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Bitcoin Hits $101 - Doubles Since Cyprus
From a January 2nd price of $13.16, the price of a Bitcoin in USD had risen to $46 on March 16th - right before the Cyprus 'solution' was announced. Since then, in two short weeks, the price of a Bitcoin has more than doubled, reaching $101 today. This 'exuberance' in non-fiat currency, should perhaps warrant caution as we noted here, the US is now not only actively monitoring but has commenced regulating the Bitcoin market and those who participate should be well aware that when uncle Sam is involved, things tend to have an unhappy ending for pretty much everyone involved.
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The miners trade electricity for bitcoins.
Turn off the electricity
and ooops. All gone.
Yeah, I'm sure TPTB know precisely how to kill all electricity on the planet. That'll work just fine.
Wow.
Can I store my BTC on a thumb drive, and put it in a faraday cage?
Notoriously, people spent more on electricity than they made on bitcoin mining... until now. I mean, their mommy spent more on electricity. They still live in the basement.
can they pay for that electricity in BTC, to mine more BTCs to pay for more electricity?
Just like all those idiot gold miners spent so much on mining equipment, when they could have been off doing something in the productive economy, like manufacturing cars or engineering cars to wear out faster or digging up oil to fuel the cars, or being salesmen selling the cars or being financiers providing credit to buy cars or selling insurance on cars or running credit checks to determine if the person is worthy of credit to borrow money to buy the car, or being policemen so they can make sure people obey rules when using the cars. Stupid gold miners.
YES!!!!
E IS NOT MC2 AFTER ALL!!!
Mining BitCoins. LMAO. Is that what you call creating "money" out of thin air?
It is a reward for fulfilling a responsibility in the Bitcoin ecosystem. It is a funding mechanism like the inflation tax (a.k.a. seigniorage) and other taxes that are paid under a fiat money regime, but crucially, without the money creators having the control over those taxes and thus without the danger of a monetary hyperinflation. In fact, the Bitcoin miners are not even organized.
Creating money out of dirt doesn't sound very glorious or noble either, but it is what gold mining primarily is (gold's value has historically been more than 90% due to its monetary status and very weakly affected by its industrial demand). So if you think about it, when you hold gold, you are effectively funding gold mining. Nothing bad about that. It is the cost of having a form of money that is impartial, requiring no trusted third parties. At this point in time, it is definitely worth paying it, because it is a pretty low cost and the reward potential is much greater.
Arguably this is also the case with Bitcoin. If you want to argue against this, one good way to do it would be to support the creation of an alternative cryptocurrency that doesn't involve mining. I think that this is possible and that there are already some attempts at this out there.
I've addressed these issues clearly and in more detail here: http://www.zerohedge.com/news/2013-02-28/bitcoin-your-thoughts#comment-3288807
My other posts there address more issues that were raised in other posts here. Go check them if you care.
Sounds like the Bernancke bills.....
Oh but this time... It's most assuredly different...
~~~
Just ask a bitcoiner... Here's the explanation:
"Do you even KNOW how the system works... Well ~ I do, so you're out of your league"
I'm sure there were technical TULIP experts back in the day as well...
@francis "off the rails" sawyer
You forgot to mention < insert race > in your diatribe. I guess you took your meds recently. Nice mixed use of bold and "~~~", your signature crazy-talk semaphore.
It's been quite a while with Bitcoin, though. It's been more than 4 years. The currency had one big mania phase a couple of years ago (a peak of about 30$) and then a fall down to about 2$. I think any ponzi or pyramid scheme would be dead after such a decline but obviously this was not the end for Bitcoin. Despite the volatility it is still being used as a currency.
Do you know of any major flaws which could prevent Bitcoin from doing what it promises to do - electronic payments without third parties? Do you know of any aspects of Bitcoin that make using it undesirable or immoral in any way? Please, do share any knowledge of flaws or dangers, objections, suspicions or any other important and specific thoughts about Bitcoin that you might have.
Well, you have to be one dumb motherfucker to equate tangible Real World assets (hint: that perform their function without third, forth, fifth parties - meaning your PC, your Internet provider, the mood at the DoJ/DoD/FBI/CIA/NSA office et cetera, etc) to fiat in its purest form.
