This page has been archived and commenting is disabled.

How Bitcoin Could Serve the Marijuana Industry (With Banks Still Nervous)

Tyler Durden's picture





 

Submitted by Mike Krieger of Liberty Blitzkrieg blog,

The reason venture capitalists have become so intrigued with Bitcoin over the past year or so is because it is what the industry refers to as a “disruptive technology.” Some of the key tenets of a disruptive technology are that it allows people and businesses within a certain industry (or industries) to do things cheaper, faster, and better than before by a significant, if not revolutionary margin. Bitcoin easily checks all these boxes. Even more than that, it also frees humanity from the vengeful whims, or simply the bureaucratic inefficiencies, of the state apparatus. Case in point, when Wikileaks was unable to access the traditional banking system due to a state sponsored blockade, they were still able to obtain funds through Bitcoin. In fact, that specific example, is the primary reason that I officially got behind Bitcoin in late summer 2012. I made this point clear in my debut article on the topic titled: Bitcoin: A Way to Fight Back Against the Financial Terrorists?

Which brings me to the topic of today’s post. Medical marijuana is already legal in 20 states plus the District of Columbia. It is also completely legal for recreational use in two states; Colorado where I reside, as well as Washington State. Nevertheless, big daddy government still thinks it knows best and continues to classify the relatively benign substance as a schedule one drug under federal law. As such, the banking system, (including state banks) is simply to afraid to get involved. Enter Bitcoin.

Well at least that is what I suspect will happen. As of now, it has been anecdotally reported that one dispensary has made Bitcoin payments an option, but I haven’t seen any clarification as to which one. I see this as a fantastic opportunity for both the Bitcoin community as well as the marijuana industry to come together to solve a major problem. It could be a huge win-win for both. The main question on my mind at this point is whether or not the main Bitcoin payment processing companies Coinbase and BitPay will agree to play along…

*Note: Since the publication of this post a reader pointed out that since the Bitcoin payment processors do utilize the banking system, it doesn’t exactly solve the problem. This is a fair point, but leads me along another thought process. It may indeed end up being a blessing in disguise as it sets up the marijuana industry as the perfect testing ground for use of BTC as an actual currency. Ie, potentially paying suppliers and employees in Bitcoin, perhaps only partially at first. This is going to be fascinating to watch.

First let’s examine the problem. A recent article from the New York Times highlighted it. Here are some key excerpts.

The New York Times writes:

Legal marijuana merchants like Mr. Kunkel — mainly medical marijuana outlets but also, starting this year, shops that sell recreational marijuana in Colorado and Washington — are grappling with a pressing predicament: Their businesses are conducted almost entirely in cash because it is exceedingly difficult for them to open and maintain bank accounts, and thus accept credit cards.

 

As a result, banks, including state-chartered ones, are reluctant to provide traditional services to marijuana businesses. They fear that federal regulators and law enforcement authorities might punish them, with measures like large fines, for violating prohibitions on money-laundering, among other federal laws and regulations.

 

“Banking is the most urgent issue facing the legal cannabis industry today,” said Aaron Smith, executive director of the National Cannabis Industry Association in Washington, D.C. Saying legal marijuana sales in the United States could reach $3 billion this year, Mr. Smith added: “So much money floating around outside the banking system is not safe, and it is not in anyone’s interest. Federal law needs to be harmonized with state laws.”

 

The limitations have created unique burdens for legal marijuana business owners. They pay employees with envelopes of cash. They haul Chipotle and Nordstrom bags containing thousands of dollars in $10 and $20 bills to supermarkets to buy money orders. When they are able to open bank accounts — often under false pretenses — many have taken to storing money in Tupperware containers filled with air fresheners to mask the smell of marijuana.

 

The all-cash nature of the business has also created huge security concerns for business owners. Many have installed panic buttons for workers in the event of a robbery and have set up a constellation of security cameras at their facilities beyond what is required, as well as floor sensors to detect break-ins. In Colorado, Blue Line Protection Group was formed a few months ago, specializing in protecting dispensaries and facilities that grow marijuana, and in providing transportation security. The firm largely uses military veterans who have Special Operations experience.

Also in a recent article, CoinDesk alludes to a possible solution using Bitcoin:

At least one marijuana dispensary in Colorado has reportedly begun accepting bitcoin.

 

A somewhat bigger problem for dispensaries lurks in federal law. They cannot accept credit card payments, so all purchases must be in cash – or bitcoin.

 

Banks and credit card companies are playing it safe. They must comply with federal legislation and although it might be possible to come up with a workaround, they do not appear interested at this point.

 

Federal law has forced dispensaries to accept cash, and cash only – but bitcoin is a tempting alternative. Anonymity does not matter, since recreational marijuana is legal in Colorado, but with no credit cards in the mix, it is practically the only alternative.

 

Sales of recreational marijuana in Colorado are reportedly exceeding $5m a week, and banks simply cannot enter the fray until regulators give them the green light.

It’s still early days, but this is fertile testing ground for Bitcoin’s disruptive, game-changing capabilities. I will be eagerly watching this story.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 01/13/2014 - 23:21 | Link to Comment 0b1knob
0b1knob's picture

There is an interesting SF book called The Diamond Age about the post banking world of governmentless anarchy.    The book takes place in the near future where all economic activity is conducted by encrypted untracable means.   The point of the book is that once transactions become untracable they also become untaxable.  This does not work out well for the USSA although England and China adapt and survive.   Once the government losses control of the currency they are gone like a mirage.

Very interesting read.

Mon, 01/13/2014 - 23:37 | Link to Comment NotApplicable
NotApplicable's picture

I'm thinking banks will get the greenlight after tax authorities tire of dealing with stacks of all cash payments.

Mon, 01/13/2014 - 23:47 | Link to Comment CH1
CH1's picture

I love it that our sanctified, omnipotent overlords are shooting themselves in the foot... again.

