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Bitcoin 2.0 beta Brainstorming Box

There probably will never be anything called bitcoin 2.0 but there will be new digital currencies which will attempt to recreate bitcoin 1.0's success without its inherent flaws now being discovered.

What are those flaws, and how can they be fixed?

Bitcoin 1.0 has so-far been an interesting to watch experiment in the free market, made possible only in the last two decades through technology's triumph de milenium, the internet.

Even more interesting than bitcoin itself is how some people, particularly the ones who are supposed to represent the people of America (and her marketplace) react to it with attempts at regulation which will hamper, and possibly kill it.

(update)

Regulatory enforcers are citing statutes which require financial instruments to represent actual value, as a replacement for intrinsic value.

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Cody sold $50,000 worth of tshirts so far...

should I invest???

Pandas eat bugs.

Care to point out these flaws

That will supposedly make it unusable?

I think whatever is next needs to have a fixed exchange rate to

gold, silver, and platinum. Call them Gbit, Sbit, and Pbit. A fixed and never possible to change exchange rate. Let the currencies from central banks float but not real money. Also there would be no need to mine it since PM's already are mined. This also solves the issue of people that can't obtain the technology to use digital currency.

my thoughts

Control volatility. Rapid price fluctuations make it less useful for transactions. I think it would be cool to finance a mortgage with a bitcoin lender but that would be scary. Maybe I could buy a house for B100 and pay back B0.48 per month for 360 months to be equivalent to a similar loan term transacted in FRN at a regular bank. The problem with that is if bitcoin doubled in value, I would be hosed and possibly forced into default. The lender would get their collateral through foreclosure but it would be worth closer to the initial value than the current value. On the other hand, if BTC tanked, I would have a cheap loan to payoff. I guess the loan could be pegged to the USD, but isn't the point to get away from that?

________________________________________

bit

bump?

Pandas eat bugs.

introduce use value

So that bitcoins represent something which has value outside of their exchange value.

One way, which you mentioned below, would be to store some kind of useful info within the bitcoin itself.

Another way would be to have the bitcoin be some kind of token for a digital resource, such as bandwidth, storage space, ad space, guaranteed real-time packets, a rank position on some list, etc.

“With laws shall our land be built up, but with lawlessness laid waste.”
-Njal Thorgeirsson

Something like that.

Can't believe none of those were mentioned when the 'fed' mentioned bc last week...

Pandas eat bugs.

namecoin and mastercoin

do some interesting things and zerocoin will be big when it comes out. i also like the idea of primecoin. and i can't leave out litecoin which has been outperforming bitcoin the last day or two.
the gov (irs) will eventually try and catch btc users through the block chain (good luck) so weaving in and out of alt coins like zero coin will be useful. btc to zerocoin back to a self-mixing btc wallet like dark wallet will make it all but impossible to track.
http://coinmarketcap.com/

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
My ฿itcoin: 17khsA7MvBJAGAPkhrFJdQZPYKgxAeXkBY
http://www.dailypaul.com/303151/bitcoin-has-gone-on-an-insan...

bitcoin v2.1.3

???

Pandas eat bugs.

could other data, such as a ring tone, be inserted in the code?

This would give a bitcoin2 intrinsic or at least market value as people regularly purchase small bits of data like tones.

Pandas eat bugs.

Speaking of inserting data

One of the problems with bitcoin is that you *can* insert arbitrary data into the block chain, and since the block chain is permanent -- *every* transaction is publicly recorded for all time -- being able to insert arbitrary data means you've got a distributed, permanent data store.

http://globalguerrillas.typepad.com/globalguerrillas/2013/04...

Here are some other bitcoin weaknesses:
https://en.bitcoin.it/wiki/Weaknesses

Why call it a problem when feature is such a prettier word?

I take it from the '*'s that inserting such data is difficult to do - even for a techie-type? Does the community have to vote on such changes?

Also regarding songs or other data inserted in the code, an idea would be that the code would be cut up into little pieces as each bitcoin 2.0 is subdivided into, say, 100 million pieces as is the original bitcoin. In theory each of these micro units might contain as few as one bit of the 'file'.

So that even if the song which the bit belongs to is of the type of music you hate listening to you could still argue that the bit has market value or intrinsic/perceived value to someone else.

Pandas eat bugs.

As I understand it

All you have to do to insert data that way is to make a transaction using the smallest available fraction of a bitcoin, so it costs a little bit. If I'm calculating this right, it would currently be about 0.000001 USD to store twenty bytes at a time, or about a nickel a megabyte.

The point the article was making, and what makes it a potential problem, is that whatever anyone stores that way is then replicated on the computers of every bitcoin user, and it might not be something you'd want law enforcement agencies finding on your computer. The article discusses other possible ramifications, too.

so someone could send a kiddie-porn picture with their payment?

That would suck.

Pandas eat bugs.

its already been done... its

its already been done... its all i ASCII data and you need a decoder to decode the data.

If you have the right decoder you can decode anything to be bad though.

Yes it has!

https://bitcointalk.org/index.php?topic=191039.60

There's an ascii picture of Ben Bernanke embedded in the blockchain. Also stuff that would get the attention of the police if they ever scanned your computer for that kind of thing.

If you have the right decoder you can decode anything to be bad though.

Nonsense.

even anadromes puns and such?

Wow.

Pandas eat bugs.