Is mining the unfair part of bitcoin in the same way banks (or rather, fractionary reserve systems) are to current monetary system?

Question

I've been reading a lot about bitcoin lately and I'm very interested.

Especially, when it comes to making a currency that is way more fair, because it avoids a centralized control of it.

However, in the same way today's banks/centralbanks/FED/regulators benefit from how the current monetary system works, wouldn't an economy solely based on bitcoin make the big IT corporations take advantage of everyone due to their computing (mining) power?

Cannot we build a currency that is decentralized like bitcoin, but that doesn't have the "mining" part of it? (I know that mining concept is very tied to cryptography, but maybe a less cryptographic-centric system can be built, like one based on trust/untrust between nodes?)

Thanks very much, and sorry if this has already been asked, but it's difficult to look for a question like this.

Answer 1

Question: Cannot we build a currency that is decentralized like bitcoin, but that doesn't have the "mining" part of it?

No need to, one was already created years ago and is still up and running today. Bitcoin depends on currency creation to record transactions, you can't get around this because that is the design of it and how it works. The only one that approaches this in a different way is Timekoin. Transactions and Currency Creation are separate. Transactions can be processed like clockwork every 5 minutes with no currency being created, provided some currency already exist to spend. Currency Creation is also produced like clockwork in very small amounts. So anyone running the server software can create currency, but in a very gradual, controlled amounts as long as the strict rules are being followed.

Answer 2

The goal of Bitcoin is to provide an online currency system with various neat properties, and block rewards for mining was considered to be the best possible (but far from perfect) way of getting users to initially buy in to the concept and make it popular enough to survive. It seems to be working.

Block rewards are decreasing over time, and actually it doesn't really matter who gets them as long as nobody can pull off a 51% attack. The great thing about Bitcoin is that we get a new currency out of it that can provide online transactions far cheaper than credit cards and without the risk of reversal (and there are a whole lot of other advantages too).

Answer 3

I'm sorry but this question doesn't make much sense, I guess you need to read more about Bitcoin, since you have no idea what mining is and why it is the core of Bitcoin.

Hints:

• Anyone can mine, if they bother to get the proper equipment: this can't happen with traditional banks
• Mining is the core of Bitcoin and can't be taken out of the equation, you would need to invent everything from scratch, good luck

Answer 4

The bitcoin is indeed unfair. How are all to participate when the economically challemged do not have the resources to mine? I suggested a virtual currency backed by the top 20 commodities excluding gold. Gold only hold intrinsic value and can be manipulated very easily. Silver however is is higher demand for manufacturing and would be acceptable. I am planning on actually forming such a currency. It will intially cost about 87 million dollars to initiate the network security and have the necessary holding facilities for such commodities as with any other commodity. Paper contracts are just that paper. they can worthless. To physically have holdings is the only way. Of course loans and other financial instruments will come into play to cover future costs and operations. However. Certain minimum levels must be kept in the 30 commodities although trading between them would be permitted so the realization of profits can be obtained. An oversight panel of shareholders will be in place and they will be charged with reviewing the financial records, along with professional accountants. The panel of 12 will be drawn from the pool of shareholders and the only requirement is they are the age of 18. Each year new oversight committees will be drawn. This will help in avoiding any concerns of formations of lets say unwanted actors from taking any control or not stating facts. Since the United States Government does not allow the printing of money then it will all be virtual. The security system to preveny hacking will ber contracted and most importantly insured by the same company. They must have holdings in the new currency as the dollar will not be permitted in the overall theme of the currency. They fail to do there job and system is hacked. Whatever is lost must be replaced. I believe that employers and consumers would swarm to be involved. It would be global. I am 53. unemployed. Male, white and told by many a bit crazy. I look around the globe and I am surrounded by the insane. Shoot me an email and give me your feedback. Trolls stay home.