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Go Daddy Loses Over 21,000 Domains In One Day

seanadams.com Re:so uh why they'd support it? (356 comments)

The way to deal with this is with certification. Give manufacturers the option to certify their products, and then let people decide if they want to pay the premium. And do it at a state level, not federal, so people can at least leave if they don't like it.

more than 2 years ago
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Researchers Locate Flaw In Bitcoin Protocol

seanadams.com Re:Yes but (191 comments)

No, it is certain physical properties that makes something useful as money (scarcity, durability, divisibility, fungibility, ease of identification, suitable for making denominated units (coins), not a gas that will escape when you open the jar, not toxic or radioactive). This is why gold and silver are money, but diamonds aren't, even though both are pretty and both have value. Diamonds are neither fungible nor divisible. This makes them are illiquid, and therefore bad money. Sure gold is pretty but most people don't look at their gold, it sits stored away in a vault.

Gold is *naturally* money. It's not something that humans had a say in. The best way to understand this is by the anthropic principle - what else could be money? There is no other substance with all the right properties. Silver, platinum, and palladium are the runners up - but they lack better identifiability, since the grey metals all look pretty similar.

The cultural significance and beauty were probably assigned after humans came to recognize it as a store of value. For example, aluminum was once highly valued due to its near non-exsitence in nature in its elemental form - more valued than gold even, until we figured out how to refine it. Bitcoin doesn't have aesthetics going for it, but it doesn't have to. Plenty of people think stocks and bonds are valuable for example, and there's nothing pretty to look at there.

So bitcoin has all the necessary monetary properties of gold, with the added advantage that it can be moved around electronically. So I would say it's actually far better money than gold (at least as far as market participants would be concerned - governments hate it). Yes there is a chicken and egg hurdle before it can gain widespread adoption as currency, but actually there is a plausible path to get it there. Already as I mentioned it is perfectly useful for foreign exchange including international wire transfers. This doesn't require it to have a particularly stable value as long as there are currency exchanges available to both parties. Money and currency are not the same thing... bitcoin is already money, even if it's not yet currency.

more than 3 years ago
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Researchers Locate Flaw In Bitcoin Protocol

seanadams.com Re:Yes but (191 comments)

Bitcoin would be a lot more valuable if your currency held the promise of something. NO, this is exactly why government money fails. Whichever authority is responsible for that "promise" will simple renege after the currency has gained acceptance. They debase the money, becoming extremely powerful in the process, until eventually it becomes worthless. Then after everyone else is broke and they have all the real money, they do it again. When you mine bitcoins you aren't exactly "selling computer time", you are using your computer to produce a product. The person who buys your coins wants the coin as proof of work, not the cpu time itself. This is exactly the same model as gold mining, the point is that nobody can get more gold without incurring the cost to mine it. Gold doesn't have to "promise" anything except its inherent promise of being scarce (and its other monetary properties such as durability, divisibility, etc). Yes bitcoin is volatile but only because it is new. As it gains acceptable, the real promise that you will care about is the market in which people will let you trade it for stuff (even just forex is a great start). That does NOT require any authority to back the money. The whole point of bitcoin is that it is a scarce commodity, as opposed to a token or note.

more than 3 years ago
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Does Italian Demo Show Cold Fusion, or Snake Oil?

seanadams.com Re:Really incredible evidence! (479 comments)

The rate of decline slows until the graph is flat in the final ten minutes. That is showing that it is approaching a stable state. Also you are misinterpreting the units as being a stored quantity of energy, where it actually refers to the system's rate of output.

more than 3 years ago
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Does Italian Demo Show Cold Fusion, or Snake Oil?

seanadams.com Re:Really incredible evidence! (479 comments)

The graph shows it reaching a steady state, not falling back to zero. I believe this is what they're referring to by "self looped" mode.

more than 3 years ago
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Bitcoin Is Not Anonymous

seanadams.com Re:Slamming Bitcoin (279 comments)

> If Bitcoin could not be exchanged for other currencies, it would be worthless; it's value comes only from the fact that you can ultimately "cash out."

