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Cryptocurrency

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arthwollipot:
Does anyone here know a lot about cryptocurrency? A couple of friends and I are starting up an Ethereum mining operation, but the learning curve is pretty steep.

Anyone done any mining before? Have any simple tutorials they can share? Thoughts, opinions?

daniel1948:
I have opinions: The weakness of cryptocurrencies is the thing people like about them: The lack of any sort of central control means you get privacy and governments cannot manipulate them. But this also means they are unstable. The gold standard was abandoned because a modern industrial economy needs a regulated money supply. The unregulated nature of cryptocurrencies means that their value is erratic and can change drastically between the time you receive a "coin" and the time you spend it. And the diminishing returns of "mining" limits the quantity in circulation. A growing economy needs a growing money supply. A fixed money supply in a growing economy leads to inflation.

Of course, if you can mount a successful "mining" operation you can make money. So I wish you the best of luck. Unfortunately, I know nothing about "mining" cryptocurrencies, so I have no help to offer there.

moj:
Not really my thing, it solves none of the problems I have with money and not sure what advantages it offers the average person. If I want an investment I buy index funds, if I want a secure purchase I use a credit card. I'm not in the market for super secret transactions so may not be the ideal customer. I've heard about bit coin and block chains on tech podcast but from a day to day practical sense, don't see the need? The only time a friend ever used bitcoin was when the app she buys pot from switched to bit coin. But then the value of coin had changed from the time she bought it to the time she tried to get pot that it wasn't enough and she had to buy more. I believe the app is back on dollars now for exactly that reason.

2397:
The main attraction of Bitcoin seems to be how unstable it is.

daniel1948:

--- Quote from: 2397 on May 22, 2017, 01:31:22 PM ---The main attraction of Bitcoin seems to be how unstable it is.

--- End quote ---

I'm pretty sure that's not right. I think its main attraction is being untraceable. It's instability is its drawback, and why most people don't use it.

However, I gather that the blockchain concept may have uses in legitimate banking and perhaps other fields.

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