[FoRK] bitcoins vs. alchemy

Gordon Mohr gojomo-forkxent at xavvy.com
Wed Dec 5 19:31:50 PST 2012


The limits on Bitcoin creation are imposed by a schedule laid down in 
the initial design of the system, *not* computational power.

Relative computational power just helps nodes 'win'  allocations 
according to that original schedule. The difficulty threshold for 
winning even self-adjusts as bitcoins are disbursed, so no matter how 
fast computation improves, 21 million BTC will be handed out through 
2140 CE, then no more.

The balances in the system are quite interesting and worth reading 
about. There are potential problems and risks, but increasing production 
with computational progress is not an issue.

- Gordon

On 12/5/12 4:26 PM, Joseph S. Barrera III wrote:
> There would never have been a gold standard if alchemy were possible.
> The supply of gold is roughly constant. That's a precondition of the
> gold standard.
>
> But crunching bits improves every day... clock rate and algorithms and
> better architectures (GPUs). And amazing things can be done when solving
> a very specific problem (e.g. mining bitcoins).
>
> So what rational person would invest in bitcoins?
>
> - Joe
>
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