Why couldn't they be exchanged for goods and services? Sure you start with currencies because they are the most liquid, and bitcoin has a very speficially compelling utility in that it can be used for international transfers outside the banking system. However it is already finding uses apart from currency exchange.

As far as being otherwise "worthless" - the same is true of US dollars with one critical distinction: the value of bitcoins is set by the market, whereas the value of US dollars is dictated by fiat. Do you understand the difference? Nobody would accept US dollars were they not legally mandated as currency. Oil producing nations would not accept dollars unless we held a gun to their heads.

By contrast, the value of a bitcoin is decided only by the parties to a trade. And nobody can make more of them without incurring the expense to mine them. That is what makes it "sound money" like gold or silver. Except unlike precious metals they can be moved electronically.

It astonishes me how much people love to rip on bitcoin without understanding really the first thing about its purpose.

more than 3 years ago
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McCain Asks For Committee On Wikileaks, Anonymous

seanadams.com First question on the agenda: (268 comments)

What are teh lulz? Why would anybody do this just for them?

more than 3 years ago
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Bitcoin Mining Tests On 16 NVIDIA and AMD GPUs

seanadams.com Re:folding@home etc (403 comments)

It isn't supposed to be. It's not a store of energy. The energy cost is there to enforce the scarcity of the currency. Like gold, to get more you have to expend energy to mine it. Contrast US dollars which can be instantiated by the trillion with a few keystrokes. Yes the miners are presently being irrational (or stealing electricity) but they aren't going to keep losing money at it forever. If the price of bitcoins does not rise to parity with the energy input then mining activity will decrease - exactly the way the mining of anything is done.

more than 3 years ago
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JPMorgan Rolls Out FPGA Supercomputer

seanadams.com More math, faster... (194 comments)

That will fix our banking system for sure!

more than 3 years ago
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New IMF Head Says US Must Raise Debt Limit, or Face 'Nasty Consequences'

seanadams.com Re:The same threats from banks... in 2008. (932 comments)

The default scenario you're describing doesn't sound much different than hyperinflation. I suppose it's nice that we have a choice, but I just don't understand the "raise the debt limit or else" mentality. More spending just postpones and magnifies the eventual collapse.

more than 3 years ago
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Bitcoin Price Crashes

seanadams.com Re:Bitcoin to revolutionise economy (642 comments)

You're being obtuse. I'm obviously referring to the difference between commodity and fiat money. Nobody would honor fiat notes if their use were not mandated by law and/or credibly backed by some issuing agency. Bitcoin, like gold or silver, requires NEITHER to work. It is a commodity whose value is set ONLY by the market.

To put it a slightly different way, if we must be legally coerced into using federal reserve notes then we are not "willing to trade in it" - we are being forced to recognize value that the instruments would not otherwise have. Do you see the difference?

more than 3 years ago
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Bitcoin Price Crashes

seanadams.com Re:Bitcoin to revolutionise economy (642 comments)

Bit coins are only as valuable as the economy that's willing to trade in it.

This is a desired characteristic of sound money.

more than 3 years ago
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Friday's Big Swings, Mostly Down, Illustrate Bitcoin Value Volatility

seanadams.com Re:shitcoin (476 comments)

It's not so much a matter of being more easily transacted, as that it's peer to peer and does NOT use an issuing agency or reserve note / share model. Your poopcoins have counterparty risk, and the possibility for poopshares to be fraudulently issued in excess of actual holdings. This is really the central point of bitcoin which you've completely ignored in your analogy.

more than 3 years ago
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Friday's Big Swings, Mostly Down, Illustrate Bitcoin Value Volatility

seanadams.com Re:Bitcoin is worthless in the long run (476 comments)

Sorry, citizen. This counts as barter which is taxable at its market value in US dollars.

more than 3 years ago
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Friday's Big Swings, Mostly Down, Illustrate Bitcoin Value Volatility

seanadams.com Re:Any small market will be volatile (476 comments)

As the other commenter says, you'll be able to the exchange your silver for another currency. However for trade, US pre-1965 coinage is ideal and easy to authenticate.

