Bitcoin ASIC

Poor genetics and savage beatings from my father have left me with a brain that only functions at 20% of the level that most people operate with. With that in mind, please use small words to explain to me the consequences that this whole ASIC thing will have on Bitcoin. Also, how many Butterfly Labs 15,000Mh/s thingies have you preordered?

>>9

Yes, just like the normal banking system can. But a bitcoin costs energy to generate. That's unlike the banking system. So at a certain moment, the cost of generating will be more than the value of the generated. Then no new bitcoins come into the economy.

This will ramp up the value of a bitcoin. That's called deflation. The early adaptors will cash their bitcoins and then to whole bitcoin economy will crash. Render them worthless.

It's like a ponzi scheme. Only really, really advanced.