Tue, 01/14/2014 - 02:02 | Link to Comment Fukushima Sam
Fukushima Sam's picture

To avoid the dangers of a cash-only business retail pot shops could:

1. Accept only Bitcoin, or give price incentives for Bitcoin purchases.

2. Provide Bitcoin ATM in front lobby.

3. Immediately convert Bitcoin sales to USD deposits in electronic accounts.

4. Profit and enjoy the fruits of your labor.

Tue, 01/14/2014 - 02:22 | Link to Comment zaphod
zaphod's picture

I am very confused. Didn't the FED just shutdown Silk Road because of all the drugs? 

And this gave Bitcoin legitimacy because now it was not associated primarily with drug use.

And now Bitcoin is going to help enable a legal drug industry. 

None of this makes any sense.

Tue, 01/14/2014 - 06:43 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

 

I always pay for my dope with bitcoins....that way the DEA always knows where to find me.

Tue, 01/14/2014 - 07:02 | Link to Comment negative rates
negative rates's picture

What are the banks worried about? They do back door cocaine deals all the time with equities. The turf maybe. 

Oh yea, and the Federals, always wrong, but never in doubt!

Tue, 01/14/2014 - 07:24 | Link to Comment bonderøven-farm ass
bonderøven-farm ass's picture

A friend of mine owns several dispensaries in CO....and he's expanding.  Cash has been a blessing and a problem, so he's been purchasing physical gold.  He's not the only one.

Tue, 01/14/2014 - 07:45 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Acapulco Gold is bad ass weed....and worth it's weight in gold.

 

My dealer is old school.....he takes gold....but he's still a little leary about bitcoins.

 

Don't even think about placing your order over a cell phone.....he hates that crap.

http://www.youtube.com/watch?v=2nG7aix-VO4

Tue, 01/14/2014 - 08:08 | Link to Comment markmotive
markmotive's picture

What if the electricity goes? Will bitcoin retain value during a war?

Bitcoin myths exposed

http://www.planbeconomics.com/2014/01/bitcoin-myths-exposed.html

Tue, 01/14/2014 - 09:03 | Link to Comment CH1
CH1's picture

Maybe you should stand on the street, wave your arms, and scream Bitcoin Is From The Devil!

Tue, 01/14/2014 - 11:11 | Link to Comment TheAnswerIs42
TheAnswerIs42's picture

Buying or selling ANY amount of certain coins, like American Silver /Gold Eagles is NOT subject to the IRS 1099B reporting requirement.

The transactions can be completely private and legal, but it depends on the PM dealer as to whether or not they file the 1099B (it is "optional").

 

Tue, 01/14/2014 - 09:08 | Link to Comment CH1
CH1's picture

Didn't the FED just shutdown Silk Road because of all the drugs?

LOL... as if they really hated drugs. They shut it down because it made them look stupid.

And this gave Bitcoin legitimacy because now it was not associated primarily with drug use.

Dream on. It became far more popular after the SR takedown.

And now Bitcoin is going to help enable a legal drug industry.

Currencies work for ANY industry - that's what currencies are for!

So, are you going to learn anything, or lash out wildly at BTC because it is "other"?

Tue, 01/14/2014 - 03:11 | Link to Comment sessinpo
sessinpo's picture

Or is could simply be

1) legalized on the Federal level

2) thus allowing for credit/debit cards to be used.

 

Tue, 01/14/2014 - 13:04 | Link to Comment Milestones
Milestones's picture

Quite frankly, I'm at a loss to understand how a STATE CHARTERED BANK is hindered by Federal laws if the State Bank issues it's own Debit card, good for only Mary Jane customers in Colorado.( Though perhaps it would be better to hanle things --Wow I can see many problems now I hadn't thought about. How do you transfer the money around if local but federally encumbered banks in say N.J. refuses to accept a cashiers check from the M.J. bank in Colorado---yet the M.J. bank in Colo. is using FRNs--This could get dicey--does that constitute interstate commerce but then the initutial use of FRN.s to buy M.J. i Colorado is interstate commerce to begin with.

Hell I think I'd better end this comment and get  the ole thinking cap back on. There has got to be a way if the will is there. Whoever solves this mother is going to be a wealthy man.

Course I'm sure if the bank is JPM or Goldman-sucks a solution wil be forthcoming. Greed is really going to be in play here--plus a really neat answer will be provided by the Supremes.

Sorry for taking up your time.               Milestones

Tue, 01/14/2014 - 09:55 | Link to Comment Martel
Martel's picture

1. Accept only Bitcoin, or give price incentives for Bitcoin purchases. 2. Provide Bitcoin ATM in front lobby. 3. Immediately convert Bitcoin sales to USD deposits in electronic accounts.

If the merchants themselves operate the ATM, they also get some profits from the exchange margin. That could be substantial. Since it is mostly one way transaction (customers buy bitcoins to buy pot), Lamassu's ATM suits fine. It costs just $5000 or so.

Mon, 01/13/2014 - 23:58 | Link to Comment icanhasbailout
icanhasbailout's picture

yeah right like the taxman is going to complain about all those embezzlement opportunities

Tue, 01/14/2014 - 01:11 | Link to Comment Unpopular Truth
Unpopular Truth's picture

tax authorities can collect taxes at point of sale. Here is how: http://www.bitcoinhatersguide.com/collect_taxes.html

Tue, 01/14/2014 - 03:01 | Link to Comment One World Mafia
One World Mafia's picture

Makes tax enforcement a snap. 

Mon, 01/13/2014 - 23:38 | Link to Comment fonestar
fonestar's picture

Bitcoin is currently not being used by the underworld (not the internet's underworld).  When that changes, how high Bitcoin could go is anyone's guess.

Mon, 01/13/2014 - 23:42 | Link to Comment Harbanger
Harbanger's picture

"Bitcoin is currently not being used by the underworld"

Do you just throw things out for effect, What makes you say this?

Mon, 01/13/2014 - 23:44 | Link to Comment NoDebt
NoDebt's picture

How the hell did you and I end up on the same side of this argument?

