Topic: difficulty too high while bitcoin society too small - page 11. (Read 31398 times)

Pff.  No it isn't.  If you offered most people here 100,000 USD worth of Bitcoins or 50,000 USD worth of Gold and 50,000 worth of Bitcoins, I bet they'd take the diversified risk.

There are simply 10,000 (or whatever) people who have sufficient faith in Bitcoin to make it part of their personal economic decisions.

Calm down.

There is no problem. User base is steadily increasing as is difficulty. Mining isn't for general public and soon it won't be for gamers/amateurs either. In the future few people with knowledge, time and a hefty investment will be able to mine. Bitcoin is meant to be traded for goods and services - not mined. Mining is just the way to introduce it into circulation

what has all of this todo with mining?


there's no 6 000 000 000 Earth's citizens mining gold, that's just a few hundred.

bitcoin is not about mining coins, it's about transferring coins.
you don't need to mine bitcoins to value bitcoins.

Of course, but 10 000 current people is simply nothing to do with, for the GLOBAL currency.

See, FEW days ago, at difficult 144 000, I WAS ready to mining, but FEW days after today, at difficult 360 000 I WILL NOT BE ready.

Feel, FEW days, not FEW years, not FEW months! And 10 000 people, NOT 100 000, NOT 1 000 000 000.

This is the problem!

I understand you, but at your piont of view, bitcoin is just financial game or little risky business.

At my point, bitcoin is what OFFICIAL bitcoin site writes: WORLD-WIDE totally distributed, totally defended, and totally mathematically prooven currency, not just dollar replacement, but even GOLD replacement.

The value of Gold is confirmed by 6 000 000 000 Earth's citizen, the value of bitcoin is confirmed by 10 000 people. Feel the difference? That's while bitcoin, from mathematical point of view, IS the strong replacement for gold.

But real confirmation may be acheved ONLY by number of attracted people, NOT mathematics! No one cares, what mathematics prooves! It's geeky!

Also, if we allow attraction of 1 000 000 people as base minimun, it will be a win-win strategy for all us. I.e. it will be, in total perspective, much more profitable game, than now. And much less risky.

You're missing the point that bitcoin mining isn't meant to be that  profitable for most people.

There is far too much focus on mining in the media attention IMO.

I really see your point afterburner.
We would very much like to spread exponentially.  I am working on a free website that uses Bitcoins, but it is difficult, since I'm not a professional programmer and am busy with working at getting the old money I need to live and get enough Bitcoins to start up the website.

The best thing we can do is spread the increase usefulness of Bitcoin.  I agree that it's risky to invest in the Bitcoin economy, but I like to take risks occasionally, and my estimation of the potential usefulness of Bitcoin makes it worthwhile to me.  Does it to you?

Oh, no, no, no

What is bitcoin? Why I am being newbie, should trust in it? What motivation for me to sell goods for BTC??!

bitcoin society is some 10 000 people, and current software (with current "constant set") DOES limit bitcoin society in some 100 000 people or less, because difficulty is being normalized to generate constant number of blocks per unit time, 1 bock per 10 minutes.

you see, 10 000 people is NOT a thing to trust in, or to operate with.

and you see, no one miner will remove his mining power from generation process, so difficulty will increase till mining will be unprofitable acording to electricity power costs. This moment will be reached in some 100 000 people attracted for mining, or less.

As 10 000 people, 100 000 people is NOT a thing to trust in, or to operate with. IN TERMS of wold-wide totally distributed currency!

So, your politics is simply turns bitcoin system into small financial 'sect', or 'pyramid'.

I think, bitcoin "constant set" MUST be normalized to reach EXPONENTIAL newbie miner income rate, TILL 1 000 000 people will be attracted for mining. Then you may change EXPONENTIAL rate to some POLINOMINAL one, then to some LINEAR one, and then, to some CONSTANT. This limited constant number of miners should be some 100 000 000 - 1 000 000 000, i.e. each 1/100-1/10 Earth's citizen should be miner or peer.

Otherwise, no motivation for newbies, and apparent bitcoin system failure in nearest future (2012 at 25 BTC per block switch) with max. number of attracted people some 100 000.

Generally if you want something and don't want to do it yourself you can pay someone. I highly recommend that strategy.

Personally I think the solution is to help and encourage large BTC holders to purchase things produced within the BTC economy.  There needs to be a way to facilitate that.

In other words, instead of spending $1000 on mining equipment to see diminishing returns, newcomers can spend $1000 on producing some good and see rising returns.

Hi, there

I studied a lot of bitcoin-associated info in last few days. So I see one problem - the idea is excellent, but the
"constant set" is bad-adjusted.

I consider "constant set" is:
- total number of bitcoins = 21 mln.
- average block generation rate = 1 in 10 minuts
- BTC profit per block generated/closed = 50 BTC per block

See, the "constant set" mentioned above leads to exponential difficluty, in LAST FEW DAYS: roughly
- 144000 for 3-5 days ago
- 240000 for now
- 360000 for 3-5 days in nearest future (some 1100 blocks remain till next difficulty increase).

Next, see: bitcoin society is some 10 000 people now, while for bitcoin currency system to work economically stable, it need some 100 000 people or more, spread around the world.

Next, if I want to enter bitcoin mining society now, as a newbie, I need:
- spend some $1000 for mining rig, or more
- use mining pools
- profit decreases exponentially

Of course you say, deflation scenario is not a problem because we can divide 1 bitcoin till 8 digits, also BTC/$ exchange ratio is adjusting automatically while deflation takes place..

I say : NO, it's THE PROBLEM, because bitcoin mining society is some 10 000 people, NOT some 100 000, NOT million, while Earth's population is 6 000 000 000 people, see 10 000 / 6 000 000 000 is TOO TINY for stability!

bitcoin society is in SEVERE DANGER of collapse!

What to do? May be, we need "constant set" adjustment, to attract MUCH MORE people?