Topic: Why Bitcoin Is Going to Succeed: The Reason Nobody Is Talking About - page 3. (Read 17326 times)

So the limit will be still return of cost for hardware. Supply and demand in case like this is an excellent fundamental... Supply will rise to demand. If there is money to be made by investing some will invest untill it's not profitable anymore.

Hash rates and efficiency has nothing to do with this.

Computers are getting more efficient (using less power), and in the future who knows next gen solar panels installed in the home may supply most power for next to nothing so what you have argued above is very short sighted imho, as it doesn't take into account advances in technology.

I don't know sufficient amount of macro economics to give real answer. But likely at somepoint the cost of mining is near equivalent to gains of minings as coins. So as many coins are spend for mining as are gained from it. Who exactly ends up losing in this case. In any case it's rather lot of waste...

       
        First of all, Bitcoin is going to make it to the mainstream because of the HUMAN FACTOR - Incentive. People are always talking about the pitfalls of the current system - the laggy centralized exchanges, the instability, no decentralized exchange, the fiat payment problems etc. All these problems are going to be solved over time. How? Incentive. Consider who these early adopters are. These speculators include some of the brightest technical and creative minds in the world today, all working and helping each other to solve the same problems. They all own Bitcoins, all their potential fortunes are tied to communally solving these dilemmas, they gain nothing from secrecy and competition, and they are not going to fail. See, this is very new.

Before, a startup company may have hired or included the best coders and strategists they could find, perhaps offered them future stock options to provide incentive to work harder. But these projects were not made public because they needed privacy, otherwise ideas and information might be stolen and used by possible competitors. But in doing so they missed out on the input of the world talent pool.

On the other end of the spectrum are open source Internet projects. Everybody come and work as you please. But because these projects were open to the public, there was no central company to fund any of these coders. Sure, they no doubt worked hard, as it was a hobby or a personal cause - but that nowhere near matches the Bitcoin project momentum. An open source project to replace the currency system for the financial benefit of everyone involved, with the brightest minds in the world able to hop on as they please.

So yes, you are going to have the best, brightest, and richest working towards a common goal. All the while little people - like me - cheer them on, doing whatever little things we can to help(advertising), praying that they succeed.
Microsoft, Google, IBM have never been able to match such a workforce.
We already have more "working employees", all incentivized with "stock options", than they EVER will. You must understand, this is the first project of it's kind in human history. All these petty beginning-stage problems will be overcome - why? Simply because because for the first time we all WANT them to be overcome. You must account for the solutions to problems that we don't understand yet - because they are being attacked by a motivated workforce quality we have never seen before. The problems will eventually be solved, and this is why Bitcoin will make it to the mainstream.

Now once Bitcoin does get there(or perhaps just before) we will run into a problem that many people have pointed out. Market instability. Hoarding by the rich investors, the people who have 10's of thousands of Bitcoins. Detractors rightly say that these overly rich early speculators will simply have too much damn money for there to be room for a stable economy. The graphs bounce with every move they make. However, you are still thinking in terms of the archaic currencies we use today. New systems require new ways of thinking. If this problem is obvious to you, do you not think it is obvious to them and their financial advisers as well?

In the present archaic system these activities continue because the government can just print more currency in order to balance or stimulate the economy, and keep these barons in power. Since this is not possible with Bitcoin, the ultra rich will be forced to do it out of their own pocket. No choice. It is now in their best interest - if they want to have a market to spend those billions in. They will have to spend of some of their money to stimulate the economy in order make their wealth usable, and the distribution of wealth will equal out slightly. The market will stabilize. And because there will be no bureaucracy to support these billionaires' financial staying power, finally the little people will have a chance to make their own fortunes out of hard work and ingenuity in a truly free market. The rich will have to maintain their wealth in the same way.
This is an unprecedented turn of history. It is an evolutionary stage of society that cannot be stopped. To you soon-to-be-rich: remember your responsibilities.
We are finally all in this together.



My fellow humans, Welcome to Bitcoin.



 

Will it also answer the question of who is paying for this expense?

Will it also answer the question of who is paying for this expense?

Also we will include that mining is necessary energy expense to maintain the integrity of the Bitcoin network and to make it function at all!

People began dismissing it an bringing up the calculations on how much energy was being used, but this article left out the fact that it is in the miners interest to have the most efficient machines possible.

