The way to deal with this is with certification. Give manufacturers the option to certify their products, and then let people decide if they want to pay the premium. And do it at a state level, not federal, so people can at least leave if they don't like it.
No, it is certain physical properties that makes something useful as money (scarcity, durability, divisibility, fungibility, ease of identification, suitable for making denominated units (coins), not a gas that will escape when you open the jar, not toxic or radioactive). This is why gold and silver are money, but diamonds aren't, even though both are pretty and both have value. Diamonds are neither fungible nor divisible. This makes them are illiquid, and therefore bad money. Sure gold is pretty but most people don't look at their gold, it sits stored away in a vault.
Gold is *naturally* money. It's not something that humans had a say in. The best way to understand this is by the anthropic principle - what else could be money? There is no other substance with all the right properties. Silver, platinum, and palladium are the runners up - but they lack better identifiability, since the grey metals all look pretty similar.
The cultural significance and beauty were probably assigned after humans came to recognize it as a store of value. For example, aluminum was once highly valued due to its near non-exsitence in nature in its elemental form - more valued than gold even, until we figured out how to refine it. Bitcoin doesn't have aesthetics going for it, but it doesn't have to. Plenty of people think stocks and bonds are valuable for example, and there's nothing pretty to look at there.
So bitcoin has all the necessary monetary properties of gold, with the added advantage that it can be moved around electronically. So I would say it's actually far better money than gold (at least as far as market participants would be concerned - governments hate it). Yes there is a chicken and egg hurdle before it can gain widespread adoption as currency, but actually there is a plausible path to get it there. Already as I mentioned it is perfectly useful for foreign exchange including international wire transfers. This doesn't require it to have a particularly stable value as long as there are currency exchanges available to both parties. Money and currency are not the same thing... bitcoin is already money, even if it's not yet currency.
Bitcoin would be a lot more valuable if your currency held the promise of something.
NO, this is exactly why government money fails. Whichever authority is responsible for that "promise" will simple renege after the currency has gained acceptance. They debase the money, becoming extremely powerful in the process, until eventually it becomes worthless. Then after everyone else is broke and they have all the real money, they do it again.
When you mine bitcoins you aren't exactly "selling computer time", you are using your computer to produce a product. The person who buys your coins wants the coin as proof of work, not the cpu time itself. This is exactly the same model as gold mining, the point is that nobody can get more gold without incurring the cost to mine it. Gold doesn't have to "promise" anything except its inherent promise of being scarce (and its other monetary properties such as durability, divisibility, etc).
Yes bitcoin is volatile but only because it is new. As it gains acceptable, the real promise that you will care about is the market in which people will let you trade it for stuff (even just forex is a great start). That does NOT require any authority to back the money. The whole point of bitcoin is that it is a scarce commodity, as opposed to a token or note.
The rate of decline slows until the graph is flat in the final ten minutes. That is showing that it is approaching a stable state.
Also you are misinterpreting the units as being a stored quantity of energy, where it actually refers to the system's rate of output.
> If Bitcoin could not be exchanged for other currencies, it would be worthless; it's value comes only from the fact that you can ultimately "cash out."
Why couldn't they be exchanged for goods and services? Sure you start with currencies because they are the most liquid, and bitcoin has a very speficially compelling utility in that it can be used for international transfers outside the banking system. However it is already finding uses apart from currency exchange.
As far as being otherwise "worthless" - the same is true of US dollars with one critical distinction: the value of bitcoins is set by the market, whereas the value of US dollars is dictated by fiat. Do you understand the difference? Nobody would accept US dollars were they not legally mandated as currency. Oil producing nations would not accept dollars unless we held a gun to their heads.
By contrast, the value of a bitcoin is decided only by the parties to a trade. And nobody can make more of them without incurring the expense to mine them. That is what makes it "sound money" like gold or silver. Except unlike precious metals they can be moved electronically.
It astonishes me how much people love to rip on bitcoin without understanding really the first thing about its purpose.
It isn't supposed to be. It's not a store of energy. The energy cost is there to enforce the scarcity of the currency. Like gold, to get more you have to expend energy to mine it. Contrast US dollars which can be instantiated by the trillion with a few keystrokes.
Yes the miners are presently being irrational (or stealing electricity) but they aren't going to keep losing money at it forever. If the price of bitcoins does not rise to parity with the energy input then mining activity will decrease - exactly the way the mining of anything is done.
The default scenario you're describing doesn't sound much different than hyperinflation. I suppose it's nice that we have a choice, but I just don't understand the "raise the debt limit or else" mentality. More spending just postpones and magnifies the eventual collapse.
You're being obtuse. I'm obviously referring to the difference between commodity and fiat money. Nobody would honor fiat notes if their use were not mandated by law and/or credibly backed by some issuing agency. Bitcoin, like gold or silver, requires NEITHER to work. It is a commodity whose value is set ONLY by the market.