Mon, 01/13/2014 - 23:49 | Link to Comment chumbawamba
chumbawamba's picture

Can someone smart please explain to me how weed can be legal in the D. of C. but yet the feds still raid cannabis collectives in California, clear across the other side of the country, in a foreign political jurisdiction no less?

I am Chumbawamba?

Mon, 01/13/2014 - 23:55 | Link to Comment Skateboarder
Skateboarder's picture

Always two sets of rules in Empire my friend. San Jose got clubs got nailed for a second a couple of years ago. Just cuz. Hemp Con in San Jo this weekend. Come one, come all, get yer picture taken by the feds.

Mon, 01/13/2014 - 23:56 | Link to Comment Harbanger
Harbanger's picture

It's not just weed, there are many laws that don't apply to DC.  It's selective enforcement.

Tue, 01/14/2014 - 01:12 | Link to Comment Unpopular Truth
Unpopular Truth's picture

are social security deductions in the same boat?

Tue, 01/14/2014 - 07:03 | Link to Comment negative rates
negative rates's picture

The is a law for uins, and a law for weins, and they aint the same law.

Mon, 01/13/2014 - 23:50 | Link to Comment Harbanger
Harbanger's picture

Don't ask.

Mon, 01/13/2014 - 23:58 | Link to Comment fonestar
fonestar's picture

"Bitcoin is currently not being used by the underworld"

Do you just throw things out for effect, What makes you say this?

 

I'm still reading of cases all over the place of people getting caught with double and triple wrapped bags of cash.  And I'm thinking to myself, "you don't need to do this anymore guys".

Tue, 01/14/2014 - 00:08 | Link to Comment Harbanger
Harbanger's picture

"people getting caught with double and triple wrapped bags of cash."

Fiat smugglers are not the people you're looking for.  Those are most likely poor fools trying to get some $ out of their capital controlled country.

Tue, 01/14/2014 - 02:43 | Link to Comment Musashi Miyamoto
Musashi Miyamoto's picture

I don't know anything about the efficacy of saran-wrap but once upon a time i stashed my money in a shoebox under my bed. Now that I have dedicated myself the path of Sotoshi I fear not of spiteful prostitutes and sketchy landlords. I am free to accumulate as much in liquid assets as i so desire without fear of govt. taxes or other "liberators".

P.S. A lot can be said of rubber-bands, you can wrap each 100 and each 1000 into wads and bricks for a more "professional" feel. its important to maintain image. Flashing a brick of cash with a hot date gets you to 3rd base on the bad nights.

Tue, 01/14/2014 - 08:09 | Link to Comment firstdivision
firstdivision's picture

 liquid assets

to which BTC is not at all

Tue, 01/14/2014 - 09:44 | Link to Comment sleigher
sleigher's picture

Did you not read those stories about silkroad and that ulbricht character?

Tue, 01/14/2014 - 05:11 | Link to Comment TheHound73
TheHound73's picture

"The underworld" has a $500 billion market cap. Bitcoin's is $10 billion.

Tue, 01/14/2014 - 07:33 | Link to Comment aphlaque_duck
aphlaque_duck's picture

$10T+ by some estimates.  http://en.wikipedia.org/wiki/System_D

Mon, 01/13/2014 - 23:46 | Link to Comment NoDebt
NoDebt's picture

"Bitcoin is currently not being used by the underworld"

Of course not.  Of course not.

If anything's got a chance at being the world's new black market currency, it's BitCoin.  Do you want me to lay out for you the restrictions MtGox has put on my account in the last 6 months in a clear effort to limit it's effectiveness for small-time crooks?

 

Mon, 01/13/2014 - 23:55 | Link to Comment CH1
CH1's picture

Real crooks use HSBC and Wachovia.

Tue, 01/14/2014 - 00:02 | Link to Comment fonestar
fonestar's picture

That's a big part of it. Currently, the companies that serve as a junction between the dollar-BTC worlds are dumb enough to believe they are going to confer favour from the state by playing by the state's rules.  More Bitcoin has to filter out further from these first adopters for Bitcoin to make a mark in the upper and underworld's economies.

Tue, 01/14/2014 - 02:55 | Link to Comment Musashi Miyamoto
Musashi Miyamoto's picture

I had this conversation on the darknet a couple months ago. IMHO Bitcoin could and should be left to the "Bill Maher Libertarians" and associated establishment posers. The Underground will develop its own cryptocurrency. Think about it, with over 100 altcoins I think that we will see the development of the "darknet altcoin" that will grow in tandem, and become widely accepted within the cyberspace black-market.

Tue, 01/14/2014 - 00:09 | Link to Comment Hongcha
Hongcha's picture

Fonestar, a lot of good people are underworld and off the hook.  Me, I'm getting my costume ready.  Ready for perpetual halloween.

Who knows what it's used for.  On the internet nothing is true and everything is permitted.

Tue, 01/14/2014 - 07:54 | Link to Comment Acet
Acet's picture

The Internet: where men are men, women are men and little girls are FBI agents.

Tue, 01/14/2014 - 08:21 | Link to Comment firstdivision
firstdivision's picture

Dafuq are you smoking?  Did you buy it off Silk Road?

Mon, 01/13/2014 - 23:42 | Link to Comment LawyerScum
LawyerScum's picture

I'm currently reading a book by the same author (Neal Stephenson) called "Snow Crash".  In the book denominations of the dollar have gone up to billion and trillion levels.  The remnants of the U.S. Gov. have to put out a memo about the proper usage and acquisition of toilet paper that billion dollar bills are unacceptable replacements for toilet paper because they clog up the pipes.

Mon, 01/13/2014 - 23:56 | Link to Comment Skateboarder
Skateboarder's picture

My friend who has read a jillion pages recommended and gave me a copy of his Snow Crash. I opened that shit and the protagonist's name is "Hiro Protagonist." I thought "eww, cheesy," and put it away. Really been meaning to give it another try. I wouldn't have been given it if it wasn't worthwhile.

