[Lab] Thoughts on Bitcoins, and the like?

Paul & Andrea Mumby themumbys at gmail.com
Wed Nov 27 13:04:53 EST 2013 

That can be a very loaded question(s) (answers to those questions could
result in a several hour long discussion, not to mention some heated debate
lol)...

But... The highlevel... What is bitcoin:
- Bitcoin is a digital currency. Could be equated to digital "cash". (It's
commonly called a CryptoCurrency because it heavily relies on Cryptography
at it's core)
- It is not a virtual construct of some company or organization (like
canadian tire dollars). It is a purely digital asset, which is not under
the control of any central authority.
- It is fully decentralized. No one body has control, no one body runs the
network.
- As a result it is immune to manipulation by governments/banks (for
example, it is designed to be stable, in reality it's actually a bit
deflationary, and is not subject to inflation like dollars)
- Transacting bitcoin (especially across international lines) is FAR easier
than any other method, and FAR more affordable. (also practically instant,
with a few caveats)
- Bitcoin is highly secure (again with a few caveats, the big one being,
bitcoin itself is secure, but the services surrounding it are up to
individuals to make secure).
If you want me to get into a more technical discussion of "How" it works, I
can do that, but it can get pretty deep.

How can you get some?
- You can buy some on an exchange such as cavirtex.com which operates like
a standard forex exchange. It's an open market, and people buy/sell bitcoin
for $CAD.
- You can transact direct from person to person with no third party
involved. The same as cash. So I could meet you at a coffee shop, give you
bitcoin in exchange for dollars.
- You can use an ATM (coming soon!) lol... The first bitcoin ATMs are being
rolled out in BC. And I'm hoping to assist in a rollout in Ottawa area in
the near future.
- You can "Mine" bitcoin. This is a very complex topic to explain in full
detail. But lets just equate it to gold mining. Gold exists in the earth in
a fixed quantity. And Miners work to uncover that gold and make it usable
and transactable. The same works with bitcoin. There are a fixed number of
them that will ever exist. That can't be changed. Miners work to "find"
those bitcoin over time using advanced computing equipment. (which I happen
to manufacture). Originally you could mine using simply a low power PC.
Then you used advanced GPU cards (Graphics processors) to do number
crunching much faster and more efficiently. The ecosystem has evolved now
to a point where advanced special purpose hardware is used with 100% custom
processors made purely for mining bitcoins are used.

What's the point?
- Well as mentioned above, bitcoin is seen by some as a savings vehicle.
Since it's been demonstrating deflationary attributes. An investment in
bitcoin has had VERY high returns for those holding onto them long term...
But it's also been fairly volatile, and as a result you have to have a
strong stomach to play that game in a serious way lol.
- It's useful for transacting money internationally quick, easily, and
cheaply.
- Several businesses accept bitcoin now as a means of payment. So you can
use it to pay for goods and services.
- It's cool and new-age. And it's neat to be part of something interesting
- To expand on the previous point. It's a disruptive technology. And has
the potential to impact the world in a big way. Again, cool to be part of
that (if it is successul)
- Allows you to take back some degree of control of your finances. You can
have a say in how bitcoin works. and no single entity is in control, it's a
true democracy (again with caveats)

At this point in the game bitcoin is still young. It's come lightyears from
it's beginnings, and has some major traction globally. But it's still
nowhere near fully "mainstream" yet. It's still a niche. But it's growing
rapidly every day.

Let me know if you have any other questions. I also suggest checking out
the Bitcoin Foundation, and the Wikipedia article on bitcoin. both are
decent starting points.

Also: http://www.youtube.com/watch?v=Um63OQz3bjo
Is a decent video primer.

Bitcoin Foundation: https://bitcoinfoundation.org/

- Paul


On Wed, Nov 27, 2013 at 12:44 PM, Aurelius R <maxrowsell at gmail.com> wrote:

