On Sat, 3 Nov 2012 10:49:45 -0600 Zooko Wilcox-O'Hearn wrote: > Money, to be useful as money, only has to be acceptable and valuable > to enough people.
I agree with that. What I meant by "money has to be based on something" is that money creation has to be based on something you can't fake. Otherwise one can create as much money as one wants, and it's worth nothing. Money creation is an important part of a monetary system, because when money is created it devalues the one previously created. Unless I'm mistaken, the Bitcoin creation process is based on proof-of-work. The more processing power one has, the bigger the share of the monetary creation one gets. But the Bitcoin monetary mass is limited, just like the quantity of gold on Earth, so mining gets harder and harder until there is nothing left to extract. > People would not have to burn CPU cycles in order to trade files in > danimoth's proposal. Only the transaction-verification-servers (also > called "miners" in Bitcoin) need to do any proof-of-work (in order to > deter rewind attack). Normal users who want to send or receive Bitcoin > do not need to do any proof-of-work. Before being able to send Bitcoins one must receive some. How would a new user get Bitcoins ? _______________________________________________ p2p-hackers mailing list [email protected] http://lists.zooko.com/mailman/listinfo/p2p-hackers
