Bitcoin Wiki - User contributions [en]

Myths

2011-03-23T21:56:46Z

Atlas: /* Quantum computers would break bitcoin's security */

Lets clear up common Bitcoin misconceptions.

== Bitcoins don't solve any problems that fiat and/or gold doesn't solve ==

* easy to transfer and store
* potentially anonymous
* inflation proof
* not controlled by a central authority

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins value is based on how much electricity it takes to mine them ==

Thats the labor theory of value. (insert counterexample scenario here)

== Bitcoins have no intrinsic value (unlike some other things) ==

There is no such thing as intrinsic value. Value is determined by what people are willing to trade for – by supply and demand.

== Bitcoins are illegal because it's not legal tender ==

Chickens aren't legal tender.

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

http://en.wikipedia.org/wiki/Definitions_of_terrorism#United_States according to this, you need to do violent activities to be considered a terrorist for legal purposes. This has no bearing on politicians and idiotic US attorney's public remarks.

== Bitcoin will only enable tax evaders which will lead to the eventual downfall of civilization ==

It's up to you to follow the applicable state laws in your home country, or face the consequences.

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

It requires sufficient work to mint and are thereby valuable.

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==
Early adopters are rewarded for taking the high risk of wasting their time and money. Besides, "fairness" is an arbitrary concept that is improbable to be agreed upon by a large population. Establishing fairness is no goal of Bitcoin, as this would be impossible.

You were unfairly born, too.

== 21 million coins isn't enough, doesn't scale ==

It infinitely scales.

== Bitcoins are stored in wallet files, just copy the wallet file to get more coins! ==

Bitcoin transactions are stored in the block chain. The wallet has your secret keys necessary to spend your money, that is, to enter new transactions into the block chain. Copying the wallet doesn't copy any coins.

== Lost coins can't be replaced and this is bad ==

Bitcoins are divisible to 0.00000001 at this moment, so this is not a problem. If you lose your coins, all other coins will go up in value a little. Consider it a donation to all other Bitcoin Users.

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

CONFIRMED

== Anyone with enough computing power can take over the network ==

CONFIRMED

== Bitcoin violates some sort of government regulations ==

CONFIRMED

Which?

== Fractional reserve banking is not possible ==

Yes, it is.

1. Start Bitcoin Bank.

2. Accept deposits from customers

3. Make loans, using part of the funds deposited by customers, keeping a '''fraction''' thereof in '''reserve'''.

4. ????

5. PROFIT!

== Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation ==

More computing power incentivised by equitable transaction fees will make waiting time negligible. In layman's terms, speedy thing goes in, speedy thing comes out.

Zero confirmations should be good enough for point of sale purchases, which occur almost instantly.

== After 21 million coins are mined, no one will run network nodes ==
When operating costs can't be covered by mining production, which will happen some time before the total amount of BTC is reached, miners are expected to earn profit from transaction fees.

Actually, all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes.

Actually, a finite amount of fractions will occur before zero BTC is mined per block.

== Bitcoin has no built-in chargeback mechanism, and this is bad ==

Bad cannot be objectively defined.

== Bitcoin is just like all the other virtual currencies, nothing new ==

All other virtual currencies can be printed at the subjective whims of their creators. Bitcoin is limited.

== Quantum computers would break bitcoin's security ==

Yes but Bitcoin's security can be upgraded.

Myths

2011-03-23T21:40:44Z

Atlas: /* Bitcoins are illegal because it's not legal tender */

Lets clear up common Bitcoin misconceptions.

== Bitcoins don't solve any problems that fiat and/or gold doesn't solve ==

* easy to transfer and store
* potentially anonymous
* inflation proof
* not controlled by a central authority

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins value is based on how much electricity it takes to mine them ==

Thats the labor theory of value.

== Bitcoins have no intrinsic value (unlike some other things) ==

There is no such thing as intrinsic value. Value is determined by what people are willing to trade for – by supply and demand.

== Bitcoins are illegal because it's not legal tender ==

Chickens aren't legal tender.

