AMA: Long-time DU lurker and democratic supporter, know everything there is to know about bitcoin

[Rassah]

107. Other groups already have

Last edited Tue Nov 5, 2013, 05:17 PM - Edit history (1)

There are already Litecoins, Worldcoins, Feathercoins, PPcoins, Freicoins, Devcoins, Primecoins, and even BBQcoins and Cosbycoins. Mining has little, if anything, to do with any coin's value. It's about as relevant as the value of dollars being dependent on how fancy the printers are at the US Mint (why do you menlieve mining is important, or relevant, to bitcoins?) The only things that maintain value in these distributed systems is demand, which is supported by network effects. Network effect is basically everyone using something because everyone else is. Everyone prefers buying/selling on eBay, despite dozzens of competitors, because that's where everyone else is, so you'll get the best selection and the best prices. Everyone prefers to use Windows, because that's what most software is written for, and where most customers and users are. Everyone prefers to use Facebook, despite tons of alternatives, because that's where all their friends are. It's the same with bitcoins. Everyone will gravitate towards bitcoins because they have the most software and hardware support, and can be used in most stores, and all store owners and developers will gravitate towards bitcoins because that's where most users and customers are.

Also, governments can't ban or regulate this currency, but that also means they can't protect it. It's pretty much out of reach of everyone. So, no, no one will go running to governments, even if they want to. though many organizations, like the Bitcoin Foundation, is helping governments structure regulations around its use.

EDIT: You seem to be rather hostile to Bitcoin, or anyone who may mention or use bitcoin (as if they are all just scammers or something). Bitcoin is a tool. It has certain functions. I can take a jar of tasty, delicious Nutella, bash someone on the head with it, and steal all their money. That doesn't mean Nutella is an evil thing created by robbers to be used for separating people from their money. If you don't like the people that use bitcoin, don't get involved with them. That people, however, do not reflect what bitcoin is, any more than someone who bashes heads with Nutella is a reflection of Nutella. If you have concerns about bitcoin functionality itself (and I'm sure there are plenty, as there are plenty of misconceptions and misunderstanding), then point those out instead.