[HH] Bitcoin mining hardware

[Greg London]

Still no algorithms, but this article was interesting:

http://www.slate.com/articles/technology/technology/2013/04/how_to_buy_bitcoins_a_dispatch_from_inside_the_digital_currency_bubble.html

;No one is quite sure why the price of bitcoins has spiked
;so quickly, but one of the leading theories is that it’s
;been hit by what Quartz’s Zach Seward calls a “demand crisis.”
;The world’s supply of bitcoins is essentially fixed, but
;because people in the media keep talking about it, demand
;keeps rising. This leads to higher prices—and as prices
;go up, people who currently hold bitcoins develop greater
;and greater expectations for the currency. This causes
;bitcoin holders to hoard their stash, which further reduces
;supply, which in turn boosts the price and sparks yet more
;media attention—and the cycle continues until the bubble pops.

That's hilarious. If you read the bitcoin.org manifesto,
it rants about how government regulated currencies are
nothign but a scam and essentially that paper money is
worthless.

And yet, the thing they propose is a system that due to
its design of a finite number of "coins", is pretty much
destined to crash. Whoever created this thing is a
genius/conman. No wonder they're keeping their identity a
secret. When the bottom falls out of this, everyone is
goign to want to kill them.






>
>> On Thu, Apr 18, 2013 at 01:14:44PM -0500, Greg London wrote:
>>> So, I do some math, I find some number, and everyone
>>> calls that a "coin"?  These "coins" would be, in my
>>> estimation, be worth less than a penny per "coin".
>>
>> You can trade 1 Bitcoin for $96 USD right now on Mt. Gox.
>
> I haven't been able to find somethign the describes
> the algorithm needed to generate a new "coin",
> but if it takes significantly less time/energy
> to generate a coin than the $100 they trade for,
> then I don't understand how this is anything other
> than a bubble.
>
>
>
>


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