Can't get more fiat than 01100100 01110101 01101101 01100010 00100000 01100110 01110101 01100011 01101011 01101001 01101110 01100111 00100000 01110011 01101000 01100101 01100101 01110000 - At least Benny conjures something the rest of the 99% of the peasant population accepts, so that I can exchange his paper for things of value & worth.
Ring me up, when hookers start accepting this Bitcoyn.
Reddit hoes accept BTC. Not quite the lady of the evening but still catch a dripping snatch for a mere pittance. You need to get with it and check out silk road.
"dumb fucking sheep" in binary code.
Very good!
What do you have to lose?
- from a trading standpoint: you laid it out pretty clearly.
- from an investing standpoint: fleeing a paper fiat ponzi, you might have invested in an electronic (semi-fiat) ponzi. Great improvement!
- from a moral standpoint: You may be pushing a greater fools game. Other people will not be smart enough to limit fallout to 1% of their net worth - so you supported moral and therefore societal collapse.
"I don't understand why ZH's are so opposed to BTC. "
because it a real money!!!!!
but hey, ya'll knock urselfs out...
Silver at 27.93 - that is hilarious...
More for me and real money stackers...been in since $9 when they stopped selling it cause they knew it was a fucking lie...aint a damn thing changed...
Dealer told me friday if it gets to $26 he will just close the shop...
now, keep buying that BitCoin.....
Right and if you want to pay someone? Well, just ship them silver and gold bars of course!! I am sure they are going to be fine with sitting around waiting days, weeks, maybe months to get paid! I am sure postal workers work for free during an economic crisis. I am sure your bullion will make it through every border check, airport, starving cop, etc, etc, etc.
You are comparing apples and oranges. And having said that, the world is not going back in time after the US Dollar collapse. For those of you thinking things will slow down, you are wrong. Things are going to speed up. More technology, people demanding faster payment, etc. As Bitcoin grows they may even need to find a way of truncating the block-chain to make that happen at least for end users.
For most of Earth's inhabitants, their world is going to look the exact same the day after the US Dollar dies.
yeah, and all that you just said would of course explain why the creators of the current debt based currency paradigm which conjures intrinsically worthless paper out of nothingness, and has been used to usrurp supposedly democratic nations with banker ruled governments, are interestingly accumulating "tradition" at a pace never before seen.......
look, all ya'll that want Bitcoins and believe it will survive the collapse of all worthless debt based currency's keep doin what ur doin....
i'll stick with that which has been money for 5000 years and counting...
Well the dealers shouldn't be playing the cartel's game. All those "standard" price quotes (be it futures, London fix or whatever) for precious metals are cartel's game. How can they be playing a game that they don't know the rules of? They certainly don't know them because the cartel is too secretive about it.
They have to be on their own now. Actually start making a market, instead of acting as agents of the cartel. Example game rules they can follow: try to maintain a certain stock of each metal. When the stock rises above the target, lower the price. When the stock declines below the target, raise the price. Simple.
may not even be
the volume on which btc rose is low. this is a pump and dump scheme. the early adopters and entrants promoted it like it were some penny stock, most likely shuffle btc among themselves to pump it up and once the public piles in, they will dump their stash on the greater fools.
also, the cyprus event is a convenient cover. the volume in euro has been quite low and flat. the volume (low) that is driving the price is in usd, not euro; which is counter intuitive as one would expect the opposit
Supposing that the early adopters did dump their bitcoin I would be in there buying it up until my hands bleed! The technology is so good and as long as you can trade BTC for any other currency on Earth, the shit is basically virtual gold as far as I am concerned.
You missed Silver, 2011
Summer 2010 to today: Silver is a triple. Unless you bought 4Q2010 or 1Q2011 then the "bubble" was/is immaterial. That said, it likely will stay dead (in terms of fiat) longer than any SilverBug would like. In the meantime the alchemists at BA, LMT, etc. haven't figured out how to make a drone without silver. Tally ho!
Sell Bitcoin, buy GOLD!
Bubble III = Balance Sheets of Central Banks
Fixed it (Bitcoin only measures that bubble, that's all)
The hedgies and the SEC are all in. Bitcoin you are F****D!!!!
