You still aren't answering my question. WHO physically mines the Bitcoins? Where are they mined? Is it a server farm? Is the guy that took out the loan responsible for mining them with his own equipment? How do you determine the queue for mining coins?
The lender gets to mine them. If he can't or doesn;t want to then he sells his right to a server farm or whatever.
If I take a $100,000 mortgage out, by your model, I would have to repay $170 back to 1000 people. My hash rate is at 350 Mhash/sec. At that rate, and at the current difficulty, I generate .26 BTC per day. If I have to pay back $170,000 worth of BTC, I will be mining for 91 years. And that's only if the difficulty stays the same. If I am one of the guys that loans out $100, how long before I get my money back?
your hash rate is irrelevent, as the borrower you are not the one mining.
All you have is a concept, can you give an actual example with math to back it up based on current difficulty and say $20 per BTC?
exactly, it's a great concept. look at my post number, i'm new to all this.
Look at my post number. I'm new too.
But once again, you aren't answering the whole question. Where. Are. The. Coins. Mined??? Who's. Hardware? Who's. Electricity???
If the individual lenders are mining the coins, why even lend $100 in the first place? I can mine bitcoins now without having to lend $100.
As a lender my hashrate is vitally important. At 350Mhash/sec will take me about 35 days to generate $170 in Bitcoins (assuming $20/BTC).
Concept is dead if lenders use their own hardware and electricity.
