BitCoin : Account hacked, coins dumped = BTC Crash

Page 4 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.
Toggle sidebar Toggle sidebar
Dissipate

Dissipate

Diamond Member
Jan 17, 2004
6,815
0
0
CitizenKain said:
What exactly is a company based on Bitcoin? Is it a company that provides non-existent services for non-existent money?

Gonna be fun watching a bunch of nerds try to offload their mining rigs in a few months, might have to pick up a card for a HTPC.
Click to expand...

It's a company that offers goods and services using Bitcoin. Bitcoin is as 'non-existent' as the digital dollars in your bank account, which are also just bits in a computer storage medium.

I bought some bitcoins when they were at $1.44. But I'm not really concerned with the price as much as I am interested in what kind of apps and services can be built with Bitcoin.
 
C

CitizenKain

Diamond Member
Jul 6, 2000
4,480
14
76
Dissipate said:
It's a company that offers goods and services using Bitcoin. Bitcoin is as 'non-existent' as the digital dollars in your bank account, which are also just bits in a computer storage medium.

I bought some bitcoins when they were at $1.44. But I'm not really concerned with the price as much as I am interested in what kind of apps and services can be built with Bitcoin.
Click to expand...

What magical services do think will spring up with the radical concept of sending money over the internet? That you know, haven't shown up already.
vuXBC.png
 
Doppel

Doppel

Lifer
Feb 5, 2011
13,306
3
0
Until a government and/or major organizations adopt this kind of thing it will be just noise.
 
halik

halik

Lifer
Oct 10, 2000
25,696
1
81
CitizenKain said:
What magical services do think will spring up with the radical concept of sending money over the internet? That you know, haven't shown up already.
vuXBC.png
Click to expand...

Kind of true, IIRC no one has proved the algo is NP-complete... which means it could eventually lead to a hilarious result with many, many crying IT nerds.


Also did energy costs sky rocket recently? Fundamentally the model is founded on the idea that the value of the bitcoin should reflect the energy going into finding it:

price.jpg
 
Last edited:
Doppel

Doppel

Lifer
Feb 5, 2011
13,306
3
0
Dissipate said:
It's a company that offers goods and services using Bitcoin. Bitcoin is as 'non-existent' as the digital dollars in your bank account, which are also just bits in a computer storage medium.
Click to expand...
My money is FDIC insured and literally, backed by the strongest nation in the world. What's protecting one's bitcoin balance?
 
Dissipate

Dissipate

Diamond Member
Jan 17, 2004
6,815
0
0
Doppel said:
My money is FDIC insured and literally, backed by the strongest bankrupt nation in the world. What's protecting one's bitcoin balance?
Click to expand...

Fixed. Bitcoins trade against other currencies on a variety of exchanges, just like the U.S. dollar, or any other fiat currency. What's the FDIC going to do when China and other countries stop buying U.S. debt?

You protect your Bitcoins by encrypting your wallet and backing it up. The process is quite clunky currently, but better versions of the official client with easier wallet management are in the pipeline.
 
Last edited:
Dissipate

Dissipate

Diamond Member
Jan 17, 2004
6,815
0
0
halik said:
Kind of true, IIRC no one has proved the algo is NP-complete... which means it could eventually lead to a hilarious result with many, many crying IT nerds.


Also did energy costs sky rocket recently? Fundamentally the model is founded on the idea that the value of the bitcoin should reflect the energy going into finding it:
Click to expand...

What algorithm are you referring to?
 
Doppel

Doppel

Lifer
Feb 5, 2011
13,306
3
0
Dissipate said:
Fixed. Bitcoins trade against other currencies on a variety of exchanges, just like the U.S. dollar, or any other fiat currency. What's the FDIC going to do when China and other countries stop buying U.S. debt?

You protect your Bitcoins by encrypting your wallet and backing it up. The process is quite clunky currently, but better versions of the official client with easier wallet management are in the pipeline.
Click to expand...
"Bitcoins were going for less than a penny only 2 years ago and that's ouch?? Please."

Really, and now $20-30? Sounds like a great replacement for the dollar. Nice and stable. The deflation sacrosanct in its model, should it ever see widespread adoption, is already proven.

The strange thing about this is it doesn't actually solve any problems. Solving the problem of fraud/insecurity over the internet when using money is hardly solved by simply saying don't use money.
 
Dissipate

Dissipate

Diamond Member
Jan 17, 2004
6,815
0
0
Doppel said:
"Bitcoins were going for less than a penny only 2 years ago and that's ouch?? Please."

Really, and now $20-30? Sounds like a great replacement for the dollar. Nice and stable. The deflation sacrosanct in its model, should it ever see widespread adoption, is already proven.