If the powers that be would take their boot off of silvers throat it would make the bitcoin run look like a walk in the park.
AND SILVER IS TANGABLE!!!!
It's gonna crash hard when the US starts banning it/seizing it in the US and tell the EU to do the same... you know it's gonna happen.
They will attack it the same way they attacked internet poker: with a few high profile prosecutions to frighten the sheeple.
Trading in banned currencies is a serious crime in the USSA, comrades.
I too support the strong dollar!
How do you sieze a 'bit'...
Turn off the electons. Do that and there are no bits and bytes.
@lolmao500 ~ I say it has little to do with that...
~~~
It'll fold in on itself...
Let's say you actually believed in bitcoin a year or whatever ago & you would cut somebody's 2 acre lawn for 10 bitcoins... Now you only get one?...
Sorry ~ no service...
More like that... [when it finally dawns on people that their real goods, & real labor are worth a lot more than some inflated currency]... Especially when everybody comes to the same 'pissed off' realization that the originators are sitting there with their own stash that they minted for themselves, watching the value go up [not unlike anyone with a franchise on printing money out of thin air]...
~~~
Edit: Here come the bitcoin junkers...
OK, let's figure this out...
100% appreciation in 2 weeks:
= $200 by April 15th
= $400 by May 1st
= $800 by May 15th
= $1,600 by Memorial Day weekend
= $3,200 by June 15th
= $6,400 by 4th of July
= $12,800 by Bastille Day
= $25,600 by August 1st
- $51,200 by FerrAgosto
= $102,400 by Labor Day
~~~
I'm getting tired ~ anybody want to continue with this & figure out on what date 1 bitcoin = $1Trillion platinum coin [or ~ much sooner, when somebody decides to 'cash out' & buy all the phyzz gold on the planet & fund an entire modern day flotilla of aircraft carriers]...
Hell ~ we might be building the fucking DEATH STAR with one bitcoin [by Christmas] if this keeps up...
You people are fucking retarded...
actually my vote's for bikini clad gals playing beach volleyball on the moon. "if it's bitcoin that gets it done" so much the better. in fact "this has been a long term trade of mine" going back at least three years when i watched the value of our Government debt soar to the moon the news of "trillion dollar deficits forever" and "we're being downgraded."
WTFever~
~~~
In the end... What ALWAYS happens here on ZH is that you end up with two concurrent [but absolutely SEPARATE arguments]
1. The bitcoiners try to toe the line with arguments about, indestructability, limited supply, 'stick it to the man', yada yada [which I have no argument with]
2. Instead ~ Hardly ANY of these people realize that in the end it's just another commodity [because they're still jacking off about the artificial & synthetic, apparent, jump in VALUE ~ which is always a transitory phenomenon that CANNOT EVER be put on a linear graph with 'time' serving as the other axis...
When all is said & done... The VALUE of anything is TIME & LABOR... 'Prices' don't move... Instead ~ people's committment to working for or holding on to things that are important to them is what fluctuates... There is a herd mentality to this phenomenon [& the herd can stampede in both directions]... If you're not careful, you can easily get trampled to death when the herd runs contrary to your bias...
~~~
@fuu
I appreciate what you were saying about $85B a month being mind fucked numb, but the same can be said for bitcoins [in an alternate way]...
I don't give a shit about whether or not the total number of bitcoins in circulation has a governer on it or not... The problem occurs when people start mispricing the VALUE of things [whether by perceived scarcity, or by outright manipulation because the mechanisms are in place to do so]...
This whole fucking argument gets totally lost [here on ZH] because somebody jokes about 'tulips'& others fail to see the phenomenon... Tulip mania was, what, 350 years ago?... Imagine it had continued [on an x & y chart]... What would tulips be worth today?... I'm guessing that we could build the fucking DEATH STAR out of tulips...
Rockets have a way of coming back crashing to earth...
Let's say I was interested in bitcoins & I had a dirt bike to sell... I'd have exchanged it for 100 bitcoins a year ago, but now you're offering me 10?... No thanks... The only possible reason I'd want to accept only 10 would be because I perceived the momentum of value rise & hoped to ride that wave... That's PURE SPECULATION [which, in the end, ends BADLY for MOST people]...
