Bitcoin is a Startup

I think this is the best way to address the issue of Bitcoin being a ponzi-scheme that some people raise. Explain that it's a software product that allows instant low-fee transactions without a centralized server, and those transactions can include complicated logic to serve various types of contracts, enforced without lawyers or authority, thus lowering the costs of business. And it's startup that you can invest into without going through the pain of hiring lawyers too.

Re: Bitcoin is a Startup

#5

Post by fragsworth » Wed, Aug 21, 2013, 10:27 PM UTC

Slightly off-topic, but I don't understand how it can survive long-term.

A 51% attack seems inevitable. The ability to short-sell bitcoins will eventually become widespread. Weigh the estimated cost of building a 51% attack network versus the estimated gains of short-selling all the bitcoins in the world.

Suppose you can make 10% of the market cap ($1.5B) of bitcoins by short-selling the entire market - a very low estimate. That's currently $150 million dollars. Is $150 million enough money to create a mass-production effort that builds enough ASIC miners to beat out half the network?

(hint: yes it is)

Re: Bitcoin is a Startup

#6

Post by jhuckestein » Wed, Aug 21, 2013, 10:30 PM UTC

I love Bitcoin and own some myself, but from the title I expected this article to be about how the "founders" of Bitcoin cash out from an early financing round and spend the rest of their days rich, regardless of whether the concept survives.

Re: Bitcoin is a Startup

#7

Post by snitko » Wed, Aug 21, 2013, 10:32 PM UTC

jhuckestein wrote: post #6

I love Bitcoin and own some myself, but from the title I expected this article to be about how the "founders" of Bitcoin cash out from an early financing round and spend the rest of their days rich, regardless of whether the concept survives.

"Founders" don't need and probably won't cash out.

Re: Bitcoin is a Startup

#8

Post by contingencies » Wed, Aug 21, 2013, 10:33 PM UTC

By that logic, humans are a startup.

Re: Bitcoin is a Startup

#9

Post by fluidcruft » Wed, Aug 21, 2013, 10:36 PM UTC

fragsworth wrote: post #5

Slightly off-topic, but I don't understand how it can survive long-term. A 51% attack seems inevitable. The ability to short-sell bitcoins will eventually become widespread. Weigh the estimated cost of building a 51% attack network versus the estimated gains of short-selling all the bitcoins in the world. Suppose you can make 10% of the market cap ($1.5B) of bitcoins by short-selling the entire market - a very low es…

> A 51% attack seems inevitable.

So, what are you going to do with your 51% of the network? Somehow double spend $150m before everyone upgrades their clients?

Re: Bitcoin is a Startup

#10

Post by tlrobinson » Wed, Aug 21, 2013, 10:37 PM UTC

jhuckestein wrote: post #6

I love Bitcoin and own some myself, but from the title I expected this article to be about how the "founders" of Bitcoin cash out from an early financing round and spend the rest of their days rich, regardless of whether the concept survives.

Hah, that's certainly one angle I missed.