Because Demand is increasing at a greater rate than Supply. More people are hearing about them but new ones are only being generated slowly.
If demand increases and supply remains unchanged, then it leads to higher price and quantity.
If demand decreases and supply remains unchanged, then it leads to lower price and quantity.
If supply increases and demand remains unchanged, then it leads to lower price and higher quantity.
If supply decreases and demand remains unchanged, then it leads to higher price and lower quantity.
IIRC half of the remains of the 21m will be generated (mined) every four year. So in four years from outset you’ll have 10.5M, another four years you have 15.25M, another four years 17.375M etc etc in the open market.
Still completely unsure as to what I actually think of the idea though! Like the idea of getting the banks and the governing bodies out of the money generation game but not so sure I trust this venture…
Thanks. I even linked to the same thing in my own post earlier
As I said, I’ve been following bitcoin for some time now, and I even had the software running on my machine a while ago. I didn’t manage to generate/mine anything meaningful, because the scene is already completely saturated with networks of power miners running insanely powerful systems that no single person could ever possibly compete with. (So to the other guys in this thread talking about mining on your own: don’t even bother getting your hopes up)
I already made an account on Mt.Gox, I just didn’t add any funds yet because their payment methods are a pain in the ass. I was hoping to find something a bit more straightforward like Paypal or AlertPay, but I understand why these methods are becoming less viable due to fraudulent activity and chargebacks, etc.
Key concept here is unless you repeatedly punch me in the face, I can refuse to tell you anything about my part in a potentially long chain of transaction records. There’s also the option of using something like Tor, making the public record useless for anything other than a hit counter on a particular coin.
More fun facts on the Wikipedia page. Bonus reading: Crypto-Anarchism.
Thank you for explaining, I always tried to avoid economic system theory, because I see money only in a bad side, my mind tends to be more in the “possess nothing” side.
Ah I missed that.
Then check out this, he just fixed it:
Seems to me wire is your best option,
unless you find someone to trust.
I could rather just send you a couple for you to start working with.
(transferring outside of bitcoin is the time taker and stress maker)
As for generation it is all in what you are putting in to it,
people who are running rigs they sunk 20K+ into.
they have a lot of costs and added outside stress having done that,
but that is their job they made for themselves.
I checked out bitcoin when the powers that be were giving out coins to encourage people to test the system. I was looking to run the app on CentOS without a GUI. There wasn’t any viable option at the time. Somewhere during my testing I ran the OSX client, sent myself a couple of coins, didn’t want to keep a CPU hungry app on my laptop mining all the time, so I deleted everything including my wallet and the coins in it?
I found a decent miner for nvidia cards, called GUIMiner.
can put in a flag that limits GPU usage too.
“-s 0.01”
Also a nice little program called GPU caps veiwer will show you what you can work with.
ufasoft’s miner is better with nvidia,
but I have no idea how to set it up properly with RPC
and haven’t seen the documentation on the flags all of these are using except -s.
I also read CPU mining isn’t cost effective at all anymore.
What is happening is that if you find a block you get 50 coins. However its very difficult to get one yourself.
Its like playing the lottery with your electricity bill.
You can join a group mining site. And you will get your share of the 50 coins it finds depending on how much you contribute.
Right now I guess you would get 1 coin three-four weeks or something but I´m not actually sure.
The ATI cards are something like 3-5 times more efficient at mining so your better of with one of those to cover the powercost.
What will happen is that bitcoins turn into hard payable objects. As soon as people start to cash in, the value probably drops like madness as soon as everybody finds out it is going down.
If the last ones to cash in, payed bags full of money for microcoins, then they lost the biggest cut.
BTW, I noticed you talking about TradeHill earlier, have you seen any realtime charts for it yet?
I saw this tweet while watching google realtime yesterday:
“Watching the growth of and reaction to Bitcoin is like reading a cyberpunk novel in realtime.”
XD
watching this gives me a feeling people must get when they watch futbol.
I went out to get some rolling tobacco to come back and see the lowest sell price at mtgox dropped to 13.0000.
The only think I can speculate is that this was coordinated to get more coins into the hands of people that really want them.
having just seen this docu about banking America: Freedom to Fascism http://www.imdb.com/title/tt0772153/ an alternative that excludes the current system seems like a good idea. Too much text in this thread though, nerdy things about mining that don’t say anything to me .
guy draws parallels with a Neal Stephenson story and where things are generally headed, because of the way the top 1% has made it inescapable for us to lash out.
It cost me about 6 bitcoins to figure out what was going on about 12 hours ago,
I understand how it’s working now,
the bots know when humans are trading so they go into a sort of automated lfo in renoise terms to mess with human analysis.
Sometimes they go against each other and you see the weird spikes, but when they join forces that is when the major changes occur.
.