But this is why the bitcoiners have such a strong voice here on the Hedge... They 'got in early' & are going to pump the shit out of it... Congrats!... But it's no different than a Nasdaq bubble stock...
It's all PURE speculation francis.
Here's what my brother Tom thinks about it...
~~~
http://www.youtube.com/watch?v=U7DFsBcVMDA
"But this is why the bitcoiners have such a strong voice here on the Hedge... "
On ZH jew banksters are treated better than bitcoiners.
See it has bubbles.
http://www.listentobitcoin.com/
@francis "off the rails" sawyer
Missing the point again, I see. Its okay, I know you have a medical condition.
Please don't buy bitcoins. I don't want them to end up with someone who doesn't realize their utility. Better that they go to someone halfway around the globe than sitting on your Packard-Bell.
Exactly, FED will close this for whatever reason:
"Wire fraud", "Tax evasion", "Money laundering".
Remember E-GOLD? Yeah, same here.
BC BITCHEZ!
I'll buy some when it crashes. I like the idea.
"Been spendin' most my life, livin in a GEEKsers paradise"..
"This 'exuberance' in non-fiat currency [...]"
Ahahaha... ok 1st of April, got it.
Why don't you just post...
"I don't know what 'fiat' means."
Go "mining".
then dining!
Don't come to my restaurant & think you're gonna get a $100 dinner tab paid off by 1 bitcoin Charlie...
~~~
SORRY ~ NO SERVICE [I hope you brought your dishpan hands]...
WTF is a bit coin?
Spend an hour learning. Start at Wikipedia.
Wikipedia? 'nough said.
"nough said"? - enough said.
There is a lot of useful info out there in less subjective knowledge areas, when you need it. Historical and political subjects can be dodgy or even propaganda, the experts being people with agendas, or blinding faith, wishful thinking.
WTF is gold?
No, no. Bitcoin people are geniuses and they say bitcoin is impervious to government attack. You must be wrong. You obviously don't understand the ingenious mathiness of their numeric cryptologies.
Sell first, sell Best. :)
This is the time when the sheep jump in at the top and loss there shorts 2 weeks later.
when does a bitcoin become a tulip?
When fiat becomes a rose?
My concern with bitcoin is that this is the dreaded parabolic curve you always hear ZH'ers advise to stay away from. Correct?
However, unlike most other things the supply of Bitcoins cannot expand much. It is very different from most currencies.
Still a little confused here. Bitcoin can go higher and higher because they can keep making more bitcoins as more people jump in?
And some estimates that it bitcoin will be in trouble when the US government jumps in to regulate are not taking into account that the US is only one country on the planet currently attempting to regulate bitcoin. Correct?
It will go parabolic like the monetary base of fiat currencies. Currently Federal Reserve adds a billion a day, bitcoin adds only 3,000 a day.
Ok, I'll hold my hands up, I know feck all about computers, but I do know a bit about money,
And I cannot understand how Bitcoin can be money,
Bitcoins can be created even easier than printing fiat toilet paper, right?
Surely it's just a keystroke for a nerd, no?
Or am I missing something?
Please correct me if I'm wrong,
Learn about it if you give a shit.
Yes, do learn about BitCoin. Government can control it, could ban it, and is definitely capable of tracking its use and users. BitCoin cannot be as anonymously stored or used as gold. BitCoin may be a "moneymaker", like any "Tulip", so long as the "Tulip" is going up. BitCoin use is not a path, and certainly no shortcut, to economic salvation. A major problem is the "hope and change" devotees of BitCoin who contend it is, or will be.
http://www.marketoracle.co.uk/Article39704.html
For that matter, neither is gold by itself.
Those institutions and individuals who wield power now will not allow their control to be usurped so easily. They will ban, confiscate, or "co-opt" (twist their own advantage) the use of any financial instrument that threatens their power. Changing the institutions of power and those who head them will require more than changing the currency.
can you enlighten us on how they can control it or do we just take your word for it? and which government? The US government, the cyprus government? which government are you talking about?
they can ban it just like they can ban drug use.
"outside the gold standard there is no safe store of value" but there are safer alternatives than others, bitcoin or a dervative looks to be a very viable safer alternative.
