Recommend
3 
 Thumb up
 Hide
10 Posts

BoardGameGeek» Forums » Everything Else » Chit Chat

Subject: Let's talk about Bitcoins rss

Your Tags: Add tags
Popular Tags: [View All]
Key Locks
United States
Indianapolis
Indiana
flag msg tools
badge
Avatar
mbmbmb
I don't think I've seen a thread about Bitcoins in Chit Chat.

Bitcoins are something I hear about here and there, but I still don't quite know exactly what they are and I have certainly never had an occasion to use them. But maybe I'm missing out on something! Here are some questions I have about Bitcoins that maybe we can discuss:

1. What in the gosh darn heck is a Bitcoin, anyway?

2. What are Bitcoins for? What do they do better than regular money?

3. What is your general opinion of Bitcoins? Overall, are they helpful or harmful?

4. Have any of you ever used Bitcoins for anything? Does anyone here do any Bitcoin "mining" (whatever that is)?

5. Are Bitcoins here to stay? Or are they just a passing fad?

Now, I know that this topic could get into politics, but let's try to keep the discussion light enough for Chit Chat if at all possible.
2 
 Thumb up
1.00
 tip
 Hide
  • [+] Dice rolls
CHAPEL
United States
Round Rock
Texas
flag msg tools
badge
"that's a smith and wesson, and you've had your six"
Avatar
mbmbmb
Here's a geek dollar, what else you need?
9 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Quinn Munnerlyn
United States
Carrollton
Texas
flag msg tools
Location: 3' from my actual position.
Avatar
mbmbmbmbmb
Some discussion on Bitcoins here.

http://www.boardgamegeek.com/guild/1658
4 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Billy McBoatface
United States
Lexington
Massachusetts
flag msg tools
KGS is the #1 web site for playing go over the internet. Visit now!
badge
Yes, I really am that awesome.
Avatar
mbmbmbmbmb
I know only a little more about bitcoinns than you. But they interest me and I have done some reading. I'm not an expert, but here are my opinions...
Leezer wrote:
1. What in the gosh darn heck is a Bitcoin, anyway?
It's a blob of data that can be tracked when you want it to be tracked, and not when you don't. So in theory you can prove that you own this blob of data, but the government can't prove you own it (unless you show them the proof).

Quote:
2. What are Bitcoins for? What do they do better than regular money?
A lot of people like bitcoins because they think it will create money that governments can't track. Maybe they want to dodge taxes, maybe they are concerned about their privacy, maybe they just think it's cool.

Quote:
3. What is your general opinion of Bitcoins? Overall, are they helpful or harmful?
I think they're a neat experiment that has a small but real chance of becoming a genuine electronic currency. I'm mostly interested because this could cut out credit card companies. Credit cards, and to a lesser degree paypal, are pretty much the standard currency used for transactions these days; used for most in person transactions (at least in the US, and I think in Europe), and used for 99% of over-the-internet payments. This is bad, I think, because credit cards charge a significant chunk of money for each transaction. It would be nice to get to a money that was as easy to use as credit cards, but cut out this slice that is kept by the credit card companies. Of course this slice gives you some benefits: The credit card is essentially giving you a loan, and there is some consumer protection, etc. But I want to have a choice, and be able to do a transaction without these benefits and without the cost.

Quote:
4. Have any of you ever used Bitcoins for anything? Does anyone here do any Bitcoin "mining" (whatever that is)?
Nope. I'd like to, see above, but haven't gotten around to fiddling with them yet.

Quote:
5. Are Bitcoins here to stay? Or are they just a passing fad?
I don't think they're a fad, I do think a better way to do internet money exchanges is important enough that something will show up to replace credit cards and bank transfers, but I don't know whether bitcoins will be that thing or if they are just a precursor.

Overall I'm interested enough to keep watching but not enthusiastic enough to take part in them.
9 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Brook Gentlestream
United States
Long Beach
California
flag msg tools
Avatar
mbmbmbmbmb

My friends are mining Litecoins, but I never got into it.
3 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Key Locks
United States
Indianapolis
Indiana
flag msg tools
badge
Avatar
mbmbmb
lordrahvin wrote:

My friends are mining Litecoins, but I never got into it.

Sheesh, I haven't even grasped Bitcoins yet and they've already been replaced by something else?

Stop the world, I want to get off. #old
6 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
David
Switzerland
Buchs
St. Gallen
flag msg tools
Avatar
mbmbmbmbmb
Leezer wrote:
Stop the world, I want to get off. #old

These guys can help you with that...
3 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Key Locks
United States
Indianapolis
Indiana
flag msg tools
badge
Avatar
mbmbmb
The predominant thought I have as I read more and more about Bitcoins is: Why the hell is there a finite limit on the total number of Bitcoins that will ever be minted? That's just not how money works.

The people who created Bitcoins may be great programmers, but they're lousy economists.
1 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Billy McBoatface
United States
Lexington
Massachusetts
flag msg tools
KGS is the #1 web site for playing go over the internet. Visit now!
badge
Yes, I really am that awesome.
Avatar
mbmbmbmbmb
Leezer wrote:
The predominant thought I have as I read more and more about Bitcoins is: Why the hell is there a finite limit on the total number of Bitcoins that will ever be minted? That's just not how money works.

The people who created Bitcoins may be great programmers, but they're lousy economists.
If people could make bitcoins all they want, then you get bad inflation. Keeping the supply limited keeps the coins valuable. Although some economists think that keeping it fixed goes too far; it makes prices drop over time, which encourages people to hoard their money instead of spend it.
1 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Key Locks
United States
Indianapolis
Indiana
flag msg tools
badge
Avatar
mbmbmb
wmshub wrote:
If people could make bitcoins all they want, then you get bad inflation.

Whoa, whoa, whoa. I'm not saying people should be able to make all the Bitcoins they want. I'm just saying there shouldn't be a hard finite ceiling on the total number of them that will ever exist.

wmshub wrote:
Keeping the supply limited keeps the coins valuable.

I absolutely agree. But when I look at graphs of the size of the money supply (M0) over time, they look roughly exponential to me. That seems like a good place to start in order to craft a mathematical model for a currency. A healthy currency should probably be slightly inflationary to encourage people to spend it. Heck, for a really conservative model you could make it linear or even logarithmic. But they decided to use a model with a finite upper bound, which just seems insane to me. That makes it more like a scarce commodity, like oil, than a currency. But it makes no sense to think about Bitcoins as a commodity, because they have no intrinsic value. It's all backwards and upside down.

And that's not even mentioning the incentives for people to "mine" Bitcoins. The whole system is founded on the really neat idea that people will volunteer to process and verify Bitcoin transactions in exchange for newly minted Bitcoins. But when that well runs dry and there's only a tiny fraction of one Bitcoin left to be mined, no one will want to spend the massive amounts of processing power it would take to mine that little chunk of one Bitcoin. So, people will just quit doing it. And then, without the ability to process transactions, the whole Bitcoin system will collapse. It just seems obvious that the design of the Bitcoin economy contains the seeds of its own destruction right there in the code. I know the year 2140 is a long way off, but why would you knowingly build in an end date?

wmshub wrote:
Although some economists think that keeping it fixed goes too far; it makes prices drop over time, which encourages people to hoard their money instead of spend it.

Exactly. That's why it won't work as a currency.
2 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Front Page | Welcome | Contact | Privacy Policy | Terms of Service | Advertise | Support BGG | Feeds RSS
Geekdo, BoardGameGeek, the Geekdo logo, and the BoardGameGeek logo are trademarks of BoardGameGeek, LLC.