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- It has all the hallmarks of a Ponzi scheme; "proprietary" method, unrealistic returns for "minimal" investment (buy video card, make thousands in Bitcoins!), the "external audit" confidence trick, and an early investor - with no idea who it is - just collapsed the market by dumping on MtGox last week.
...mostly because there is no clear answer as to what they're "computing" or who "they" are.
Eh. Read both sides of the argument. There are plenty of articles explaining how cool it is, but this also provides an interesting counterpoint:
Me personally, I just don't get it. I can't muster up enough energy to investigate it and form an educated opinion. I do find the "we use your CPU cycles" thing to be suspicious, mostly because there is no clear answer as to what they're "computing" or who "they" are. They claim they use the CPU cycles for some kind of security key number-crunching. That could mean almost anything. For all we know they could be using it to crack encryption.
I find the lack of transparency and lack of clear explanation to be enough to make me go "meh, who cares."
Also; Silk Road is basically a big illicit drug buying site, isn't it? o.O
The difficulty increases over time because the currency is hard-code to cap at 21 million units.
So the verdict from a very large number of security and IT professionals is: Bitcoin is a Ponzi scheme, period.
Another point I don't quite understand. If the currency is limited to 21 million units, what's the incentive for mining after all 21 million units are in "circulation."
I thought Silkroad was a Korean MMORPG....which is basically like a drug.
For about (currently) every 4 24-hour days, I'm generating one BitCoin with my 5770.
They say that when half the blocks have been mined, the time required to compute a block (and thus generate another 50 BTC) is increased, and when half of the remainder are mined, it increases again, etc etc etc. We haven't, from what I've seen, reached the first cutoff for blocks - at 50BTC per block and 130k or so blocks (I checked into it and tried it out for like 10 minutes last night to do some quick math), we're still only at 6.5m BTC in circulation so far.
Well, I only ended up mining for a day then I got annoyed with the amount of resources it took. That aside, the idea of a worldwide currency does sound appealing in this day and age. Why not work toward something like this? It doesn't have to be completely electronic (because of obvious flaws of that kind of system) but it's a step in the right direction. Discuss.
Icrontic — Home of the Big Beef Burrito since 8-8-2000, fool.
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