Government can control it, could ban it, and is definitely capable of tracking its use and users.
Translation: Fear. Uncertainty. Doubt. REPEAT!
They can't be created easier than printing fiat toilet paper.
So, soon enough I'll be able to buy a printer that can print me out an AK-47, but none of the cast of The Big Bang Theroy can figure out how to copy some virtual one's and zero's???
Not even that airhead Penny would believe that,
Yeah do some research. I thought this was Zerohedge? Not redstate.
Short answer: it's encryption magic.
Each "coin" is a numeric answer to a complex puzzle. These answers are "mined" by computers with a lot of power churning away at these gigantic mathmatical functions. There is a limited number of bitcoins (21 million, I think), so they can never be printed.
Ownership of the coin comes from the "block chain." This is, I think, a record of all transactions, digitally signed, since the beginning of time. The block chain is something like 6 Gb right now. I'm not sure what the plan is when that grows to unreasonable levels, since there is no limit to the size of the block chain.
Or I could have said GIYF.
The maximum theoretical blockchain size is currently in the Petabyte range. Through the use of blockchain 'pruning' it can be compressed as time goes on. The developers are working on this to keep it manageable. The current size while large, is still within range of most computer systems today.
It's no different than the value provided by the combination on your safe. The more numbers involved the higher the level of security. Miners (people who create bitcoins) purchase high powered number crunchers in order to add to the blockchain, before another miner does.
"money" is just a medium of exchange.....like beads, slaves, food, gold, bullets, Bernancke bucks, or bitcoins....
The difference is that dry fiat also makes good fire starter.....
Fear it Bitchez!
Digging my 90 BTC purchase back in early Feb. The warning is spot on though, this will likely end up with shit betwen the sheets. US govt will intervene at some point. In the meantime the Bernake and obummer can eat my avatar.
I don't care I bought 1 Bitcoin when they were 9 EUR/BTC, money I can miss easily when necessary (hell I wasted far more money on lottery tickets which didn't pay out). So I'm sitting this out and see where it goes.
I would be hesitant to buy much of it at current prices but then again it may go much higher.
For now I'd only put serious cash in Bitcoin if you want to move large amounts of cash out of the country without being taxed to the hilt (or in the case of Cyprus denied leaving the country with your money). It won't go *poof* overnight so even if you don't trust it (completely) you can temporary convert to BTC then go to another country and cash them out in the local currency.
You had me right up until "lottery tickets."
Math is your friend.
Mt. Gox's pimp hand is strong...
My bet is that the CIA's is much stronger (perhaps even being the visible strength you see in Mt. Gox). As the leading exchange, I see them getting setup for a dramatic collapse at some point in the future. Something to break Mt. Gox's trusted status, then an appropriately timed money laundering scandal with some CIA setup "terrorist" cell.
Then again, I'm getting old and jaded. For all I know, they've come up with a far less knowable plan by now.
Mt Gox is for newbs. Go see localbitcoins.com
is that why the gov is winning the war on drugs, terrorism, afganistan etc... you are giving the government way to much credit.
All of the wars you mentioned as well as the "war on poverty" etc... are going just the way they were planned.
While the rapid growth is concerning even to a bitcoin enthusiast like myself, I am glad to see it break 100. If it continues to hold well, and the MT. GOX user accounts continue to build up, then I think we could see a new floor and consolidation around 100.
http://bestbitcoinsites.wordpress.com
That is how a freely traded product gives economic signals. The only way to figure out what signals gold and silver are giving is to weigh people's closets. If they are increasing in mass, there is a problem.
What is sad is that the bitcoin bubble only took a little over 1% of what the Fed prints every month to blow up.
I am more interested if / when this retraces. Will it retrace the 38% which is normally a sign of a healthy trend or can it retrace 50% which is a coin toss as to direction?
Second thing that will be even more interesting is how the retrace will be covered at ZH or the MSM. Panic or a pull back? We will see.
Warren Buffett who? Is Rick Falkvinge the richest man in the world yet? Someone call Forbes- Falkvinge just came up!
http://falkvinge.net/2011/05/29/why-im-putting-all-my-savings-into-bitco...
The DOW is crashing a whopping 35 points....Get to work Mr. Bernancke!
