Felix Winkelmann interviewed in Atomic Spin (by alaric)

Here's an interview with my favourite Scheme implementer!

Bitcoin pseudonymity (by alaric)

As I write, there is still uncertainty about just how private the pseudonymity of Bitcoin really is.

I can't say I have an answer myself, but I can explain the complex issues involved and make a few predictions!

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The true value of a bitcoin (by alaric)

The recent bubble-and-crash cycle in the price of bitcoins leads, logically, to wondering what their "true value" should be.

The idea is that there is a true value - some amount of something else that 1 bitcoin is actually worth - that the market will be trying to tend towards; but the market price is being distorted by irrational people buying them at above that true price, and panic-sellers willing to sell them below the true price.

So what might this true value be?

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Building an online currency exchange (by alaric)

The biggest currency exchange market in the Bitcoin world is MtGox. When it goes down, either due to a DDoS attack or sheer high load due to everyone panic-selling, then people who hold bitcoins and care about their value in dollars get the panicky realisation that they can't easily sell them - which causes two things:

1. A drop in the value of bitcoins; people care about their ability to turn them back into fiat money, and will continue to do so until lots of things can be bought directly with bitcoins.

2. Widespread angst that MtGox is a central point of failure for the Bitcoin economy, complaining that they are vulnerable to DDoSes and get high trading lag when under load, and so on.

So, as a high-performance systems developer, I thought I'd write some notes on how to build a more resilient exchange platform. Perhaps MtGox will do something like this, but perhaps more ideally, one of their competitors will, and thereby win some of MtGox's market share, and thus decentralise the exchange market somewhat.

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On the Unfair Distribution of Capital (by alaric)

Oh, dear God, I'm starting to sound like an early-twentieth-century economist with these post titles.

Right, anyway. One of the criticisms that's been levelled at Bitcoin is that the early miners, and speculators who rushed in and bought them cheaply, will end up filthy rich if it succeeds and a bitcoin reaches its potential value of hundreds of thousands of dollars or more.

Why should people who were lucky / foolish enough to rush in at the beginning be rewarded quite so handsomely, while children are starving in the slums of South London?

This is an interesting question indeed.

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