Ultimate Bitcoin Thread - Bitcoin rallying | Page 2 | TigerDroppings.com

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boosiebadazz
Member since Feb 2008
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re: Ultimate Bitcoin Thread - Bitcoin rallying


some legislation to make it illegal or some mechanism to attack it at the point of collection

or even worse, what about using their resources and computing power to flood the market and make it essentially worthless

i think because it is so small, governments aren't really taking it serious

i think they will take a hostile position when/if it starts to challenge their government-backed currencies

it'd be smart for you guys to anticipate their avenues of attack and get out in front of them






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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Ultimate Bitcoin Thread - Bitcoin rallying


quote:

What happens in the event of the electric grid going down for an extended period of time


Worldwide? We'd all be fricked. But if eventually restored, bitcoin could be brought back up at the same point as it was when the system went down.

Nationally? That would have little to no effect on bitcoin, only bitcoin users in that country. But they wouldn't lose their bitcoins, they just wouldn't be able to transact.

quote:

ETA: Can you hoard a "physical" bitcoin?


Yes, but it requires trusting a 3rd party company. In other words, the company mints the physical bitcoins and places the "private key" securely inside the physical coins. You have to trust that they didn't retain a copy of that private key and that they won't use the bitcoins controlled by that private key.

For all practical purposes, physical bitcoins are useless, at least IMO. But yes, it can be done.



But if you are concerned with simply "physically" securing your own bitcoins, you can do that in many ways. For instance, you could print the private kets yourself and store them on paper in a safe deposit box at a bank if you wanted. Then you never have to worry about your computer crashing or getting hacked.






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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Ultimate Bitcoin Thread - Bitcoin rallying


quote:

some legislation to make it illegal or some mechanism to attack it at the point of collection


Not yet, as discussed in other threads, and mentioned in this OP, so far it seems like government regulators are at least neutral to bitcoins, going so far as to let Bitcoin-Central operate in the traditional banking network in France.

quote:

what about using their resources and computing power to flood the market and make it essentially worthless


Possible but very unlikely. That would be very very very expensive, and everyday it becomes harder and more expensive as the bitcoin network grows.

quote:

it'd be smart for you guys to anticipate their avenues of attack and get out in front of them


The problem governments have is that they are already too late. They have already lost. The digital currency cat is out of the bag. If not bitcoins, it will be something else.



This post was edited on 2/19 at 5:30 pm


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boosiebadazz
Member since Feb 2008
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re: Ultimate Bitcoin Thread - Bitcoin rallying


quote:

Possible but very unlikely. That would be very very very expensive, and everyday it becomes harder and more expensive as the bitcoin network grows.


i think you vastly underestimate the resources of the federal government

LINK






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WikiTiger
LSU Fan
Member since Sep 2007
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re: Ultimate Bitcoin Thread - Bitcoin rallying


quote:

i think you vastly underestimate the resources of the federal government


what you are describing is what is commonly called the 51% attack.

here's a discussion of it on the weaknesses page:

https://en.bitcoin.it/wiki/Weaknesses#Attacker_has_a_lot_of_computing_power

quote:

An attacker that controls more than 50% of the network's computing power can, for the time that he is in control, exclude and modify the ordering of transactions. This allows him to:

Reverse transactions that he sends while he's in control. This has the potential to double-spend transactions that previously had already been seen in the block chain.
Prevent some or all transactions from gaining any confirmations
Prevent some or all other miners from mining any valid blocks

The attacker can't:

Reverse other people's transactions
Prevent transactions from being sent at all (they'll show as 0/unconfirmed)
Change the number of coins generated per block
Create coins out of thin air
Send coins that never belonged to him

It's much more difficult to change historical blocks, and it becomes exponentially more difficult the further back you go. As above, changing historical blocks only allows you to exclude and change the ordering of transactions. It's impossible to change blocks created before the last checkpoint.

Since this attack doesn't permit all that much power over the network, it is expected that no one will attempt it. A profit-seeking person will always gain more by just following the rules, and even someone trying to destroy the system will probably find other attacks more attractive. However, if this attack is successfully executed, it will be difficult or impossible to "untangle" the mess created -- any changes the attacker makes might become permanent.






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Rickety Cricket
Navy Fan
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Member since Aug 2007
36945 posts

re: Ultimate Bitcoin Thread - Bitcoin rallying


What was it that piqued your ever-growing interest in Bitcoin?





