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bitcoin is somewhat interesting, I've been experimenting with it recently. One thing to note is that transfers aren't instant until your client catches up with the network -- when you first connect you currently have about 127k blocks to download before you are current.

At first I had some trouble understanding why you couldn't just had a client and create easier coins. The thing is, you can, but the network won't recognize them. The key to the system's security is that as long as 50% of the bitcoin nodes agree on that the current difficulty level is you can't inject 'fake' money into the system.

Right now moving money into and out of the system is a bit difficult. Mining is not worth the electricity it costs you, unless you have a GPU and join a mining pool. The 'value' of a bitcoin is very volatile, as tracked on the http://bitcoincharts.com site.



> The key to the system's security is that as long as 50% of the bitcoin nodes agree on that the current difficulty level is you can't inject 'fake' money into the system.

Isn't it quite easy to spawn a few million malicious nodes?


You have to have the computing power to beat 50% of the network - given the current size of the bitcoin network that's certainly not trivial.


The individual in control of the DeepBit mining pool already has about 50% of the network's computing power.

http://www.bitcoinminer.com/post/5328668205/deepbit-50-perce...


Unless you're a malicious entity who doesn't mind using a botnet.




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