Post
Topic
Board Economics
Re: A fundamental issue about Bitcoin
by
bstatic
on 17/04/2013, 01:00:50 UTC
Quote from: odolvlobo
Many of the problems in the world are caused by people putting their trust into the creation and distribution of money by banks.

There is no one cause for the problems in this world. What you said might be one of them but I think there are problems that run much deeper than that, which I won't go into now.

Quote from: odolvlobo
Bitcoin solves this problem. Bitcoin is regulated by rules, and not by politics, favoritism, nepotism, and violence.

I don't see how Bitcoin solves any problems. It is actually unregulated and the way that BTC mining will progress, most of the wealth will go to the "big" mining pool guys which puts them in a position to control the market and make huge profits.


asics are not that expensive. I dont think a 1200 dollar investment is enough to qualify anyone as "elite"

What you are talking about is a 25 Gh/s ASIC miner. At 25Gh/s you will make 1.64 BTC/day at the current difficulty of 7672999. We are in the pre-ASIC days right now. When Avalon/BFL have shipped out their hardware, the difficulty will rise exponentially (and it already has, see this link).

In 3 months (and 6 difficulty re-calculations later) lets say the difficulty will be 30x what it is today. At 25Gh/s you will make 0.05 BTC/day at the 30x difficulty of 230189970. You are going to be needing a lot more units very fast. This will drive small scale mining out of business and only the biggest guys will remain with the most hardware.