Hey bitcoin. How's your military doing?
Hey bitcoin. How's your military doing?
So, Bitcoin not being a killing machine bothers you?
Why is this an emotional matter for you? There's no need to get upset.
So the US military is a killing machine?
Have you forgotten that Europe has been at peace for the longest period in its history since the US became the global military power?
And have you heard of the Baltic Dry Index and what backs its existence?
If you look at it. Yeah it's one big machine designed for killing.
weird I see the exact opposite. I see the bitcoin haters being the non rational /emotional ones.
btw a primary function of the US military is to kill people. thats what gives them their power. they aren't a bunch of ghandis.
So the US military is a killing machine?
By definition! Your argument is that they only kill bad people.
@orangegeek
The USA has been at war for 80% of its existence. Yeah, I'd say it is a military machine propped up by an inflationary economy.
Bitcoin is based on fiat currency. What's the point? Uncle Sam will send you to G-bay as a financial terrorist.
All it takes is a single inside-job terror event, linked to Bitcoin transactions and this whole circus is done.
That's how the world works.
AprilNewsCorp: Cyprus leaves euro and adopts BTC
BEWARE NOBODY UNDERSTANDS HOW ITS VALUE IS CALCULATED.. THE DAY IT DROPS IT WILL DROP HARD...
Another Ponzi scheme orcestrated by someone at JPM or GS. Those at the top of the Pyramid will make out like bandits while the masses at the bottom and lower rungs will have their pockets picked. Makes me wary of Max Keiser Soze for his promotion of this fraud.
Is this the future? - "In Hexadecimal We Trust" The growth of btc looks very bubbly to me. And what happens when the government gets a bug up its butt and turns the switch off on the internet? I'm no fan of the fiat money we tote around in our wallets but this seems even more problematic. Its dependency on electrons flowing through copper wires versus some kind of real asset as an alternative makes it a bit of a gamble.
RE:
Ask poker players.
Yeah, the poker players on the bitcoin poker sites are having a great time.
The ones that used paper sovereign currency (and virtual bits) on non-bitcoin poker sites are having a bad time.
Looks like a win for bitcoin to me.
I've heard it is easy to trade your cash for a bitcoin account, but extremely hard to get it back out. Bitcoin seems like something conjured from Douglas Adams.
A bank will happily accept a $100k check and I'll see the balance. But if I try and take the $100k back out, I'll go through hell and back.
When one Bitcoin was $15, I could see it being used to purcahse a few things. But at $100 it isn't very usefull as a medium of exchange. If you want to buy something for $30 with Bitcoins, can you receive $70 in Bitchange?
If Bitcoins were really being accepted by the masses,the volume would explode. The meme about the explosion in price was that the popluation of Europe was jumping in the market hand over fist. That didn't really happen.
Someone started bidding higher and higher, drving the price up, looking like they are trying to corner the market and start an avalance of buying, pushing their holdings higher. Most likely when a level is hit, that person will cash out crashing the value.
Just like any pump and dump, you can make serious cash. However, you have to get out at the right time. Thepumper knows when he is going to get out, most likely it will be too late for you when he does.
Thanks for all the fish.
It's different this time.
Trust us.
RE:
Right, and as much as we want to philiosophically splooge over the idea of it, the execution is very much in infacy, if not flawed.
I kick myself in the ass for not buying 100 bitcoins when it was at $4 per BTC. But I ask myself: where would I be able to buy such a bundle? Without major overhead/juice from a BTC dealer? And, if I made that investment, I would of probably sold today......but how would I get my money? Who would buy all of this up with their (expendable) fiat?
As of now, I own one BTC (which I won playing a poker freeroll). I'm gonna hodl onto it and hope it gets to $100,000. THAT would be lulzy.
That's exactly why I buy silver now instead of gold...a coin a little larger than a quarter is worth $1,600? Can't barter with that...
tptb wont let silver hit 30 but they will let bitcoin hit 100, that sounds about right..they cant do anything about bitcoin..when it hits 500 people will still say the same things and will use the same arguements..the future money WILL BE VIRTUAL, like it or not, which virtual currencey is the only question, so far bitcoin has a big headstart..
I agree, brosef. Ride on.
