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Visualizing Bitcoin - The 'Encryption' Standard
What currency is feared by the European Central Bank as a threat to fiat monetary institutions? What currency is cash like but digitally transmittable allowing for ultimate anonymity and global mobility? What digital currency is up over 2,200% over the last year? The answer? Bitcoin. From mining, supply, demand, and security, Visual Capitalist's infographic covers it all.
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"allowing for ultimate anonymity"
Since when is anything on the web not traceable by govt?
I like to think of bitcoin as the pressure gauge on a boiler. It's increase in value is a gauge of how badly bitchezz want out of the fiat system. Based on it's current parabolic rate of increase I'd guess the system is about to blow sky high. When the dust settles the only thing that will matter is the real hard tangible shiny clutched in your fist. Everything else was a pipe dream.
At least bit coin isnt taking a beat down, like my silver is. I wish Bernank would create the equivalent of SLV, like BIT and sell massive paper against it, and leave my silver alone.
That's a bubble if I ever saw one.
Hackable Tulips that every central bank and real power broker hates! What more could one want for a complete recipe for failure?
Sorry folks, this can ONLY end badly.
As long as central bank issued currencies end worse, and silver remains depressed, I am happy to keep my 12 bitcoins in my wallet.
I had an accout at off shore Pinnnacle Sports ... US laws forced me to close it. Why do you think that US lawmakers will allow the BC laundromat to stay open. PS was shut because of the potential of money laundering
Is Dr Krugman a proctologist?
He sure taks a lot of shit.
i lost all my bitcoins in an unfortunate.. um I dunno the screen just says "Were sorry the site you are looking for is temporarily unavailable" accident
I bet your loss was nowhere near what they lost in MF GLobal, Or even Madoffs real Ponzi scheme. Of course people will lose money on the way, Mostly because they are not properly preparred for freedom.
scatterbrains nailed it: bitcoin is the pressure guage on the financial system. Gold should be the guage, but the banksters captured that market with paper gold sales to manipulate the price and drive honest investors away. But there is no way to create a market in paper bitcoins ('paper gold' is actually contracts for delivery of gold in the future, ie, gold futures. Since bitcoins are virtual, their existence is outside of time; thus, no futures market possible). So the real value of bitcoin as a pressure guage is again, something that the central banksters can't counterfeit.
That was an iniformed, intelligent comment, Fishhawk.
Thank you!
No, it wasn't. You can have a futures market in bitcoin if you want to establish the prerequisites for such a market (e.g., a clearinghouse).
In time that will probably come, But anyone trying today would be submitted to an unforeseeable risk.
There already is a BTC futures and derivatives market: https://icbit.se/
Fishhawh, I think you need to get laid.
You are over thinking this shit son.
Time to get with the program.
Maybe you could print out the big prime numbers on thousands of sheets of paper?
Paper bitcoins already exist. Just see any wallet provider.
Your confusing the machinations of a bunch of Pump-N-Dumpers with a financial system pressure gauge?
You're dreaming in technicolor. This is a complete racket. Look no further than the "characters" this infomercial used.
People are duping themselves. When it's all said and done, they'll all be blaming the crash and disapperance of their money on JPM and the big-bad Banksters.
You can count on it.
Bitcoin - imagine if you could only buy Apple products with AAPL stocks...
Stock to flow ratio is going to be a problem for bitcoin.
Already is actually
Can I buy Bitcoins from my Amway dealer?
Only if your Amway dealer has bitcoins to sell you.
It's a shame, a great idea, but it's volatility has put me off buying some as an experiment.
With acceptance and appreciation, volatility will deminish. Its volitle as long as market cap is this low. In a few years when market cap is over 500B volatily is history.
Over 500B what?
USD.
An experminent?
An experiment in what getting fisted up the ass and losing capital.
Bitcoin is the friend of central bankers . Bitcoin is proof you don't need collateral, courts or banking rules.
I agree Martini. What if Bitcoin leads us to a cashless society? What if this leads to all our transactions being tracked and taxed? What if Bitcoin type medium of exchanges are outlawed? You can't fight the FED!!!!
While Bitcoin in and of itself is just fine -- in spite of the ignoramuses and stubborn mules -- the REAL concern is and should be that... people will get so used to Bitcoin, that eventually they'll come out with their own "Bitcoin To Rule Them All".
Sometimes, digital tech and federal LEA power in the hands of Central Banking make deadly enemies. Take the FRN's, for example.
The title on this is odd.
