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Meanwhile In Electronic Currency Land, Or Bitcoin 1 - 0 ECB
It would appear that the imploding rule of law and currency weakness in Europe has done nothing but increase the value of a 'haircut-proof' digital currency. Since we first saw the ECB 'bash' Bitcoin in November of last year, when the central bank "stooped" so low as having to issue a 55-page pamphlet warning readers against "virtual currency schemes", the value of the digital currency has risen from EUR10 to record highs around EUR37 currently.
Source: bitcoincharts
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I invite you kindly to read the following guide for those who still have trouble wrapping their head around Bitcoin (~10min reading time): http://www.scribd.com/doc/128352919/Wrapping-Your-Head-Around-Bitcoin-b-w
So those over at the ECB called the BTC: "Ponzi".
Well, it does take one to know one!
Actually the report said the opposite!
page 27:
"The fact that the founder of Bitcoin uses
a pseudonym – Satoshi Nakamoto – and is surrounded by mystery does nothing to help promote
transparency and credibility in the scheme."
If I were in need of any such transaction I would be
guided by Tyler's recommendation he just gave.
The real virtual Tyler has always been a Satoshi Nakamoto immune to all the other tribes struggles.
The Euro is an experimental currency. Don't invest time or money in it that you can't afford to lose. Hackers can break into your account and steal your Euros in the middle of the night if you don't secure your wallet so never store your Euros with a third party.
All too true, right Cypriots?
yeah, Dow erases tripple digit loss...
Bitcoin (whatever!) tripples...
Cypriots told u cant have your debt based Euro's until we say so...
and the phony paper price of Gold barely rises thru $1600, Silver barely thru $29 and then they trade sideways al fucking day....
yeah, it all makes perfect sense.....................
I think I will start an alternative currency based on Pentastar emblems from old Chryslers. The supply it pretty much set, the junkyards will have an advantage. Also the ghetto market will be flooded. However, since there is no real market for anything other than drugs and liquor in the ghetto, in order to use Pentastars they will need to trade in the EBT cards.
Within weeks the value of a Pentastar will grow from $10 to $40. Like Bitcoin and Litecoin.
What is there to stop someone like Soros from building a massive store of Bitcoins with the goal of crashing this alternative market?
The simple fact of the matter is that bitcoins are intangible. You can't hold them, feel them, smell them, or hide them. They are entirely dependent on the underlying technology. No electricity = no bitcoin. That is a problem for me. Regardless of all the security mumbo jumbo, in my experience anything that is technology dependent can be, shall we say........tinkered with. I like anything that spoils the theiving elites party, but I will pass on the bitcoins. Thanks, but no thanks.
At least I can experience the giddy delight of stuffing PM's up my pooper if the need arises.
Incorporeal, yes. But so is your digital photo. Does it matter? You can still see it, store, transport it, it exists and you can print it on a piece of paper.
It may be incorporeal but it's not fictional, it's digital - welcome to the 21st century. Is a digital file tangible? Is it intangible? If it's neither, what is it? Fictional?
I know some people still haven't arrived there and it's hard to wrap one's head around certain concepts like the internets.. but it's the reality the technological advancement has brought forth and you better get used to it because it's not going anywhere any time soon.
Can you smell, hold, feel, or rub your junk on the digital currency in your bank account?
Toolshed, your pooper is not safe:
https://www.youtube.com/watch?v=mZCEq8jy5-M
Sooner or later, some Brillant Economist is gonna convince a Govt that a huge income tax increase is the only way to ramp up revenues (some could say we're already there!). When everyone is looking for ways to avoid these onerous taxes, they will stumble onto the fact that the IRS (or whomever) can only determine your taxes with information supplied by you or your employers. If all payments for your labor are encrypted (into bitcoins, or whatever), just HOW are they gonna know how much you owe in taxes? See the value in anonymous payment transfers?
I get the pseudo-anarchist argument for bitcoin (decentralized and all that) and i am all for that. However, the value of bitcoins is derived solely from its percieved monetary value. Unlike commodity based money, bitcoin has no demand in the market besides that. This is a huge problem in my opinion and this is the reason why i would not see it as a store of value. Also, the supply of digital currency is unlimited. Paralel digital currencies will emerge (they already exist) and this creates a de facto infinite absorption of inflowing capital. Thus, the bottom value for commodity money is its industrial use value while for digital currency it is zero. For now i will stick with gold and silver but do not hesitate to convince me otherwise (to all the posters that seem to pop up only on bitcoin related articles).
Actually the value is derived from them being in demand. And demand is there because they're so damn useful as medium of exchange.
"However, the value of bitcoins is derived solely from its percieved monetary value. Unlike commodity based money, bitcoin has no demand in the market besides that"
Actually you just described gold as most like bitcoin as opposed to silver. I guess your argument is that Bitcoin is more like gold than anything else, even gold!
The Bitcoin Channel
No, what i am saying is that bitcoins are faith based and that the ultimate value when that faith disapears is zero (when a better marketed digital currency arises for instance). Gold and silver have never and will never be valued at zero. The possibility of bitcoins falling to zero makes it a terrible store of value imo.
Unless you're a jewelry manufacturer, Gold has value based somewhat on your faith in it.
Silver does have many industrial uses, so it's a completely different animal.
What are prices? Hint: information. If that information is encrypted, does it change the value of the underlying commodity? The encryption just keeps Govts/Banksters noses out of your (now, mostly private) business.
