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  1. #1
    Join Date
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    Default Bitcoin

    Was reading about this today, sounds really interesting. Reminded me a bit of that story a few years back where some guy perpetrated a fraud in game currency on Better Than Life (or something like that) - which raised some interesting questions as the game currency trades on ebay and various other places for real money ie it has an exchange rate with the real world so arguably he'd committed a real crime. Anyway, seems that these Bitcoin things ought to be more secure than that - or are they?
    For those who don't know what I'm on about

    Bitcoin is a digital currency created in 2009 by Satoshi Nakamoto. The name also refers both to the open source software he designed to make use of the currency and to the peer-to-peer network formed by running that software. Interest in Bitcoin, represented by Google searches for the term, rose enormously in the second quarter of 2011.[1] As of May 2011, no major retailer accepts the currency for payment.[2]
    Unlike other digital currencies, Bitcoin avoids central authorities and issuers. Bitcoin uses a distributed database spread across nodes of a peer-to-peer network to journal transactions, and uses digital signatures and proof-of-work to provide basic security functions, such as ensuring that bitcoins can be spent only once per owner and only by the person who owns them.
    Bitcoins, often abbreviated as BTC, can be saved on a personal computer in the form of a wallet file or kept with a third party wallet service, and in either case bitcoins can be sent over the Internet to anyone with a Bitcoin address. The peer-to-peer topology and lack of central administration are features that make it infeasible for any authority (governmental or otherwise) to manipulate the quantity of bitcoins in circulation, thereby mitigating inflation.[3]
    I'm interested in this lack of central control and how things such as inflation etc will work. I'm also not sure how new ones are generated - it says that they will be generated in decreasing amounts to a fixed finite level but who gets them? - and what it means for the currency. How likely is it to be superseded by another similar system etc etc?

    http://en.wikipedia.org/wiki/Bitcoin

    Has anyone ever used these?

    (I didn't know if this should go in politics or technology or what so I stuck it in miscellaneous)

  2. #2
    Join Date
    Aug 2009
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    My little bro knew about this when they were worth .10c a pop. Now worth about 20 dollars a go (and were about 30 dollars a week ago).

  3. #3
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    And did he get any? I think that the way that the coins are disseminated means that there should be an advantage in being an early adopter - necessary I suppose if you're going to get the thing off the ground.

  4. #4
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    Quote Originally Posted by IdleRich View Post
    And did he get any? I think that the way that the coins are disseminated means that there should be an advantage in being an early adopter - necessary I suppose if you're going to get the thing off the ground.
    yeh, pyramid schemes tend to favor the early adopter...
    this looks handy tho http://www.wired.com/threatlevel/2011/06/silkroad/

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  6. #5
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    Interesting, yes. So, supposing I sell a load of things and get some bitcoins, how do I turn them back into cash? And how do I do it anonymously?

  7. #6

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