Quote from: Stevie1024 on July 28, 2011, 07:21:53 AM

Quote from: jtimon on July 26, 2011, 07:03:45 PM

Quote from: Stevie1024 on July 01, 2011, 04:57:12 PM

- Anyone can create and send as many of these transactions as he/she likes.

Money must be either scarce or based on the credit of the issuer (LETS, ripple) to work.

Money in these transactions is generated by proof-of-work, which costs scarce resources.

But the money itself is not scarce, it can be produced at will.

Quote from: Stevie1024 on July 28, 2011, 07:21:53 AM

Quote from: jtimon on July 26, 2011, 07:03:45 PM

Quote from: Stevie1024 on July 01, 2011, 04:57:12 PM

No (noteworthy) inflation due to increasing moneysupply is to be expected, as one should be crazy to create more money if it's worth less than the cost of production. No (noteworthy, long-term) deflation is to be expected, as coins will be produced when appearently necessary.

This is like saying that we all should be allowed to counterfeit dollars and there would be no inflation because no one would print them if their price goes below the production costs.

Interesting idea, applying the suggested 'distribution scheme' to the dollar. Less practical, as the exact amount of 'work' needed can not easily be proven when dollars are printed. But suppose it could work and we'd have a dollar being worth it's production costs.

Obviously the number on such a 'dollar note' is no longer relevant, a 1.000.000 dollar note is just as easy to print as a 1 dollar note. So either you need a huge amount of notes to pay for e.g. a car, or some printing process has to be invented that can be proven to cost way more resources than the current printing process.

I didn't want it to look like an interesting idea, just wanted to show how stupid the idea is.

Quote from: Stevie1024 on July 28, 2011, 07:21:53 AM

Quote from: jtimon on July 26, 2011, 07:03:45 PM

Also, bitcoin miner's calculations are the source of the bitcoin security. What those generating calculations are for? Just wasted resources?

Such questions are best asked to the current bitcoin developers.

I'm signing out (http://forum.bitcoin.org/index.php?topic=26738.0), this is my last post in this thread.

EDIT: http://www.thesmokinggun.com/documents/crime/got-change-million

The current bitcoin developers will tell you that the current computing power spend by miners is not a waste of resources because miners provide the security of the network.
Your miners don't provide anything, they just waste resources.