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buy a bitcoinBecause its easier for them to yell “bitchez” than to apply themselves to learn anything. The currency debasement war is happening, and the whole WORLD is going to see what happens when every major power is gunning for the core of the planet as a price target for their currency.

For the proof-of-work idea to have any chance of succeeding, network users need an incentive to help validate transactions. Without such an incentive, they have no reason to expend valuable computational power, merely to help validate other people’s transactions. And if network users are not willing to expend that power, then the whole system won’t work. The solution to this problem is to reward people who help validate transactions. In particular, suppose we reward whoever successfully validates a block of transactions by crediting them with some infocoins. Provided the infocoin reward is large enough that will give them an incentive to participate in validation.

Trust: Currently there are a several places that will hold your Bitcoin for you, including brokers ( ), payment systems ( ) and online casinos ( ). If one of them gets hacked (or disappears), there’s going to be some unhappy people around. Edit: Now we know all aout those exact scenarios.

New bitcoins price (Recommended Reading) are created by people running CPU intensive “mining” programs, but regardless of the number of miners or the strength of their CPUs the rate at which new coins are created is fixed by the system. A parameter called “difficulty” is computed that determines how much CPU power must be used to generate new coins. When more people start mining, the difficulty goes up to bring the rate back to the desired curve. When people stop mining the difficulty goes down.