Bitcoin for Real

Scammers

Bitcoin, a crypto-currency, can never become what money really is. Recently Mt. Gox shut down,  and many people cannot retrieve their funds. Mt. Gox says they incurred losses due to the theft of Bitcoins, thanks to an issue in the Bitcoin protocol. Lots of people who did the coding say that its extremely difficult to recreate that issue and is not possible to do large sums, or that there is a problem in the Bitcoin wallet software that they were using not in the underlying protocol.

But in my opinion they just scammed the users. Worse yet, they were attacked by the NSA or GCHQ, so that they can crumble the Bitcoin. The Intercept website has a post regarding this, alongside pictures that are from slideshows presented in their covert meetings.NSA and GCHQ have vested interests in this because the government would not be able to control the movement of the currency, and also regulate the amount that can be inserted into the economy, which is actually the banks.

As, it is the government, guided by big businesses and banks, leading to the formulation of rules, which then support the profit making of these big corporations. :o Crazy vicious cycle ha?

Also another thing is, the way Bitcoin works. It involves millions of computers processing past transactions and confirming them, which then leads to the creation of Bitcoins as a reward for solving those equations. You must remember that, Bitcoin has a limit to the number of Bitcoins that can be mined, around a few millions, and that would take a few 100 years to reach that because subsequent coins get more difficult to mine according to the algorithm.

Now at one point the total processing power offered by the people will not be, able to match the hardness of the equation at that time. Two scenarios arise,

1) The big guys may support it with their servers, which may or may not be the financial institutions.

2) The hardware would increase proportionately. Already Moore's law is getting on fabricators' nerves. Hopefully graphene extraction and processor designs will improve making it feasible to produce such systems and improve speed exponentially. But graphene tech, people predict, will take a whole lot more time.

During that time, transactions will take a long time to be verified. How is one going to wait at a shop for that transaction to clear?

Next problem, what happens when we reach the Bitcoin count limit?

No more people are going to get rewarded for verifying the transactions. So will the users will be charged, to allow the, working on, on the transaction by the miners, to give a reward? Plus will that reward, be in another currency? Because all the Bitcoins have been mined and all those coins will be in the wallets, owned by people who remember their passwords or by people who forgot the password to their wallet and are crying, no place in between, that I know of.

Another thing, only a 100 years? We need something that can last atleast 2000 years, fast but secure, easy and independent as well as not require much power to mine it.

What I see is maybe the blueprint of a better online currency that will overcome all these issues and more. Right now the best that it can be used for is long distance non-emergency transfer of funds without charges.

I'm waiting for a revolution of the currency.