To put it a slightly different way, if we must be legally coerced into using federal reserve notes then we are not "willing to trade in it" - we are being forced to recognize value that the instruments would not otherwise have. Do you see the difference?
It's not so much a matter of being more easily transacted, as that it's peer to peer and does NOT use an issuing agency or reserve note / share model. Your poopcoins have counterparty risk, and the possibility for poopshares to be fraudulently issued in excess of actual holdings. This is really the central point of bitcoin which you've completely ignored in your analogy.
As the other commenter says, you'll be able to the exchange your silver for another currency. However for trade, US pre-1965 coinage is ideal and easy to authenticate.
100 oz bars have been counterfeited but would fail even the most casual test - just weigh and measure to check density, or compare to photos available online. Better to use an ultrasonic tester which is something a silver dealer should be expected to have.
I worked for a now defunct company called Netli that did something like this. Not caching exactly, but putting proxies on either end of the path which would optimize TCP behavior. The speedups could be quite significant especially where latencies were high (long fat pipes), because your browser normally spends a lot of time waiting for entire round trips to occur as each new connection is opened and ramped up to speed. You can also "prefetch" content because you can determine which images the client will be requesting by looking at the HTML response.
It may not make sense to you that more speed is possible through the same pipes, but if you know how TCP/HTTP works at the lowest levels you would see there are a lot of delays that can be removed by such techniques. Google actually launched an equivalent service at some point but then withdrew it.
Right now mining is profitable since the value of bitcoins has recently gapped up from a buck to $7. But as more people mine, the algorithm must solve harder mining problems so in the longer term it is a self-regulating process. I have contemplated giving it a shot. To make a profit you have to build the machines as cheaply as possible and also live in an area with very cheap electricity.
As a side note, the whole affair is a big waste of resources, just like gold mining. However, it's this intrinsic cost to create the currency that makes it sound money - as opposed to fiat money, which can be made at no cost to the person authorized to print it.
There is also a special scenario in the event of a buyout, where all options immediately vest.
Actually, what usually happens is that the options are compensated as cash *in lieu of* equity. I.e. the acquiring company will write you a check equal to the per-share exit valuation of the company minus your strike price. Unfortunately the IRS treats this as ordinary income for option holders so you pay the maximal tax rate. That is, unless the employee took a risk and exercised while the company was still private - which you can do if you have the means, as soon as your options start to vest. If you do that at least 1 year before the buyout then you get the much lower long-term capital gains rate.
If I were working for a startup I would try to get fully vested shares (a "grant" of common shares). Or options with perhaps shorter vesting period so you can buy them out of your own compensation.
As a contractor you probably have no visibility of how the company is capitalized. Ask to see the "cap table" but they probably won't share it with you. You at least need to know how many shares are outstanding, and the valuation at the last fund raising to be able to decide if the equity is a good investment or if you should just push for more cash and invest it elsewhere. Try to guess how much money the company will need to raise in the future so you can figure out how much your share is going to be diluted by then. My guess is if the company is already up and running and able to pay you market wages, you're probably past the window of opportunity to make big bucks on options.
You too can make one at home, connect the transmit pins of the RJ-45 to HOT on 110VAC and the recieve pins to Common.
This actually would not work as described because of ethernet's transformer isolation which provides common-mode rejection. If you're going to make a proper etherkiller you need to tie the Tx+ and Rx+ together on one side of the AC, and Tx- and Rx- together on the other side. This will properly cook the transformers on the other end.
No they are not!!! The original Walking Liberty Half Dollar was minted by the US from 1916 to 1947. http://en.wikipedia.org/wiki/Walking_Liberty_Half_Dollar
The ones I linked to are a similar design but have no face value, are minted by/for American Precious Metals Exchange, and they say "American Precious Metals Exchange" on them. That was the entire point of my comment - did you even look at the link?
That's absurd. Are you even aware of the concept of face value vs melt value? One would lose money hand over fist passing off real silver as lower-denominated fiat money. Each of his one dollar coins contained several US dollars worth of pure silver. The word "dollar" is used around the world for other currencies besides USD. His was just a different "dollar".
You may not be aware that there are many other silver coins minted in the US which also bear eagles, liberty, in God we trust, and such. Here's one that looks like a quarter but costs $20.60. Would you accuse them of trying to pass them off as US 25 cent pieces?
With AC circuits that have non-zero reactance, you must choose a conductor that can carry Imax, but the power delivered to the load is only Vrms * Imax *
cos(phi), phi being the phase angle between the voltage and current.