Encryption is meant to keep information secret. And encryption standard would be a protocol to keep information secret.
The Bitcoin protocol does not use encryption. The transactions are public and transmitted without any encryption.
Now bitcoin transactions can be used to store encrypted messages created by a different protocol. But that is not widely used and has really little to do with Bitcoin. http://bitmessage.org/
Whatev's though, the rest of the infographic is good.
> The Bitcoin protocol does not use encryption.
Public key cryptography is the heart of Bitcoin. It's what keeps this $14 million secure:
http://blockchain.info/address/1933phfhK3ZgFQNLGSDXvqCn32k2buXY8a
Only one question.
Although, currently, bitcoin isn't manipulated on markets such as the comex by wankers such as JPM, ......does bitcoin carry any counterparty risk, do you think.
(for you bitcoin fans, that was only one question)
When you receive a payment via bitcoins, it shows up within seconds, but you have to wait 10+ minutes for the payment to be confirmed by the network to make sure it is legit.
If you keep your coins in someone else's possession (e.g. in an account online at an exchange), then there is custodial risk, which I think is distinct from counterparty risk. That website or exchange or whoever might be hacked. So don't keep them there. Transfer them to your own possession. Once the coins are in your possession, then no, there's no custodial risk, or only the custodial risk that you yourself permit, just like precious metals or cash you keep in your house could be stolen. But there's no counterparty risk.
Once the coins are in your posession, the risks are a) losing your private key(s), or b) allowing your private keys to be stolen. There are straightforward and simple ways to keep them secure, such as a wallet on a phyiscal machine you can keep secure and backup, or better yet offline "cold storage" via a paperwallet or otherwise-offline copies of the private keys).
The dollar is a joke indeed, just like any government fiat currency, but this 'bitcoin' assclownishness is several levels beyond that.
"Bitcoins are completely digital and therefore global. There is no underlying commodity backing them as there is with a gold standard. Rather they are backed by the componding integrity of the ever growing network".
Are you fucking kidding me?? Exactly what the FUCK is meant by "the compounding integrity of the ever growing network"?? It's bad enough that our dollar has nothing of value backing it. Now these idiots want to use a "currency" that you can't even hold in your hand, that you have to file a claim just to take possession of, AND that has no real, tangible commodity backing up its value. Each to his own though, I guess, bc right now no one is harmed if they don't use it. Just don't let Bernanke get ahold of it.
Well it sure as hell ain't moving up no 2,200%. Stucker than a fart during mealtime at a nunnery today. That bitchcoin is grounded.
I believe Bitcoin type currency is way of the future... but but...
Bitcoin lately constantly has +5% spread.. yesterday during high votality is was close to 20%... bids @ $110 and ask @ $130... collosal speculation at the moment.
For Bitcoin to have a future, you need energy-intensive Internet, energy-intensive computers, electricity, communications... None of which will be available cheaply in 50 years.
For gold and silver to have a future, you need gold and silver.
Nuff said.
Why not buy one of Bitcoin's competitors? They're cheaper.
And recovered nicely.
You can destabilize bitcoin by
1. attacking the exhanges like some hackers have (DDos attack). I would assume this would be the first phase of trying to figure out how much damage you can do.
2. DDoS attack on the major switching and routing infrastructure of the internet. (slow down confirmations).
Those 2 above will do a lot of damage and thats a cheap way of doing it. This would cause soo much havok on confirmation times.
If you really want to get in and turn it upside down all you would need is a few bad nodes from the start (the point where bitcoin went live) and 51% of the entire network speed to begin a scaled phased attack.
I actually bought a bitcoin for the gamble. I tried to get one at $50, however it took a few days to get registered.
Anyway, I hope the bitcoin thing remains solid. I am so tired of the credit card companies, banks, mortgage companies, etc. They all deserve to die in this century.
From what I have gathered, as a mathematician, about bitcoin:
it is a finite set of numbers, hard to find, which satsify certain numerical properties.
Of course it is mathematically possible to find many such sets
and there could be many types of bitcoins, many such different sets.
This particular arbitrary set of bitcoins seems to be fashionable at the moment
and thus has value.
It seems unlikely to me that this always will be the case.
Precisely.
My wealth doesn't require the grid still function. Count it in acres, count it in livestock, count it in calories in the pie hole. If you need metal, try bricks of .22LR.
I have had bitcoins for years. I even mined some of my own. I had hoped bitcoins would become at least a stable method of exchange. Sadly they have not. They are also a poor store of value.