Tue, 01/14/2014 - 00:17 | Link to Comment Hongcha
Hongcha's picture

Skateboarder, you might give Snow Crash another shot although it was published 20 years ago and like William Gibson may be a tad behind the times.  It is interesting to see how much N.S. anticipated but not 650 pages interesting.

I think the California clubs do just fine without the goddamned MC, Visa, Chase, BofA, insurance companies and other assorted cuntage involved.  What I don't like is every transaction gets recorded with Hongcha's name on it. And my card links to my home address.  But tell you the truth, I am not terribly concerned about that; there are only about other 2 million licensed pot smokers in the state.  

I would be interested to know how CO and WA are working the I.D. thing.

If you give these young kids credit card access to the pot clubs, dear me then it might swing a little more out of control.  At this point it's fine, no credit extended and there should be none extended unless you are truly ill.

Seems ACA has pushed the natural remedy segment out into the cold.

Funny how the Fed aligns with and supports all the dead things - banks, insurance cos., jails, big pharm, Monsanto, oppression of natural cures.  The Fed is itself is necrotic, is evil in its banality.

"It's not that they don't want you to do drugs.  They just want you to do their drugs."  Chris Rock

Tue, 01/14/2014 - 00:45 | Link to Comment Skateboarder
Skateboarder's picture

Thanks for the reinforcement/opinion, Hongcha. I will certainly at least try to make a dent in it before I give up a second time.

This one time I was skating at one of my local parks. It has this curvy ledge that ends in a 90 degree turn, meaning that you have to pop over the impending curb facing you. Not the greatest picture, but here:

http://oi40.tinypic.com/2u41z53.jpg

So I was haulin' ass, trying to go for 2 blocks' length that day. Somewhere along the way, the ledge was sticky. Sticky as in, you stop sliding in an instant, and you get thrown forward. Being thrown about six to eight feet, I clipped my lower quadricep tendon on the 90 degree ledge facing me as I somersaulted and ate shit on the ground below. Couldn't fucking believe what had just happened. I put my ass on my skateboard and pushed myself to get the pipe. Pain relief. The tendon was fucked, but that wasn't to be fixed until all the inflammation had gone down. Imagine a smooth bundle of fibers being seperated laterally in the E/W directions and lumped to form bumps/hills in the N/S directions. The swelling and inflammation lasted a month. The second month, as some tendon healing had taken place, I got high every night and slowly massaged my tendon pieces back into a bundle shape. It was pretty painful for the first ten days, and the bud-dha was the single most helpful tool in times of duress. I refuse to take bigPharm and only use natural remedies. Fuck their horsebollocks manure.

Tue, 01/14/2014 - 09:52 | Link to Comment sleigher
sleigher's picture

Reading about the endocannabinoid system in our bodies and what happens to cells when we get cancer is quite amazing.  I truly believe that bud-dha was placed here for us by whatever power it was that made the universe.  Look at cancer cells and CB2 receptors, then understand what cannabinoil does when it hits those receptors.  No way this could be a mistake or just by chance.  Only pure evil would keep humans away from one of the greatest gifts to man.

Mon, 01/13/2014 - 23:33 | Link to Comment Harbanger
Harbanger's picture

All TPTB want is for you to get a proper prescription first, then follow the rules given for your safety and pay some taxes.  Simple enough. 

Tue, 01/14/2014 - 03:06 | Link to Comment Harbanger
Harbanger's picture

No sense of humor.  Jeez, what did people expect legalization to look like.

Mon, 01/13/2014 - 23:10 | Link to Comment BLOTTO
BLOTTO's picture

Im baked right now.

Mon, 01/13/2014 - 23:11 | Link to Comment HedgeAccordingly
HedgeAccordingly's picture

Lollll 

Mon, 01/13/2014 - 23:32 | Link to Comment nmewn
nmewn's picture

lol...sawright, they convert it to fiat (for tax purposes) ;-)

Mon, 01/13/2014 - 23:41 | Link to Comment BLOTTO
BLOTTO's picture

BTW, marijuana is a currency on its own...one can trade it for a lot of goods and services.

Tue, 01/14/2014 - 01:41 | Link to Comment denverdolomte
denverdolomte's picture

Thank you Blotto! +10 

 

Mon, 01/13/2014 - 23:10 | Link to Comment HedgeAccordingly
HedgeAccordingly's picture

but i thought Greenspan said it was a bubble? http://hedge.ly/18iZ3rI 

Mon, 01/13/2014 - 23:12 | Link to Comment q99x2
q99x2's picture

Right arm. It is horrifying the poverty and tryranny that the banking punks have been placing the world under. Overthrow them. Defeat them. Arrest them. Redistribute their stolen wealth into bitcoin.

Mon, 01/13/2014 - 23:21 | Link to Comment willwork4food
willwork4food's picture

Arrest them. Hang them. On Pay-Per-View. Redistribute their stolen wealth to the actual people that still work for a living.

Fixed it for ya.

Mon, 01/13/2014 - 23:13 | Link to Comment Grande Tetons
Mon, 01/13/2014 - 23:15 | Link to Comment Duke of Earl
Duke of Earl's picture

Yes, but do they take Krugerrands?

Mon, 01/13/2014 - 23:19 | Link to Comment the grateful un...
the grateful unemployed's picture

once the banks get in the marijuana business you can kiss your doob goodbye

Mon, 01/13/2014 - 23:24 | Link to Comment adr
adr's picture

Amazing that after the get rich quick scheme of flipping real estate blew up, the new get rich quick scheme of flipping digital currency took off. All you needed was a low cash investment and the return would be incredible. Buy up homes for a few thousand dollars in back taxes and flip them for a few hundred thousand as the investors scramble to buy into the mania.

Just like real estate, early investors made out like bandits, the bandits they actually were. Were the homes really worth the money they traded for, of course not. But people believed they were.

History is full of scams, even those that don't believe they are running a scam can be used by the scam artists to push the agenda. After all they just thought they were making honest money. Sorry but if you didn't work for it, it's not honest money.