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoin will only enable tax evaders which will lead to the eventual downfall of civilization==

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

It requires sufficient work to mint and are thereby valuable.

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

You were unfairly born.

== 21 million coins isn't enough, doesn't scale ==

It infinitely scales.

== Bitcoins are stored in wallet files, just copy the wallet file to get more coins! ==

Bitcoin transactions are stored in the block chain. The wallet has your secret keys necessary to spend your money, that is, to enter new transactions into the block chain. Copying the wallet doesn't copy any coins.

== Lost coins can't be replaced and this is bad ==

Bitcoins are divisible to 0.00000001 at this moment, so this is not a problem. If you lose your coins, all other coins will go up in value a little. Consider it a donation to all other Bitcoin Users.

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

CONFIRMED

== Anyone with enough computing power can take over the network ==

CONFIRMED

== Bitcoin violates some sort of government regulations ==

CONFIRMED

== Fractional reserve banking is not possible ==

Yes, it is.

1. Start Bitcoin Bank.

2. Accept deposits from customers

3. Make loans, using part of the funds deposited by customers, keeping a '''fraction''' thereof in '''reserve'''.

4. ????

5. PROFIT!

== Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation ==

More computing power incentivised by equitable transaction fees will make waiting time negligible. In layman's terms, speedy thing goes in, speedy thing comes out.

Zero confirmations should be good enough for point of sale purchases, which occur almost instantly.

== After 21 million coins are mined, no one will run network nodes ==
When operating costs can't be covered by mining production, which will happen some time before the total amount of BTC is reached, miners are expected to earn profit from transaction fees.

Actually, all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes.

Actually, a finite amount of fractions will occur before zero BTC is mined per block.

== Bitcoin has no built-in chargeback mechanism, and this is bad ==

Bad cannot be objectively defined.

== Bitcoin is just like all the other virtual currencies, nothing new ==

All other virtual currencies can be printed at the subjective whims of their creators. Bitcoin is limited.

Myths

2011-03-23T21:40:12Z

Atlas: /* Bitcoins can be printed/minted by anyone and are therefore worthless */

Lets clear up common Bitcoin misconceptions.

== Bitcoins don't solve any problems that fiat and/or gold doesn't solve ==

* easy to transfer and store
* potentially anonymous
* inflation proof
* not controlled by a central authority

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins value is based on how much electricity it takes to mine them ==

Thats the labor theory of value.

== Bitcoins have no intrinsic value (unlike some other things) ==

There is no such thing as intrinsic value. Value is determined by what people are willing to trade for – by supply and demand.

== Bitcoins are illegal because it's not legal tender ==

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoin will only enable tax evaders which will lead to the eventual downfall of civilization==

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

It requires sufficient work to mint and are thereby valuable.

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

You were unfairly born.

== 21 million coins isn't enough, doesn't scale ==

It infinitely scales.

== Bitcoins are stored in wallet files, just copy the wallet file to get more coins! ==

Bitcoin transactions are stored in the block chain. The wallet has your secret keys necessary to spend your money, that is, to enter new transactions into the block chain. Copying the wallet doesn't copy any coins.

== Lost coins can't be replaced and this is bad ==

Bitcoins are divisible to 0.00000001 at this moment, so this is not a problem. If you lose your coins, all other coins will go up in value a little. Consider it a donation to all other Bitcoin Users.

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

CONFIRMED

== Anyone with enough computing power can take over the network ==

CONFIRMED

== Bitcoin violates some sort of government regulations ==

CONFIRMED

== Fractional reserve banking is not possible ==

Yes, it is.

1. Start Bitcoin Bank.

2. Accept deposits from customers

3. Make loans, using part of the funds deposited by customers, keeping a '''fraction''' thereof in '''reserve'''.

4. ????

5. PROFIT!

== Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation ==

More computing power incentivised by equitable transaction fees will make waiting time negligible. In layman's terms, speedy thing goes in, speedy thing comes out.

