Quote from: Viavictus on November 22, 2013, 10:18:55 AM

Thoughts:

1. Decentralized CPU only proof of work will still result in what happened to Bitcoin. People with more resources can afford more CPU and so on.

2. Centralized premine presents itself as it is. Centralized. People need to trust this centralized source in that they (in good will) will eventually decentralize the seeds of labour.

Regarding #1, I had written the following:

Quote from: AnonyMint on November 21, 2013, 01:11:09 PM

Quote from: JackMehoff on November 21, 2013, 01:01:42 PM

You assume that Bitcoins are actually/ will be mined to be spent.

I can actually prove they will be spent if they were mined with CPU-only instead.

1. Masses will download and mine even when the coins returned are worth much less than the electricity consumed. Because it will be too small to notice on their electric bill.

2. Thus professional miners will be gone.

3. Masses spend because they don't have much. Even if they save it for a while, eventually the value is large enough they spend it. Middle class spend a much higher % of their income on personal needs than rich businessmen investors do.

Well if I try to eliminate botnets by increasing the memory requirement to 16GB, then I am not so sure the above applies because most will need to make a small investment to add memory to their PC, yet I think it does apply much more so than for Bitcoin.

Regarding #2, with every altcoin you are trusting the developer, just as you are trusting the core devs and Bitcoin foundation.

But they can't premine again, so the risk of misuse is declining over time.

The point is to jump-start the distribution and create a market where the rich have to seek out the coins by selling products and building exchange markets, not just doing low-knowledge activity of pressing a button on their computer.

Risto senses that I am attempting to reduce (the value of) speculation and he is somewhat justified, though not entirely of course because liquid markets are always better.

Perhaps he will need to go back to work again and build clearing houses for the little guys. Or he can wait for someone else to do it, then buy in-size later.

Small things grow faster. It is just a fact of nature.

Big capital becomes dumb. It can't do anything for the world any more because it is too large and the maximum divisibility-of-labor is no longer worth the effort of large capital.

That is why society is always at war with large capital.

I'd rather use technology to make the process more efficient than democracy implosions and megadeath, wars, French Revolutions off-with-their-heads, etc..

We are in a new era. Bottom-up knowledge and decentralization; the industrial age, high-fixed-capital investment is over.

We don't need your capital as much any more. We only need our PCs and our brains.

Top-down, large capital will become meaningless. It will die. [redacted]

Society is tired of this shit of capital dominating knowledge.

Quote from: AnonyMint on November 22, 2013, 08:51:15 AM

Is it a strawman to state that the failure of a fractional reserve system predicts the failure of any system of gas diffusion distribution which is capitalistic-- the work done to attain the coin should roughly equal the value of the coin?

I think the answer is no.

It seems to me that the key distinction is that to distribute a coin widely and capitalistically, the economy-of-scale of aggregating a plurality of worker units must be very low.

In other words, the fungibility and divisibility of tasks should be very low and high respectively.

The reason money exists is because it increases the maximum divisibility of labor, because money is fungible but knowledge is not. Otherwise we would barter directly in knowledge.

Large capital can't buy diverse knowledge, the economy-of-scale is low because the divisibility and specialization is high.

This is my fundamental insight.

http://www.coolpage.com/commentary/economic/shelby/Demise%20of%20Finance,%20Rise%20of%20Knowledge.html

http://www.coolpage.com/commentary/economic/shelby/Understand%20Everything%20Fundamentally.html

http://unheresy.com/Information%20Is%20Alive.html