Transaction

j"1LAnZuoQdcKCkpDBKQMCgziGMoPC4VQUckMJ<div class="post"><div class="quoteheader"><a href="https://bitcointalk.org/index.php?topic=721.msg7775#msg7775">Quote from: gridecon on August 06, 2010, 03:00:12 AM</a></div><div class="quote">Thanks very much for the extensive and informative reply. I do not disagree with the points that you made, but I also don't believe it invalidates my fundamental point: it is not inherently necessary for a digital currency such as bitcoin to require as much energy input as bitcoin does. A digital currency that offers bitcoin's behavior at a "lower cost" of energy overhead of the currency and transaction system has a competitive advantage. The digital currencies that will win and become standards, I believe, are the ones that offer the most value-added on top of the costs of running the system. Of course, there is room for many currencies - we already have a multiplicity - so it is not necessary for Bitcoin to become the "one true money" for it to succeed, but I believe the current minting policies will be harmful to its growth and adoption long-term. Much of the utility value of bitcoin resides in the work done to establish the security and reliability of the system - accomplishing that work with a smaller energy input would seem to be beneficial.<br/></div><br/>I think though you are comparing apples to oranges. The coin generation is for currency creation. You don't need to generate any coin to use the bitcoin system. You can purchase it from many market sites or get some donated for free from other sites. The current minting policy is what makes it useful because a digital currency where everyone has unlimited amounts (or large starting amounts) just causes unnecessary starting inflation. The overhead for the currency is by design, otherwise if someone creates an *easier* system, it will be quickly abused. Since you can't make everyone play fair, you create something where it's nearly impossible to cheat by using math. To make cheating expensive instead of "easy" is where this system works. If it's more profitable to generate coin than to cheat it, guess which one everyone will go with?</div> text/html