Zero confirmations should be good enough for point of sale purchases, which occur almost instantly.

== After 21 million coins are mined, no one will run network nodes ==
When operating costs can't be covered by mining production, which will happen some time before the total amount of BTC is reached, miners are expected to earn profit from transaction fees.

Actually, all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes.

Actually, a finite amount of fractions will occur before zero BTC is mined per block.

== Bitcoin has no built-in chargeback mechanism, and this is bad ==

Bad cannot be objectively defined.

== Bitcoin is just like all the other virtual currencies, nothing new ==

All other virtual currencies can be printed at the subjective whims of their creators. Bitcoin is limited.

Myths

2011-03-23T21:39:20Z

Atlas: /* 21 million coins isn't enough, doesn't scale */

Lets clear up common Bitcoin misconceptions.

== Bitcoins don't solve any problems that fiat and/or gold doesn't solve ==

* easy to transfer and store
* potentially anonymous
* inflation proof
* not controlled by a central authority

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins value is based on how much electricity it takes to mine them ==

Thats the labor theory of value.

== Bitcoins have no intrinsic value (unlike some other things) ==

There is no such thing as intrinsic value. Value is determined by what people are willing to trade for – by supply and demand.

== Bitcoins are illegal because it's not legal tender ==

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoin will only enable tax evaders which will lead to the eventual downfall of civilization==

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

You were unfairly born.

== 21 million coins isn't enough, doesn't scale ==

It infinitely scales.

== Bitcoins are stored in wallet files, just copy the wallet file to get more coins! ==

Bitcoin transactions are stored in the block chain. The wallet has your secret keys necessary to spend your money, that is, to enter new transactions into the block chain. Copying the wallet doesn't copy any coins.

== Lost coins can't be replaced and this is bad ==

Bitcoins are divisible to 0.00000001 at this moment, so this is not a problem. If you lose your coins, all other coins will go up in value a little. Consider it a donation to all other Bitcoin Users.

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

CONFIRMED

== Anyone with enough computing power can take over the network ==

CONFIRMED

== Bitcoin violates some sort of government regulations ==

CONFIRMED

== Fractional reserve banking is not possible ==

Yes, it is.

1. Start Bitcoin Bank.

2. Accept deposits from customers

3. Make loans, using part of the funds deposited by customers, keeping a '''fraction''' thereof in '''reserve'''.

4. ????

5. PROFIT!

== Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation ==

More computing power incentivised by equitable transaction fees will make waiting time negligible. In layman's terms, speedy thing goes in, speedy thing comes out.

Zero confirmations should be good enough for point of sale purchases, which occur almost instantly.

== After 21 million coins are mined, no one will run network nodes ==
When operating costs can't be covered by mining production, which will happen some time before the total amount of BTC is reached, miners are expected to earn profit from transaction fees.

Actually, all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes.

Actually, a finite amount of fractions will occur before zero BTC is mined per block.

== Bitcoin has no built-in chargeback mechanism, and this is bad ==

Bad cannot be objectively defined.

== Bitcoin is just like all the other virtual currencies, nothing new ==

All other virtual currencies can be printed at the subjective whims of their creators. Bitcoin is limited.

Myths

2011-03-23T21:38:57Z

Atlas: /* Early adopters are unfairly rewarded */

Lets clear up common Bitcoin misconceptions.

== Bitcoins don't solve any problems that fiat and/or gold doesn't solve ==

* easy to transfer and store
* potentially anonymous
* inflation proof
* not controlled by a central authority

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins value is based on how much electricity it takes to mine them ==

Thats the labor theory of value.

== Bitcoins have no intrinsic value (unlike some other things) ==

There is no such thing as intrinsic value. Value is determined by what people are willing to trade for – by supply and demand.

== Bitcoins are illegal because it's not legal tender ==

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoin will only enable tax evaders which will lead to the eventual downfall of civilization==

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

You were unfairly born.

