If it wasn't for organized crime that require secrecy in their money laundering schemes, then probably Bitcoin mining wouldn't be as popular today and it would be considered a total scam. Bitcoin mining is a way to mathematically create a unique security token that can hide the transaction from authorities. That also means that some creative person hacking into the system could potentially steal all your money without a trace. It also inherits a bit of a pyramid scheme, where the first miners easily find more security tokens quicker than the following generation of miners. Now lets pretend that our computers are so fast that in a month 6.8 billion coins are produced out of calculating a mathematical formula. No one at any point put money into a bank with real cash. Even countries that print more money will devalue their currency but also put real money into a bank. Now if a bank suddenly accepted virtual security tokens and people actually traded their tokens for real cash (1 Token per $1 as an example) , then the bank could lose 3.8 billion in a day if everyone traded their coins in a day. Will tax payers bail out the banks? You can't distinguish the difference from someone depositing real money in exchange for Bitcoins in order purchase real products and all the Bitcoins already created. Now lets add the fact that anyone can start a new mathematical formula for a new mining scheme such as Litecoin. Am I missing something to this cash generating SCHEME?
1>If it wasn't for organized crime that require secrecy and their money laundering schemes, then probably PAPER CURRENCY wouldn't be as popular today and it would be considered a risky scam.
2>The mathematics are not about hiding. It's not designed to hide, it's designed to be a complete history and validation. Imagine if paper money had to prove it was real and complete to exist, and had to have a mathematical history of its interactions with every other piece of money, or else it could not exist.
3> This means that a complete mathematical system would be more secure than any other form of money available, and a creative person would be better off just stealing your paper money or bank credentials. The currency would also be immune to Bank and Government manipulation.
4> The whole point of the mining scheme is to generate the first generation of currency. No more corrupt than any new issuance of currency, and there will never be a huge issuance of 'billions of new bitcoins' because as an exponential system reaches towards infinity, bit coins will be more and more impossible to generate. More guaranteed stability than any other existing currency, as a mathematical system cant be manipulated by bank or government.
5> you are missing the point. Bit coins aren't meant to be a new currency in the Geo-political spectrum of currencies issued by Big governments all over the world. Not another notch in the system, which is built on a lot of secrecy, deception, horrible history, and power players. Cryptocurrency is meant to be something all together different and purer.
The world hates to admit how abhorrent our history and practices really are, and how much the world economy relies on exploitation, politics, slave labor, illicit trades and addictions, backroom agreements, and ultimately, military force and power.
The ultimate crypto currency (not necessarily bit coins, but perhaps bit coins) is not meant to interface with that. It is meant to usurp it. Mathematical purity and completeness will always outlive governments and economies.
I am very excited to live in a time period where I see interesting advances happen.
That said,
There are investors in bit coins like there are investors in any currency. fools are fools. That does not change the core reparations of crypto-currency, and the need for a better world. I own a few bit coins, but I would not pay money for them. I use them completely separate from real money, because there isn't a real world conversion.. It sounds like you got your currencies confused and got burnt. my apologies.
/www.mydailycoin.com/index.php?ref=sysharer
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