Hi.
Just curious about what problem bitcoin solves.
Bitcoin solves multiple problems. It is quite a re
Volutionary invention.
1. Problem of government breaking down money using printing them or manipulating them in other way.
2. Problem of centralization - too much power c
orrupts people too much. In bitcoin, that is not a problem, as there is no central authority.
3. Problem of single point of failure - bitcoin will work as long as internet will work. Destruction of multiple banks or data centres will not bring bitcoin down.
4. Problem of anonymous transactions (when used properly).
5. Problem of divisibility: You can divide bitcoins up to .8 decimal point, like 0.00000001 bitcoins. Actually the protocol allows dividing even to smaller pieces.
6. Problem of creating gold standard currency which can be easily sent over the internet.
7. Problem of creating an electronic virtual currency, that would
not be
virtual and would be a
"hard" currency. Each Bitcoin has an inherent intelectual value, because it holds a solution to complex mathematical problem. And REAL work needs to be input to produce a bitcoin, just like you need real work to mine gold out of ground.
If I should setup a service in I2P and have people pay to use it, bitcoin isn't anonymous enough.
As soon as I use any of my I2P-bitcoins outside of I2P, I'm outed.
I don't think you are understanding the conception of bitcoin properly. If you would, you would also know that bitcoin can be quite anonymous when used properly.
And anyone who wants to buy things from me would have a paper-trail linking their purchase from me to their regular account.
Why would there be any paper trail ?
1. Somebody buys bitcoins somewhere - probably on some exchange or market using credit card. Trail starts.
2. It sends them to your one-time generated anonymous bitcoin address (yes, Bitcoin supports it) , trail breaks.
So how does the trail pinpoint you if nobody knows that the final address belongs to you ?