Example: Jimmy borrows 50,000 0.0001 BTC bank notes from the bank to help buy a house, which is worth 5 BTC. The price of BTC in wheat bushel equivalents (or whatever consumer price equivalents) increases two-fold in a year, and now Jimmy owes the bank twice as much. But wait! What if Jimmy instead borrowed against the value of wheat? Jimmy owes 200,000 wheat bushel equivalents in this year and next, and the "price" of wheat bushels has more or less stayed the same even though BTC value has fluctuated a lot -- so Jimmy is okay.
Except that Jimmy isn't the only debtor in this scenario the bank is one as well so now the depositors will have to accept that their deposits are indexed to deflation. Except they don't have to as they can withdraw their BTC.
Same thing I've done since I started mining anything... Mine with total cores -1. Full speed GPU, good speed CPU mining.
On primecoin I had it at setgenerate true -1 (all cores) but that was sucking the power out of my gpu's for litecoin.
I changed it to setgenerate true 7, leaving 1 free, and got the much improved performance, albeit with the 12 percent litecoin loss.
Set the cpu affinity of CGMiner to use 1 core, and set it's priority to High (you can do this from the task manager or through a bat file by placing "start /affinity 1 /high" before CGMiner).
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BoardBeginners & Help
Re: newbie says hi :)
by
cal_guy
on 16/05/2013, 01:43:42 UTC
Hi
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BoardBeginners & Help
Re: Bitcoin as a savings account
by
cal_guy
on 16/05/2013, 01:42:20 UTC
Seems like a safe deposit box would be a better bet. You could also consider insurance on the appliances you need, and apparently metal shingles.
With the very high price of bitcoin last days, I suspect they have a problem when someone wants to cash in a larger BTC accounts. They just don't have that money. They force the price to drop... Happens ones, happens twice, it will happen again.
Mt. Gox is an exchange, if you want to sell your BTC for USD there must be a willing buyer available. Mt. Gox only role is to match buyers and sellers.
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BoardBeginners & Help
Re: Fractional reserve banking
by
cal_guy
on 12/04/2013, 00:01:27 UTC
Quote
My stand is that in case of Bitcoin the reserve rate will be 100% in long run (and would be with every currency unless government creates central banks and bailouts insolvent institutions). Only 100% reserve would work for Bitcoin banks because nobody can create central bank for Bitcoins.
Sure they can after all FRB existed when gold and silver were the mediums of exchange with and without central banks, and central banks certainly couldn't make gold or silver out of thin air. The central banks just need to keep a reserve of whatever medium of exchange they use in reserve if they're using a non-fiat system. Obviously unlike gold and silver transferring and holding bitcoins is not much of a burden so it doesn't make a whole of sense, but just like there's a chance of a 99% reserve bank system failing so is the possiblity of a bitcoin FRB system.