Bitcoin, alternate currency

  • Thread starter Jim Kata
  • Start date
  • #26
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A few more notes. I don't know exact numbers, but people from the beginning of bitcoin are surely hoarding a vast amount of bitcoins. They are like the central bank. If they decide to cash out, the currency collapses (maybe just temporarily). I don't like the idea of a random 19 year old controlling the value of my savings. Furthermore there seems to be a multi gigabyte transaction log already. It seems that everyone logs the whereabouts of all the coins, right now the market is small, but if it should become big, we'd have Terrabytes of logs sitting on each computer just to be able to do finance. Maybe my technical understanding is not correct, then someone can correct me, but it doesn't seem like Bitcoins can really scale to a global level.
 
  • #27
phyzguy
Science Advisor
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Here is an interesting take on bitcoins from Paul Krugman, Nobel prize-winning economist.
 
  • #28
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Virtual Bitcoin Mining Is a Real-World Environmental Disaster

Blockchain.info, a site that tracks data on Bitcoin mining, estimates that in just the last 24 hours, miners used about $147,000 of electricity just to run their hardware, assuming an average price of 15 cents per kilowatt hour (a little higher than the U.S. average, lower than some high cost areas like California). That, of course, is in addition to the money devoted to buying and building the mining rigs. The site estimates the profits from the day of mining at about $681,000, based on the current value of Bitcoins. So mining, at least for the moment, is a lucrative business.

The trade-off here is that as virtual value is created, real-world value is used up. About 982 megawatt hours a day, to be exact. That’s enough to power roughly 31,000 U.S. homes, or about half a Large Hadron Collider. If the dreams of Bitcoin proponents are realized, and the currency is adopted for widespread commerce, the power demands of bitcoin mines would rise dramatically.

http://www.bloomberg.com/news/2013-...g-is-a-real-world-environmental-disaster.html
 

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