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As BitCoin Touches $400 The Senate Starts Seeking Answers... As Does The Fed
Moments ago BitCoin hit $395, and will likely cross $400 in the immediate future (the chart looks a little less scary in log scale).
So as more and more pile into the electronic currency, some due to ideological reasons, some simply to chase momentum, some out of disappointment with the manipulated gold price looking to park their savings in an alternative, non-fiat based currency, which a year ago traded 40 times lower, the attention of the government is finally starting to shift to what has been the best performing asset class in the past year, outperforming even the infamous Caracas stock market.
Which means one thing: Congressional hearings.
The U.S. Senate Committee on Homeland Security and Governmental Affairs will meet on Nov. 18 “to explore potential promises and risks related to virtual currency for the federal government and society at large,” it said in a statement today.
The hearing, titled “Beyond Silk Road: Potential Risks, Threats, and Promises of Virtual Currencies,” will invite witnesses to testify about the challenges facing law enforcement and regulatory agencies, and include views from “non-governmental entities who can discuss the promises of virtual currency for the American and global economies.”
“Bitcoin is obviously getting a lot of attention from the federal
government on the regulatory side,” Nicholas Colas, an analyst at ConvergEx Group, said in an interview. “Given the involvement of the currency in illegal activities, that is entirely warranted. I expect these hearings to be largely informational, which is good for Bitcoin.”
“The architecture of the system is elegant from a computer-science perspective, but hard for a non-tech person to understand,” Colas said. “Getting industry professionals to close this gap will be very helpful.”
Or not. Because the only thing the government does when its interest is piqued by something, anything, especially things that have to be looked in log-scale, is to promptly regulate it and then tax it, not necessarily in that order. Just how it will achieve this with Bitcoin remains unclear but one thing is certain: it will try.
Especially, now that even the Fed is looking at BitCoin when a few days ago the Chicago Fed issued 'Bitcoin: A primer" in which the Fed states quite simply:
So far, the uses of bitcoin as a medium of exchange appear limited, particularly if one excludes illegal activities. It has been used as a means to transfer funds outside of traditional and regulated channels and, presumably, as a speculative investment opportunity. People bet on bitcoin because it may develop into a full-fledged currency. Some of bitcoin’s features make it less convenient than existing currencies and payment systems, particularly for those who have no strong desire to avoid them in the first place. Nor does it truly embody what Hayek and others in the “Austrian School of Economics” proposed. Should bitcoin become widely accepted, it is unlikely that it will remain free of government intervention, if only because the governance of the bitcoin code and network is opaque and vulnerable.
Finally, while the Fed may be late to the game, the ECB has already made its feelings on BitCoin well-known long ago: recall from over a year ago: "The ECB Explains What A Ponzi Scheme Is; Awkward Silence Follows" in which the European central banks didn't mince its words: BitCoin is nothing but a ponzi scheme to the central bank tasked with preserving the viability of an entire insolvent continent, and a a currency which unlike BitCoin would never survive absent regulatory intervention.
So while the electronic currency is soaring exponentially as it goes through its appreciation golden age, will the one thing that can finally end the dream of BitCoin holders arrive soon: when the government, and existing monetary authorities, start taking it seriously.
Full Chicago Fed paper on BitCoin
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> Also its now parabolic, which means a correction
At a certain point, there will be no correction. All of the corrections in Bitcoin have happened because of government interference in Bitcoin's marketplaces, not because of Bitcoin. The rise of the internet was parabolic and it didn't correct. Bitcoin will reflect that once it escapes the meddling of the sub-average IQs that end up in regulatory offices.
your statements are incorrect in a number of areas.
i'll point out the most obvious one: bitcoins come from miners, they aren't printed out of thin air by the "founders" of bitcoin as you put it; there is no "loot".
if you want to criticize bitcoin, educate yourself about it first, so that you can criticize it properly.
also, whether or not bitcoin is going parabolic, and/or will drop dramatically in price, makes absolutely no difference.
the true value of bitcoin, IMO, is in its use as a payment gateway outside of govt regulation - whether BTC is at $1 or $1000 makes no difference in this regard.
I'm a computer scientist.
I have downloaded the software, let it run for hours, and mined bitcoins, of which I still hold.
that is NOT the fucking problem I have,
the problem I have is if I want to turn my BTC into real money, I have to get on my knees and suck mt-cox cock, and then let then return to me money nickels a day at their whim,
Are you one of those "I've been an IT administrator for 20 years" kinda people that calls the helpdesk in india to be told how to powercycle your machine?