== 21 million coins isn't enough, doesn't scale ==

== Bitcoins are stored in wallet files, just copy the wallet file to get more coins! ==

Bitcoin transactions are stored in the block chain. The wallet has your secret keys necessary to spend your money, that is, to enter new transactions into the block chain. Copying the wallet doesn't copy any coins.

== Lost coins can't be replaced and this is bad ==

Bitcoins are divisible to 0.00000001 at this moment, so this is not a problem. If you lose your coins, all other coins will go up in value a little. Consider it a donation to all other Bitcoin Users.

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

CONFIRMED

== Anyone with enough computing power can take over the network ==

CONFIRMED

== Bitcoin violates some sort of government regulations ==

CONFIRMED

== Fractional reserve banking is not possible ==

Yes, it is.

1. Start Bitcoin Bank.

2. Accept deposits from customers

3. Make loans, using part of the funds deposited by customers, keeping a '''fraction''' thereof in '''reserve'''.

4. ????

5. PROFIT!

== Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation ==

More computing power incentivised by equitable transaction fees will make waiting time negligible. In layman's terms, speedy thing goes in, speedy thing comes out.

Zero confirmations should be good enough for point of sale purchases, which occur almost instantly.

== After 21 million coins are mined, no one will run network nodes ==
When operating costs can't be covered by mining production, which will happen some time before the total amount of BTC is reached, miners are expected to earn profit from transaction fees.

Actually, all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes.

Actually, a finite amount of fractions will occur before zero BTC is mined per block.

== Bitcoin has no built-in chargeback mechanism, and this is bad ==

Bad cannot be objectively defined.

== Bitcoin is just like all the other virtual currencies, nothing new ==

All other virtual currencies can be printed at the subjective whims of their creators. Bitcoin is limited.

Myths

2011-03-23T21:38:25Z

Atlas: /* Bitcoin community are anarchist/conspiracy theorist/gold standard weenies */

Lets clear up common Bitcoin misconceptions.

== Bitcoins don't solve any problems that fiat and/or gold doesn't solve ==

* easy to transfer and store
* potentially anonymous
* inflation proof
* not controlled by a central authority

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins value is based on how much electricity it takes to mine them ==

Thats the labor theory of value.

== Bitcoins have no intrinsic value (unlike some other things) ==

There is no such thing as intrinsic value. Value is determined by what people are willing to trade for – by supply and demand.

== Bitcoins are illegal because it's not legal tender ==

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoin will only enable tax evaders which will lead to the eventual downfall of civilization==

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

== 21 million coins isn't enough, doesn't scale ==

== Bitcoins are stored in wallet files, just copy the wallet file to get more coins! ==

Bitcoin transactions are stored in the block chain. The wallet has your secret keys necessary to spend your money, that is, to enter new transactions into the block chain. Copying the wallet doesn't copy any coins.

== Lost coins can't be replaced and this is bad ==

Bitcoins are divisible to 0.00000001 at this moment, so this is not a problem. If you lose your coins, all other coins will go up in value a little. Consider it a donation to all other Bitcoin Users.

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

CONFIRMED

== Anyone with enough computing power can take over the network ==

CONFIRMED

== Bitcoin violates some sort of government regulations ==

CONFIRMED

== Fractional reserve banking is not possible ==

Yes, it is.

1. Start Bitcoin Bank.

2. Accept deposits from customers

3. Make loans, using part of the funds deposited by customers, keeping a '''fraction''' thereof in '''reserve'''.

4. ????

5. PROFIT!

== Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation ==

More computing power incentivised by equitable transaction fees will make waiting time negligible. In layman's terms, speedy thing goes in, speedy thing comes out.

Zero confirmations should be good enough for point of sale purchases, which occur almost instantly.

== After 21 million coins are mined, no one will run network nodes ==
When operating costs can't be covered by mining production, which will happen some time before the total amount of BTC is reached, miners are expected to earn profit from transaction fees.

Actually, all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes.

Actually, a finite amount of fractions will occur before zero BTC is mined per block.