Fuck the playa-haters.
In a world of expanding control, do you believe .gov will just let this continue? I do not trust the manipulation of keystrokes. I see bitcoin being shutdown or regulated. I love that it is outside of the system, but I believe that this will suffer the ire of .gov .governance.
How will it be shut down, it is peer to peer.
They don't know and don't care to learn anything.
The only problem I have with Bitcoin is that the US government has a working and tested design for a quantum processor.
The guys at Ames Laboratory built it and demonstrated it last year, you can actually purchase these processors which can perform at 50GHz.
One of the Lead Research Scientists on the team, was confused as to why the processors (which exist inside a diamond), were only for sale at 50GHz. He claimed on BBC Radio 4, that they tested the diamond quantum to orders of magnitude greater than this. And he went on to say that it was his opinion that the Federal Government had deemed speeds above 50GHz as weapons technology and therefore not for commercial sale.
Does that actually happen in the US?
Anyway the team demonstrated that they could match Grover's Algorithm at 95%.
The test is a search of an unsorted database, akin to being told to search for a name in a phone book when you've only been given the phone number.
Sometimes you'd miraculously find it on the first try, other times you might have to search through the entire book to find it. If you did the search countless times, on average, you'd find the name you were looking for after searching through half of the phone book.
Mathematically, this can be expressed by saying you'd find the correct choice in X/2 tries -- if X is the number of total choices you have to search through. So, with four choices total, you'll find the correct one after two tries on average.
A quantum computer, using the properties of superposition, can find the correct choice much more quickly. The mathematics behind it are complicated, but in practical terms, a quantum computer searching through an unsorted list of four choices will find the correct choice on the first try, every time.
Though not perfect, the new computer picked the correct choice on the first try about 95 percent of the time -- enough to demonstrate that it operates in a quantum fashion.
Which means that the Federal Government effectively has a Federal Reserve... for Bitcoin. Those sneaky bastards.
Until a more complex algorithm can be devised. The basics work on the concept of prime numbers. There is an infinite number of prime numbers. That can be proven through induction proof methods. The processing power is limited not the the prime numbers that can be generated. The basics don't change only the scale. They have better processing power but we can come up with larger scale versions of the same basic algorithms to negate that advantage. The cat and mouse competitive advantage chase drives improvement and innovation.
Quantum computation doesn't imply massively parallel operations in cryptographic methods. They've barely been able to keep 4 - 8 QBits going. Your calls for alarm are unfounded. It would be like me crying that babbages difference engine will put all the accountants out of work in the 18th century.
It didn't, and it took a lot of refinement to get where we are today. Also, the core developers keep very close watch over advances in cryptography. What would be more likely is we'd adopt another strategy that leveraged quantum computing against itself.
BTC uses elliptic curve cryptography
quantum computers cannot deal with this
I smell a bad day coming.
Stay in bed. Forever.
When will people stop the false argument that fiat solely means "by force or edict" because a HUGE part of something being fiat means it has no intrinsic value... That is why the governments have to decree it, it is inherantly worthless without it.
Bitcoins are worthless outside of perceived value and faith of acceptance. Fiat by any other name.
**Also anyone that argues the mining operation to obtain bitcoins makes it backed by something of value needs to watch some videos of how much man power and energy goes into mining just one pure ounce of silver. To try and deem BTC as being backed by human work hours is a charade. Going to work while running a computer program at home is not real man hours.
In all honesty world of warcraft gold has more human hours backing it than BTC.
Argue either way about the viability of Bitcoin. Its growing popularity shows the slaves are looking to hide from their rapacious overlords.
When do the Nerds release Bitcoin2.0?.
Personally, I feel that Bitcoin should be supported on principle (as central bank competition), however I do not trust it, and no amount of pro-BTC rhetoric will convince me otherwise.
I'm convinced of a few things, where Bitcoin is concerned:
1. DotGov can step in at anytime, and shut it down under the Patriot Act, or some similar law, on the grounds that it's being used to fund terrorist activities/drug running/money laundering/kiddie porn/ illegal downloading.