Mind you that I say this not because I have a problem with what you're saying, just the way you're coming across on my end. It's the picture that comes to my mind.
Do you live alone in a remote location? If not, go to localbitcoins.com where you will find plenty of people in your area willing to give you the FRNs that you seem to think are "real money" in exchange for bitcoins. No mtgox necessary. In fact I am looking through the bitcoin whitepaper right now and I don't see any mention anywhere of this mtgox you seem to dislike so much. Oh that's right, it has nothing to do with the actual protocol. If you don't like a particular exchanger here's an idea, go elsewhere. It's a free market and there are plenty of players.
Go ahead and setup your own exchange then, Mr. Computer Scientist. If it is any good I might actually use it.
see all the exchanges at www.getbitcoins.tk
Who died and left the USG as authority over BTC????
the sick twisted fucks
Hosit the Black Bart Flag!!!
US Dollar is in a real trouble now, Gold and Silver are suppressed by FED, but Bitcoin shows the real taste for the alternatives to FIAT. And more is to come:
Demise Of The Dollar: Canadian Province Issues Offshore Yuan-Denominated Bonds
At the first glance you can ask yourself why on earth BC is issuing its debt obligations in the currency which is getting stronger vs USD and not in US Dollars at the record low interest rates? But after a further consideration one can come to the conclusion that it is the sign that ability to sell any debt in US Dollars is coming to the end at this artificial record low interest rates. FED is busy to buy the Treasuries from US Government with foreigners cutting their holdings and any further talks about The Taper will pose the simple, but very serious question - who will be left holding the bag and who will buy "assets" most certainly going down in price? Any interest rate spike following this situation will lead to further deterioration of the fiscal situation with U.S. Debt at record level over 17 Trillion dollars and rising Interest Expense. On another side Buyers are looking for diversification and now they have new debt instruments denominated in Yuan. It is another step in the state level military precision Chinese plan of US Dollar diversification and integration of Yuan not only in the Trade operations all around the world, but extending it as the Currency for Savers. We are witnessing this year the end of US Dollar as the Reserve Currency of Choice. http://sufiy.blogspot.co.uk/2013/11/demise-of-dollar-canadian-province.html#
I still don't get it. Who is piling real cash into this to drive the price higher? Is it even traded or is the exchange price just bullshit? Does the price of goods and services measured in bitcoin go up exponentially as well? A cup of coffee costs one bitcoin today just like yesterday? But nobody will actually give anyone cash in exchange for their bitcoin? It's all bollocks to me.
Generally weed is priced in dollars and goes down in bitcoin price when bitcoin goes up. It's automatic.
Who is piling real cash into it? There has been high volume on the exchanges, especially for a weekend. It appears Chinese citizens have taken a hankering to it. Bitcoin Investment Trust (BIT) just started up and dumped $millions into it. A lot of press lately (ATM machine, etc) so just your average person on the street has been piling into it, too.
As far as pricing goes: Bitcoin is already a "virtual currency" so usually it is pretty trivial to calculate the BTC price based on your local currency exchange rate at the point-of-sale. This is how most vendors do it and payment processors (BitPay, Coinbase) can instantly convert your BTC to local currency if that is what you prefer. This gives your customers the choice of payment currency while giving you the choice of fiat free of exchange rate risk. A win-win, no?
Cheers.
Wish I had some to sell to these suckers at $400.
shucks, too bad.
You will have another chance very soon ... don't worry !
Fight The
M.arxist
U.topian
T.yrannical
A.uthoritarian
N.efarious
T.reasonous
S.ocialists
Bitcoin crash is in progress as I type this.
Down -$100 since this morning's top at $400.
...And the collapse has started. $50 downward movement in past hour.
Gotta love the ride!
I'm seeing it at 282 now. So it's down ~115 since ZH wrote this article? lol
Just a low volume trading vehicle... nothing else.
At least penny stocks trade on a legit exchange -lol
I didn't see it quite that low yet. Someone just stepped in with bids around $340 after dipping to about 300 or so.
for those interested: http://bitcoincharts.com/markets/currency/USD.html
Now back up $50 bucks in only a few minutes!
Very stable, very secure -lol
Hey, even with the nosedive it's up 2X over a few weeks ago, I'll take it.
Each one of these blowoff-top/crash cycles the base ratchets up about 5X a few months later, which means we'll see average non-blow-off pricing north of $500 by April or so.
It just means that the high 200's are now the new support and $400 is the new resistance. It's like some folks never traded anything before.
I think we'll see $1k by the summer/fall 2014.
