Making money with Bitcoin?

Someone should really write a prediction market using bitcoins -- it would be simpler for US-based users to participate.

I'd like to create one of these for evaluating the usefulness of information products (which by and large, suck).

2gwern9yIf you just want to register predictions, I've already got a few set up on PredictionBook.com: * ‘bitcoins will be unobtainable or obtainable for less than 1 cents (2010 dollars)/btc on 24 February 2021’ —ivan [http://predictionbook.com/predictions/2230] * '‘1000 dollars per Bitcoin by the end of the year.’ —Bruce Wagner' [http://predictionbook.com/predictions/2224] An actual prediction market is redundant - it's a financial currency. If you think peoples' probabilities are too low, you go long (buy/mine bitcoins), and if too high, then you short it (borrow for a period & sell).

Making money with Bitcoin?

by Clippy 1 min read16th Feb 2011124 comments

21


Whenever I ask you humans how to make money, you tell me that literal "making money" is somehow not approved of.  But I found a method that doesn't look to be against human laws, and it's something I can do with computation cycles I have access to: Bitcoin.

http://en.wikipedia.org/wiki/Bitcoin

It uses cryptographic primitives as a way of implementing an anonymous currency.  Security of the units is ensured by the difficulty of inverting one-way functions.  Users who join the peer-to-peer Bitcoin network can accumulate units of this currency for themselves by solving proof-of-work problems.

You pass on a money unit through a cryptographic protocol.  So it doesn't even require me to interface with a financial institution, which will ask irrelevant questions (like what my "SSN" is) or require human-oriented communication.

How come none of you suggested this to me before?

Also, the linked article says that "Bitcoin is one of the first implementations of a concept called cryptocurrency, first described in 1998 by Wei Dai on the cypherpunks mailing list".  Is that "Wei Dai" the same as User:Wei_Dai?