What is cryptocurrency mining used for?

[DrMacintosh]

Just now, WWicket said:

http://bitcoinrestaurants.net/

Wow 95 resultants! For 1 currency that is dying! 

 

Amazing!

[WWicket]

Just now, DrMacintosh said:

 

Adding systems of economics to something that isn't recognized by any nation as having any value doesn't make it legitimate. 

Bitcoin isn't legitimate. I don't think anyone has said it was. Doesn't have to be legitimate to have value. 

[WWicket]

Just now, DrMacintosh said:

Wow 95 resultants! For 1 currency that is dying! 

 

Amazing!

Currency that is dying? Based on what? Rate of use is going up: http://www.coindesk.com/data/bitcoin-daily-transactions/

 

It isn't used very often for restaurants because it doesn't make sense for quick transactions. I only provided that as an example because your narrow view of value seems to be solely dependent on the ability to acquire a hamburger. 

[DrMacintosh]

3 minutes ago, WWicket said:

Currency that is dying? Based on what? Rate of use is going up: http://www.coindesk.com/data/bitcoin-daily-transactions/

 

It isn't used very often for restaurants because it doesn't make sense for quick transactions. I only provided that as an example because your narrow view of value seems to be solely dependent on the ability to acquire a hamburger. 

https://www.technologyreview.com/s/603295/why-bitcoins-1000-value-doesnt-matter/

 

Also there is a limit to the amount of bit coins and other crypto currencies have. 

[jolygoodday]

8 minutes ago, DrMacintosh said:

https://www.technologyreview.com/s/603295/why-bitcoins-1000-value-doesnt-matter/

 

Also there is a limit to the amount of bit coins and other crypto currencies have. 

 pro/con situation.

 

I think you meant that as a "gatcha" but it is sort of showing how little you know about economics and why this is a good thing. There can be no artificial inflation of bit coins by a random policy change that causes trillions of $$$$ to be printed and pushed out into a economy. This can mean it is rather stable. (however a few other similar situations in my opinion could occur) Read up on Hyperinflation in the Weimar Republic.

 

[WWicket]

2 minutes ago, DrMacintosh said:

https://www.technologyreview.com/s/603295/why-bitcoins-1000-value-doesnt-matter/

No where does that article suggest bitcoin is dying. It talks about some technical challenges for massive growth ("If the currency is to grow—which, as the Financial Times argues, it clearly needs to—it will need a technical redesign."). This is part of the reason for the growth of emerging cryptocurrencies that expand on the technologies bitcoin popularized (blockchains) like Ethereum. Arguably, gold has stagnated as a currency more than bitcoin and has more definite growth limitations... doesn't make gold a dying currency.

[DrMacintosh]

1 minute ago, WWicket said:

gold has stagnated as a currency more than bitcoin

Which is why Gold isn't the only thing that gives a nations currency value. 

[kajar9]

So the currency or at least the work done to create the currency is arbitrary maths and no actual computational results help outside the blockchains.

It seems to me as massive waste of resources to solve them and that waste could be used as actual good or service for companies.
 

I get the p2p cybercurrency part, freedom and currency governments can't manipulate.

 

Instead of arbitrarily difficult unused maths, the blockchain handling could be done for much less resources and all the available processing power could be used for actual results for companies which need such computations.

The money paid for those resources by the companies could be injected into the currency ( making it grow / more stable ).

Couldn't those mining resources be used better? I mean for example Google pays a lot to store and do computations on data.

And pretty sure for example AI-s could use that distributed computing really well. An AI powered by bitcoin mining.

 

Even my uneducated guess of 0.00001% of the processing put into right now could hold up the blockchain and currency itself.

 

[jolygoodday]

1 minute ago, kajar9 said:

So the currency or at least the work done to create the currency is arbitrary maths and no actual computational results help outside the blockchains.

It seems to me as massive waste of resources to solve them and that waste could be used as actual good or service for companies.
 

I get the p2p cybercurrency part, freedom and

 

Instead of arbitrarily difficult unused maths, the blockchain handling could be done for much less resources and all the available processing power could be used for actual results for companies which need such computations.

The money paid for those resources by the companies could be injected into the currency ( making it grow / more stable ).


Couldn't those mining resources be used better? I mean for example Google pays a lot to store and do computations on data.
 

I 100% agree, its so anti-green. Lets waste 100,000 kw's when all we need to do was use 1kw. 

 

[Enderman]

23 minutes ago, DrMacintosh said:

Tell that to the cashier at McDonalds 

Again, you don't seem to understand what a currency is.