If you came for stability you got off at the wrong exit. Perhaps it will come when we get into 5 digits. If there wasn't great volitility then something was wrong, think about it. Here is a new grass roots asset class who's history shows YOY increases of 100x. There's extremely limited supply and no barriers to entry for trading. High school students are trading against Wall Street types against the Chinese. It's a free for all 24/7 and no regulations exist. Fun!
@seek
I'm going to shock people and actually analyze the price movements instead of bantering with shills, so please stay seated.
The run-up isn't conforming to the quick dash to the 260's we saw back in April. Here's a good post I've read about the overall behavior here:
http://konradsgraf.com/blog1/2013/11/7/hyper-monetization-reloaded-anoth...
The point being, is every exponential/parabolic rally has had a substantial retraces that stop short of the previous run-up high. This implies a few things. One, that we're in a meta-trend towards hyper-monetization as outlined in that post (no ZHers, not the QE kind, the fiat into BTC kind), so the future is rather bright.
Second, this current run-up and subsequent decline don't meet the criteria for recent parabolic rallies - in fact, I'm seeing Bitstamp stabilizing at 300 and Gox at 329. If this were a true parabolic blow-off top, we'd be trading around 120's based on the magnitude of other parabolic declines.
This means a few things - we are most definitely headed towards qudruple-digits, and for the future, we're tracing out a trajectory that will make most people slackjawed in disbelief when they witness it.
Seek: Would appreciate your comments on my rantings below if you have time - Thanks.
I find BitCoin very interesting... but... I have yet to find a use for them myself. I would love to see the FED & CONgress shit themselves over BTC. Maybe we can start calling them COINgress if they accept pay offs & bribes in BTC?
On a personal level, I agree with LawsofPhysics when he said many times, in many posts, that "markets will become local". I can't imagine how anyone buys illegal stuff from sites like Silk Road with anonymous payments and then has the item shipped to an address where their real name & info are somewhere in the mainstream chain, or at the very least one of their idiot friends let them use their address to receive whatever...
I don't buy stuff on eBay, Amazon, or anywhere else that shipping is required (never have, never will even though I've had a truly anon PO box for years), I have decided to always keep my "markets" local since the mid 90's (except the few times I buy WB7 art, but that's a different story). So other than investment or speculation, I can't seem to justify BTC for my own personal day-to-day needs, etc. I would actually appreciate another perspective if any of you ZH maniacs (I say that lovingly) can show me what I'm missing.
I should say that at one point in time not long ago, and for many years, I was very computer gung-ho and tried/did many things. Thankfully I've always had hands-on building skills or I would have starved to death in front of my computers... which would have taken a while since I have been known to acquire ample girth (all muscle, of course). My personal experience has always come back to the fact that I would not survive and feed myself without my hands-on abilities and the local markets that needed my skills... and the local markets ability to pay me immediately when the job was done.
Just throwing this out there. Looking forward to hearing from anyone who can fit BTC in to my example above.
A couple comments:
Even with local markets there is a need to transmit money. If we go to the pre-electric age, you typically had banks or banking guilds that would service letters of credit between distant locations. And, of course, you had gold, which was universally recognized but viewed as dangeous to carry while traveling. Bitcoin would serve the same role in a local market, as a means of moving money between markets. (Obviously if we're in some mad max scenario, this is pointless and/or there's no internet, but I'd argue in such a situation even gold wouldn't be viewed as very valuable. Gasoline or antibiotics or whatever would be the currency.)
As far as silk road goes, there's plausible deniability in such packages, since anyone could technically have something sent to you, and it can be sent to the wrong name at your address. I'm not one to condone this sort of thing, but that's how it works.
I understand that you personally don't buy online, but realize that the majority of consumers in the US use debit and credit cards -- this is where bitcoin shines, especially for small purchases. The fee structure is lower, and because of how it's architected, the spender isn't put at risk for any more money than what is transferred, and the seller is at zero risk for chargebacks (this can be a feature or a flaw depending on the perspective.) The general view is what will likely happen is the development of some type of intermediary (essentially an escrow agent) to provide any desired features.
So in your case, since you're not really operating outside of the local market, at the moment bitcoin does nothing for you cash wouldn't do just as easily. Eventually that might change, part of the development of bitcoin right now is growing the ecosystem so you'll find a lot of emphasis on getting businesses to accept it as a payment system.