With respect to RMS vs peak, you are thinking of the *voltage* rating (what the insulation can withstand), NOT the current rating. Economically the insulation rating is not low hanging fruit for optimization - the copper conductor is by far the bulk of the cost and this can not be downsized for DC because it is the average thermal dissipation in the wire that determines its current carrying capacity. This is the same for a given DC vs AC operating voltage and load.
AC circuits suffer from the skin effect [wikipedia.org] where the power travels more on the surface of the conductor rather than equally throughout its cross-section. This requires a larger solid or stranded conductor than would be required for DC.
Stranded wire is used for electrical distribution not because of the skin effect, but because it's easier to bend, pull, and terminate (except for #12 or smaller because usually you prefer it to hold its shape). At 60Hz the skin depth is 8.5 mm - it just doesn't come into play at such a low frequency for building power distribution.
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The way to deal with this is with certification. Give manufacturers the option to certify their products, and then let people decide if they want to pay the premium. And do it at a state level, not federal, so people can at least leave if they don't like it.
Gold is *naturally* money. It's not something that humans had a say in. The best way to understand this is by the anthropic principle - what else could be money? There is no other substance with all the right properties. Silver, platinum, and palladium are the runners up - but they lack better identifiability, since the grey metals all look pretty similar.
The cultural significance and beauty were probably assigned after humans came to recognize it as a store of value. For example, aluminum was once highly valued due to its near non-exsitence in nature in its elemental form - more valued than gold even, until we figured out how to refine it. Bitcoin doesn't have aesthetics going for it, but it doesn't have to. Plenty of people think stocks and bonds are valuable for example, and there's nothing pretty to look at there.
So bitcoin has all the necessary monetary properties of gold, with the added advantage that it can be moved around electronically. So I would say it's actually far better money than gold (at least as far as market participants would be concerned - governments hate it). Yes there is a chicken and egg hurdle before it can gain widespread adoption as currency, but actually there is a plausible path to get it there. Already as I mentioned it is perfectly useful for foreign exchange including international wire transfers. This doesn't require it to have a particularly stable value as long as there are currency exchanges available to both parties. Money and currency are not the same thing... bitcoin is already money, even if it's not yet currency.
Bitcoin would be a lot more valuable if your currency held the promise of something. NO, this is exactly why government money fails. Whichever authority is responsible for that "promise" will simple renege after the currency has gained acceptance. They debase the money, becoming extremely powerful in the process, until eventually it becomes worthless. Then after everyone else is broke and they have all the real money, they do it again. When you mine bitcoins you aren't exactly "selling computer time", you are using your computer to produce a product. The person who buys your coins wants the coin as proof of work, not the cpu time itself. This is exactly the same model as gold mining, the point is that nobody can get more gold without incurring the cost to mine it. Gold doesn't have to "promise" anything except its inherent promise of being scarce (and its other monetary properties such as durability, divisibility, etc). Yes bitcoin is volatile but only because it is new. As it gains acceptable, the real promise that you will care about is the market in which people will let you trade it for stuff (even just forex is a great start). That does NOT require any authority to back the money. The whole point of bitcoin is that it is a scarce commodity, as opposed to a token or note.
The rate of decline slows until the graph is flat in the final ten minutes. That is showing that it is approaching a stable state. Also you are misinterpreting the units as being a stored quantity of energy, where it actually refers to the system's rate of output.
The graph shows it reaching a steady state, not falling back to zero. I believe this is what they're referring to by "self looped" mode.
Why couldn't they be exchanged for goods and services? Sure you start with currencies because they are the most liquid, and bitcoin has a very speficially compelling utility in that it can be used for international transfers outside the banking system. However it is already finding uses apart from currency exchange.
As far as being otherwise "worthless" - the same is true of US dollars with one critical distinction: the value of bitcoins is set by the market, whereas the value of US dollars is dictated by fiat. Do you understand the difference? Nobody would accept US dollars were they not legally mandated as currency. Oil producing nations would not accept dollars unless we held a gun to their heads.
By contrast, the value of a bitcoin is decided only by the parties to a trade. And nobody can make more of them without incurring the expense to mine them. That is what makes it "sound money" like gold or silver. Except unlike precious metals they can be moved electronically.
It astonishes me how much people love to rip on bitcoin without understanding really the first thing about its purpose.
What are teh lulz? Why would anybody do this just for them?
It isn't supposed to be. It's not a store of energy. The energy cost is there to enforce the scarcity of the currency. Like gold, to get more you have to expend energy to mine it. Contrast US dollars which can be instantiated by the trillion with a few keystrokes. Yes the miners are presently being irrational (or stealing electricity) but they aren't going to keep losing money at it forever. If the price of bitcoins does not rise to parity with the energy input then mining activity will decrease - exactly the way the mining of anything is done.
That will fix our banking system for sure!
The default scenario you're describing doesn't sound much different than hyperinflation. I suppose it's nice that we have a choice, but I just don't understand the "raise the debt limit or else" mentality. More spending just postpones and magnifies the eventual collapse.