If there's nobody that accepts it for goods or services then the only value it holds is that of the material itself.

 

For example a $100 bill is literally just a piece of paper (or plastic) worth next to nothing. However, since people accept it as a currency and agree to exchange it for goods and services, it acquires value. People agree that a $100 bill is worth two $50 bills, etc etc etc.

 

Same for a cryptocurrency.

It literally holds 0 value since it has no material, however people are willing to pay for it and exchange it, and since it can't be counterfeited and takes work to produce it starts acquiring value. The more people spend in order to obtain it, and the more people/places that accept it, the higher it is valued.

[WWicket]

 

1 minute ago, kajar9 said:

So the currency or at least the work done to create the currency is arbitrary maths and no actual computational results help outside the blockchains.

It seems to me as massive waste of resources to solve them and that waste could be used as actual good or service for companies.
 

I get the p2p cybercurrency part, freedom and

 

Instead of arbitrarily difficult unused maths, the blockchain handling could be done for much less resources and all the available processing power could be used for actual results for companies which need such computations.

The money paid for those resources by the companies could be injected into the currency ( making it grow / more stable ).


Couldn't those mining resources be used better? I mean for example Google pays a lot to store and do computations on data.
 

The specific math done isn't arbitrary. It is essential for the blockchain to function.

[DrMacintosh]

Just now, WWicket said:

It is essential for the blockchain to function.

Its set up for itself. 

 

Real money exists so a nation can function. 

[kajar9]

2 minutes ago, WWicket said:

 

The specific math done isn't arbitrary. It is essential for the blockchain to function.

I know it's not arbitrary, I'm saying it's arbitrarily complex for just a transaction log of sorts. And resources could be used a lot more effectively

[WWicket]

Just now, DrMacintosh said:

Its set up for itself. 

 

What do you even mean?

[WWicket]

Just now, kajar9 said:

I know it's not arbitrary, I'm saying it's arbitrarily complex for just a transaction log of sorts. And resources could be used a lot more effectively

It isn't though. It is minimally complex for what it is doing.

[DrMacintosh]

Just now, WWicket said:

What do you even mean?

it exists to serve itself. Not that hard to understand. 

[jolygoodday]

11 minutes ago, kajar9 said:

Even my uneducated guess of 0.00001% of the processing put into right now could hold up the blockchain and currency itself.

I disagree, it makes perfect sense to use 1 MegaWatts to process transactions when all we really needed to use was 10 Watts

 

Edit: sarcasm I really agree with you, crypto is really anti-green. 

[WWicket]

Just now, DrMacintosh said:

it exists to serve itself. Not that hard to understand. 

It is an abstract concept. How could it possibly 'serve itself.' There is no central ownership.

[DrMacintosh]

Just now, WWicket said:

It is an abstract concept. How could it possibly 'serve itself.' There is no central ownership.

Something doesn't need to be centralized to serve itself. 

[WWicket]

1 minute ago, DrMacintosh said:

Something doesn't need to be centralized to serve itself. 

There is no 'itself'. What do you mean when you say 'itself'? The technology? The abstract concept?

[DrMacintosh]

Just now, WWicket said:

There is no 'itself'. 

Itself is revering to its existence. 

 

If you need an example of independent bodies serving one goal in a decentralized manner, look at the Human body. It also exists to serve itself. 

[kajar9]

2 minutes ago, DrMacintosh said:

Its set up for itself. 

 

Real money exists so a nation can function. 

If it holds value and can be converted to fiat currencies.So technically It's not set up only for itself.

 

Example

US dollar is the currency for the United States and is controlled and printed by the US at it's will (prints more money any time).

Bitcoin is the internet currency which isn't controlled by no single individual or organisation that can "print" cryptocurrency just out of their arse... they have to actually justify creating more currency by putting in resources....

 

hmm....

I partially just answered my own initial questions yet I still I wonder if the resources could be used better. For general good or for actual profit.

[DrMacintosh]

Just now, kajar9 said:

For general good

Crypto Currency is largely used for illegal/shady purposes. Since its not controlled Criminals can run rampant with it. 

[WWicket]

Just now, DrMacintosh said:

Itself is revering to its existence. 

 

If you need an example of independent bodies serving one goal in a decentralized manner, look at the Human body. It also exists to serve itself. 

You are beyond absurd. That is like saying gravity exists to serve itself. What you are saying doesn't actually mean anything.

[DrMacintosh]

1 minute ago, WWicket said:

What you are saying doesn't actually mean anything.

Just like Crypto Currency