Transaction

j"1LAnZuoQdcKCkpDBKQMCgziGMoPC4VQUckMZ<div class="post"><div class="quoteheader"><a href="https://bitcointalk.org/index.php?topic=721.msg7817#msg7817">Quote from: gridecon on August 06, 2010, 09:24:47 AM</a></div><div class="quote">I understand the bitcoin is not INTENDED to be about the minting. The essence of my criticism is that a digital currency SHOULD NOT be "about the minting" but the current bitcoin system works against that goal! My argument is that the current minting system limits the utility of the currency largely because entirely too much attention is focused on "winning the block generation lottery" and the process of choosing these winners is highly inefficient and resource intensive.<br/></div>I think that's the issue you have though, you think it's inefficient and resource intensive on purpose when really it's not. No one is required to generate coins to use the system. If you click the generate coin list, you are basically volunteering your resources to strengthen the network and in exchange, you *might* get some coin for it. Since coin is in demand to use the system, someone has to generate it. If generation was as easy as "input how many you want, *bam*, you have 1 million now" it would make the entire system pointless. It's a chicken and the egg puzzle except there really isn't a puzzle here. People need bitcoins, they generate them at a fixed rate to make it worth spending the CPU time.<br/><div class="quoteheader">Quote</div><div class="quote">If potential users of the currency believe that bitcoin is simply a way for botnet herders to convert spare cpu cycles into cash, they are unlikely to participate in the emergence of the economy. The current system could easily result in the perception that bitcoin is basically being used as a vector for the indirect monetization of the theft of electricity via compromised computer systems. I assume most people interested in bitcoin understand that self-interested individuals will obviously seek to exploit opportunities like this, and the design of a popular currency has to prioritize how a prospective user will evaluate its fairness.<br/></div>There's no reason to think of it that way, anymore than the local barber is collecting hair to clone an army of super-men for world domination. You have to draw the line somewhere. If someone is going to steal electricity, targeting a 30 watt computer doesn't make a lot of sense.<br/><br/>I have seen the topic come up here a few times "what if someone seeks to exploit this?" and the answer is the same over and over, it has been designed from the ground up to counter this exact concern. If you want to "game" the system, you need a lot of CPU power. CPU power cost money. The system scales itself to the available CPU power it has so if you bought 10,000 EC2 sessions from Amazon and started a massive bitcoin generating farm, you would never make more money out of it than what you put into it for long because the system would self-adjust against it. If someone throughs a massive botnet at it, the same thing will happen. The system is set for self-feedback, so to try to steal from everyone is to try to steal from yourself at the same time.</div> text/html