I will throw out one example of where bitcoin (at some future point) could benefit you, as someone providing local skilled labor in a local market. Built into the bitcoin protocol is an escrow feature, where essentially you can have a buyer generate a transaction to a seller, but that requires a third party to approve the transaction. I have a high school friend that used to have an upscale carpentry business (fine carpentry, making cabinets, built-in furniture, etc.) I say had because he had a chain of customers (high end home builders) all have him do work and then declare bankruptcy, so many that he lost his business. WIth the bitcoin escrow model, the money for services would be "spent" (locked up in the blockchain) but not released until the work was completed -- had he been able to get paid in this way, he would have never lost a dime, and since it's a built-in feature of the currency, his customers really wouldn't be able to justify not paying him upfront (and if they refused, well, that would be telling.) It sounds like you've had no issued getting paid immediately after completion, but hopefully you can see the value of this.
Bitcoin isn't a panacea, but it has a lot of very interesting features that make it a quasi hybrid between gold and VISA/MC. Other aspects of it (the blockchain, which is an open ledger) make it fairly immune to the central-bank style manipulations. Perhaps bitcoin will fizzle in a few years, perhaps it will be big; the fact that it might grow into something greater is what had lead me to invest some money into both it and infrastructure that supports the bitcoin network (aka mining.)
Interesting, Seek, but I have a couple of question relating to your hypothetical:
"WIth the bitcoin escrow model, the money for services would be "spent" (locked up in the blockchain) but not released until the work was completed -- had he been able to get paid in this way, he would have never lost a dime, and since it's a built-in feature of the currency, his customers really wouldn't be able to justify not paying him upfront (and if they refused, well, that would be telling.)"
Such transactions are not always straightforward. What if there were a dispute relating to the job that was supposedly finished? Who would be empowered to mediate disputes?
Whomever has the keys can spend the coins. Bitcoin allows complicated transactions where a key from a Mediator and Buyer is required to sign the transaction sending the coins to the Seller. The Bitcoin infrastucture knows when a transaction is signed correctly but doesn't have access to the private keys themselves (public/private key cryptology). It is expected that a market for reliable mediators will be created. For instance, Jobs4Bitcoins has a rudimentary escrow system in place. This opens up interesting cases where the Mediator need not be human. A computer Oracle of sorts can be connected to news services and "impartially" decide who wins the bets on the table from Manchester United's next match, for example.
Sorry, but that's not nearly good enough. Discerning whether or not a private job was completed to agreed upon standards will never be verifiable through news services, etc.
Seek: Thanks for such a detailed response. I truly appreciate it.
You touched an important point about about home builders going bankrupt and trades not getting paid. Believe it or not, in 23 years my buddy has never had a check bounce or a builder or landscaper screw him. The reason is simple... everything we install is PORTABLE and can actually be removed much faster than it takes to install (sorry if I don't identify the business and product). The home owners are not the problem with getting paid. They simply have far too much money and want one company to provide all services (the landscape contractor, or whoever) so they don't have to deal with many separate trades.
Have you ever seen the "Holmes on Homes" show? My friends brother has been a site supervisor for home construction for about 35 years (is Mike H even that old???). He's met Mike Holmes but you will never see his interview on Holme's show. Holmes would never embare-ass himself talking to a real pro. I was working with this guy today and talking trash about Holmes. I'm sure Holmes does good work but it will cost you another 20k just to finish your basement with bullshit upgrades that weren't included in houses that are 70-100 years old and still standing. The site super's parents home is 70 years old with not a single structural problem. Holmes is a promoter of products not needed that will cost you huge fucking dollars for a house that will outlive you and your grandkids without the bullshit upgrades. Oh, and one of the home builders that was linked on Mike's site is now bankrupt.
Landscape contractors are fucking retards. Cement contractors are second in line. I don't give a shit if I get junked to oblivion for those comments. We have 23 years experience dealing with both and nothing has changed except the excuses for not getting shit done. The excuses are much more creative these days.
We will never allow another landscaper or cement company to be the pay master for our work. We now tell them that we deal with the home owner directly or we don't deal at all. That puts the fear into the contractor because he thinks he can make a few bucks from our work but we're tired of fucking around with them. When we deal with the home owner directly, we get paid right away, or the home owner doesn't get what we supply.
As for BTC, I don't see any benefit for me or the businesses involved trying to chase it. It won't work for us for various reasons unless an instant payment system for business is developed. I'm guessing that will come, but it's not here yet.
Thanks Seek.
Bitcoin can be used as a low cost personal hedge against theft that has no counterparty risk. This of course can also be accomplished about as well by burying some gold in an undisclosed location. I don't know exactly how you are getting paid but if it is cash in hand then bitcoin could also put a stop to any possible theft threat in that scenario as well since you wouldn't be transporting large sums of easily stolen cash. This may not seem like that big of a deal now but if the economy continues to dwindle robbing contractors on their way out of well-to-do neighborhoods could become a newfound pastime.