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boosiebadazz
Member since Feb 2008
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re: Ultimate Bitcoin Thread - Bitcoin rallying


no, im talking more like the government uses its computing power to create a ton of bitcoins, flooding the market and making the existing bitcoins essentially worthless

analogous to a corporation issuing tons of new shares and diluting the existing shares.






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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Ultimate Bitcoin Thread - Bitcoin rallying


quote:

What was it that piqued your ever-growing interest in Bitcoin?


It's a natural fit for me. I'm a computer geek. Worked in the computer security field. Have a decent knowledge and understanding of cryptography. It also fit me philosophically as I greatly like the idea of money without government control and the idea of competing currencies. I like that bitcoin or something like it will be what eventually destroys monolithic state systems.....where that leads us...who knows???






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joshnorris14
Florida Fan
Florida
Member since Jan 2009
21453 posts

re: Ultimate Bitcoin Thread - Bitcoin rallying


quote:

create a ton of bitcoins


You can't create bitcoins.






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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Ultimate Bitcoin Thread - Bitcoin rallying


quote:

im talking more like the government uses its computing power to create a ton of bitcoins, flooding the market and making the existing bitcoins essentially worthless


I've told you many times before that that is impossible.

I don't think you believe me and I think it's because you don't understand the technology. But trust me, that's not going to happen.






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boosiebadazz
Member since Feb 2008
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re: Ultimate Bitcoin Thread - Bitcoin rallying


i admittedly dont understand nor have taken the time to understand the technology

its some type of mathematical thing?

how are new bitcoins created? are they going to be created at a steady pace forever?



This post was edited on 2/19 at 5:40 pm


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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Ultimate Bitcoin Thread - Bitcoin rallying


quote:


its some type of mathematical thing?


Yes, it's written into the protocol. In order to change it, you would literally have to have every bitcoin user update their software at the same time.

quote:

how are new bitcoins created? are they going to be created at a steady pace forever?


"Discovered"* by mining. Created at a predictable rate. The inflation rates halves every 4 years. Production will stop at 21 million.


*I edited it, because josh's terminology was correct. Technically they aren't created.



This post was edited on 2/19 at 5:43 pm


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joshnorris14
Florida Fan
Florida
Member since Jan 2009
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re: Ultimate Bitcoin Thread - Bitcoin rallying


quote:

how are new bitcoins created? are they going to be created at a steady pace forever?


Bitcoins aren't created. There will only be 21,000,000 bitcoins in existence at most at any time.






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joshnorris14
Florida Fan
Florida
Member since Jan 2009
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re: Ultimate Bitcoin Thread - Bitcoin rallying


Is there a bitcoin community hub, Wiki?





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boosiebadazz
Member since Feb 2008
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re: Ultimate Bitcoin Thread - Bitcoin rallying


so how will there be enough to let it become ubiquitous?





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joshnorris14
Florida Fan
Florida
Member since Jan 2009
21453 posts

re: Ultimate Bitcoin Thread - Bitcoin rallying


quote:

so how will there be enough to let it become ubiquitous?


You can divide them into sub-bits if it ever gets to that.






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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Ultimate Bitcoin Thread - Bitcoin rallying


quote:

so how will there be enough to let it become ubiquitous?


There are 2 quadrillion possible units right now, and more can be added by simply setting software to recognize additional decimal points.

To clarify, right now, the standard is that one bitcoin is divisible to 8 decimal points:

1.00000000

with 21,000,000 million bitcoins, that equates to 2 quadrillion atomic units.

and like I said, they can go out to more decimals if needed


fun fact: the smallest unit is called a "satoshi"






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WikiTiger
LSU Fan
Member since Sep 2007
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re: Ultimate Bitcoin Thread - Bitcoin rallying


quote:

Is there a bitcoin community hub, Wiki?


r/bitcoin

bitcointalk.org






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boosiebadazz
Member since Feb 2008
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re: Ultimate Bitcoin Thread - Bitcoin rallying


who does the dividing?

and what controls the rate of production? the algorithm already programmed into everyones machine?






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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Ultimate Bitcoin Thread - Bitcoin rallying


quote:

who does the dividing?


what do you mean?

dividing it up smaller is trivial. that can be done at the software level. recognizing more decimal places does not fundamentally change anything at all.

so that will be up to individuals to do. if there is a need for it, i'm sure the community will adapt.

right now, and for the forseeable future, there is no need to recognize beyond 8 decimals.

quote:

and what controls the rate of production?


go read the whitepaper I linked in the OP. it explains everything.







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