== Bitcoin has no built-in chargeback mechanism, and this is bad ==

Bad cannot be objectively defined.

== Bitcoin is just like all the other virtual currencies, nothing new ==

All other virtual currencies can be printed at the subjective whims of their creators. Bitcoin is limited.

Myths

2011-03-23T21:38:01Z

Atlas: /* Bitcoin violates some sort of government regulations */

Lets clear up common Bitcoin misconceptions.

== Bitcoins don't solve any problems that fiat and/or gold doesn't solve ==

* easy to transfer and store
* potentially anonymous
* inflation proof
* not controlled by a central authority

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins value is based on how much electricity it takes to mine them ==

Thats the labor theory of value.

== Bitcoins have no intrinsic value (unlike some other things) ==

There is no such thing as intrinsic value. Value is determined by what people are willing to trade for – by supply and demand.

== Bitcoins are illegal because it's not legal tender ==

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoin will only enable tax evaders which will lead to the eventual downfall of civilization==

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

== 21 million coins isn't enough, doesn't scale ==

== Bitcoins are stored in wallet files, just copy the wallet file to get more coins! ==

Bitcoin transactions are stored in the block chain. The wallet has your secret keys necessary to spend your money, that is, to enter new transactions into the block chain. Copying the wallet doesn't copy any coins.

== Lost coins can't be replaced and this is bad ==

Bitcoins are divisible to 0.00000001 at this moment, so this is not a problem. If you lose your coins, all other coins will go up in value a little. Consider it a donation to all other Bitcoin Users.

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

== Anyone with enough computing power can take over the network ==

CONFIRMED

== Bitcoin violates some sort of government regulations ==

CONFIRMED

== Fractional reserve banking is not possible ==

Yes, it is.

1. Start Bitcoin Bank.

2. Accept deposits from customers

3. Make loans, using part of the funds deposited by customers, keeping a '''fraction''' thereof in '''reserve'''.

4. ????

5. PROFIT!

== Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation ==

More computing power incentivised by equitable transaction fees will make waiting time negligible. In layman's terms, speedy thing goes in, speedy thing comes out.

Zero confirmations should be good enough for point of sale purchases, which occur almost instantly.

== After 21 million coins are mined, no one will run network nodes ==
When operating costs can't be covered by mining production, which will happen some time before the total amount of BTC is reached, miners are expected to earn profit from transaction fees.

Actually, all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes.

Actually, a finite amount of fractions will occur before zero BTC is mined per block.

== Bitcoin has no built-in chargeback mechanism, and this is bad ==

Bad cannot be objectively defined.

== Bitcoin is just like all the other virtual currencies, nothing new ==

All other virtual currencies can be printed at the subjective whims of their creators. Bitcoin is limited.

Myths

2011-03-23T21:37:43Z

Atlas: /* Anyone with enough computing power can take over the network */

Lets clear up common Bitcoin misconceptions.

== Bitcoins don't solve any problems that fiat and/or gold doesn't solve ==

* easy to transfer and store
* potentially anonymous
* inflation proof
* not controlled by a central authority

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins value is based on how much electricity it takes to mine them ==

Thats the labor theory of value.

== Bitcoins have no intrinsic value (unlike some other things) ==

There is no such thing as intrinsic value. Value is determined by what people are willing to trade for – by supply and demand.

== Bitcoins are illegal because it's not legal tender ==

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoin will only enable tax evaders which will lead to the eventual downfall of civilization==

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

== 21 million coins isn't enough, doesn't scale ==

== Bitcoins are stored in wallet files, just copy the wallet file to get more coins! ==

Bitcoin transactions are stored in the block chain. The wallet has your secret keys necessary to spend your money, that is, to enter new transactions into the block chain. Copying the wallet doesn't copy any coins.

== Lost coins can't be replaced and this is bad ==

Bitcoins are divisible to 0.00000001 at this moment, so this is not a problem. If you lose your coins, all other coins will go up in value a little. Consider it a donation to all other Bitcoin Users.

