Kaminsky: Bitcoin is here to stay | Page 2 | TigerDroppings.com

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LSURussian
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Baton Rouge
Member since Feb 2005
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re: Kaminsky: Bitcoin is here to stay


quote:

you know how I know y'all don't do really do your research?




Guilty!

Research?




This post was edited on 5/3 at 9:52 pm


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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
15752 posts

re: Kaminsky: Bitcoin is here to stay


Independent of and before you posted your link I acknowledged that transaction fees would be the only financial incentive. How could I possibly have reached that conclusion? Basic economics dictate that it is the only reasonable outcome. Lets discuss those transaction fees for a moment.

How are Bitcoin transaction fees different than a tax on property? The tax is paid to the Bitcoin miner rather than a government, but the tax is due every time a particular Bitcoin changes ownership. As a Bitcoin owner you have to pay for the privilege of using your property. That hardly seems satisfactory to libertarian ideals.






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joshnorris14
Florida Fan
Florida
Member since Jan 2009
21453 posts

re: Kaminsky: Bitcoin is here to stay


Like I said, you should educate yourself on how transaction fees in bitcoin work.

quote:

How are Bitcoin transaction fees different than a tax on property?


1. You are taxed on your property for simply owning it and paying someone who provides you with nothing that coincides with your ownership of said property. You pay transaction fees because bitcoin miners are providing you with a service.

quote:

As a Bitcoin owner you have to pay for the privilege of using your property.


No, you don't. You don't have to pay the transaction fee. Also, you could become a bitcoin miner yourself rather easily.

quote:

That hardly seems satisfactory to libertarian ideals.


You think this violates the non-aggression principle or property rights. Ask yourself "Is it voluntary?" and if the answer is yes it doesn't violate libertarian principles.







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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
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re: Kaminsky: Bitcoin is here to stay


At least wiki actually practices what he preaches.

You're just a typical hypocrite.






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joshnorris14
Florida Fan
Florida
Member since Jan 2009
21453 posts

re: Kaminsky: Bitcoin is here to stay


What does wiki preach?





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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
15752 posts

re: Kaminsky: Bitcoin is here to stay


quote:

You are taxed on your property for simply owning it and paying someone who provides you with nothing that coincides with your ownership of said property. You pay transaction fees because bitcoin miners are providing you with a service.
Since when do governments not provide services in exchange for taxes? So the Bitcoin miners are the owners in perpetuity of the Bitcoins they mine. They are just selling you the service of letting you use them is the underlying economics of Bitcoins.

quote:

No, you don't. You don't have to pay the transaction fee. Also, you could become a bitcoin miner yourself rather easily.
And if you refuse to pay the transaction fee, what are the chances your transaction will get processed? And just what are your prospects for success as a Bitcoin miner? >50% of the total are already owned by some other miner, and the difficulty of mining increases as time passes. So anyone who is late to the game is at a competitive disadvantage since they are competing with those who mined Bitcoins when they were easier (less costly and more plentiful) to mine who are already being subsidized by transaction fees.

quote:

You think this violates the non-aggression principle or property rights. Ask yourself "Is it voluntary?" and if the answer is yes it doesn't violate libertarian principles.
You don't understand property. You do not own the Bitcoins in your wallet. You are renting them from the true owner.

Lets try another hypothetical. Suppose Miner A successfully mined 1,000,000 Bitcoins when he concludes the cost of mining no longer justifies the rewards of success. However, miner A wants to continue to collect transaction fees on the Bitcoins he mined. What is to prevent him from reducing the computing power he contributes to the Bitcoin network to the point it provides zero real utility to the network. Miner A will continue to collect his transaction fees, but he will not provide any useful service. How many other miners will reach the same conclusion as Miner A? What happens to the Bitcoin network when the computing power declines as miners reduce the amount of computational power they are willing to contribute?

Some of it will be replaced by miners seeking increased opportunities for successful mining. But not all of it. Will the net loss of computing power have a detrimental effect on the efficiency of transaction processing? Won't that decrease the utility of Bitcoins as a currency?






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Vols&Shaft83
Georgia Tech Fan
Member since Dec 2012
18704 posts

re: Kaminsky: Bitcoin is here to stay


THERE'S NOTHING WRONG WITH BITCOIN YOU IGNORANT STATIST FOOLS





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joshnorris14
Florida Fan
Florida
Member since Jan 2009
21453 posts

re: Kaminsky: Bitcoin is here to stay


quote:

Since when do governments not provide services in exchange for taxes? So the Bitcoin miners are the owners in perpetuity of the Bitcoins they mine. They are just selling you the service of letting you use them is the underlying economics of Bitcoins.


Like I said, the money they steal from you has nothing to do with the ownership of your property (They don't maintain your property for you or anything like that, do they).

With bitcoin, you are paying transaction fees for a service directly tied to the transaction

quote:

And if you refuse to pay the transaction fee, what are the chances your transaction will get processed?
.

Right now? Pretty good. In the future, I don't know.


quote:

And just what are your prospects for success as a Bitcoin miner?


Right now, not very good (unless you drop a couple hundred on a mining rig and join a pool). In the future, I don't know.

quote:

So anyone who is late to the game is at a competitive disadvantage since they are competing with those who mined Bitcoins when they were easier (less costly and more plentiful) to mine who are already being subsidized by transaction fees.


This isn't true. The more difficult it becomes, the less people are inclined to do it, which drops the difficulty. Wiki was just trying to explain how this type of equilibrating works.

quote:

You do not own the Bitcoins in your wallet.




What?






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