17

GDP would accelerate because of less transactional friction.


14

It's a complete irrelevancy. It is still early, and Bitcoins are worth on the order of $3 each. If you want to be an early adopter, buy Bitcoins now. If Bitcoins never become really valuable, what difference does it make whether it's fair or not? The sums involved will be modest. If Bitcoins ever do become really valuable, what difference does it make ...


10

Mining is a self-adjusting system. The difficulty only rises in accordance to the available mining power. Hence, it can neither go to a difficulty where it will take months for a block to be found, nor can it become prohibitely expensive to mine. Also see How is difficulty calculated?.


9

I find this article convincing in its analysis of the dynamics between Bitcoin and competing networks: The Coming Demise of the Altcoins To summarize briefly, the author suggests: The utility provided by a currency system is related to the willingness of its users to save using that currency. Currencies have a strong network effect. Most altcoins don't ...


8

Technology is helping with this. For instance, I don't know what the fair price is for a GPS device that I see for sale at Best Buy, for instance. I whip out my mobile and do Amazon price check to see what the price is elsewhere. This app could just as easily display the price in BTCs. So therefore, we already are getting in the habit of distancing from ...


8

WebGL Globe shows bitcoin nodes seen during last 48 hours. Install Chrome Web browser if you have problem rendering WebGL. Google Trends has countries, cities and languages sorted by number of bitcoin related search queries.


8

Bitcoin was publicly announced before mining began. Those who were interested in cryptography and new digital technology were more likely than others to learn about it sooner, and it's perfectly fair that they were in a position to profit more from any rise in its value since its success would mean the information they were browsing had more value than the ...


7

If people are worried about deflation they really need to distinguish what kind of deflation they are referring to. Asset deflation or monetary deflation. The real issue with our economy right now is the fact we have asset deflation coupled with monetary inflation which is the worst of both worlds. I believe asset deflation along with monetary deflation ...


7

One thing often overlooked is that bitcoin is most useful in chaotic economies. Bitcoin likely will not replace the Euro, Dollar, Yen, or Yuan for very long time (if ever). However many economies suffer from poor economic planning and gross manipulation by central banks. Take the Zimbabwe hyperinflation scenario. If bitcoin existed and was easily used by ...


7

It is not that someone gets money for hearing about Bitcoin before you. They get money for TAKING ACTION before you did. What gives Bitcoin value is all the people working on the software and services to make it better. What gives Bitcoin value is people educating others about it, and getting merchants to use it. What gives Bitcoin value is people acquiring ...


7

Presumably, this means that if you type '0.5 BTC' into a cell, it will be recognized as an amount of money instead of text. (Currently, if you type '$5' into a cell, it will recognize this as an amount of money.) You will probably be able to write formulas that manipulate Bitcoin amounts, which could be useful if you wanted to sum all of the Bitcoin amounts ...


6

Hearing about Bitcoin is the easy part. The hard part is having the vision to understand how it's revolutionary, spending the resources to acquire it (whether other currency or electricity/compute power), taking the risk that it might not eventually succeed - and in so doing, taking a part in helping Bitcoin succeed thus making the world a better place. This ...


6

First, you're going to have to prove that your altcoin is useful and has value and liquidity. You can't just create a new coin and expect people to value it. The most successful altcoins have something different about them or some feature that other coins don't have. In other words, you need to create some demand. Second, once you have demand, then you need ...


5

Bitcoin was the first, the most well known and thus has the most network effect. The network effect is extremely important and there are examples were better technologies lost to the competition because of the latter's network effect. In addition, being the oldest running crypto-currency and with the larger market cap means that it was consistently ...


5

I don't think any such study exists, because it is very difficult to gain any concrete information about full nodes on the network. Because nodes can (and often are) run over proxies or TOR, their true IP addresses are often obscured. Furthermore, IP addresses aren't necessarily a good indicator of geographic location, and certainly not connection speed. ...