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

== Anyone with enough computing power can take over the network ==

CONFIRMED

== Bitcoin violates some sort of government regulations ==

== Fractional reserve banking is not possible ==

Yes, it is.

1. Start Bitcoin Bank.

2. Accept deposits from customers

3. Make loans, using part of the funds deposited by customers, keeping a '''fraction''' thereof in '''reserve'''.

4. ????

5. PROFIT!

== Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation ==

More computing power incentivised by equitable transaction fees will make waiting time negligible. In layman's terms, speedy thing goes in, speedy thing comes out.

Zero confirmations should be good enough for point of sale purchases, which occur almost instantly.

== After 21 million coins are mined, no one will run network nodes ==
When operating costs can't be covered by mining production, which will happen some time before the total amount of BTC is reached, miners are expected to earn profit from transaction fees.

Actually, all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes.

Actually, a finite amount of fractions will occur before zero BTC is mined per block.

== Bitcoin has no built-in chargeback mechanism, and this is bad ==

Bad cannot be objectively defined.

== Bitcoin is just like all the other virtual currencies, nothing new ==

All other virtual currencies can be printed at the subjective whims of their creators. Bitcoin is limited.

Myths

2011-03-23T21:20:49Z

Atlas: /* Fractional reserve banking is not possible */

Myths

2011-03-23T21:19:06Z

Atlas: /* Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation */

Myths

2011-03-23T21:17:42Z

Atlas: /* Bitcoin is just like all the other virtual currencies, nothing new */

Myths

2011-03-23T21:13:07Z

Atlas: /* Bitcoin has no built-in chargeback mechanism, and this is bad */

Myths

2011-03-23T21:10:33Z

Atlas: /* Bitcoin will only enable tax evaders which will lead to the eventual downfall of governments and the poor will become enslaved to the rich */

Myths

2011-03-23T21:04:33Z

Atlas:

Lets clear up common Bitcoin misconceptions.

=Bitcoin will only enable tax evaders which will lead to the eventual downfall of governments and the poor will become enslaved to the rich=

== Bitcoins don't solve any problems that fiat and/or gold doesn't solve ==

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins have no intrinsic value (unlike some other things) ==

== Bitcoins are illegal because it's not legal tender ==

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

== 21 million coins isn't enough, doesn't scale ==

== Lost coins can't be replaced and this is bad ==

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

== Anyone with enough computing power can take over the network ==

== Bitcoin violates some sort of government regulations ==

== Fractional reserve banking is not possible ==

== Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation ==

== After 21 million coins are mined, no one will run network nodes ==

Actually, all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes. Transaction fees will also incentivise the running of network nodes.

== Bitcoin has no built-in chargeback mechanism, and this is bad ==

== Bitcoin is just like all the other virtual currencies, nothing new ==

Myths

2011-03-23T21:00:35Z

Atlas: /* After 21 million coins are mined, no one will run network nodes */

Lets clear up common Bitcoin misconceptions.

== Bitcoins don't solve any problems that fiat and/or gold doesn't solve ==

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins have no intrinsic value (unlike some other things) ==

== Bitcoins are illegal because it's not legal tender ==

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

== 21 million coins isn't enough, doesn't scale ==

== Lost coins can't be replaced and this is bad ==

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

== Anyone with enough computing power can take over the network ==

== Bitcoin violates some sort of government regulations ==

== Fractional reserve banking is not possible ==

== Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation ==

== After 21 million coins are mined, no one will run network nodes ==

Actually, all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes. Transaction fees will also incentivise the running of network nodes.

== Bitcoin has no built-in chargeback mechanism, and this is bad ==

== Bitcoin is just like all the other virtual currencies, nothing new ==

Myths

2011-03-23T21:00:12Z

Atlas: /* After 21 million coins are mined, no one will run network nodes */

Lets clear up common Bitcoin misconceptions.