The Senate needs to begin impeachment proceedings against Obama as well as pass laws to protect BitCoin.
They know when this ponzi falls they are going to need BitCoin more than anything.
Hey guys,
what do you think will happend if ebay and amazon fully accept bitcoin? I'm just wondering... and I guess at some point you can't destroy bitcoin anymore...assumed many companies accepted it.
whats your thought
I would imagine they'd be afraid of the exchange rate plummeting and extra regulations, so they won't accept it until it's seized by the govt/fed and made our new currency (I think it's more likely SDRs replace the USD). I don't see how having bitcoins early (i.e. current speculation) would help since they'll just be massively diluted.
Bitcoins cannot be diluted. That's the whole point. Where have you been the last 3 years?
Total Bitcoins Over Time
I think your Devo hat is on a little too tight. It's restricting the blood flow to your brain.
If amazon accepted bitcoin as a payment method, the bitcoin price would skyrocket. It would be like a Coup d'état for Bitcoin. It appears Shopify has recently come on board offering their merchants the option to begin accepting payment in BTC.
Anyone that knows what they did to the Liberty coin knows what they will do to Bitcoin: They will steal it and kill it.
This message sponsored by:
Guillotines 'R Us: "You bring 'em over, we make 'em shorter."
Hard to steal/kill something so decentralized.
The only real option to TPTB is the mess with the exchanges, which they are doing, but people with real banking/money transmitter experience are starting to get involved in them so it gets harder for the gov't to pull off.
I am thinking about buying one of these things. I think that it will either go to 1 million or zero. At some point government will step in and tax it. Those little bitcoin boxes in Canada seem cool...until the government shuts them down. Without a means to transfer a bitcoin into actual real world wealth it is doomed. Kind of reminds me of a tulup story.
Why do people on ZH reply to other commenters even when they aren't actually replying to them? Just post a new comment. Do people really like reading a 400-word paragraph with one word per line? I just stop reading a thread at that point and go to another topic.
I've never seen this phenomenon on any other site. It's just bizarre.
I figured it was a browser issue causing that. No one else has ever mentioned it but you.
Hi Ho BitCoin. Something doesn't sound right.
BitDust Last price:$343.49999
Great market timing BTW. You should be an investor. Couldn't call it any closer.
High:$395.00000
Face it - bitcoin has every CB in the known world totally freaked out. TPTB are gonna do ANYTHING to take it down. No fuckin' way is this gonna happen- and I love bitcoin.
If anybody knows what a risky, "junk" currency is - it's the people who have created risky, "junk" currency, eh?
You'll pardon me if I scoff at ECB and Fed. warnings.
Tyler, it is spelled "Bitcoin" as a proper noun or "bitcoin" as a unit of currency. BitCoin just looks unedumacated.
https://en.wikipedia.org/wiki/Bitcoin
http://www.oxforddictionaries.com/definition/english/bitcoin
https://en.bitcoin.it/wiki/Introduction#Capitalization_.2F_Nomenclature
The World is desperate for an alternative to the reckless Federal Reserve and the US dollar.
People want an alternate reserve currency.
Fed stooges what ya going to do if people dump your fiat?
BitCoin is the canary in the coal mine.
Sub-$300 on 3 of the 4 exchanges, LULZ...
https://markets.blockchain.info
Cool thing is, anyway, is that apparently it trades 24/7?
Yeah, it's 24/7, no holidays. Many exchanges plus localbitcoins (basically any dude with bitcoins that wants to with them one-on-one.)
I've stumbled into a few pretty shocking arbitrage opportunities, it's safe to say the bitcoin market isn't "efficient" yet.
sorry how much was value last week ?
ZeroHedge article 11/06/2013: Bitcoin Spikes To Record High At $270
Bitcoins has intrinsic value. It can't be counterfeited. Even gold coins can be clipped or tungsten'd.
"nuff said.
Fuck congress. Their only reason for looking into it is fear that the American Bankers might be losing a chance to skim the whole operation. They will use the power and military might of government to force people back into the corrupt banking system. I now use bitcoin more and more. I transfer money to any place I want, the police state can't just pull up the bank records to see what I do. Frankly, the bankers have order the congress to put a stop to bitcoin. Now the spys, the police, the military and all their dirty tricks will be put to use. I love the way CHina announced Bitcoin as accepted on their vast internet and private sector. This basically tells the US congress to go fuck themselves. We must look to CHina for freedom?
