With POW though is a true resource even being create to which the value is being transferred?
Funny thing about so many people in the western world is they perceive their work has to be worth something even when they create nothing of value.

Welcome to the forum! 

despites that (and their cultish behaviour)- what do you guys think of the idea of using a digital token as a collateral to lend "dollars" into existence?

From an economists perspective I still have questions if bytemasters mechanism works well, it is a semi-prediction market But in case it works I see an IMMEDIATE coverage for "bitUSD", which will lead to massive liquidity. I think bitcoin should look very closely to this development; in my opion it would be the killerapp for cryptocurrencies.

That said there are a ton of uncertainties but let us wait for the development

Bingo.

And currency can't all end up in the hands of the power-law distributed savers. It also has to be continuously debased so that spenders can spend. Savers and spenders are symbiotic.

You can claim that investors send the money back to spenders via wages, but the fact is they don't. They pool their money in usury interest bearing bonds, which is a form of mutual bondage (slavery) for both the lender and the borrower. That is a deeper, detailed mathematical analysis that I don't have time to reexplain right now. Refer to my older writings on the Hommel forum. There is a reason the Bible says you can only lend at interest to a stranger, not to one of your own.

In other words, savers will destroy themselves if left to their own natural behavior. Don't just look down on spenders, look down on savers too.


Based on designs I've explored, I believe yes. Except for adding new features, you need to trust a developer to take control. Once you are willing to lock the features into stone, it can run on autopilot if the features are resilient enough. When it eventually fails, you design a new currency learning from the past mistakes.

In NXT there are plans to implement Monetary System that will allow to create currencies (both PoS and PoW) on top of NXT that should gain additional value compared to NXT coins. This is supposed to work as an anti-deflation mechanism and help stakeholders diversify and distribute their stakes when they see more value in those currencies.

There are also incentives for stakeholders to invest in successful enterprises running on NXT Asset Exchange, because shares of successful companies can appreciate faster than NXT coins. Debts can also be settled in shares of enterprises, not just in NXT coins.

Both of these mechanisms are supposed to help with distribution and fight centralization of stakes. I guess it will take a few years before we find out if it worked

So is the hint that PoS or something similar is the only solution? Satoshi chose PoW because of the greed incentive, he believed that the monetary attraction would bring enough people to the table that they would outpace any attacker.

If PoW is unprofitable, then the only miner will be someone mining for no profit, most likely an attacker.

The classic instructions for cnh are to buy when the handle passes the rim of the cup, as this confirms the pattern, making a failure of the pattern less likely.  Of course if you are a lnet XMR accumulator, the 35 entry is 14% better than the 40 entry, if the pattern fulfills, and given that any actual reversal has roughly no chance of taking 14% off the current price, the cost of waiting on this occassion is excessive.  But the cnh rule as classically practiced is insensitive to those details.

Maybe in theory, but the reality of hacking is that it is also an arms race. You need some reactive protection element or you may be starting again all too often.

POW as an ever increasing resource drain could easily contribute to ruining the planet, I suppose a check might be when it realy no longer makes financial sense they stop. Nice that some POW at least try to create something meaningful that can be used elsewhere, like scientific research.

Talking of integration projects/technologies, like heaters that could mine some of their running costs, perhase this is the best future.

To find synergies and complementary relationships that make the meaningless meaningful and become a part of the process.

Phil

How would you identify a person? How to distinguish it from a computer or other virtual entity? IIRC there were some kind of coins that implemented proof of identity based on face recognition and web of trust. Never heard where it went so it must be safe to assume that they failed.

Thanks!!

I have 5 280x GPU cards, which should get 450 h/sec each. According to an XMR mining calculator, that works out to .22 BTC per month. It would not pay my electric bill in Austin, Texas, but is very satisfactory as a noisy space heater that offsets my electric heating bill in my Colorado mountain home over the winter. An additional expense is maintaining the internet service when I am not there.