I agree,

I really like this post, seems the people are fighting back against the missinformation.

 http://arstechnica.com/business/2013/04/mining-bitcoins-takes-power-but-is-it-an-environmental-disaster/

there has been a story going around that Bitcoin mining is the same as gold mining, that it uses resources that are destroyed in its creation, (of course not, the miners secure the system, a necessary expense)
People began dismissing it an bringing up the calculations on how much energy was being used, but this article left out the fact that it is in the miners interest to have the most efficient machines possible.

hmmm, your right, someone should do an article about Bitcoin, a nice thick article that is thorough and split-able into different sections so that media outlets with different known positions can take their spin at it and base it all on fact, pure unadulterated fact straight from us.

I agree,

I really like this post, seems the people are fighting back against the missinformation.

 http://arstechnica.com/business/2013/04/mining-bitcoins-takes-power-but-is-it-an-environmental-disaster/

there has been a story going around that Bitcoin mining is the same as gold mining, that it uses resources that are destroyed in its creation, (of course not, the miners secure the system, a necessary expense)
People began dismissing it an bringing up the calculations on how much energy was being used, but this article left out the fact that it is in the miners interest to have the most efficient machines possible.

hmmm, your right, someone should do an article about Bitcoin, a nice thick article that is thorough and split-able into different sections so that media outlets with different known positions can take their spin at it and base it all on fact, pure unadulterated fact straight from us.

Agreed, they may not have any real belief at all. However, them wanting to turn a huge profit still means that it is in their best interest for Bitcoin to make it to the mainstream, so their goals would still align with and help ours despite their intentions. They and their advisers will be looking to do whatever they can to turn such a risky huge investment into a "sure thing".


I was referring to an Open Source project in which all contributors had direct financial incentive to see the project succeed. This is the first of its kind. As you also said later in your post. Very cool seeing Bitcoins going to charity work! And just the kind of good press Bitcoin needs to balance out the bad publicity lately.




On a sidenote, I wanted to thank the people who tipped me, you unknowingly made my dream come true. I can now scratch "Get paid for writing" off my Bucket List. Thank you so much!


And try and tell me that would have happened without Bitcoin. Like anyone is really going to set up a whole dumbass credit card transaction just to tip someone a lil' somethin over the internet. Maybe now some of the musical artists that we have been downloading discographies of all these years can finally start getting some of the financial support they deserve... It will be the 21st century version of tossing a dollar into the guitar case, except with a LOT more people walking by. Lovin it.

This post made me want to buy a little more BTC.

While I am inspired by your enthusiasm, I think that you are assuming people like the Winklevii twins actually believe in BTC. Even if they claimed to, i still wouldn't know it for a fact. Their economic profile points towards them merely attempting to hoard and turn a huge profit. Even if they did(and others), what does this mean?

Well, this isn't the first time that mass collaboration around an open protocol has changed the world.  You might have heard of things like Wikipedia, or the world wide web itself -- both great examples of this.  Look up Don Tapscott's work for more on this.

We already have more "working employees", all incentivized with "stock options", than they EVER will.

You must understand, this is the first project of it's kind in human history. All these petty beginning-stage problems will be overcome - why? Simply because because for the first time we all WANT them to be overcome. You must account for the solutions to problems that we don't understand yet - because they are being attacked by a motivated workforce quality we have never seen before. The problems will eventually be solved, and this is why Bitcoin will make it to the mainstream.

Well that would be true if Bitcoin was a currency instead of an incredibly complex cryptographic engine.  

the Core of Bitcoin is the secure transfer of data from one point to another... The core Technology is almost indestructible; What has been built on this foundation can be as shaky as it wants when you think that that data can be anything... financial information, computational data, virtualized work loads, the undisputed transfer of data with no errors from one point to another.

the 1% cannot crush bitcoin... because
        1)most of them don't want to, why would you when someone has just solved the problem of securely transferring funds from point A to B. Who is Bitcoins customers? Individuals and institutions with a vested interest in moving capital value, I.E banks can replace part of their system with this and can reliably send their transmissions by including a transaction fee to incentivise only the most powerful Bitcoin miners; they just saved themselves 1 billion dollars, and thats just in the banking sector!
        2)Bitcoin is a program, it can function anywhere, someone just has to keep a copy of it and distribute it, even if things get ugly they can run it behind a p2p Tor network, tunnel through the system, the system remains secure from external attacks because of the distributed nature of the network and the secure distribution network
        3)Bitcoin is nothing more than a new competitor in the financial markets, with thousands of employees with vested interest in seeing the possibly first open source corporation that has ever existed to cater to the financial sector.