Timothy B. Lee – Four Reasons Bitcoin Is Worth Studying

Timothy B. Lee – Four Reasons Bitcoin Is Worth Studying:

Forbes contributor Timothy B. Lee (@BinaryBits) writes again on Bitcoin. Excerpts:

“Even if you think the current value of of more than $140 is a bubble, it’s clear that Bitcoin has some genuine applications. The number of daily Bitcoin transactions has soared from around 1000 at the beginning of 2011 to about 50,000 today. Figuring out the “fundamentals” that drive the currency’s long-term value seems like an interesting theoretical puzzle.”

“A core part of Bitcoin’s appeal is that it’s not under anyone’s control. Supposedly, nobody has the authority to change the Bitcoin money supply, cancel or reverse transactions, or otherwise change the attributes of the protocol. But in practice that’s not really true. In the wake of last month’s fork, the elites in the Bitcoin community effectively changed the rules in a matter of hours. In principle, there’s no reason those same elites couldn’t make other changes to the Bitcoin protocol.”

“In principle, these two pools might be able to join forces and execute a 51 percent (or 53 percent) attack on the rest of the network. But doing so might prove foolish in the long run, since that kind of power grab might undermine public confidence in the currency’s long-term viability, since a mining cartel might have the power to change the rules of the Bitcoin protocol in ways that benefit themselves at the expense of ordinary users.”

 – http://onforb.es/10yeRSe
 – http://bitcointalk.org/index.phptopic=170270.0 (Further discussion of this article)

All News – Daily E-mail Subscription – Twitter: @BitcoinNews

Check out the original source here.

http://bit.ly/11cmVavcontributor, current value, curretn value, mail subscription, mail subscriptoin, money supply, original source, public confidence, term viability

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s