But you don't even understand why, do you? Because you are an economic moron.
It's called perception which influences supply and demand. Bitcoins will only be worth something as long as people believe they will be worth something. When enough people realize how worthless they really are the bitcoin market will crash.
The bitcoin concept is different. The supply is limited even though they supposedly can be taken out to eight decimal points.
It's a retarded concept that makes money even harder to understand for the average person. Therefore, only internet nerds are going to buy into this, and when the internet nerd supply runs out, the market for bitcoins is going to tank.
Posted 7/27/2011 5:28 am : Edited 7/27/2011 5:33 am A pyramid scheme is a form of fraud similar in some ways to a Ponzi scheme, relying as it does on a mistaken belief in a nonexistent financial reality, including the hope of an extremely high rate of return. However, several characteristics distinguish these schemes from Ponzi schemes:
In a Ponzi scheme, the schemer acts as a "hub" for the victims, interacting with all of them directly. In a pyramid scheme, those who recruit additional participants benefit directly. (In fact, failure to recruit typically means no investment return.)
A Ponzi scheme claims to rely on some esoteric investment approach (insider connections, etc.) and often attracts well-to-do investors; whereas pyramid schemes explicitly claim that new money will be the source of payout for the initial investments.
A pyramid scheme is bound to collapse much faster because it requires exponential increases in participants to sustain it. By contrast, Ponzi schemes can survive simply by persuading most existing participants to "reinvest" their money, with a relatively small number of new participants.
A bubble: A bubble is similar to a Ponzi scheme in that one participant gets paid by contributions from a subsequent participant (until inevitable collapse), but it is not the same as a Ponzi scheme. A bubble involves ever-rising prices in an open market (for example stock, housing, or tulip bulbs) where prices rise because buyers bid more because prices are rising. Bubbles are often said to be based on the "greater fool" theory. As with the Ponzi scheme, the price exceeds the intrinsic value of the item, but unlike the Ponzi scheme, there is no person misrepresenting the intrinsic value. With the greater fool theory in mind, some may invest even though they believe the securities are overpriced due to a bubble.
Because you don't understand MONEY, you don't even understand what inflation and deflation is.
When you have something that is used as money, you will have lending.
A short history less from something you would know if you knew anything about economics.
In 1000AD or so, gold coins were used as money. There were goldsmiths that would deal with coinage and gold.
People would pay to have the goldsmiths keep their money because they didn't want to keep them on their person or in their house or they'd get stolen.
Some goldsmith came up with a better idea. Instead of people paying to deposit coins with him, he would pay people to deposit their coins. He would do that by taking the coins on deposit and lending them out.
Lending is what you have inflation, deflation, etc.
bob gives goldsmith 1 coin
goldsmith lends 1 gold coin to fred
fred buys something from joe
joe gives the goldsmith 1 coin
goldsmith loans the 1 coin to sue
You only have 1 gold coin in the world, right? That's fucking it.
How many gold coins are in the economy now?
bob has 1 gold coin (on deposit)
joe has 1 gold coin (on deposit)
sue has 1 gold coin in her hand to spend
That is how you get inflation. There are 3 gold coins in the economy even though only 1 gold coin physically exists.
Notice there is no fucking "banksters" in this example.
Now, when lending is "easy" you have inflation in prices. When people can borrow millions to buy homes, homes become more expensive.
You have INFLATION. When people don't pay the fucking loans back, you can have DEFLATION.
It doesn't fucking matter what you use for money. Gold, tally sticks, giant rocks on the island of Yap (look it up, it is what they used for money)
And how could anyone ever lend bitcoins out? Oh there are MANY examples where you can make interest if you take in bitcoins.
And once you have someone paying interest and you get inflation because there are more bitcoins "out there" by lending and relending, more and more people need to put money on deposit to get interest as their bitcoins are worth less and less.
Know any history? Fuck no. Read up on it. Anyone who thinks "oh, there's only 100 bitcoins so there can never be inflation and they will only go up in value"
is a fucking idiot for 2 reasons.
1. Just because someone is limited in number means fuck all whether it goes up in value. I have old socks in my drawer. There are only 20 or so of them. They won't be going up in value just because they are fucking limited in number, will they.
2. Just because something is limited, once you actually start using it for money doesn't mean you'll have deflation or that the money supply will be fucking limited. The money supply is a result of LENDING.
Bitcoins is a simple Ponzi scheme. The hook is "mining" because it drags in people who have an interest in promoting bitcoins by giving them an ability to create a few themselves.
So, you have this base of people who push this stupid fucking idea to others. The first people in get paid, the rest get fucked. That's how all Ponzi scheme's work.
But you don't care, do you. Because you think (dream) you are in the first group of people. Same thing happened in the Great Depression with leverage and buying stocks on margin of $1 to $10.
People knew the game was rigged by stock pools but they bought anyway because they hoped they were in the initial group who made the money off the suckers at the end.