I wonder if they realize they have a dynamic limit to their growth
Yep I did do so.
Topic: CoinLab obtains $500k in seed funding - page 2. (Read 6674 times)
I thought I used the word dynamic in there somewhere.
Yep I did do so.
Yep I did do so.
I wonder if they realize they have a dynamic limit to their growth though because they can't allow themselves to ever represent more than say 30-35% of total hashing power or else they'd start hurting themselves by shaking the confidence in Bitcoin and probably crashing it's exchange rate as a result..
If they are so successful that the gamers using this system represent 1/3 of the Bitcoin mining network, then CoinLab will be very profitable, the investors will be happy, and more investors will invest in still more Bitcoin companies. This drives price higher and encourages miners outside the system to join.
You must see these things dynamically, not as static occurrences. Bootstrapping this new monetary system requires a sort of ratcheting of successes. One team gets something right, and it sparks others to succeed.
Whee. That was my submission. I've managed to get 3 out of 4 to the front page so far. Fairly good stats. 
Good work Technomage. I've *never* been able to have a successful submission to Slashdot. Not sure how you do it but excellent work.
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I've never understood the hate for bitcoin.
The hate for bitcoin is relative to the promotion of it. There are hardcore economists who believe that the idea is fruity, but an experiment is an experiment so who cares. Enter psycho-hyper-libertarians who want to destroy the governments all over the world, become literal terrorists and anarchists, and who try their best to go against every single social construct and law in place and call it "good for everyone".
The problem with bitcoin is that there are so many morons in it promoting it poorly and giving the SolidCoin style "UP UP UP EXPLODE IN YOUR FACE TAKE THE WORLD BY STORM" speech so often everyone thinks we're all wackos. This is why I troll people. You have got to learn to lighten up and start working with the world to change it, not against it.
Whee. That was my submission. I've managed to get 3 out of 4 to the front page so far. Fairly good stats.
I've never understood the hate for bitcoin.
More interest in BitCoin is good by any standards.
Just got slashdotted! Front page
http://news.slashdot.org/story/12/04/25/1549252/bitcoin-mining-startup-gets-500k-in-venture-capital
http://news.slashdot.org/story/12/04/25/1549252/bitcoin-mining-startup-gets-500k-in-venture-capital
I wonder if they realize they have a dynamic limit to their growth though because they can't allow themselves to ever represent more than say 30-35% of total hashing power or else they'd start hurting themselves by shaking the confidence in Bitcoin and probably crashing it's exchange rate as a result..
As I see it, the most positive thing about this is that Coinlab - and investors - will have to report Bitcoin-related income to the IRS. They'll have more legal power at hand than a typical miner, and any precedents that they set will be that much better for all of us.
Another positive thing is that, if it works, it creates a buzz among tech investors. It validates Bitcoin as a solid, secure, and free system that is open to use and innovation.
Another positive thing is that, if it works, it creates a buzz among tech investors. It validates Bitcoin as a solid, secure, and free system that is open to use and innovation.
I blogged about the CoinLab deal (the post wanders off into bigger-picture economics thoughts at the end):
http://gavinthink.blogspot.com/2012/04/coinlab-and-bitcoin.html
http://gavinthink.blogspot.com/2012/04/coinlab-and-bitcoin.html
I also see this as a sort of step 1. I'm quite sure they have a lot of other stuff in mind for the long term.
It's good to see new companies using Bitcoin, but I can't help but think this idea is a bit daft.
Rather than burning through energy and CPU/GPU cycles to earn a few quid, would it not just be better to ask for Bitcoin micro payments each month?
EDIT: To add, gamers are likely to have non-optimised rigs, compared with the next generation mining kit too, making it pretty wasteful. It is still good to see companies embracing Bitcoins though.
It would be better if gamers know what bitcoin is, how to use it and have themRather than burning through energy and CPU/GPU cycles to earn a few quid, would it not just be better to ask for Bitcoin micro payments each month?
EDIT: To add, gamers are likely to have non-optimised rigs, compared with the next generation mining kit too, making it pretty wasteful. It is still good to see companies embracing Bitcoins though.
But since almost no one know Bitcoin (let alone using it), the idea is nice.
The gamer just need to play and press "mine" and he will receive ingame bonus as time passes. That's all.
Then maybe hardcore gamers will discover bitcoin and pay for that in bitcoin, but it will be a later step
...
Rather than burning through energy and CPU/GPU cycles to earn a few quid, would it not just be better to ask for Bitcoin micro payments each month?
EDIT: To add, gamers are likely to have non-optimised rigs, compared with the next generation mining kit too, making it pretty wasteful. It is still good to see companies embracing Bitcoins though.
Rather than burning through energy and CPU/GPU cycles to earn a few quid, would it not just be better to ask for Bitcoin micro payments each month?
EDIT: To add, gamers are likely to have non-optimised rigs, compared with the next generation mining kit too, making it pretty wasteful. It is still good to see companies embracing Bitcoins though.
