Groups | Search | Server Info | Keyboard shortcuts | Login | Register [http] [https] [nntp] [nntps]

Groups > comp.misc > #740

Re: Using supercomputers for crypto-coin mining

Show all headers | View raw

Marek Novotny <mach2@hushmail.com>:

> On Sat, 22 Feb 2014 21:55:37 +0200, Marko Rauhamaa wrote:
>> The national currencies have solid, real value: taxes are collected in
>> them. You must come by a designated amount every year or you'll land in
>> prison for tax evasion.
>
> The zinc in the penny is worth less than a penny. The paper used to
> print your $1 note has the same value as one with many zeros behind
> it. Gold, Silver, diamonds, crude oil, sugar, cattle, wood, etc all
> have tangible value. A fiat currency has value as long as someone
> "thinks" it does.

I just told you the "fiat" currency is much more well-founded than you
think. And what I mentioned about taxes is not even the main factor that
creates value for the currency. Essentially, the government (through its
central bank) prints money and lends it to the industry expecting a
payback with interest in the same currency. The industry then has to
work hard to find the currency to service the debt (and make a profit on
the side). The government makes sure the payback is technically possible
by printing some extra money and hiding it in the markets like easter
eggs for the industry to fight for.

Yes, it's essential that everybody trust the currency. However, it's not
just a giant ponzi scheme. It's a real tool in the government's
carrot-and-stick game to keep the industry and services rolling.

> The dollar is not a well managed currency. In fact, it's not even a
> constitutional currency.

Many people are shocked when the Federal Reserve prints (or expresses
readiness to print) trillions of dollars. Those bold moves are essential
in keeping the cogs of the economy turning, and there's a real science
behind it all. It's subtle and scary, but going back to gold would make
the government incapable of addressing deflationary shocks. Your engine
needs oil, and money is that oil. If your engine gets bigger, you need
more oil, but the government can't create gold out of thin air. They
*can* create dollars out of thin air, which is the point.

Pumping all that cash into the economy all of a sudden was required
because the vast majority of the "cash" out there consists of virtual
cash created by the banking system. Since there was a major trust crisis
in the banking industry, the virtual cash dried out. It absolutely had
to be replaced by real cash so the economy wouldn't grind to a halt.

Eventually, trust may come back very quickly, we will see then if the
Federal Reserve has good enough tools to pump real cash out of the
economy as virtual cash floods back into the system. Some years back I
read an article where the Federal Reserve entertained the idea of bonds
of its own; it would "confiscate" cash by issuing attractive bonds and
hiding the cash for decades. So far, though, the recovery has been very
slow, which makes it easier for the Federal Reserve to prevent
hyperinflation from building up.


Marko

Back to comp.misc | Previous | Next — Previous in thread | Next in thread | Find similar | Unroll thread

Thread

Using supercomputers for crypto-coin mining wjwlsn <ibillwilson@gmail.com> - 2014-02-22 01:23 +0000
  Re: Using supercomputers for crypto-coin mining RS Wood <rsw@therandymon.com> - 2014-02-22 12:09 +0000
    Re: Using supercomputers for crypto-coin mining Lewis <g.kreme@gmail.com.dontsendmecopies> - 2014-02-22 17:44 +0000
      Re: Using supercomputers for crypto-coin mining Marek Novotny <mach2@hushmail.com> - 2014-02-22 12:34 -0600
        Re: Using supercomputers for crypto-coin mining Marko Rauhamaa <marko@pacujo.net> - 2014-02-22 21:55 +0200
          Re: Using supercomputers for crypto-coin mining Marek Novotny <mach2@hushmail.com> - 2014-02-22 14:26 -0600
            Re: Using supercomputers for crypto-coin mining Marko Rauhamaa <marko@pacujo.net> - 2014-02-23 00:16 +0200
              Re: Using supercomputers for crypto-coin mining Marek Novotny <mach2@hushmail.com> - 2014-02-22 16:49 -0600
              Re: Using supercomputers for crypto-coin mining Huge <Huge@nowhere.much.invalid> - 2014-02-23 09:33 +0000
                Re: Using supercomputers for crypto-coin mining Marko Rauhamaa <marko@pacujo.net> - 2014-02-23 12:54 +0200
          Re: Using supercomputers for crypto-coin mining Huge <Huge@nowhere.much.invalid> - 2014-02-23 09:33 +0000
            Re: Using supercomputers for crypto-coin mining Dave Garland <dave.garland@wizinfo.com> - 2014-02-23 16:46 -0600
              Re: Using supercomputers for crypto-coin mining Huge <Huge@nowhere.much.invalid> - 2014-02-23 23:21 +0000
                Re: Using supercomputers for crypto-coin mining Marko Rauhamaa <marko@pacujo.net> - 2014-02-24 02:00 +0200
        Re: Using supercomputers for crypto-coin mining Lewis <g.kreme@gmail.com.dontsendmecopies> - 2014-02-22 22:14 +0000
        Re: Using supercomputers for crypto-coin mining Huge <Huge@nowhere.much.invalid> - 2014-02-23 09:31 +0000
    Re: Using supercomputers for crypto-coin mining wjwlsn <ibillwilson@gmail.com> - 2014-02-22 17:02 +0000
      Re: Using supercomputers for crypto-coin mining "tdk" <forum.tdk@squte.com> - 2014-02-22 16:38 +0000
      Re: Using supercomputers for crypto-coin mining Aragorn <thorongil@telenet.be.invalid> - 2014-02-23 12:23 +0100
      Re: Using supercomputers for crypto-coin mining Spalls Hurgenson <spallshurgenson@gmail.com> - 2014-02-23 10:38 -0500

csiph-web