Maybe if people put the time and energy they put into trying to make a quick easy buck into pursuits of real value, we'd have a better world.

But you don't want to miss out on making money right? Bitcoin's going to $1 million. Easy money all day long. All you have to do is buy in and the money will make itself, just like that 1300 sq ft beach condo in Florida.

Tue, 01/14/2014 - 01:15 | Link to Comment Exponere Mendaces
Exponere Mendaces's picture

@adr

Make sure to contact all the venture capitalists, Richard Branson of Virgin, the CEO of Overstock, the fund manager over at Exante Ltd., the hedge fund guys over at Glocap San Francisco... man, the list just goes on and on.

You are so lucky to have identified this as a scam, now you can save all these professionals the trouble! How it ever made it through the due diligence processes of Hedge Fund Managers, CEO's, Billionaires and Multi-Million Venture Capitalists is just amazing.

Please, report back after you've warned everyone, we really would love to hear their responses.

 

Tue, 01/14/2014 - 02:13 | Link to Comment RideTheWalrus
RideTheWalrus's picture

Please, report back when you know who created bitcoin.

 

Tue, 01/14/2014 - 05:11 | Link to Comment John___Connor
John___Connor's picture

Please report back when you know who created HTTPS or bitTorrent. 

Tue, 01/14/2014 - 06:12 | Link to Comment frenzic
frenzic's picture

1. Who cares because any douchebag can make his own certificate, think about it. For once, think about it.

2. Bram Cohen, ain't that a surprise.

 

Tue, 01/14/2014 - 09:06 | Link to Comment John___Connor
John___Connor's picture

Exactly. Who cares who invented an open source protocol because anybody can verify a transaction in the blockchain because of bitcoin neutrality, think about it. For once, think about it. 

Tue, 01/14/2014 - 13:23 | Link to Comment frenzic
frenzic's picture

caught with your pants down

Tue, 01/14/2014 - 03:59 | Link to Comment mmanvil74
mmanvil74's picture

Is it just me or was this comment copied and pasted from a previous post? Either way, the disinformationists are doing their best to spread FUD about Bitcoin but the cat is already out of the bag. Welcome to the new world of finance, jump on or get run over.

Tue, 01/14/2014 - 07:06 | Link to Comment negative rates
negative rates's picture

If it were that easy, everybody would be doing it.

Tue, 01/14/2014 - 08:16 | Link to Comment firstdivision
firstdivision's picture

E*Trade were the pioneer in this.

Buy something electronically that you can never hold or count.  Hope the price goes up and you sell it. 

Mon, 01/13/2014 - 23:25 | Link to Comment Seasmoke
Seasmoke's picture

It's 420 somewhere in the world.

Tue, 01/14/2014 - 07:07 | Link to Comment negative rates
negative rates's picture

Well even a stopped clock is right twice a day.

Mon, 01/13/2014 - 23:27 | Link to Comment infiniti
infiniti's picture

How in the fuck are the banks nervous about $12 billion total market value of "cryptocurrencies"? JPMorgue makes half that much every 6 months in actual factual USD, just riding their balance sheet and feasting on the sheeple, trust me, they aren't worried about any stupid fucking bitcoins or litecoins or beanie-baby bucks.

Tue, 01/14/2014 - 01:44 | Link to Comment Bunga Bunga
Bunga Bunga's picture

...because they know it will go to +-12 trln one day.

Mon, 01/13/2014 - 23:28 | Link to Comment williambanzai7
williambanzai7's picture

Is this what the Bitcoin people mean by hashtag?

Mon, 01/13/2014 - 23:39 | Link to Comment nmewn
nmewn's picture

No hookah for you!

Tag...your it, my treat ;-)

Tue, 01/14/2014 - 00:09 | Link to Comment mt paul
mt paul's picture

ahhh , memories of Kashgar nites

warm dry winds blowing in off the Taklimakan desert

drinking hard black coffee , smoking hashhish 

with dusty hard worked locals gathering for market day

listen to the camels grunting amongst themselves

like old men reminiscing , about their youth

Kashgar nights....

 

Tue, 01/14/2014 - 01:49 | Link to Comment Oh regional Indian
Oh regional Indian's picture

That sounds like Paul Bowels after a bowl of Marrakesh's finest....

ori

Mon, 01/13/2014 - 23:54 | Link to Comment the grateful un...
the grateful unemployed's picture

and shale oil is really code for hash oil

Tue, 01/14/2014 - 01:31 | Link to Comment Shazam342
Shazam342's picture

Good one, WB7!

Tue, 01/14/2014 - 01:32 | Link to Comment Shazam342
Shazam342's picture

Good one, WB7!

Tue, 01/14/2014 - 03:36 | Link to Comment void_ptr
void_ptr's picture

He who would pun would pick a pocket.

Mon, 01/13/2014 - 23:39 | Link to Comment Dr. Engali
Dr. Engali's picture

I don't know if bitcoin can stand the test of time, but I am in full support of anything that helps tear down the current system. One thing is certain, we live in interesting times. Forty years ago who would ever have thought that we would be legalizing marijuana today?

Mon, 01/13/2014 - 23:39 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Yup. What next, gay marriage? Black presidents?

Mon, 01/13/2014 - 23:41 | Link to Comment Dr. Engali
Dr. Engali's picture

With Zero we got a twofer.

Mon, 01/13/2014 - 23:52 | Link to Comment the grateful un...
the grateful unemployed's picture

forty years ago, how about the fabulous furry freak brothers?

Tue, 01/14/2014 - 00:35 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

"Dope will get you through times of no bitcoin better than bitcoin will get you through times of no dope."

Tue, 01/14/2014 - 01:16 | Link to Comment Exponere Mendaces
Exponere Mendaces's picture

"Bitcoin will get you through a cavity search better than Dope in your cavity."

Tue, 01/14/2014 - 01:48 | Link to Comment Skateboarder
Skateboarder's picture

Normal people don't put weed up their butt...

