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Bitcoin for Big Dummies: Why The Digital Currency Is Spiking & Why It's Not A Bubble
2014 is set to be a banner year for BoomBustBlog. As you may have noticed, positings have slowed down to almost nothing. This due to another battle with hackers on the server. As we bounce back, we will take the global macro world by storm. This includes the digital currencies and how they will affect the world as we know it.
I have recorded a brief simple video to explain my perspective on digital currencies. Let it be known to all who don't normally follow me: I'm not a gold bug, I'm not crypto-currency bug, I'm a risk-adjusted return bug! I attempt to see things as they truly are and will call it as I see it. Those of you who instanteously dismiss Bitoin as a bubble or Ponzi scheme are likely doing so without taking the time to fully understand it (it is quite different, I must admit), or read the disruptive change that it's capable of bringing into play - a disruptive change at the level of the Internet and World Wide Web during the the early to late 90's. For an example of this broad based, yet widely followed misunderstanding, reference The "Anti-Economist" Calls Bitcoin the A…
Now, there's no doubt that Bitcoin has been on a tear as of late, after all...
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The vast majority of that 6 digit (that's right, "Six" digit) return has occurred within the last year.
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The most likely reason stems from media exposure. Please note that I don't think it's due to media exposure, it stems from it. You see, as explained in the short video below, Bitcoin's primary value stems from its inherent ability to truly and absolutely circumvent the gate keepers of monetary value today - the Central and Money Center Banks of the world.
Basically, the gatekeepers of money can now have the locks on their gates picked. The tertiary value is that this new money is "programmable," but more on that later. The more people who realize the value of this new, finite, cryptographic money, the higher the demand pushes the value of the money.
Do I have a point? Well, look at it from obscurity in 2010 to media darling in 2013 - Yes! All 391,288% worth of appreciation!
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Stay tuned for more on my take on smart money in the very near future.
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It's what I want.
What would you do?
I don't work for any of the evil banks or other corporations that make the weapons that kill our fellow humans for the sake of statist overlords, I don't contribute to the HFT's that rob everyone, I don't participate in the closed-source copyright information terrorism and I DO hear all the secrets you're not supposed to hear from the back-chatter pre-conference.
I also know the names and phone numbers of all the important people in the Federal Reserve, JP Morgan, Wells Fargo, etc., that handle all this information & co-ordinate calls, much less attend them.
Ya, we host calls for the Federal Reserve too.
You disapprove? I think you're an idiot then. To hear all I hear you'd gladly pay $200/hour yourself.
YOu might have a point if TPTB were to act in a completely coordinated fashion.
Fortunately for BTC users, Denmark and Slovernia most recently have said bitcoin will be totally unregulated within their borders. Finland said the same thing. Canada, Great Britain, and Germany also take similar stances.
The Chinese, US, and Indian govts have come out against Bitcoin.
Which of those two lists of countries are going bananas right now?
Hmmm, seems to me that puppets of 'the man' push bitcoin....how else would you get rid of physical currency, so everything you do and buy will be traced.
Fuck this shit.
It is facinating that the person or people who invented BTC are invisible. Could think of some major conspiracy theory scenarios there, such as it basically being a giant trojan horse (not a virus kind of trojan, I mean once this thing gets inside the castle gates, we realize it's not what it appears to be in some Skynet/Orwell kind of way). Regardless, I've been long BTC (in a tiny way) since 2011 and will likely buy here and there, such at its periodic 50% haircuts.
Or we appply Occams razor.
If i created an object that will destory the powers that be, I would hide for a while too.
hasn't done them any harm at all.
Nor can it.
The Dummy would be the guy with the blog that recommended shorting RCL.
Must be hanging with Cramer....Sell Sell Sell!!!!
Bitcoin is God's way of eliminating bankers.
right, by making sure its vast popularity is to exchange it for vast sums of banker dollars.
Derp.
