I decide to make my own currency by printing 10mill notes with a nice logo on them.
I build a tank with holes the size of tubes on vacuum-cleaners.
I keep 2 mill for myself.
Put 8 mill in the tank and seal it.
I tell you guys - 100,000 miners - to come get the notes.
You buy vacuum-cleaners and start sucking.
The stronger ones will probably get more notes than the weaker ones due to their strength.
All notes are 'mined'.
We all sit back and start buying selling them to each other.
Maybe some friends also buy some - with real money.
But in the end everyone realize that it will all come to a halt.
As long as you and the rest of the population are not paid in a new currency, and you cannot use them to pay your recurring bills, clothes, shoes, groceries, doctor, insurance etc. etc., it is worth nothing in terms of 'real'
Am I describing it too simple?
I just think we should stop and think a bit.
Do we want the virtual currencies to be the new share/stock/investment or do we want them to be currencies to all.
Or can they be both? But then everyone need equal possibility to get/earn them. Not just clever miners or early investors.
I find it very diffuse right now.
Topic: The values of virtual currencies (Read 750 times)
The value of all currencies is based on confidence.
If I am confident that 65BTC is a good deal for the keys to my 2011 Ford Super Duty that's all that matters.
Anyone who thinks that fiat actually has some physical value associated with it is a fool.
If I am confident that 65BTC is a good deal for the keys to my 2011 Ford Super Duty that's all that matters.
Anyone who thinks that fiat actually has some physical value associated with it is a fool.
Bitcoin achieves real value by being used for buying and selling real goods and services. Major alt-coins achieve value by promising to being successful as bitcoin alternatives, e.g. fail-safe for things like hard forks, algorithm compromise, etc, to a lesser extend also achieve value by being used in real life transactions. Junk coins achieves value solely by promising to be next being pumped and dumped.
Most junk coins have to be bought with bitcoin.
I am mining altcoins to sell for bitcoin. People are free to choose their currency. I only believe in bitcoin and litecoin, so whenever the other coins get too valuable, I mine them so that I can short them and long bitcoin. When I mine litecoin I hodl!
Most junk coins have to be bought with bitcoin.
I am mining altcoins to sell for bitcoin. People are free to choose their currency. I only believe in bitcoin and litecoin, so whenever the other coins get too valuable, I mine them so that I can short them and long bitcoin. When I mine litecoin I hodl!
The value of all the virtual coins - how is it there and who decide it?
Are those prices mainly decided by us the miners - who are selling and buying them between us on a handful of virtual exchanges?
How many people who do not know anything about mining are involved in the price-setting?
How many people are mining - 1,000, 100,000..?
We have our own little world where we ourselves adjust the price up and down on all those currencies - by buying and selling between us.
I might be wrong?
If the virtual currencies are not being made easy obtainable to everyone, they will all just be artificial values - not real value.
(edited for better clarity)
Are those prices mainly decided by us the miners - who are selling and buying them between us on a handful of virtual exchanges?
How many people who do not know anything about mining are involved in the price-setting?
How many people are mining - 1,000, 100,000..?
We have our own little world where we ourselves adjust the price up and down on all those currencies - by buying and selling between us.
I might be wrong?
If the virtual currencies are not being made easy obtainable to everyone, they will all just be artificial values - not real value.
(edited for better clarity)
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