== Bitcoins don't solve any problems that fiat and/or gold doesn't solve ==

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins have no intrinsic value (unlike some other things) ==

== Bitcoins are illegal because it's not legal tender ==

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

== 21 million coins isn't enough, doesn't scale ==

== Lost coins can't be replaced and this is bad ==

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

== Anyone with enough computing power can take over the network ==

== Bitcoin violates some sort of government regulations ==

== Fractional reserve banking is not possible ==

== Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation ==

== After 21 million coins are mined, no one will run network nodes ==

Actually all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes. Transaction fees will also incentivise the running of network nodes.

== Bitcoin has no built-in chargeback mechanism, and this is bad ==

== Bitcoin is just like all the other virtual currencies, nothing new ==

Myths

2011-03-23T20:56:11Z

Atlas: /* After 21 million coins are mined, no one will run network nodes */

Lets clear up common Bitcoin misconceptions.

== Bitcoins don't solve any problems that fiat and/or gold doesn't solve ==

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins have no intrinsic value (unlike some other things) ==

== Bitcoins are illegal because it's not legal tender ==

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

== 21 million coins isn't enough, doesn't scale ==

== Lost coins can't be replaced and this is bad ==

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

== Anyone with enough computing power can take over the network ==

== Bitcoin violates some sort of government regulations ==

== Fractional reserve banking is not possible ==

== Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation ==

== After 21 million coins are mined, no one will run network nodes ==

Actually all 21 millions will never be mined. Before the 21 million mark is reached, an infinite amount of fractions of BTC will be generated for nodes. Transaction fees will also incentivise the running of network nodes.

== Bitcoin has no built-in chargeback mechanism, and this is bad ==

== Bitcoin is just like all the other virtual currencies, nothing new ==

Myths

2011-03-23T20:50:54Z

Atlas:

Lets clear up common Bitcoin misconceptions.

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins have no intrinsic value (unlike some other things) ==

== Bitcoins are illegal because it's not legal tender ==

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

== 21 million coins isn't enough, doesn't scale ==

== Lost coins can't be replaced and this is bad ==

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

== Anyone with enough computing power can take over the network ==

== Fractional reserve banking is not possible ==

== Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation ==

== After 21 million coins are mined, no one will run network nodes ==

== Bitcoin has no built-in chargeback mechanism, and this is bad ==

Myths

2011-03-23T20:40:48Z

Atlas: /* Bitcoins can be printed/minted by anyone and is therefore worthless */

Lets clear up common Bitcoin misconceptions.

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins have no intrinsic value (unlike some other things) ==

== Bitcoins are illegal because it's not legal tender ==

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoins can be printed/minted by anyone and are therefore worthless ==

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

== 21 million coins isn't enough, doesn't scale ==

== Lost coins can't be replaced. And this is bad. ==

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

== Bitcoin community are anarchist/conspiracy theorist/gold standard weenies ==

== Anyone with enough computing power can take over the network ==

Myths

2011-03-23T20:35:43Z

Atlas:

Lets clear up common Bitcoin misconceptions.

== The bitcoin is backed by CPU cycles ==

Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.

The Bitcoin currency is protected when adequate [[Weaknesses#Attacker_has_a_lot_of_computing_power|computing power]] exists.

== Bitcoins have no intrinsic value (unlike some other things) ==

== Bitcoins are illegal because it's not legal tender ==

== Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency ==

== Bitcoins can be printed/minted by anyone and is therefore worthless ==

== Bitcoins are worthless because it's based on unproven cryptography ==

Same cryptography as everything else.

== Early adopters are unfairly rewarded ==

== 21 million coins isn't enough, doesn't scale ==

== Lost coins can't be replaced. And this is bad. ==

== It's a giant ponzi scheme ==

Not to be confused with the [[Bitcoin randomizer|Bitcoin Randomizer]] which really is a Ponzi scheme.

== Deflationary spiral ==
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a [[Deflationary spiral]] will occur.

User:Atlas

2011-03-23T01:41:52Z

Atlas:

==External Links==
* [http://www.bitcoin.org/smf/index.php?action=profile;u=3278 Bitcoin forum profile]