Tue, 01/14/2014 - 16:45 | Link to Comment Exponere Mendaces
Exponere Mendaces's picture

The TSA doesn't care, or the DEA apparently.

Tue, 01/14/2014 - 07:08 | Link to Comment negative rates
negative rates's picture

You are right, the insanity has increased expodentially over that time frame because we didn't.

Mon, 01/13/2014 - 23:29 | Link to Comment Blazed
Blazed's picture

Dope!

Mon, 01/13/2014 - 23:37 | Link to Comment Caviar Emptor
Caviar Emptor's picture

BITEcoin : currency for sex industry. And yes it's part of globaluzation

Mon, 01/13/2014 - 23:41 | Link to Comment nmewn
nmewn's picture

Wait, devolving currencies for specific interests & needs.

Hmmm.

Mon, 01/13/2014 - 23:43 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Yes. BRITcoin is sure to follow so as not to lose national identity

Tue, 01/14/2014 - 01:18 | Link to Comment Exponere Mendaces
Exponere Mendaces's picture

Too bad there isn't any specific coin to capitalize on your failed sense of humor. Keep making jokes, by 2015 Bitcoin will be creeping into your life, whether you want it or not.

Enjoy that bitter feeling!

Mon, 01/13/2014 - 23:42 | Link to Comment Hugh Jorgan
Hugh Jorgan's picture

I am sure all the RICO's in the world are already deep in the bitcoin business.  its a perfect way to launder ill-gotten gains, be they legal weed or illegal weed-its going to turn into the preferred currency of criminals everywhere.  That will do one thing-keep the IBs on Wall in the money when everything else falls apart. 

Hate to say it-but that is pretty much why the digital currency age was born-for the purpose of laundering money.  Its all about legitimizing illegal gains. 

Mon, 01/13/2014 - 23:47 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Remember BCCI? Pioneers in the laundering game

Tue, 01/14/2014 - 03:18 | Link to Comment sessinpo
sessinpo's picture

The gains don't even have to be ill gotten. It's a good way to transfer wealth to lower taxation places.

If anything, the ones that will utilize and gain the most from this, is the ones that most people bitch about.

Mon, 01/13/2014 - 23:43 | Link to Comment flyonmywall
flyonmywall's picture

You mean, how George HW Bush had a prescription for THC drops for glaucoma?

The problem is that everybody wants their cut. It's all a mafia scheme. Cut out the middleman, and get a cheaper price.

 

Mon, 01/13/2014 - 23:45 | Link to Comment Payne
Payne's picture

Co-locate a coin shop in a dispensary.  Sell the coins on credit and only accept the coins or cash is payment for the MJ.  Easy peasy.

Mon, 01/13/2014 - 23:48 | Link to Comment Atomizer
Atomizer's picture

Flatulence cou ba nex bom, Nu?

Wa du fowing.

  • Make all worker wear government supplied pants - Monitor Flatulence level 24/7
  • Any peasant exceeding .00012% PPM in 24 hour be charged $750 dollar. Repeat exposure collect $250 dollar per burst.
  • All fine halp state to make new fings
Mon, 01/13/2014 - 23:53 | Link to Comment ebworthen
ebworthen's picture

Let's just make Pot legal currency; it's green isn't it?

Mon, 01/13/2014 - 23:57 | Link to Comment the grateful un...
the grateful unemployed's picture

gives a new meaning to fractional reserve banking. dude i just smoked the weed i am loaning you, and you smoke it and loan it to the next guy, we all get high, on one joint!

Tue, 01/14/2014 - 00:03 | Link to Comment Major Major Major
Major Major Major's picture

mine is kinda purple right now

Tue, 01/14/2014 - 00:16 | Link to Comment mt paul
mt paul's picture

tried to grow some hydro

on the iceberg..

 

but the seals ate them ..

Tue, 01/14/2014 - 00:17 | Link to Comment Advoc8tr
Advoc8tr's picture

Hemp paper kicks ass ... good use for the leftovers. Who said money can't grow on trees.

Tue, 01/14/2014 - 01:19 | Link to Comment Exponere Mendaces
Exponere Mendaces's picture

Perfect, not like you can just grow more of it!

Oh wait...

 

Tue, 01/14/2014 - 00:13 | Link to Comment Advoc8tr
Advoc8tr's picture

Something is amiss ?  All of a sudden I see articles Pro legalisation on the front page of our newspapers here in Brisbane with 90% of commentators vociferously agreeing.  I've been plugging away at this seemingly obvious solution to lowering (statistical and acquisition related crime ) along with raising tax revenue for years only to be shouted down and dismissed as radical - now every fucker suddenly agrees ?   Most people are nothing but echo chambers that breathe ... as soon as someone of perceived "authority" says it's OK everyone else is immediately on board - never spared the issue a dedicated brain cell then or now.

Now I'm paranoid they're up to something nefarious as usual :S

Tue, 01/14/2014 - 00:16 | Link to Comment mmanvil74
mmanvil74's picture

The banks should be nervous.  Their privelege exists only because of regulation.  Once the market discovers the farce that are the banks, and how little to zippo they do for anyone but the 1% every other person in the 99% will take large measures to avoid dealing with the "service" offered by the banks, which is no service at all but a complete parasite, that just about everyone understands but until now had nothing they could do about it... until Bitcoin!

Tue, 01/14/2014 - 00:32 | Link to Comment mmanvil74
mmanvil74's picture

And get this, here is a contrarian belief for you... many members of our government actually understand and want to see bitcoin, MJ and any other thing that represents freedom in the world to be legalized and adopted on this planet.  It is merely the bankers that they have to supersede, because you see folks, we put too much of the blame on our government, there are actually "good and freedom loving peeps" in there, thanks to the Tea Party and others.  So, make your contribution at your local gov't voting box, it does matter and it can create change.  Bitcoin will bring down the bankers and establish global democracy, individual freedom, and free market never before imagined, but each one of us has to take a step in that direction.