To put it a slightly different way, if we must be legally coerced into using federal reserve notes then we are not "willing to trade in it" - we are being forced to recognize value that the instruments would not otherwise have. Do you see the difference?
This is a desired characteristic of sound money.
It's not so much a matter of being more easily transacted, as that it's peer to peer and does NOT use an issuing agency or reserve note / share model. Your poopcoins have counterparty risk, and the possibility for poopshares to be fraudulently issued in excess of actual holdings. This is really the central point of bitcoin which you've completely ignored in your analogy.
Sorry, citizen. This counts as barter which is taxable at its market value in US dollars.
100 oz bars have been counterfeited but would fail even the most casual test - just weigh and measure to check density, or compare to photos available online. Better to use an ultrasonic tester which is something a silver dealer should be expected to have.
It may not make sense to you that more speed is possible through the same pipes, but if you know how TCP/HTTP works at the lowest levels you would see there are a lot of delays that can be removed by such techniques. Google actually launched an equivalent service at some point but then withdrew it.
Go to http://www.mtgox.com/ to see the present USD exchange rate.
Right now mining is profitable since the value of bitcoins has recently gapped up from a buck to $7. But as more people mine, the algorithm must solve harder mining problems so in the longer term it is a self-regulating process. I have contemplated giving it a shot. To make a profit you have to build the machines as cheaply as possible and also live in an area with very cheap electricity.
As a side note, the whole affair is a big waste of resources, just like gold mining. However, it's this intrinsic cost to create the currency that makes it sound money - as opposed to fiat money, which can be made at no cost to the person authorized to print it.
Actually, what usually happens is that the options are compensated as cash *in lieu of* equity. I.e. the acquiring company will write you a check equal to the per-share exit valuation of the company minus your strike price. Unfortunately the IRS treats this as ordinary income for option holders so you pay the maximal tax rate. That is, unless the employee took a risk and exercised while the company was still private - which you can do if you have the means, as soon as your options start to vest. If you do that at least 1 year before the buyout then you get the much lower long-term capital gains rate.
If I were working for a startup I would try to get fully vested shares (a "grant" of common shares). Or options with perhaps shorter vesting period so you can buy them out of your own compensation.
As a contractor you probably have no visibility of how the company is capitalized. Ask to see the "cap table" but they probably won't share it with you. You at least need to know how many shares are outstanding, and the valuation at the last fund raising to be able to decide if the equity is a good investment or if you should just push for more cash and invest it elsewhere. Try to guess how much money the company will need to raise in the future so you can figure out how much your share is going to be diluted by then. My guess is if the company is already up and running and able to pay you market wages, you're probably past the window of opportunity to make big bucks on options.
This actually would not work as described because of ethernet's transformer isolation which provides common-mode rejection. If you're going to make a proper etherkiller you need to tie the Tx+ and Rx+ together on one side of the AC, and Tx- and Rx- together on the other side. This will properly cook the transformers on the other end.
I only mistakenly called it a quarter look-alike. It is a half-dollar look alike.
No they are not!!! The original Walking Liberty Half Dollar was minted by the US from 1916 to 1947. http://en.wikipedia.org/wiki/Walking_Liberty_Half_Dollar The ones I linked to are a similar design but have no face value, are minted by/for American Precious Metals Exchange, and they say "American Precious Metals Exchange" on them. That was the entire point of my comment - did you even look at the link?
You may not be aware that there are many other silver coins minted in the US which also bear eagles, liberty, in God we trust, and such. Here's one that looks like a quarter but costs $20.60. Would you accuse them of trying to pass them off as US 25 cent pieces?
http://www.apmex.com/Product/60935/1_2_oz_APMEX_Walking_Liberty_Half_Dollar_Silver_Round_999_Fine.aspx
With respect to RMS vs peak, you are thinking of the *voltage* rating (what the insulation can withstand), NOT the current rating. Economically the insulation rating is not low hanging fruit for optimization - the copper conductor is by far the bulk of the cost and this can not be downsized for DC because it is the average thermal dissipation in the wire that determines its current carrying capacity. This is the same for a given DC vs AC operating voltage and load.
Stranded wire is used for electrical distribution not because of the skin effect, but because it's easier to bend, pull, and terminate (except for #12 or smaller because usually you prefer it to hold its shape). At 60Hz the skin depth is 8.5 mm - it just doesn't come into play at such a low frequency for building power distribution.
If the other side wants to leak something that makes their point then I'm all ears for that too. Fuck it all, leak everything!
Steve's health is already priced in. The run-up in share price has been driven by actual earnings, in fact the PE is down from a year or two ago. http://www.asymco.com/2010/08/02/apples-pe-ex-cash-nearing-15/