One brilliant part of the CoinLab business model is that gamers don't have to know anything about Bitcoin. You are correct that it is more economically rational to pay a monthly Bitcoin fee, but what CoinLab recognizes is that 99.9% of the gaming population doesn't have any. If/when they do, then there's more potential to simply get paid in Bitcoin from customers.
Regarding wasteful energy/cycles, it doesn't matter in this scheme. The 100% rational player will have to decide whether increased electricity cost is worth the in-game perks they're getting. If CoinLab/developers discover that players aren't running the mining app because of this, then just bump up the in-game rewards. Digital goods are free to produce, so that economy can easily be adjusted to overcome the burden on the customer. Even if the customer's mining is wicked slow, it's still adding to the CoinLab mining pool.
In the end, I entirely agree with JoelKatz insight:
Rather than burning through energy and CPU/GPU cycles to earn a few quid, would it not just be better to ask for Bitcoin micro payments each month?
Better if the players are rational, but they aren't. As I said, someone will spend $4 on a coffee without thinking but won't spend $1 to buy an app they've enjoyed for hours.It's also great for Bitcoin, the network will become more secure in the process.
I'd like to challenge this because I don't believe it's necessarily true. If they get a bunch of gamers to mine, the difficulty is going to rise and if the price doesn't follow since these players obviously wont care about their electricity costs and will continue to use this software even if mining at a loss, the raised difficulty and the not high enough price will drive out the current dedicated miners. So net net without a simultaneous significant price increase I don't believe the network will be that much more secure than it is right now.
It may only be more secure in the sense that we will have a base of guaranteed miners who will keep securing the network even if the price doesn't necessarily warrant it.
Indeed it will be profitable to mine that way for a long time to come. The added electricity use for running low prio mining while already playing a game, is quite moderate and thus the added electricity cost is low as well. So it does make sense. It's also great for Bitcoin, the network will become more secure in the process.
However I seriously doubt that this is the only thing they have in store. $500k for only something like that is way too much in my opinion. They most likely have aces up their sleeves but are not revealing them just yet because it doesn't make sense from a business perspective.
However I seriously doubt that this is the only thing they have in store. $500k for only something like that is way too much in my opinion. They most likely have aces up their sleeves but are not revealing them just yet because it doesn't make sense from a business perspective.
Rather than burning through energy and CPU/GPU cycles to earn a few quid, would it not just be better to ask for Bitcoin micro payments each month?
Better if the players are rational, but they aren't. As I said, someone will spend $4 on a coffee without thinking but won't spend $1 to buy an app they've enjoyed for hours.Quote
EDIT: To add, gamers are likely to have non-optimised rigs, compared with the next generation mining kit too, making it pretty wasteful. It is still good to see companies embracing Bitcoins though.
Gamers tend to have the most advanced video cards, and when they're playing games like Farmville or in-browser MMOs, the video cards are basically snoozing. Yeah, it will be hit or miss. But remember, your cost is near zero.I agree that the economics are bad, but I don't think they're nearly as bad as others seem to think.
It's good to see new companies using Bitcoin, but I can't help but think this idea is a bit daft.
Rather than burning through energy and CPU/GPU cycles to earn a few quid, would it not just be better to ask for Bitcoin micro payments each month?
EDIT: To add, gamers are likely to have non-optimised rigs, compared with the next generation mining kit too, making it pretty wasteful. It is still good to see companies embracing Bitcoins though.
Rather than burning through energy and CPU/GPU cycles to earn a few quid, would it not just be better to ask for Bitcoin micro payments each month?
EDIT: To add, gamers are likely to have non-optimised rigs, compared with the next generation mining kit too, making it pretty wasteful. It is still good to see companies embracing Bitcoins though.
I like the idea that a bitcoin startup got funding but it is a bad idea.
Making games is all about content. If they make the next angry birds it will not matter if it is mining in the background or not. They would make more money from ads or added cost in game content (hopefully paid with bitcoin). If they make game that sucks, it will not matter that it mines or not. There is nothing really new here and mining is so hard that the BANDWIDTH alone will make it not worth it on machines without GPU's.
So it all boils down to... can they make a good game. At least with this mining in the background business model.
I didn't know Farmville is a good gameMaking games is all about content. If they make the next angry birds it will not matter if it is mining in the background or not. They would make more money from ads or added cost in game content (hopefully paid with bitcoin). If they make game that sucks, it will not matter that it mines or not. There is nothing really new here and mining is so hard that the BANDWIDTH alone will make it not worth it on machines without GPU's.
So it all boils down to... can they make a good game. At least with this mining in the background business model.
But guess what? It has success
We are speaking about $$$, not about game quality. They can add the bitcoin mining to Farmville so players have ingame bonuses and everyone is happy for example.
Even if they have the option of paying a smaller fee instead?
Don't know... if you pay your own electricity, it wouldn't make much sense.
That pretty much defines this field though. A person who wouldn't think twice about spending $8 at Starbucks for a coffee and a muffin because they have 30 minutes to waste won't spend $1 to play a game they enjoy for hours. It's very easy to attract people and very hard to get them to part with as much as a dime. So this might actually make sense. Don't know... if you pay your own electricity, it wouldn't make much sense.
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