While the protocol is quite cool, the exchanges and wallet providers are fraught with problems. Many already have capital controls.
I have also had PMs for years and in my experience thay are a better method of exchange and store of value than bitcoin.
Skills are actually the most valuable. While you may be made into a slave you will still be alive and fed.
Physical assets can be taken from you by force and then you left for dead or left dead.
BITCOINERS: LOOK OUT BELOWWWWWWWWWWW!
$2 BTC, COMING SOON!
AND THAT'S STILL $2 TOO MUCH.
I fail to see why electrons buzzing through copper wires are considered "money."
Quote of the day.
Can somebody answer the following questions:
1. Has there been any loans made in BTC yet (or any sort of fractional banking activity in it)? (if no, why not?)
2. Has there been any competition in the form of other new digital currencies that follow similar (or different) algorithms? (if no, why not?)
There are other "crypto-currencies"
1. It is hard to say. Wallet and exchanges as well as miners may be "loaning" bitcoins. It is hard to tell.
2. namecoin, litecoin
Namecoin & Litecoin?????... Already there are cocky little upstarts to the invincible BitCOiN?
Somebody help me for fuck sakes... who do I entrust my worthless paper fiat to? Which virtual currency should I dive into on full retard mode in the hope it's not another fucking bubble or scam?
For fuck sakes, can't you bastards help me decide what I should do just to get a virtual blow job? I wanna blow a virtual wad, BiTcHeZ!
Almost forgot, I invested in REAL WB7 art so I'm awake now. I'm no longer having virtual nightmares.
My wife said ... "You want to buy what?"
What currency doesn't have a military industrial complex protecting it?
Fuck ZH. delete my account. enough of this BT crap.
mining, supply, demand, and security - how about a chart showing us exponential USABILITY?
Bitcoin and other virtual " curriencies ", at this point in time are pure gold for speculators and traders only. Unless and until quantum crypto gets a hold trading bitcoins is worse than trading West Texas crude.
I love it, but the idea that it is anonymous is ridiculous. Any time you move fiat in or out of bitcoin you are exposed.
Nigel Farage: Get Your Money Out Of Banks While You Can
"They are propping up a Eurozone that, in the end, will collapse in disastrous failure and they are prepared to do anything to do so."
http://homment.com/Farage-banks-euro
I lost all my BoatCoins in a virtual BitCanoeing accident.
I've been following Bit Coin since it started, have not set-up an account and probably won't. It has an amendable goal of protecting value against corrupt government actions and surveillance. But there are other legal actions being taken also that seek to restore our rights and holdings in a different manner.
We've seen states like Texas and others discuss succession from the Federal Government, but on what basis? Sure there are some good reasons, but in my view none so compelling that the American public, across the many states, would really get behind the idea. But what if a series of actions and events in our history proved so compelling, and deceitful, that they could NOT be ignored and went absolutely, massively viral and caught the imagination of all U.S. citizens, and people around the world, who recognize the treachery and what it led to ?
So now we have New Hampshire, the "Live Free Or Die" state and its taken some action with regard to the 13th Amendment (along with an explanation as to why), that I find interesting and compelling: That doesn't mean it will prevail, but is another of the 1,000 cuts, that may eventually slay the beast. It deals with "Nobility" and other dual loyaly issues, that were deliberately circumvented in 1871, that then led to problems in 1913. But if we go back to 1871 and look at the situation America was in, and forces at work then we see the illegality of how they deceived the American citizens. it was an important turning point.
Just read it through and ponder the repercussions, especially when considering the fact that nearly all politicians are Lawyers who have pledged their loyalty to a British system, that the 13th Amendment forbid. it still has relevance today as you will see.
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April 4, 2013I M PowerNo CommentsNews
New Hampshire Legislature Reveals U S Federal Government is a Corporation Operating with a Fraudulent Constitution -
“the Act of 1871, created a corporation in the District of Columbia called the United States of America. The act revoked prior legislation relative to the district’s municipal charter and, most egregiously, led to adoption of a fraudulent constitution in which the original Thirteenth Amendment was omitted.”
New Hampshire House Bill 638
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT recognizing the original Thirteenth Amendment to the United States Constitution.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Preamble and Statement of Intent. The general court hereby finds that:
I. In 1810, a proposed amendment to the United States Constitution, which prohibited titles of nobility and which later became known as the original Thirteenth Amendment, was introduced, passed both houses of Congress, and was sent to the states for ratification. On December 9, 1812, shortly after ratification by Virginia, New Hampshire became the thirteenth state to ratify the amendment. The amendment was therefore ratified by the requisite number of states and became Article XIII of the United States Constitution.