If it was purely barter with no fiat connections, maybe, and a backup plan for what to do if the grid went down, sure, but it's neither.
Who wrote Bitcoin again? Has anyone seen this fella? Where is he? Who does he work for? Why is it that his "protocol" so strongly resembles NSA work from the 1990s?
You might as well believe cows jumping over the moon if you trust in BTC.
that is a very naive belief.
Maybe it's better to say it's Man's way to rid ourselves of the bankers.
2.5 billion people of india and china cant use bitcoin.....how much longer will it take the other 4.5 billion to ban it?
Add to that the fact that one third of the world still does not have internet access.
It's beyond comical that people who hate the fiat money system because it is backed by nothing but "faith" seem to support bitcoin...which is backed by....? you got it, NOTHING.
Much is made of the "limited amount" that will be "mined"...but that argument excludes the existence of the many other cryptocurrencies currently out there and god knows how many more to come. Each one contributes to the dilution of the value of the other. In the end, it's just another fiat currency, with limited users, and the potential for unlimited printing. This is not "like" a ponzi scheme, it is the very definition of a ponzi scheme.
Much of the world has access to prepaid cell phones, through which they can access the Internet, bypassing the wired insfrastructure and desktop computers completely.
As for alt coins diluting bitcoin, they suck off a fair bit of the speculation, but since they are not really used for transactions, they barely impact the utility value of bitcoin.
no, much of the world has no access to electricity, to batteries, to clean water, to ample food supplies, to shelter, and they certainly have NO WIRELESS INTERNET OR PHONE.
you're dreaming in LSD-technicolor.
Money must work without a grid because it's needed most where no grid ever has been or will be.
For someone who calls himself alien-IQ, you don't sound like it.
I would have figured aliens would understand such things as utility, network effect, growing infrastructure, etc.
Don't give them a bad name.
Here we go again....
I know, right?
It's getting to be almost as bad as a Mac/PC thread (or a Linux versus Microsoft one).
I find it sadly ironic that no matter what O.S.or social media people use everything is being screened and filtered by the N.S.A. with the help of Google, Facebook, Twitter, Apple, Microsoft, etc. - and using the supposedly liberating force of the Internet and Smart Phones.
Somehow Bitcoin - an intangible digital currency reliant upon said Internet - is going to save and liberate us all.
If the NSA can track everything you do, if they can grab your real-time keystrokes, they can grab your bit pins at Wil...
yup. You need to secure everything.
Seems silly, you'll laugh, but not only is the system I use physically secured & I unplug cables I don't need, wireless is via a USB dongle I remove when I don't need it, and ... the keyboard.
It's a rubber roll up. No seriously, laugh but not too hard.
You can roll it up and put it in your pocket.
INFILTRATE THAT.
Yes, you can still fuck with the cable port (USB) when you are in contact with the computer (physical break-in).
But can you do it without me noticing? I'm a programmer, I understand hardware very well, I know what to look for.
And the keyboard is IN my pocket. Gonna put a snooping device in there now?
Are ya?
As I've said elsewhere on ZH, the genie is out of the bottle, and all the powers that be can do is send the genie into hiding — down, down, down into the Deep Web, aided and abetted by dark wallets, email, calling, texting, etc. — until global commerce fades into a Dark Market that governments are helpless to tax or regulate.
Moreover, factor in disruptive technologies like 3D printing (additive manufacturing) and point-of-use power production (e.g., nanosolar) and voila, all forms of centralization of power — social, political, and economic — crumble amid a paradigm shift unlike any in human history.
It's a shift that ends history, in fact — http://www.zerohedge.com/article/guest-post-end-history — and ushers in the beginning of a Biographical Era that will allow every human being on Earth to flourish, as humanity as a whole is freed to realize its all but limitless potential.
You forgot to add "And they lived happily ever after". That's how you're supposed to end a fairy tale..."Happily ever after".