Bitcoin....so you need access to the internet to use it?
Credit card, paypal.. so you need access to the internet to use it?
So is it for transactions, speculation or savings?
All of those. Bitcoin is:
1.) a currency
2.) a distributed and verifiable public ledger
3.) a peer-to-peer payment processing network
4.) a triple-entry accounting system
5.) a store of wealth
6.) a cryptosignature creation and verification device
7.) a personal offshore bank account
8.) a distributed timestamp server
And probably a lot more.
9.) can be easily manipulated by naked short selling at the whim of (central) banks
Let 'em do it. I'll gladly buy cheap bitcoins.
No. You can print your own bills and mint your own coins, just like the big boys do.
https://www.casascius.com
http://print.printcoins.com
OK,
How do you prevent double spending? Can't you spend the coin over the Internet, then give the coin to somebody else, AFTER it's been spent?
If you're dealing in physical bitcoin, it can be inferred that there's a level of trust between the parties. If there's no trust, use the blockchain (the distributed ledger) instead.
If the entire internet goes down all over the world at the same time and we lose our bitcoins, we've also lost the dollar, the euro and everything else too. That's what PMs are for.
If Bitcoins are digital gold, don't forget silver and copper:
http://litecoin.org
http://terracoin.org
Another way TPTB could influence bitcoin is by throwing freshly conjured fiat down the drain by buying large BTC amounts and reselling it to themselves at a massive loss. Enough BenBuxe$ could well mean flash-crashing the exchange rate.
This would increase BTFD speculation and weaken confidence in bitcoin.
This will never happen, they would just make bitcoin holders rich who would buy back in when TPTB sold cheaply.
Another Bitcoin commercial. Do these ads disguised as news have an impact on google search volume?
Apparently Tyler is trying to educate peope - some of them against their will.
"Our truth is the greatest - and there is no other!"
Spooz - so you prefer articles on how the Dow is going to crash and the HFT menace is sucking out all the real liquidity in the market? What are you really complaining about? This is the first tool that has come along in years that can actually kick the bankers asses, and you can't be bothered to pay attention?
Are you really saying you prefer the present system over all else?
Please don't say it's so.
I'm complaining about my pump-and-dump detector registering after seeing all your Bitcoin headlines when nobody else (other than Max Kaiser) is talking about it, other than its recent "major glitch" and panic sell off. I guess you are trying to gloss over that little incident with your "news".
@spooz
Its a shame you can't see through your own logic-fog. Here's something to bake your noodle. I don't want you to invest one penny. I'm just fine with you sitting on the sidelines. Is that how a pump-and-dump operates? No wait, don't answer - I've already seen enough from you to know the kneejerk reaction.
Have fun with your < sovereign currency > of choice.
Just because a central bank calls bit coin a scheme, doesn't mean it isn't.
What's to prevent the NSA from mining a bunch of bitcoins on a few super computers, and then dumping them on the market?
What's to prevent a virus from going around just to deny transactions after joining the network?
What's to prevent a virus from going around and just approving transactions that should be denied after joining the network?
If two individuals mine the same bit coin at the same time, who can prove ownership?
If there is a hard limit on bit coins and lost coins can NEVER be recovered, what's to prevent a single coin from being worth all the world's wealth in 1000 years?
If a coin is spent and then kept in a wallet for 20 years, what gurantees that it won't be aged out of existence, since the transactions are recorded by a network of computer which by necessity have to age out transactions, and then having the same coined mine 15 years later after it was aged out 7 years ago?
I'm not a mathematician, but simply making something distributed and non centralized doesn't guarantee it's viability. Basically, they are going up agains the most powerful money interests in the world who can make as much money as they want to, in order to buy anything. Do you really think they are going to sit back and see their power erode without fighting back? Just a week ago there was a flash crash by accident, what happens when somebody TRIES to destroy the system?
All of these questions have been answered, multiple times.
If you give a shit, find out for yourself.
maybe BITCOIN is not so bad at least compared to the Gypriot government.
Bitcoins are likely a reasonable method for resisting present day excessive government control, but Bitcoins shouldn’t be required long-term. In the long term, state and federal governments need to return to minting physical gold and silver coins, and those coins need to circulate freely among the many hands of the people. In addition, fractional reserve banking must be outlawed. I believe the long-term solution is truly that simple.
When better balances are eventually achieved between government and people, people won’t need complex methods of payment to protect themselves from government. The value of Bitcoins may continue to rise during the period of resistance, but they may fall in value once mankind returns to using real money.
Awesome comment.
I agree although I think bitcoin will operate side by side with PMs. Even when we eliminate the parasites and return to honest money it will be cheaper to send 500BTC around the world than 500 AU units. But both being finite, they will each find a market niche.
edit: double post
The Truth (value of Bitcoins) is treason in the empire of lies (Fiat Munny).
I thought alternative currencies are illegal. Also, wouldn't any gains in value for btc be taxable, possibly as ordinary income?
I am a huge fan of both PMs and BTC and I am heavily invested in both in a ratio of about 6:1. They both have outstanding features that make them "good" money. PMs are beautiful and desirable in their own right, portable, historically proven and universally recognised. BTCs are a brilliant innovation with countless advantages over fiat and will IMHO grab a large market share of both over- and under- the counter global payments. I see them complementary, not competing. PMs are low risk low return. BTC are high risk high return. A proper portfolio should have room for both.