II. During the War Between the States, otherwise known as the Civil War, the country was under martial law, and all executive orders made by President Lincoln were, in effect, law. After the war, laws made during that period were to be abated; yet, vestiges of martial law remained and presidents continued to write executive orders.
III. The District of Columbia Organic Act of 1871, otherwise known as the Act of 1871, created a corporation in the District of Columbia called the United States of America. The act revoked prior legislation relative to the district’s municipal charter and, most egregiously, led to adoption of a fraudulent constitution in which the original Thirteenth Amendment was omitted.
IV. Today, what appears to the public as the United States Constitution is not the complete document, as it was never lawfully amended to remove the Thirteenth Amendment. Instead, the document presented as the United States Constitution is merely a mission statement for the corporation unlawfully established in the Act of 1871.
V. The purpose of this act is to recognize that the original Thirteenth Amendment, which prohibits titles of nobility, is properly included in the United States Constitution and is the law of the land. The act is also intended to end the infiltration of the Bar Association and the judicial branch into the executive and legislative branches of government and the unlawful usurpation of the people’s right, guaranteed by the New Hampshire constitution, to elect county attorneys who are not members of the bar. This unlawful usurpation gives the judicial branch control over all government and the people in the grand juries. As long as the original Thirteenth Amendment is concealed from the people, there shall never be justice or a legitimate constitutional form of government.
2 New Chapter; Thirteenth Amendment. Amend RSA by inserting after chapter 1-A the following new chapter:
CHAPTER 1-B
ORIGINAL THIRTEENTH AMENDMENT
1-B:1 Original Thirteenth Amendment. The following shall be recognized as the original Thirteenth Amendment to the United States Constitution:
Article XIII
If any citizen of the United States shall accept, claim, receive, or retain any title of nobility or honor, or shall, without the consent of Congress, accept and retain any present, pension, office or emolument of any kind whatever, from any Emperor, King, Prince or foreign power, such person shall cease to be a citizen of the United States, and shall be incapable of holding any office of trust or profit under them or either of them.
3 Effective Date. This act shall take effect 60 days after its passage.
Since BHO was born a subject of the United Kingdom and is therefore sui generis ineligible to be POTUS, has anyone determined if he has inherited any "title of nobility or honor" from his Kenyan father?
This BTC craze reminds me alot of NAS 5000. You better get in now before it is too late! We all know how that ended...
I'm not sure how this info graphic shows how bit coins are divisible. How do I make change?
BTC and kinfolk are just numbers in a computer. 0.1, 0.01, 0.001 are all fine and dandy. I do believe there's an 8 decimal-place limit somewhere in the software but 0.00000001 BTC is not significant money.
On what material things was first bitcoins created?
Are they backed by USD? Are they valued by USD?(USD is fiat currencey)
I don't get it - how does they create this BitCoin? There is information about mining - but not explained in simple words what does it mean - doesn people have to run around the house, programm, sell something, etc.
If it's selling - could it be possible to cheat by selling things that doesn't actually exist and both parts - buyer and seller know about it? But who created that money in the first place?
It seems to mee that when we have actually found out existing monetary system fraud - here is introduced another one.
To all the BTC bashing BTCez out there, please be aware that there are other sons-of-BTC rising from the matrix as well. You may easily trade these other wannabes at vircurex.com. The best part is that these other cryptocurrencies have ridiculously low prices, presently ranging from about 0.03 BTC/LTC to 0.00000260 BTC/DVC. As you can see, there are several orders-of-magnitude potential on the upside. Perhaps it's too early to redeem your 401K for this purpose but it sure is cheap and easy to play. If you suspect that there's a greater-fool at work in this process please notice that the market is new and fool-saturation is a long, long way off.
Starting to get real tired of the Bitcoin propaganda fest.
You have it right! Bitcoin has the same faulty design as the TeaParty. Both believe on fixed money supply.
This works (case Bitcoin) if after the 21st millionth Bitcoin we make sure that the population on earth gets fixed simultaneously. If more children are born than the death rate we must start killing the excess - we would likely not kill the children so who else than perhaps "banksters" should be first ones in this que? :-)
The Silk Road is the only important marketplace where BitCoin is the only accepted payment method:
http://www.andrew.cmu.edu/user/nicolasc/publications/TR-CMU-CyLab-12-018.pdf