•   almost 12 years ago

Bitcoin

Why can't you just sponsor the Bitcoin network and use the award money to fund publicity in Canada and other countries and use Bitcoin for the standard international currency?

  • 16 comments

  •   •   almost 12 years ago

    the problem i see with bitcoin, as a miner who spent a lot of compute power, is there are limits (only a certain amount of bitcoins will be producted) and they are not backed by anything... this, at least, is backed by gold... or at least i asume since there is gold as a prize, they back it...

  •   •   almost 12 years ago

    You see though, that is the huge advantage to Bitcoin, there is no way to "create more" so, that way no one can artificially inflate the currency, hence inflation or taxes without consent, and it is backed by gold, if you want to exchange Bitcoins for gold you can exchange at fair market value, or any other commodity for that matter.

  •   •   almost 12 years ago

    1 Bitcoin = 1 loaf of bread today
    1 Bitcoin = 1 loaf of bread 100 years from now
    unlike currencies we know today

  •   •   almost 12 years ago

    the limited amount of bitcoins is not an issue because they are much more divisible than usual currencies. the smallest unit is 1 satoshi, which is 0.00000001 bitcoin.

  •   •   almost 12 years ago

    @Nick S: "you can buy gold with it" != "backed by gold". The latter means that there is an equivalent amount of gold held in escrow by the issuer of the currency. Since Bitcoin is decentralized, it has no issuer - it is effectively a fiat currency, just one with a fixed maximum number of "coins" available. The idea of the fixed maximum is that it will create a deflationary system, so to use your bread analogy in 100 years 1 coin will buy you lots of bread :)

    MintChip doesn't indicate being backed by gold either (the prize being in bullion is just marketing). So whereas Bitcoin is a decentralized fiat currency, MC is a centralized one - the centralized PKI means you don't have to know about the whole transaction history as you do with Bitcoin.

  •   •   almost 12 years ago

    The whole point of being backed by gold is to make a currency have a fixed value, which Bitcoin has, there will never be more than 21 million BTC, unlike a fiat currency where the issuing authority can say "make more dollars available" hence no fixed value.

  •   •   almost 12 years ago

    @Leigh H
    i would argue, the word "fiat" means exactly two things: it is not backed by a commodity (true for CAD+Bitcoin) and its usage/value is given by law (true for CAD not true for Bitcoin).

    Bitcoins value is derived from its usefulness as a medium of exchange and from its scarcity.

  •   •   almost 12 years ago

    I just hope that the MintChip doesn't turn into a Bitcoin type system with the ability for the value to be declared by law.

  •   •   almost 12 years ago

    @Nick S: Bitcoin does not have a fixed value. Your 1 loaf of bread in 100 years example is simply incorrect - we don't know what one Bitcoin will be worth, the market will determine it.

    @Andreas P: that makes sense as a definition; obviously only the former applies to Bitcoin :)

  •   •   almost 12 years ago

    I'd guess that the value of a MintChip will be pegged to the CAD, but that like physical currency the government can produce as much of it as they want.

  •   •   almost 12 years ago

    I guess this is the establishment attempting to maintain a hold on the technology of value exchange, you know you dont need your government to have create a new currency unless you are stupid that is , @hybridcurrency

  •   •   almost 12 years ago

    oh + why are they not in the usual stream of tech discussion. ie twitter? bored already

  •   •   almost 12 years ago

    BTC should be a supported currency, however it should not be the only one... just like we have (or should have) freely competing currencies in which to invest our money, we should also be able to perform transactions in any digital currency of our choice.

  •   •   almost 12 years ago

    The use of BitCoin affords the Bank of Canada no opportunities to control the supply of coin, and hence no ability to effect monetary policy. If MintChip were to take off and be adopted nationwide, a BitCoin-backed system could come under intense deflationary pressure with no way to control it.

    It's understandable that a currency initiative supported by a national mint is still designed with Keynesian economics in mind.

  •   •   almost 12 years ago

    @ClydeH beat me to it; many people were misunderstanding MintChip's purpose (compared to BitCoin's): BitCoin is a currency, and MintChip is money -- a representation of value (in potentially different currencies, as @StephenG pointed out).

  •   •   almost 12 years ago

    @WayneP, I agree with you, mint chip wants to represent money, BitCoin wants to be a currency, you can use mint Chip to trade bitcoins in the future, ( maybe),
    the problem with mint chip is that is a one hundred percent proprietary tecnology, so obviously, anyone who wants use MintChip will have to pay for it, while BitCoin is one hundred percent free and open-source. I don't see Mint Chip as a breakthrough technology, sodexhopass did and do the EXACT same thing for years...

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