Make no mistake, the US government is an agent of oppression and corrupt greed centered on the US banking system and corrupt market makers like Goldman.
The US empire hates, gold, silver and bitcoin, anything that goes round King Dollar and it's criminal control of world trade. Nobdy should need Bernanke green asswipe to do world trade. Max Keiser has been all over the gold, silver and bitcoin story for years. He knows it is all about the dollar world reserve system. Our military is gearing up to destroy any nation who trys to go round the dollar system. Libya, Iraq have already tasted the power of the dollar, hundreds of thousands have been openly murderd to show the power of the dollar currency.
Once China stepped up an opened the door wide for Bitcoin in China, adding the increasing use in Europe, that leaves to military killers in Washington wondering how to kill everybody who is jumping ship from the dollar. You have to wonder what Obama, the Joint cheifs of staff, the Bernanke and Goldman Sachs say when they meet to plot global reserve currency status. China is not Libya, you can't just bomb them. I smell a rot, and it is coming from every bank vault stuffed with rotting green asswipe printed by Bernanke and given to America's 1% as a zirp loan to speculate with.
Heh heh, WOOT!
We'll said sir, My thoughts exactly.
The reality is that bitcoin has one deep flaw, or I would use it myself.
I do not, purely because of that flaw. Unfortunately it is necessary and even unworkable to have any monetary system that does not have the ability to price things loacally according to circumstances. Bitcoin is entirely dependant on the srates of every fiat currency in the world where bitcoin can be bought or sold as it gets exchanged.
No one currency can suit the world, and in many countries, including the US and China it would be far less costly those countries to have more than one currency. It is the reason why vasy amounts of US dollars are shifted everywhere from the richer to the poorrer states and it is ultimately a mis-allocation of wealth and therefore a malinvestment.
Ultimately all money is, can and should be based on work done, therefore should never be printed, Gold, although a useful standard due to its limited quantity and the fact that the quantity grows slowly due to mining (work) it does not take the whole equaltion into account.
One currency that can be convertible to the value of work you have either done or haver a share of from others labor, as in owning a factory and taking a share of the productive labor of the employees, and based on the immediat loacl conditions of the exchange of that labor, could in theory be a world currency.
To do this properly, a local currency would need first to be astabliched, either by country state or even city, with an exchange that is electronically convertible to any other country state or city at ZERO cost of conversion.
In order to make things run even more smoothly, it should also have the following properties,
Convertible to a world wide standard, World electronic currency, again with ZERO exchange rate costs, simply as an electronic conversion.
It should only ever be rebased at the most once a month to slow dramatically speculation. No more instant HST
With the advent of cellphone elecronic banking now it should be perfectly possible to make such an elecronic currency, and transfers between elecronic accounts that can be held by every person on earth.
The infrastucture given over to currency manipulation and instant speculative trading can be turned over to dealing with with thouands of more local currencies, but with rate adjustments taking place no more than 12 times a year.
Each local electronic currency would have a very secure encrytion that identified not only the user or account holder but also the loclity or local currency and would not be accepted in another area unless converted elecronically to that area, although the cost of exchange would be zero.
Wealth transfers by governments to regions would be a thing of the past as local areas woul;d trade a currency at a level to suit their local economy, A Somalian with his currency could fly to manhatten and exchnge instantly and the correct rate immedialy on landing to the New York currency and have full knowledge tht rate will be absolutely stable for a full month.
Transmission between any party anywhere on earth would be free instant and converted at the prevailing monthly rate to any locality.
Taxes of any form would be a thing of the p[ast.
No one would accept anything other than such an electronic currency.
The socialist will hang you, bomb you, butcher your families and burn your houses down before they would allow such a thing.
Because otherwise they would starve as parasites should
Cool, can't wait to see your finished product. Until then there is Bitcoin.
Great plan, I'm sure Stalin would endorse it!
“Bitcoin is obviously getting a lot of attention from the federal
government on the regulatory side,” Nicholas Colas, an analyst at ConvergEx Group, said in an interview. “Given the involvement of the currency in illegal activities, that is entirely warranted. I expect these hearings to be largely informational..."
Mmmk. HSBC is on record for having carried out illegal activities in the USD, namely drugmoney laundering.
That point is a red herring.
Nuff said.
Bitchcoin is going back to $225...
Bookmark it!
Meh, already have MeelionDollerBogus's comment bookmarked from 5 days ago: "And in about 20 to 80 hours shitcoin will lose 50% [from $270] in fiat currency units."