> What are bitcoins and how can i get/use them? Is there a point? Dollars
> have always worked well for me thus far
> On 2013-11-27 11:59 AM, "Tom Burns" <tom.i.burns at gmail.com> wrote:
>
>>
>> http://www.shopify.com/blog/10446157-shopify-merchants-can-now-accept-bitcoin
>>
>> :)
>>
>> Walking through the halls today all you hear are people talking about
>> bitcoin.
>>
>>
>> On Wed, Nov 27, 2013 at 10:15 AM, Paul & Andrea Mumby <
>> themumbys at gmail.com> wrote:
>>
>>> Sorry guys, we're well past the beta testing phase :)
>>>
>>> (Not to mention that's an expensive beta test. Our prototypes are
>>> generating half a bitcoin per day, with several limitations on them. The
>>> final mass production units we expect to generate nearly 1BTC per day at
>>> current difficulties. And at a value of $900/BTC or more, even a 1 week
>>> beta test is equal to nearly $7000 in revenue ;)
>>>
>>> We're just finalizing one or two minor bugs in the design, and expect to
>>> be in mass production any day now for our first production batch.
>>>
>>> - Paul
>>>
>>>
>>> On Tue, Nov 26, 2013 at 9:58 PM, <bentfork at gmail.com> wrote:
>>>
>>>>
>>>> Paul do let us know if you need some beta testers...  Any excuse to get
>>>> a better internet connection at modlab.
>>>>
>>>> Are you on CaVertex?
>>>>
>>>>
>>>>
>>>>
>>>> On 26 November 2013 18:37, Paul & Andrea Mumby <themumbys at gmail.com>wrote:
>>>>
>>>>> If anyone wants to do a bitcoin transaction, I can certainly
>>>>> facilitate. I've got a fully trusted business account on the Canadian
>>>>> exchange. So I can easily move funds into and out of BTC/CAD
>>>>>
>>>>> Also I currently own a business manufacturing custom ASIC based mining
>>>>> equipment (or rather we're close to launching our first product). But
>>>>> you're right. The "individual hobby miner" is becoming a thing of the past.
>>>>> Most of our equipment is targeted to large scale enterprise miners,
>>>>> targeting datacenter deployments.
>>>>>
>>>>> - Paul
>>>>>
>>>>>
>>>>> On Tue, Nov 26, 2013 at 4:57 PM, Jamie <jamie at steppinofftheedge.com>wrote:
>>>>>
>>>>>> It's been a great practical point of discussion with my family about
>>>>>> subjective value, currencies, technology, etc. Got my son all the pieces to
>>>>>> GPU mine as a Grade 8 graduation present. He made 20 coins with it that he
>>>>>> spent for a Jalepeno miner that has since made him 6 or 7 coins. He's ok
>>>>>> with that, I kind of wish I'd just bought him the PC's worth of BTC as the
>>>>>> present which would be worth MUCH more now ;)
>>>>>>
>>>>>> I'm also done recording an interview and other media that should have
>>>>>> a Bitcoin themed podcast out by the end of the weekend (I hope). Check
>>>>>> steppinofftheedge.com for it soon.
>>>>>>
>>>>>> Jamie
>>>>>>
>>>>>>
>>>>>> On Tue, Nov 26, 2013 at 3:33 PM, Henri Kuschkowitz <
>>>>>> henri.kuschkowitz at gmail.com> wrote:
>>>>>>
>>>>>>> Ha,
>>>>>>>
>>>>>>> I second that Dave. It would definitely an interesting discussion if
>>>>>>> everyone could make it out. We did touch on that subject 3 weeks ago (?)
>>>>>>> but only on setting up mining rigs and whether or not it’s still valuable
>>>>>>> at a smaller scale.
>>>>>>>
>>>>>>>
>>>>>>> HK
>>>>>>>
>>>>>>> On Nov 26, 2013, at 3:14 PM, dave at huntgang.com wrote:
>>>>>>>
>>>>>>> I have been following the bit coin news! In fact, I gave a big
>>>>>>> lecture to a bunch of guys at work after the fall of SilkRoad how the US
>>>>>>> Government would be forced to accept BitCoin as a form of value and it's
>>>>>>> inevitable increase in value... Of course, I never did buy any and am
>>>>>>> kicking myself now!
>>>>>>>
>>>>>>> On 2013-11-26 3:05 pm, bentfork at gmail.com wrote:
>>>>>>>
>>>>>>> I thought there would be some here that knew what I was talking
>>>>>>> about.  Does anyone have experience with local bitcoin?  I'd rather trade
>>>>>>> with people I kind of know, rather than strangers.  I'd like to try cashing
>>>>>>> out ~ 2 btc, or equivalent litecoin.
>>>>>>>
>>>>>>>
>>>>>>> On 26 November 2013 14:56, Paul & Andrea Mumby <themumbys at gmail.com>wrote:
>>>>>>>
>>>>>>>> Ooh, neat, I'm interested to see what that announcement is :)
>>>>>>>>
>>>>>>>>
>>>>>>>> On Tue, Nov 26, 2013 at 2:52 PM, Tom Burns <tom.i.burns at gmail.com>wrote:
>>>>>>>>
>>>>>>>>> I work for Shopify.  We are about to announce something :)
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>> On Tue, Nov 26, 2013 at 2:38 PM, Paul & Andrea Mumby <
>>>>>>>>> themumbys at gmail.com> wrote:
>>>>>>>>>
>>>>>>>>>> Just FYI I'm fairly heavily involved/invested in Bitcoin. I own a
>>>>>>>>>> fairly large business focusing around them, And I'm a fairly fervent
>>>>>>>>>> supporter.
>>>>>>>>>>
>>>>>>>>>> We're working from several angles right now on trying to build up
>>>>>>>>>> adoption in the area.
>>>>>>>>>>
>>>>>>>>>> If I weren't so damned busy lately trying to hold up a day job,
>>>>>>>>>> run a business, and juggle half a dozen projects at once, I'd drag myself
>>>>>>>>>> down to Modlab to catch up :) (in which case I'd be happy to get into a
>>>>>>>>>> discussion with anyone who's interested)
>>>>>>>>>>
>>>>>>>>>> - Paul
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>  On Tue, Nov 26, 2013 at 2:35 PM, <bentfork at gmail.com> wrote:
>>>>>>>>>>
>>>>>>>>>>>   I'm curious if any other list members have been following the
>>>>>>>>>>> crypto currency news recently.  I've been watching the space of the last
>>>>>>>>>>> year or two on and off.
>>>>>>>>>>>
>>>>>>>>>>> I'm not sure if there are any local vendors that accept bitcoin
>>>>>>>>>>> yet but it is a interesting movement.  It is always interesting to hear of
>>>>>>>>>>> restaurants, bars and online stores that are taking it.
>>>>>>>>>>>
>>>>>>>>>>> Are there any Bitcoin, Lightcoin, etc enthusiasts on the list?
>>>>>>>>>>> Anyone interested in a informal discussion on them some Wednesday during a
>>>>>>>>>>> mod lab?
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>> Cheers
>>>>>>>>>>>   _______________________________________________
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>>>>>>>>>>
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