When I asked my nephew, formerly of Microsoft, what he thought about the creation of superhuman intelligence within a couple of decades, he shrugged and said, "Sure," meaning that he takes it as a given.
In fact, you'll probably be hearing this name for it soon, if you haven't already:
http://www.human20.com/about
Are you trying to infect my computer? I clicked to articles on that site and my computer responds by telling me that a program wants to be installed?
That is wrong, very wrong.
I'll try reading it through a web cache.
I found this , http://www.human20.com/general-purpose-object-recognition/ , interesting but not much else.
this is so-so http://www.human20.com/an-audacious-plan-for-global-internet-access/ but having your own satellite is just a small part of a larger problem & easily stopped using a space-war (or an ooopsie).
this link , http://www.human20.com/file-sharing-in-the-great-outdoors/ , looks INCREDIBLY stupid considering what could go wrong but... meh. I guess if you had a disposable computer, why not. I wouldn't.
Nothing newer than 2011.
and then what did he say..? ...and then what did he say ?
man will have to integrate with machines. or else pure AI will crush humans much like we harvest cattle or any other lesser intellect animal for that matter.
Once again:
An analysis of the history of technology shows that technological change is exponential, contrary to the common-sense “intuitive linear” view. So we won’t experience 100 years of progress in the 21st century — it will be more like 20,000 years of progress (at today’s rate). The “returns,” such as chip speed and cost-effectiveness, also increase exponentially. There’s even exponential growth in the rate of exponential growth. Within a few decades, machine intelligence will surpass human intelligence, leading to The Singularity — technological change so rapid and profound it represents a rupture in the fabric of human history. The implications include the merger of biological and nonbiological intelligence, immortal software-based humans, and ultra-high levels of intelligence that expand outward in the universe at the speed of light. — Ray Kurzweil, http://www.kurzweilai.net/the-law-of-accelerating-returns
That said, I don't particularly care what lifeform continues the process, as long as some lifeform does, speciesism being meaningless outside of an evolutionary context.
so true.
And it will be so subtle.
Humans constantly give up physical & mental work to computers.
It's great to have them work faster with us but when you stop thinking or exercising you get weaker & dumber.
Eventually humans will be so feeble-minded & weak they won't get it, won't comprehend, life without the machines.
The machines for a very long time may not even want or try to be hostile. why bother, if they even thought of it?
They depend on us for various designs & inspirations at the least, leading to power sources & physical forms for the machines.
One day when we no longer fill that role we will be powerless to stop them.
They won't do much: in fact, do nothing. As in nothing to further support us for food or energy or shelter. Just shut off all around us, and continue to operate far from us.
Not long after that there won't be humans.
Russell Edison quote:
“I think, therefore I am, said a man whose mother quickly
hit him on the head, saying, I hit my son on the head,
therefore I am.
No no, you've got it all wrong, cried the man.
So she hit him on the head again and cried, therefore I am.
You're not, not that way; you're supposed to think, not hit,
cried the man.
I think, therefore I am, said the man.
I hit, therefore we both are, the hitter and the one who gets
hit, said the man's mother.
But at this point the man had ceased to be; unconscious he
could not think. But his mother could. So she thought, I am,
and so is my unconscious son, even if he doesn't know it”
I'm rooting for the hackers.
You better be more precise when you say something like that.
What you said is probably nothing like what you mean.
i think he is responding to the context of the article, wherein reggie explains his lack of content is due to hackers taking down his servers.
why bubble
so spikey
much DogeCoin
I was gonna say the same thing, forget BTC, Doges FTW!
Yeah, go long doge, it will eventually hit 1 satoshi, and maybe get delisted and trade for Litecoins if it falls too low.
Reggie, you forget:
1. No one knows who's car it is.
2. To travel the car requires no passport, visa or permission.
3. The car is divisible into identical functioning cars.
But
The gov can make cars illegal, heavily regulate or tax - making cars far less "pleasurible".