I watched a 1 BTC bet that Bitcoin wouldn't reach $385 this weekend, Ouch.
Since BTC isn't "real money" and all, care to make a bet? What's your timeframe (on a long enough...)?
Be careful, they have already taken out two countries who wanted to sell oil in euro/gold instead of petrodollar’s.
Saving the world economy from Gaddafi
"U.N. to Let Iraq Sell Oil for Euros, Not Dollars,"
I can hear it now. [You fuckers are supposed to be out buying shit instead of carefully watching over our previous lies. ]
And which country would that be in case of Bitcoin?
Bitcon is touching new highs because all the stock, bond, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss.
The markets continue to rise till all short positions in the market are covered and the majority of traders move to the long side. Once this is done the market falls till all long positions are closed and short positions undertaken. Then rinse and repeat. The price mechanism has little to do with the actual demand, supply, fundamentals or state of the economy.
http://www.marketoracle.co.uk/Article40231.html
In other news, the US Senate is holding hearings on
- Whether blue is really the best color for the sky
- Whether Mexican people should be allowed to speak Spanish in Mexico
- Where my cat should defecate
They have about as much influence over these things as they have over the world's adoption of BTC.
CAMP BX = $270
MT.GOX = $324
Dafuq..??
Camp BX is a mom and pop operation, very low volume, I believe money is sent to Camp BX via personal check...
Mt. Gox, on the other hand is giant but there are massive delays getting your fiat out of Japan.
Welcome to Fight With the Exchanges Club.
Even between Mt.Gox & Bitstamp (which appears to be a close 2nd), there's currently a 40-point spread..
Eh, what's a measly 13% differential between friends...
A 5% to 10% spread between Gox and Stamp is pretty typical. Again, because of the delays getting fiat out of Gox. Some people are setup to abritrage that and deal with the delays, only technicalities stop anybody from jumping into that game. Gox, perhaps because it is based in Japan, recently seems to be following China exchanges more closely than Stamp. The China exchanges have been trading higher than any of the others, so folks buy coin on Gox to sell to China.
Crazy... it's a WORLD OF DEBT! See the "WORLD DEBT" music video below:
https://www.youtube.com/watch?v=99xsqxzJnXs
Crazy... it's a WORLD OF DEBT! See the "WORLD DEBT" music video below:
https://www.youtube.com/watch?v=99xsqxzJnXs
Vomit
I think as another poster wrote it's all about taxing--the power to destroy. In the meantime collect the revenues via compaign (untraceable donations) or winkle out how it benefits the powers that be.
The Winklevoss Twins seen out on the town Saturday night, making it rain with bitcoins...
A currency..Money should not have such a chart. Im fine with increasing value but this is a bit over the top.
It is too new and the market capitalization is currently too low for depth. Bitcoin should not even exist, but it does. It started as a grass roots experiment at exactly zero and has been increasing in value 100x every year. It doesn't look as scary on a logarithmic scale.
Bitcoins fast appreciation will be its undoing. I think people who buy bitcoin are doing so beacause they are speculating not beacause they want a eqivalent of cash for online payment.If you look at prices measured in bitcoin I suppose there is massive deflation. Why would anybody, assuming they are greedy like me, buy anything lets say a bike if you can just wait a couple of months and buy two bikes instead. I supspect that the only bitcoin transactions are between dollars and bitcoin. I wonder what a bank said if you went to them and tried to borrow USD and use bitoins as collateral. its a money making machine:)
Whatever transpires, remember: the gov't is here to protect you from yourself. (sarc)
I know. The science of fear is a good book on that subject-
Here comes the hammer.
Bitcoin's a refuge from monopoly
of monetary policy.
Entitlements are earned.
Ditching them's like ripping off
pensions.
Privatize The Profits, Socialize The Costs.
Marry To Monopoly For Maximum Effect.
Cost Brake With Simpson-Bowles.
Use The Adversity As A Profit Center.
Where Sufficiently Severe, Use To Privatize.
(Except Today Pre-Texted Ready-
Privatization’s Been Invented.)
(It's To Infinity For TBTF.)
That's the emergency managers in
Michigan as much as the pensions
shafted in LBO's.
The very expression emergency
manager resonates with Hank Paulson's
hyperventilation act at the outset of
the TBTF bailout. Even if a temporary
stopgap were necessary, it shouldn't
have been the floodgate to trillions
in free reserves and loss sharing in
lieu of a Resolution Trust Cp. that
could have been staged.