Tue, 01/14/2014 - 01:19 | Link to Comment Bow Tie
Bow Tie's picture

bitcoin and weed i love them both.

Tue, 01/14/2014 - 01:23 | Link to Comment HOBO POTHEAD
HOBO POTHEAD's picture

Anybody got any spare Bitcoins?

Tue, 01/14/2014 - 08:21 | Link to Comment TheHound73
Tue, 01/14/2014 - 01:29 | Link to Comment mijev
mijev's picture

"They haul Chipotle and Nordstrom bags containing thousands of dollars in $10 and $20 bills to supermarkets to buy money orders."

 

And I bet they also buy huge bags of cheetos and microwave pizza. 

Tue, 01/14/2014 - 01:39 | Link to Comment e_goldstein
e_goldstein's picture

Kinda suprised that RBS and HSBC aren't all over this. I mean, they already have experience with the drug cartels. Guess that if the money isn't dirty, they aren't interested.

Tue, 01/14/2014 - 03:06 | Link to Comment One World Mafia
One World Mafia's picture

What is to stop whoever has the bucks to pay for the most mining power from changing the software?

Tue, 01/14/2014 - 03:15 | Link to Comment silvermail
silvermail's picture

Nothing can compete with Bitcoin - because human stupidity, has no boundaries and limits!

Tue, 01/14/2014 - 03:16 | Link to Comment silvermail
silvermail's picture

Some idiots say: Bitcoin is a threat to the U.S. dollar.
At that time, they forget that Bitcoin is supported by the U.S. Senate and the U.S. Army.
http://bitcoinmagazine.com/8531/u-s-air-force-building-bitcoin-payment-g...
If someone thinks, that the system which represents a real threat to the hegemony of the dollar will have the support of the Senate and the U.S. Army, he is definitely a full idiot.

Tue, 01/14/2014 - 03:16 | Link to Comment silvermail
silvermail's picture

Bitcoin – a product of the Federal Reserve.
Dollar discredited itself in the eyes of the public. The Fed also discredited itself in the eyes of the public.
Of course for Fed was needed make a legend about some Satoshi, which supposedly created Bitcoin, and then he is evaporated.

Thus, the Fed shows for fools (which the majority) that Bitcoin - a system that "does not belong to anyone," and "no one is controlled".

But this is absurd. In the world there are no financial assets and payment systems that have no legal owners,
with a specific name, surname and ID number.

All that is in front of the prefix "The global World or International" - it is the property of the United States. Or controlled by the United States.
Everything else - the local and minor.

Federal Reserve no longer need gold. Now they have a Bitcoin. As soon ends era the first fiat money - the U.S. dollar, immediately begin the era of other fiat money under the control of the Fed - it will Bitcoin.

Bitcoin system has a limit of coins. But Bitcoin system has no limit fragmentation of these coins.
Crushing coins Bitcoin to infinity - it's the same exact Monetary Emission, like printing FRN.

Tue, 01/14/2014 - 07:51 | Link to Comment satoshi101
satoshi101's picture

I am as real as Bitcoin.

Now think about that statement for awhile.

Tue, 01/14/2014 - 03:16 | Link to Comment silvermail
silvermail's picture

One of the main objectives of bitcoin - it distract investors from exit in the real money - Gold and Silver.
Bitcoin today is the main enemy of the PMs and the main instrument of the Fed for to suppress the price of PMs.

Tue, 01/14/2014 - 07:38 | Link to Comment madtechnician
madtechnician's picture

Rubbish the BTC market is a tiny fraction of less than 1% of the gold market to think BTC is supressing gold price is rediculous. BTC is a flea on the back of a donkey (gold).

Tue, 01/14/2014 - 08:21 | Link to Comment webbie
webbie's picture

Right! SMH Everyday there's a new reason to discredit BTC by these PM cats. I have heard it all. Bitcoin surpressing Gold??? WTF! Hey we will let you know when Bitcoin is suppressing Gold but by that time Bit will be at Dow 16k. 

Tue, 01/14/2014 - 03:17 | Link to Comment silvermail
silvermail's picture

For the Blind about Bitcoin again:

U.S. Senate supports Bitcoin.
U.S. Army supports Bitcoin.
U.S. banking system supports Bitcoin.

I very hope, that you are able at least a bit of thinking.

Tue, 01/14/2014 - 03:18 | Link to Comment silvermail
silvermail's picture

today the system encourages unprincipled.
What is the main principle of Bitcoin?
It is very simple: In order to live better than other people, you do not need to work. You do not need to benefit society via your useful productive job.
You only need to have a more powerful computer.

And so will you generate yourself more benefits, than your stupid neighbor, what works in the two jobs, at 12 hours every day.

But it is a vicious principle. This is the principle of unscrupulousness. This is contrary to the fundamentals of morality and ethics. And it defies common sense, because it is a utopia.

The system encourages unprincipled parasitism on the body of society.

Tue, 01/14/2014 - 03:19 | Link to Comment silvermail
silvermail's picture

I'm aware of:
Titanic (shit-coins) - a brand-new ship, it is not like the other ships, it's big, it has a lot of new technologies, and of course Titanic (shit-coins) will not sink! LOL

Tue, 01/14/2014 - 14:29 | Link to Comment BitStorm
BitStorm's picture

Your posts read like a Greek Tragedy. You're a blacksmith looking at a fully functioning assembly line.

Tue, 01/14/2014 - 16:48 | Link to Comment Exponere Mendaces
Exponere Mendaces's picture

Or a caveman trying to understand why a plane flies without a beak and feathers.

Totally beyond their comprehension.

Tue, 01/14/2014 - 03:19 | Link to Comment silvermail
silvermail's picture

The Chinese government are smart people. They will not allow to cheat themselves via any crap-coins, instead of real money - gold and silver.

Tue, 01/14/2014 - 03:21 | Link to Comment silvermail
silvermail's picture

Bitcoin?! LOL!

