Re: "Failure to Understand Bitcoin Could Cost Investors Billions" (Bitcoin's flaws)
Any hint as to what PoW you have in mind? Cuckoo Cycle is still unproven.
Refer to all my posts in this thread and this one and this one and this one (which is not the solution, but lead to my epiphany).
I've replied about your Cuckoo Cycle. Are you available to work on an altcoin?
Of course I don't reveal the secret.
I think most people would agree with you that we need more anonymity and more ASIC resistance and more scalability. But that's why we have alt coins to solve these problems. All 3 of those problems are already solved and being developed as we speak.
Per my prior post, one way they are solved is Bitcoin will be run by large pools with ASICs. Later the carteled pools can discard the ASICs and process transactions without any proof-of-work. Solution is already occuring in Bitcoin as long as you agree to accept G20 edicts, such as the coming 10% confiscation (net worth tax). Of course that won't be the last confiscation, because each confiscation will further implode the global economy and the G20 will need to come back for sloppy seconds, thirds, etc..
But that does not mean the resulting coins which incorporate these ideas will "kill" bitcoin. Bitcoin is the original cryptocurrency designed by Satoshi and will never be killed so long as the network remains secure. It has too big of a foothold in the market to ever be killed by an alt coin regardless of how "perfect" that alt coin is.
The other way they are solved is if a popular enough truly decentralized altcoin solves all the issues. I have yet to see any such altcoin. And yes per my prior post, this will not kill Bitcoin any time soon. Only if the top-down, mainstream, non-anonymous economy withers relative to the new Knowledge Age economy can such an altcoin kill Bitcoin.
There are also some things in your list of suggestions which are subjective "improvements" which conform to specific monetary theories and not purely technical theories. For example these two points:
I don't know how long you're going to argue about this perpetual debasement nonsense. It has to get old at some point. There are already several coins with perpetual debasement built into them, what more do you want? Bitcoin will never change to match your concept of how money should work. And your suggestion about zero transaction fees is completely socialist imo, there is no reasonable way to separate a spam transaction from a real transaction without fees. People who are willing to pay get what they want faster than those who cannot pay, it's as simple as that and you're concern over spiraling fees is completely irrational imo.
Quote
small, reasonable perpetual debasement
zero transaction fees (with economic transaction spam resistance)
zero transaction fees (with economic transaction spam resistance)
I don't know how long you're going to argue about this perpetual debasement nonsense. It has to get old at some point. There are already several coins with perpetual debasement built into them, what more do you want? Bitcoin will never change to match your concept of how money should work. And your suggestion about zero transaction fees is completely socialist imo, there is no reasonable way to separate a spam transaction from a real transaction without fees. People who are willing to pay get what they want faster than those who cannot pay, it's as simple as that and you're concern over spiraling fees is completely irrational imo.
Decentralized mining can't be funded without perpetual debasement. Period. See this...
Bitcoin Take Over Threats
- Lack of perpetual debasement means 51% attack gets less expensive (proportional to market cap) over time.
It is possible to stop spam transactions while also having 0 tx fees. I will not tell you how now. It is a secret.
P.S. perpetual debasement also has very important monetary theory benefits. These are explained in the links from the Errata section of the OP. But even if you don't agree, you can not refute the above point that you must have perpetual debasement else you can't have a decentralized PoW that is secure against 51% attack. Thus if you don't like perpetual debasement, then your only choice will be a corporate top-down controlled fully compliant government's coin. Period. I believe that Impaler and myself are philosophically correct (see links below in addition to those in the Errata section) that we can't have freedom without diluting the money supply. Selfish savers want their past efforts to be a perpetual friction on the backs of those new innovators. Rather a small, reasonable debasement (or demurrage) provides a balance to neutralize the parasitic rent that usury has on society.
https://bitcointalk.org/index.php?topic=354573.msg3816209#msg3816209
https://bitcointalk.org/index.php?topic=342848.msg3788809#msg3788809
https://bitcointalk.org/index.php?topic=342007.msg3788782#msg3788782
Errata
I am in the process of gathering links to my prior explanations of and math on why the people lose and wealth is concentrated under both deflation and inflation, and that debasement is not correlated to whether the people attain greater or less prosperity. Check back in this section later, as I will add them below.
https://bitcointalk.org/index.php?topic=365141.msg4379076#msg4379076
https://bitcointalk.org/index.php?topic=222998.msg3615848#msg3615848 (math)
https://bitcointalk.org/index.php?topic=195275.msg3357270#msg3357270
http://armstrongeconomics.com/2013/01/10/why-hyperinflation-is-nonsense/
It is centralized control over debasement that is very detrimental to the people (because for example the Fed can make a hockey stick of the money supply chart at-will), whereas decentralized debasement is a boon to the people as explained in the above links. Unlike in the 1800s when we had more frequent bank runs and depressions, central banking has enabled delaying the debt defaults and write-downs so now even the IMF admits we are at a 200 year debt peak and thus is recommending that massive confiscation of wealth is required. Most people don't realize we had a depression in the USA in 1919, but we recovered in 2 years because the government did not delay the defaults. Whereas, the 1929 Great Depression lingered for decades and required a World War to resolve, because of FDR's New Deal and preventing the defaults and chaotic correction. Frequent defaults correct the economy before it gets "too big to fail" (TBTF). Now we potentially face an Apocalyptic or Mad Max outcome because we grew our debt to a 200 year high. My hope is that the better crypto-currency could help protect private capital from "socialism gone insane" so that the worst outcome can be avoided.
I am in the process of gathering links to my prior explanations of and math on why the people lose and wealth is concentrated under both deflation and inflation, and that debasement is not correlated to whether the people attain greater or less prosperity. Check back in this section later, as I will add them below.
https://bitcointalk.org/index.php?topic=365141.msg4379076#msg4379076
https://bitcointalk.org/index.php?topic=222998.msg3615848#msg3615848 (math)
https://bitcointalk.org/index.php?topic=195275.msg3357270#msg3357270
http://armstrongeconomics.com/2013/01/10/why-hyperinflation-is-nonsense/
It is centralized control over debasement that is very detrimental to the people (because for example the Fed can make a hockey stick of the money supply chart at-will), whereas decentralized debasement is a boon to the people as explained in the above links. Unlike in the 1800s when we had more frequent bank runs and depressions, central banking has enabled delaying the debt defaults and write-downs so now even the IMF admits we are at a 200 year debt peak and thus is recommending that massive confiscation of wealth is required. Most people don't realize we had a depression in the USA in 1919, but we recovered in 2 years because the government did not delay the defaults. Whereas, the 1929 Great Depression lingered for decades and required a World War to resolve, because of FDR's New Deal and preventing the defaults and chaotic correction. Frequent defaults correct the economy before it gets "too big to fail" (TBTF). Now we potentially face an Apocalyptic or Mad Max outcome because we grew our debt to a 200 year high. My hope is that the better crypto-currency could help protect private capital from "socialism gone insane" so that the worst outcome can be avoided.
Why are you so selfish as a saver that you don't want to pay 2.5% - 5% per year to fund the security of mining to keep it decentralized so the government can't come tax + confiscate 50+% of your savings? You know that even gold is debased at 2 - 2.5% per year.
The new coin goes out to the people who are the miners, especially with a provably cpu-only coin.
The increased value of the coin and the increased productivity gains (Q in the Quantity Theory of Money) in the society due to not having the government meddling will far exceed that 2.5% - 5% per year cost.
Selfish people deserve the corporate top-down controlled fully compliant government's coin.