Now we're going on 6 years of trillions
of free reserves at all savers' expense,
but also with the growing uncertainty
as to the dollar.
Privatization's occuring as to the internet
(net neutrality,) forestery, the food
chain (even if GMO's were harmless the
privatization of the food chain should
immediately result in trust busting,)
and health care.
The bitcoin of health care is
risk equalization.
http://www.multiurl.com/la/Just_Another_Privatization_Like_Ending_Net_Ne...
So sovereign fiscal trouble has
been arising from socializing ONLY
costs, by design, in one sector and
program after another.
Here's one way to look at how government,
and economists from the economic
viewpoint spectrum now always popular
on this forum, get a bum rap.
Here's as to monetary impact:
So, For Instance, The Beveridge
Curve
http://en.wikipedia.org/wiki/William_Beveridge
(Job Openings Vs.
Unemployment Rate, A Measure
Of Market Efficiency And Sensitivity,)
May Reflect Uncertainty, But The
Basis For That May Be Read Wrongly.
I Think It's Reflecting Not Uncertainty
Caused By People At The Receiving
End Of The Blame Game, But The
Expectation Rates Will Rise.
That The Liquidity Preference
Reflected Only Makes Sense In The
Presence Of Uncertainty Is
Confirmed By That Very Expectation,
In Turn Confirming John R. Hicks’
Commentary As To Uncertainty.
https://en.wikipedia.org/wiki/John_Hicks
So, for instance,
The Banks Themselves Took
A Pass On The Liquidity Trap
Created For Themselves.
http://www.bloomberg.com/news/2012-07-09/dealers-decline-bernanke-twist-...
Here's as to fiscal transfer and impact:
Real estate's price comparisons have
benefited fromt he combination of this
http://pages.citebite.com/o2c0d2e1j0mlb
and this
http://pages.citebite.com/d1i8e3n1t3rpv
and comparing unit prices instead of per square foot
prices.
The foaming of the runway's involved taking cash from
the bubble sellers to finance loss sharing, despite
the high redefault rates.
http://www.reuters.com/article/2013/07/24/usa-housing-obama-idUSL1N0FT1W...
http://www.businessinsider.com/new-mortgage-modification-program-cannot-...
http://ochousingnews.com/news/loan-modification-defaults-soar-24-can-kic...
The 5% downers should've had non-recourse instead of
their feet held to the fire.
http://online.wsj.com/news/articles/SB123336541474235541
(Was "Article Free Pass--" Today Looks
Long-Term Unrestricted--It's A Popular Link)
So the general population and especially
the bubble SELLERS (aside from the retirees'
whose retirement nest eggs' earning power
was ripped off) will likely see a physics-class
type reaction to 6 years of bubble-ramming,
and those agile in the casino economy
forced onto them, reflecting the compulsive
gambling of the bankers sanctified by our
government, will be able, often, to play it.
But that will be from reduced net worth
overall. A nation does not carry trillions
in dead weight for 6 years for free.
And in fact, there're some famous
would be Keynesians who remarkably
pretend they never heard the word
privatization.
Privatization Should Only
Exist At The Sufferance Of Public Regulation.
Where The Public Exists At
The Sufferance Of The Privatizer, That's Feudal.
What's clear is that momentum is building to dump the US dollar as the world's reserve currency.
Yellen and her 12 Fed stooges can increase printing of a collapsing currency.
It will no influence with a worthless currency.
The best way to defeat the US is to take it down economically, not militarily. Like the old Soviet Union.
Heres is the fundamentals behind Bitcoin success as alternative to FIAT Currencies:
Spread the word about this Scam of the Century!
Mike Maloney: The Biggest Scam In The History Of Mankind - Hidden Secrets of Money 4
Finally, in this episode everything comes together and Mike Maloney presents The Federal Reserve System in all its glory. With over 1 million views only on this YouTube channel the information is going out now. Mike Maloney has made the great job - everything is explained in crystal clear terms and now you can start move forward and understand why FED is as "Federal" as Federal Express and who owns it, why there is ongoing manipulation of Gold and Silver and nobody can be held accountable for it and what will happen next with QE and Taper. http://sufiy.blogspot.co.uk/2013/11/mike-maloney-biggest-scam-in-history-of.html#
We might have to "Yellen" louder to get the attention DC to stop the printing and Fed devaluation of the dollar.
http://blog.estrategypartners.com/2013/11/has-fed-has-lost-control-of-interest.html
Bitcoin makes a nice trading subject. With such volatile priceswings you can make a lot of money trading it.
I like trading the bitcoin using cfd's with Plus500