5

There's a hard limit on the amount of people that own one bitcoin: There currently are only 16.1 million bitcoins in circulation, so there can't be more more than 16.1 million people with one bitcoin. However, there are a number of individuals that control much more bitcoin than that, so it is safe to say that the actual number of users that own one bitcoin ...


4

The main problem I can see with using such a metric to measure adoption is that a tremendous amount of transactions take place on the various exchanges during periods of heavy speculative investment. During the current downtrend we're probably experiencing a lower percentage of traffic from investors and a higher percentage of traffic from actual users of ...


4

From the FAQ: Early adopters are rewarded for taking the higher risk with their time and money. In more pragmatic terms, "fairness" is an arbitrary concept that is improbable to be agreed upon by a large population. Establishing "fairness" is no goal of Bitcoin, as this would be impossible. The vast majority of the 21 million Bitcoins still ...


4

It is hard to make out an early adopter advantage for users, except perhaps scoring a few Ripples to spend for free. After spending that money, there seems little advantage for users to stick around. That's probably true for people who have no real urgent use case. But what about users who need to make international payments such as remittances? But largely ...


4

I like this question1 - we don't get many big picture questions. How could Bitcoin change the world? A mature digital cryptocurrency could reduce trade barriers and thus increase the rate of productivity dispersion throughout society. As money is a form of fungible authenticated information2, non-proprietary digital money gets to take advantage of the ...


3

I have created a page on the Wiki called "First time buyers guide". It is only a rough version at the time of writing, but hopefully it will be revised into a go-to guide for anyone wanting to make a payment with Bitcoin with as little unnecessary information as possible.


3

It could be that this host specifically is getting less connections, although that might not be the case. There has been a similar drop in hashing power and stock price. The most likely cause of this is the lack of press-attention and a low amount of things you can do with Bitcoins. Another possible explanation is the increased usage of online-wallets ...


3

Have a look at: http://bitcoinstatus.rowit.co.uk/ Nibor on the bitcoinj mailing list has created a whole series of charts about the bitcoin p2p network.


3

Bitcoins are economical to buy from many different currencies (ie the conversion fees are low), so they have the potential to make many financial & retailing tools available to a much larger audience. This could include stocks, bonds, commodities as well as traditional retail. Bitcoins also have the potential to change the way artists (in a very broad ...


3

Given that economists cannot agree unanimously on the global effects of relatively small events like a change in interest rates or a stimulus package, I would say that a major event like mass adoption of Bitcoin is far beyond anybody's prediction horizon. The global economy is a complex dynamical system and we really don't understand such things as well as ...


3

I found this link the other day that shows where you can use bitcoins https://www.spendbitcoins.com/places/?place_type=service mostly for hosting companies, some poker sites/online casinos & many computer co's that i'm sure most people would never use right now. Saw an article that a restaurant in NY wanted to accept them soon but probably its a ...


3

The number of wallets is impossible to count, as they can contain zero to thousands of addresses each (zero, as there may be users who just want to observe, or clients that only create addresses when explicitly asked to). Counting users by number of client downloads won't give you a good estimation either, with all the web wallets that are out there, plus of ...


3

This is a great question and it's something I spend a lot of time thinking about. In general, I'd say no one really knows at this point and it is difficult to make more than a few guesses. So let me have a try at that: Banks would lose much of their ability to control the monetary supply, interest rates and exchange rate. The financial sector would shrink ...


3

I think the best reasons right now are: Marketing: being the first to do something attract a lot of interest and media. No chargebacks: Bitcoins does not allow any kind of chargeback, which is not true for main payment systems (Paypal, Stripe, Credit Card). Lower fees or no fees, just depends on how you use it. Investment some people wants to hoard some ...


3

For small amounts it's fine to accept unconfirmed transactions. You must really understand how the protocol works to be able to double-spend an unconfirmed transaction. I'm sure in the future hackers will build tools to allow for these sort of scenarios to benefit them, but also bitcoin clients will grow more secure and be able to diminish the propagation of ...


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