The strange thing about this is it doesn't actually solve any problems. Solving the problem of fraud/insecurity over the internet when using money is hardly solved by simply saying don't use money.
Click to expand...

It's a brand new currency that has been around for 2 years that wasn't force fed to the population. Demanding stability is like asking for a stock IPO to be stable.

It actually solves a number of key problems. But you would have to actually understand things about Bitcoin to know that.
 
Doppel

Doppel

Lifer
Feb 5, 2011
13,306
3
0
Dissipate said:
It's a brand new currency that has been around for 2 years that wasn't force fed to the population. Demanding stability is like asking for a stock IPO to be stable.

It actually solves a number of key problems. But you would have to actually understand things about Bitcoin to know that.
Click to expand...
And I guess you'd have to actually understand the basics of currencies to know why it isn't a tenable one and will never gain traction from the fringe. Somewhat ironically your sig has a link to dollar collapse and yet you're touting bitcoin that has deflated literally thousands of percent in two years, I find this funny.
 
Dissipate

Dissipate

Diamond Member
Jan 17, 2004
6,815
0
0
halik said:
SHA-2

Aside from the NP?=P argument, you're giving people an enormous incentive to find a collision and destroy the bt economy.
Click to expand...

Did you ever think for a second that other cryptographic recipes use SHA-256, not just Bitcoin? All kinds of other things could be cracked. Furthermore, if SHA-256 started looking weak, the Bitcoin block chain can be grandfathered over to a different, more robust hash algorithm.
 
Last edited:
Dissipate

Dissipate

Diamond Member
Jan 17, 2004
6,815
0
0
Doppel said:
And I guess you'd have to actually understand the basics of currencies to know why it isn't a tenable one and will never gain traction from the fringe. Somewhat ironically your sig has a link to dollar collapse and yet you're touting bitcoin that has deflated literally thousands of percent in two years, I find this funny.
Click to expand...

It's an open question as to whether or not Bitcoin is tenable. That's why there is speculation.

By your definition of deflation, every fiat currency on the planet has deflated by a huge amount since they were created. So first you say I don't know about currencies, and then go on to demonstrate you haven't a clue. Wow...
 
airdata

airdata

Diamond Member
Jul 11, 2010
4,987
0
0
CitizenKain said:
What magical services do think will spring up with the radical concept of sending money over the internet? That you know, haven't shown up already.
vuXBC.png
Click to expand...



USD is made out of unbacked paper printed by a private corporation who doesn't have to explain to anybody what they do with 9 TRILLION dollars whenever they give away or mis place such a huge sum of money.

As far as I'm concerned, we're all using monopoly money and bitcoin is as viable as any fiat currency in existence.
 
Doppel

Doppel

Lifer
Feb 5, 2011
13,306
3
0
Dissipate said:
It's an open question as to whether or not Bitcoin is tenable. That's why there is speculation.

By your definition of deflation, every fiat currency on the planet has deflated by a huge amount since they were created. So first you say I don't know about currencies, and then go on to demonstrate you haven't a clue. Wow...
Click to expand...
Yowsers, now you're getting inflation and deflation mixed up. Are you sure you want to carry on?
The total number of bitcoins is programmed to approach 21 million over time. The money supply is programmed to grow as a geometric series every 210,000 blocks (roughly every 4 years); by 2013 half of the total supply will have been generated, and by 2017, 3/4 will have been generated. As it approaches that mark, the value of bitcoins could experience systematic price deflation because of the lack of new introduction.
Click to expand...
Also, see deflationary spiral.

It's not an open question as to whether Bitcoin is tenable as a currency. It isn't, with its confines it never could be. I bet half the people who laud it also want a move back to the gold standard--birds of a feather...
 
Last edited:
C

CitizenKain

Diamond Member
Jul 6, 2000
4,480
14
76
MTGox was originally used to sell Magic The Gathering cards online, and now is the largest gateway to the world of Bitcoins. What is the current Shivan Dragon to Bitcoin ratio?
 
halik

halik

Lifer
Oct 10, 2000
25,696
1
81
Dissipate said:
Did you ever think for a second that other cryptographic recipes use SHA-256, not just Bitcoin? All kinds of other things could be cracked. Furthermore, if SHA-256 started looking weak, the Bitcoin block chain can be grandfathered over to a different, more robust hash algorithm.
Click to expand...

Bear with here - currently if someone finds a collision they'd publish it in a journal, because it's not really that useful for legal stuff.

If you base your economy on cryptocoin, the first mathematician that has found a collision would just use it generate a boatload of coins and obviously keep it a secret... all legally.

It's akin to US mint saying "if you can find out secret recipe for the paper and ink we use to print dollars, go nuts".
 
Last edited:
You must log in or register to reply here.

TRENDING THREADS

COMPANY
RESOURCES
FOLLOW
Top Bottom