Most Expensive Tweet Ever Sends $11,000 To Kenyan Water Charity Via Dogecoin

Post by SunliMin » Wed, Mar 19, 2014, 5:27 AM UTC

trevelyan wrote: post #59

a-priori wrote: post #44

Dogecoin is interesting. On one hand, it's all an elaborate joke and everyone involved knows it. On the other hand, it's got a higher transaction volume than its 'serious' cousin Bitcoin, and people occasionally use it to transfer significant amounts of money (e.g. here, and the Jamaican Bobsled Team). The biggest problem a currency has to overcome is the network effect. It's damned hard to bootstrap a currency, to g…

This is a very misleading comment. Dogecoin only processes about 0.3 percent of what Bitcoin handles daily, and is far behind in total number of daily transactions: http://bitinfocharts.com/

Post by nicky0 » Wed, Mar 19, 2014, 7:52 AM UTC

pkulak wrote: post #63

sp332 wrote: post #26

Earlier quoted context omitted.

"Mining" is really solving a block. This means that your computer has verified all the transactions in the block and signed them. As a reward for keeping the transaction record secure, you get some coins. At first, the reward has to be large, to entice people to a new cryptocurrency. But over time, a secure network becomes valuable for itself, and the reward isn't necessary anymore.

I'm aware of what mining is. And you're not just signing a block. No one would be making custom ASICs and putting server farms near hydro-electric plants if all you had to do was sign a block. You're paying people to do useless work and it's silly.

Post by nicky0 » Wed, Mar 19, 2014, 7:55 AM UTC

GrinningFool wrote: post #69

baddox wrote: post #43

Earlier quoted context omitted.

That's not how it works. If every miner got a reward, then the decentralized network simply wouldn't work.

The one miner who solves the block gets the reward. All miners who tried to solve the same block (and that would be every other miner who didn't get a solution in first) have wasted their time and do not get a reward. I'm not sure what we're disagreeing about?

Post by icebraining » Wed, Mar 19, 2014, 9:09 AM UTC

krrrh wrote: post #38

pkulak wrote: post #20

As a Keynesian I love that Dogecoin is the first (that I know of) crypto currency that isn't deflationary. I do wish there was a way to make the things other than mining though. I hate "mining". Such a waste of resources.

You definitely don't need to be a Keynesian to believe that a bit of monetary inflation is a positive thing. It's quite likely that Dogecoin will still be very deflationary if the velocity of cash flow, transaction volume increase faster than the Ð5 billion/a being added annually. Not to mention lost private keys which essentially destroy related coins forever.

  “We don’t need a Fed,” Milton Friedman says, twirling a letter opener
  as he speaks. “I have, for many years, been in favor of replacing the
  Fed with a computer,” he adds. Each year, it “would print out a specified
  number of paper dollars” to augment the money supply. “Same number, month
  after month, week after week, year after year.”

Post by pkulak » Wed, Mar 19, 2014, 6:32 PM UTC

shultays wrote: post #74

pkulak wrote: post #63

Earlier quoted context omitted.

I'm aware of what mining is. And you're not just signing a block. No one would be making custom ASICs and putting server farms near hydro-electric plants if all you had to do was sign a block. You're paying people to do useless work and it's silly.

You lose resources to create paper currencies, I don't see how two things are different