Bankers finally found a way to rob people via "market way" and to stay away. I mean, is good way for banksters, to rob people and do not stay after guilty.
Only the market, only the market, nothing personal. LOL

Tue, 01/14/2014 - 03:22 | Link to Comment silvermail
silvermail's picture

Gold, in addition to faith, based on the 5,000 years of cultural and religious traditions, including the Bible and the U.S. Constitution.
Bitkoin relies only on 5 minutes blah blah blah about anything.
Feel the difference.

Tue, 01/14/2014 - 03:23 | Link to Comment silvermail
silvermail's picture

12 major myths about Bitcoin :

1. The creator or creators of Bitcoin (which nobody knows anything) certainly crystal honest, absolutely unselfish and very decent people. These people never think about anything else, except for the happiness of all the other people around the world.
2. Crystal honest people who created Bitcoin, have no relation to the bankers and the power, that serves the interests of the bankers. Conversely, people who created Bitcoin, of course, are opposed to bankers, fiat money and selling power. How could it be otherwise?
3. Bitcoin is decentralized system! It is not necessary to prove this you just have to believe like in God.
4. Bitcoin system is absolutely safe! It is not necessary to prove this you just have to believe like in God.
5. Bitcoin system has no back doors! It is not necessary to prove this you just have to believe like in God.
6. System Visa, Master card and PayPal - it's business for the creators of these systems. Therefore, they take money for their services in the form of commission from the amount of each transaction. But Bitcoin system - it's just a hobby for its creators . Therefore, they do not take money for their services. They are unselfish, they good, white and fluffy.
7. Bankers, governments and intelligence agencies do not know who is the creator of Bitcoin. Therefore, they can not influence them.
8. People who created Bitcoin, do not need the money and they do not fear death. Therefore, they can not be bought or intimidated in order to provide access to system management Bitcoin.
9. Bitcoin PR company, which runs on all countries of the world and is worth billions of dollars, is only a free coincidence.
10. Plans of Bankers and government to rob the people savings, through the beautiful "market mechanism," are just paranoid fiction only.
11. Everyone who owns a Bitcoin becomes a fighter against fiat money system, which is also like Bitcoin , made ??out of nothing. Therefore, each owner Bitcoin has the right to be proud and consider myself a very clever.
12. Among those people who do not believe in Bitcoin and laugh at this Bitcoin flock, none of them are smart people. All of them are only enemies and fools. But among those people who holy believers in Bitcoin, none fool's, it is only very smart people.

Tue, 01/14/2014 - 03:25 | Link to Comment silvermail
silvermail's picture

Once upon a time people would ask their friends: "You have already bought a ticket on the Titanic?"
Today, they ask: "You have already bought a Bitcoin?".

Tue, 01/14/2014 - 03:25 | Link to Comment silvermail
silvermail's picture

n Bitcoin against FRN, changed only the recipients, but the principle of infinite print money remains unchanged.
That is, changing only pig, trough remains the same.

Tue, 01/14/2014 - 03:28 | Link to Comment silvermail
silvermail's picture

Should not be confused confused between the two concepts - "divisibility money" and "divisibility money without any limit."
You can not practically be divided for a real use 1 gram of gold, at 1,000,000 units. And one dollar, you  can not divided for practical use at 1000000 units also.
But one Bitcoin, you can divide for practical use on any number of pieces - such as the 100 billion pieces.
Biktoin - a utopia.

Tue, 01/14/2014 - 03:29 | Link to Comment silvermail
silvermail's picture

The transition to free money under the strict guidance of the Fed and the U.S. Senate?!!!

You have a very rich sense of humor! LOL

Tue, 01/14/2014 - 03:29 | Link to Comment silvermail
silvermail's picture

A society without cash money - a society of slaves.

Tue, 01/14/2014 - 03:31 | Link to Comment silvermail
silvermail's picture

bitcoin?! LOL

Grandiose ideas of universal happiness and prosperity without difficulty, always occupied the thoughts of fools.

Tue, 01/14/2014 - 03:31 | Link to Comment silvermail
silvermail's picture

Bitcoin - it is not a currency.
Bitcoin - a technology. Technology grabbing money.

Bitcoin - it is not a medium of exchange. Bitcoin - a means of deception.

Tue, 01/14/2014 - 08:03 | Link to Comment satoshi101
satoshi101's picture

BITCOIN is a PURE FRAUD 100%

Note that the last month the BTC whores are now offering to exchange their 'coin' for pure GOLD, that is telling.

BTC will be completely denied in 3-6 months, just like beanie-baby, or cabbage-patch dolls, ... never fucking happened.

Tue, 01/14/2014 - 08:40 | Link to Comment madtechnician
madtechnician's picture

If you say it enough times it WILL come true !

Tue, 01/14/2014 - 16:50 | Link to Comment Exponere Mendaces
Exponere Mendaces's picture

Wow, fake-toshi and silverFAIL are astro-turfers going full retard. I guess they were the low bidders for the smear campaign.

Tue, 01/14/2014 - 03:32 | Link to Comment silvermail
silvermail's picture

Do you really believe that the development and take-off of the project bitcoin occurred without the participation of the bankers?
Sorry, but you are very naive.

Tue, 01/14/2014 - 03:34 | Link to Comment silvermail
silvermail's picture

To understand what will be the currency in the future and on the what exactly it will be based, need to listen to what say in Beijing, not Washington.

Tue, 01/14/2014 - 03:37 | Link to Comment Musashi Miyamoto
Musashi Miyamoto's picture

20 consecutive posts?... 20?... Really?...

Tue, 01/14/2014 - 03:57 | Link to Comment silvermail
silvermail's picture

Yes, it is the cry of the soul!

Tue, 01/14/2014 - 07:40 | Link to Comment madtechnician
madtechnician's picture

The sound of desperation and bullshit more like.

Go educate yourself before posting more mindless shit.

Tue, 01/14/2014 - 08:33 | Link to Comment silvermail
silvermail's picture

I knew in advance that you will not be able to object to me something essentially.

Do NOT follow this link or you will be banned from the site!