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Old 02-13-2013, 08:57 AM   #6
Michael Bay Fanboi
Join Date: Oct 2005
Location: Boise, Idaho
Posts: 8,182
How does Bitcoin handle money leaving the system? If there is only n values, then a single lost or destroyed coin doesn't this have a ripple effect on the entire system?

Digital is a dangerous place, considering how easy it is to get a virus for the novice user (and even a lot of power users) not to mention software vulnerabilities the end user can't control (ala the Java fiasco) what steps need to be taken to secure bitcoin? Are they novice friendly? Not that my Grandmother would ever adopt bitcoin but if she did is she going to lose it to the first trojan that comes along?

With no real governing authority how can you spend your money with reasonable expectation that you'll get delivery? It seems that a merchant would have a hell of a time building a trust relationship to the point people feel safe directly handling their money. Currently Visa/Mastercard/Paypal and so on act as buffers protecting your money. If the merchant doesn't follow through with a transaction they can intervene and get your money back. How does this work with Bitcoin? You mentioned a Bitcoin based credit card... maybe that's the starting point, is there a time frame when this might become a non-issue? A guesstimate is fine, I just don't know how long it takes for an economy to catch up to where it is competitive with the existing systems.

EDIT: More questions, sorry.

It looks like there is a cabal of developers (anonymous?) who continually update the standard. How are those developers vetted? For example: do they have any background in economics, for example, to understand what the ramifications of their changes are? Or are they just some smart Computer Science dudes who got together to get the system up and running? Being able to change the standard seems suspicious to me and, IMO, leaves the system open to the kind of corruption fiat currency has that digital currencies are trying to avoid. What safeguards are in-place to make sure I don't wake up one morning to find out they've decided to expand beyond their 21 million increments and tanked my value?

Last edited by vallor; 02-13-2013 at 09:10 AM..
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