2. Debating the semantics of whether or not they can shut the BTC exchanges down.....is pointless. They can simply shut down access to the sites. If it were to happen, it would be done at the backbone-level of the net, at all of the ISP's. Guess which agencies in the US have unrestricted access to that part of the net architecture? Out of those, at least 1 is a militarized arm of the legacy central bank establishment.
3. The multinational corporations will NOT adopt Bitcoin en masse, very simply because the revolving-door that exists between big business and politics is a "good old boys club".....and Bitcoin ain't in it.
In closing, I wish you pro-bitcoin guys (and girls) the best of luck. I prefer tangible assets that are highly fungible, so I'll be passing on Bitcoin, regardless of whether or not Max Keiser is right.
If you had bought two weeks ago and sold today you would have doubled your money. Whether it is wise or not, it was still a winning gamble, on hindsight.
http://www.fbi.gov/charlotte/press-releases/2011/defendant-convicted-of-...
"Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism,” U.S. Attorney Tompkins said in announcing the verdict. “While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country,” she added. “We are determined to meet these threats through infiltration, disruption, and dismantling of organizations which seek to challenge the legitimacy of our democratic form of government.”
How does it go... Ah, yes - "EXPECT US." LOL
Buy one, at least, for historical reasons. Print it and frame it, right next to the Zimbabwe zillion dollar bill. Seriously.
Anybody know of a convenient way to short it? Any bitcoin ETF or other vehicle I can buy a Put on? I'm thinking TPTB would love to monkey hammer it down just like they did with silver that one time.
If I can't hold it in my hands and if it doesn't make my Bayliner sit lower in the water then I don't want it. Buck Fitcoin.
I was dismissive, as I was with silver. Until I bought some, as with silver. There are legions of things to mock in the financial world before you pick on poor bitcoin.
Maybe this is how they want to distroy it, they inflate the value (nobody knows that the governement is not behind this bitcoin-buying frenzy) and they crash the price later on by dumping them into the market. How can one rely on a currency that is so volatile?
@Sopra Tutt1
You're comparing drastically different markets with orders of magnitude in order book depth. Of course a market that has only been around for ~3 years is going to exhibit more volatility. The edge-exchanges are just one phase of bitcoin. They will mature, and gain more attention - but simultaneously it allows a massive equity transfer.
Once that phase is complete, then sovereign currencies can wither on the vine as the edge-exchanges become less important, and end-to-end supply chains denominated in bitcoin take over.
This is just the beginning.
$101....Aaaaannnnndddd it's gone.
Not yet. The people who are saying what you're saying need to capitulate first. Then we'll be done. Until then, "buy the dip."
Gresham's law...bad money will chase out good money.
eff I wish I had gotten in on this
Honestly ....hate the fuck out of bit coins if you must but I would guess more than half btc dabblers are also metal heads like myself... Btc profits mean I am bagging more silver than I ever imagined I understand what they are doing and have always been a huge fan of open source transparent technologies... And yet my btc holdings still not 10 percent of what I have in metals.....just recall the bob Dylan lyric ...mothers and fathers throughout the land don't criticize what you don't understand your sons and daughters are beyond your command....btc are putting more metal in our hands which means at the end of the day we are all
singing from the same hymn book......
Fuck I wish ZH would stop posting BT shit. When the bubble pops, zh will have lost a lot of credibility.
I wish they'd stop giving it coverage, just so the comments would be a little more civil....too many trolls on here lately.
Ah....the exhuberance of youth....can't blame them for being passionate about what they like......but age and treachery come to mind:
The State/Legacy Central Banking System is much older, and a lot more Treacherous than "a mathematically-based electronic fiat currency with limited acceptance, limited exchange, lots of speculation, and too many cheerleaders".
So, in one sense, David vs. Goliath......
No matter the outcome, both eventually die, and people still use Gold.
Just checked it - does that graph look good, in the long run? I guess some people are going to make obscene amounts of money out of it, but a lot more are going to get crushed at some point, imv.
Either way, what stops anyone (a central bank, to start with) from creating a fully compatible, officially backed and convertible bitcoin v2.0, in order to extend the liquidity of the original (now relegated to legacy status) bitcoin v1.0 (you know, Microsoft's very own embrace, extend and extinguish tactic), thus taking over it and turning on its head its purported and sacred inviolable scarcity?
What would that do to it, then?