100 oz bars have been counterfeited but would fail even the most casual test - just weigh and measure to check density, or compare to photos available online. Better to use an ultrasonic tester which is something a silver dealer should be expected to have.

more than 3 years ago
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Security Service Accidentally Makes Websites 60% Faster

seanadams.com Re:Speed up summary (81 comments)

I worked for a now defunct company called Netli that did something like this. Not caching exactly, but putting proxies on either end of the path which would optimize TCP behavior. The speedups could be quite significant especially where latencies were high (long fat pipes), because your browser normally spends a lot of time waiting for entire round trips to occur as each new connection is opened and ramped up to speed. You can also "prefetch" content because you can determine which images the client will be requesting by looking at the HTML response.

It may not make sense to you that more speed is possible through the same pipes, but if you know how TCP/HTTP works at the lowest levels you would see there are a lot of delays that can be removed by such techniques. Google actually launched an equivalent service at some point but then withdrew it.

more than 3 years ago
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Increased Power Usage Leads to Mistaken Pot Busts for Bitcoin Miners

seanadams.com Re:Growing pot is better. (411 comments)

There are some bitcoin mining calculators that can give you an idea based on present mining difficulty and your electric rates. Eg: http://www.alloscomp.com/bitcoin/calculator.php
Go to http://www.mtgox.com/ to see the present USD exchange rate.

Right now mining is profitable since the value of bitcoins has recently gapped up from a buck to $7. But as more people mine, the algorithm must solve harder mining problems so in the longer term it is a self-regulating process. I have contemplated giving it a shot. To make a profit you have to build the machines as cheaply as possible and also live in an area with very cheap electricity.

As a side note, the whole affair is a big waste of resources, just like gold mining. However, it's this intrinsic cost to create the currency that makes it sound money - as opposed to fiat money, which can be made at no cost to the person authorized to print it.

more than 3 years ago
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Ask Slashdot: How To Ask For Equity In a Startup?

seanadams.com Re:equity versus salary (349 comments)

There is also a special scenario in the event of a buyout, where all options immediately vest.

Actually, what usually happens is that the options are compensated as cash *in lieu of* equity. I.e. the acquiring company will write you a check equal to the per-share exit valuation of the company minus your strike price. Unfortunately the IRS treats this as ordinary income for option holders so you pay the maximal tax rate. That is, unless the employee took a risk and exercised while the company was still private - which you can do if you have the means, as soon as your options start to vest. If you do that at least 1 year before the buyout then you get the much lower long-term capital gains rate.

If I were working for a startup I would try to get fully vested shares (a "grant" of common shares). Or options with perhaps shorter vesting period so you can buy them out of your own compensation.

As a contractor you probably have no visibility of how the company is capitalized. Ask to see the "cap table" but they probably won't share it with you. You at least need to know how many shares are outstanding, and the valuation at the last fund raising to be able to decide if the equity is a good investment or if you should just push for more cash and invest it elsewhere. Try to guess how much money the company will need to raise in the future so you can figure out how much your share is going to be diluted by then. My guess is if the company is already up and running and able to pay you market wages, you're probably past the window of opportunity to make big bucks on options.

more than 3 years ago
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Ask Slashdot: FTP Server Honeypots?

seanadams.com Re:ssh is the same (298 comments)

You too can make one at home, connect the transmit pins of the RJ-45 to HOT on 110VAC and the recieve pins to Common.

This actually would not work as described because of ethernet's transformer isolation which provides common-mode rejection. If you're going to make a proper etherkiller you need to tie the Tx+ and Rx+ together on one side of the AC, and Tx- and Rx- together on the other side. This will properly cook the transformers on the other end.

more than 3 years ago
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BitCoin, the Most Dangerous Project Ever?

seanadams.com Re:Tabloid trash (858 comments)

I only mistakenly called it a quarter look-alike. It is a half-dollar look alike.

more than 3 years ago

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