[cryptography] bitcoin scalability to high transaction rates

lodewijk andré de la porte lodewijkadlp at gmail.com
Tue Jul 19 13:25:40 EDT 2011

This would revive many of the things people have aspired to kill with
bitcoins. Among others the "creation" of money (I can borrow and "store"
more money than I have). It would also mean moving the scalability problem
to a centralized system, a trusted party.

In other words: wouldn't having money backed by bitcoins instead of gold
essentially improve nothing?

I personally still worry about how big the early bird bonus was, someone
estimated the earliest of participators had a million of bitcoins. If
someone does then that'd grant him 1/21st of the worlds wealth (assuming an
insane surge in bitcoin usage), something I cannot quite believe anyone to
deserve. I mean it's possible, just not likely that anyone could be
responsible for 1/21 of the world's wealth.


2011/6/17 James A. Donald <jamesd at echeque.com>

> On 2011-06-17 4:35 AM, Sampo Syreeni wrote:
>> Since I've been forced to take yet another look into BitCoin and
>> algorithmic (high frequency) trading within a short timespan, I began to
>> wonder how they would work together. What precisely would happen to
>> BitCoin if we had tens to tens of thousands of high frequency traders
>> (thousands of transactions per second per trader) within the network?
> The obvious next step is to have chaumian money and account money which has
> rapid low cost transactions, which money is converted into bitcoins at
> leisure, analogous to having gold, and account money and banknotes backed by
> gold.
> We should have accounts backed by bitcoins, and banknotes (chaumian money)
> backed by bitcoins.
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