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Switzerland To Open Bitcoin Bank As Crypto "Fort Knox" Relocates To Zurich

Tyler Durden's picture




 

With every DM central bank hell-bent on ensuring that the currencies which roll off their printing presses will become ever more worthless with each passing iteration of the global debt monetization ponzi scheme, and with calls growing louder to ban hard currency altogether in an effort to remove the effective lower bound and thus make it possible for bureaucrats to centrally plan every aspect of the economy right down to the micromanagement of people’s spending habits, we suppose now is as good a time as any to make the switch to a medium of exchange not controlled by the Keynesian cabal and where better to go "crypto" than Switzerland which, according to Handelszeitung, is set to open its first Bitcoin bank. 

Here’s the story (via Google translate):

Switzerland's financial center is likely to be rich in the near future to one facet. Currently, preparations are underway for the establishment of the first Bitcoin Bank. The reportedly from multiple sources in the financial sector. Corresponding discussions with the Financial Market Supervisory Authority are to take place in these days. To date, there is in Switzerland no bank that offers services with the new digital currency Bitcoin.

 

The initiators of the project confirmed the facts: "The application for a banking license, we will submit in the next few weeks," says Guido Rudolphi. The IT specialist is one of a group of eight people, which are behind the planned establishment of the financial institution. «First investors are on board, and it runs the search for suitable premises." To which company is which ultimately applied for a banking license, did Rudolphi competitive reasons forequarters not say...

 

From traditional institutions they first distinguished by the intended clientele. For future customers include about companies that generate income and revenues in Bitcoin and at the same time require access to the traditional banking system. These are examples Bitcoin exchanges, Bitcoin broker, pay providers and software platforms on which the new digital currencies play a role. Until now such companies - although based in Switzerland - the most costly detour via foreign banks go.

There you have it. No longer will Swiss Bitcoin brokers, exchanges, and providers be forced to take a "costly detour via foreign banks," but can instead transact right at home and thus help to create and facilitate what we imagine will be an especially effective tax avoidance system involving the potent combination of Swiss banks and a currency that many people still do not fully understand. 

And then there's this:

In London, UBS now officially been experimenting with the Bitcoin technology. And in New York analyzed the Nasdaq to handle stock transactions of IPO candidates on the Bitcoin network.

We suppose the only remaining question is: how quickly will UBS set about rigging Bitcoin just as they have every other currency on the face of the planet? 

But don't worry, because our friends at the CFTC are on top of it

From Commissioner Mark Wetjen:

"I believe what might precipitate more serious consideration of the issue is if someone from the market were attempting to manipulate the bitcoin cash market to benefit a position that they have in a bitcoin-derivative position. CFTC staff would be responsible for investigating and determining whether that activity constitutes a violation of the CEA.”

With the CFTC on the job, what could possibly go wrong?

*  *  *

Meanwhile, in related news, Xapo is relocating to Zurich:

For the past year, Xapo has focused on building its infrastructure to offer the most secure bitcoin storage service available. Deemed the Fort Knox of bitcoin, we’ve set a new standard in bitcoin security and treasury management to become a global and trusted provider and the leading custodian of institutionally held bitcoin in the world.

 

To better support and accelerate this focus we are moving our headquarters to the global financial center of Zurich, Switzerland. Our primary deep cold storage vault is also located in Switzerland, and at the request of our expanding global customer base, now is the time to bring our center of operations closer to the heart of our security infrastructure. The country’s regulatory stability, international neutrality and its deep-seated tradition in global finance also factored into the decision. We will retain a small presence in Palo Alto, California to serve our U.S. customers.

 

While it should be unimaginable that major institutions would hold millions of dollars in cash, many corporations today still follow an analogous practice with respect to bitcoin by using insecure storage techniques like paper wallets or printed key backups.

 

By contrast, our fiduciaries are protected by our vault, which uses private keys that never touch the client or the internet and are buried deep within geographically dispersed, heavily guarded locations with multi-signature technology for transaction signing. We have customized security protocols to reduce the likelihood of theft through social engineering, phishing or brute force hacks, and offer full insurance in the unlikely event that these systems are compromised.

 

Bitcoin’s ability to scale hinges on consumer confidence and the development of services that allow people and institutions to easily and securely store and transact in bitcoin, and that’s where our product, partnerships and team will continue to be focused. We look forward to continuing to serve our growing global customer base from our new global home in Switzerland.

 

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Wed, 05/27/2015 - 15:16 | 6137239 SpiOpsChiwowwow
SpiOpsChiwowwow's picture

Brilliant!

I thought banks were the Bitcoin enemy? Mysteriously, now they join forces.

I'll keep my metal, thank you.

Wed, 05/27/2015 - 15:30 | 6137287 Pladizow
Wed, 05/27/2015 - 15:31 | 6137300 Xibalba
Xibalba's picture

BTC will make you a small fortune!

All you have to do is start with a large one first!

Wed, 05/27/2015 - 15:36 | 6137310 Captain Debtcrash
Captain Debtcrash's picture

I’m certainly not like the anti gold bugs saying that the proper allocation to bitcoin is zero.  I can see a small allocation, but in light of some of the information there is out there, I certainly don’t trust it, and any money put into it you should expect to lose.

If the supporters are right and it take over commerce (very long shot), even a .1-.5% allocation should be plenty. 

http://www.debtcrash.report/entry/bitcoin-an-e-dollar-beta-test

Wed, 05/27/2015 - 15:48 | 6137360 Condition 1SQ
Condition 1SQ's picture

If you lose your private keys, you're toast!  The absolute finality of transactions and the possibility of losing a fortune due to an IT mishap should make people wary when using this technology.

Wed, 05/27/2015 - 16:11 | 6137477 commander gruze?
commander gruze?'s picture

Just keep your private keys printed on encrypted paper wallet, in multiple backup copies. You'll be just fine. I couldn't imagine why anyone would need a bank to hold bitcoin. But I can totally understand that bank is what it takes for other banks, funds, and trusts, to get into bitcoin business. They will be obsoleted in 10 years anyway.

Wed, 05/27/2015 - 16:14 | 6137489 Waylon Bits
Waylon Bits's picture

OMFG!! BUH BITCOINZ!!!!!!!!!!!!!!!!

https://localbitcoins.com

Wed, 05/27/2015 - 16:16 | 6137503 ShorTed
ShorTed's picture

Where's Fonestar?

Wed, 05/27/2015 - 16:17 | 6137505 Waylon Bits
Waylon Bits's picture

fonestar is above you!  and fonestar is below you!

Wed, 05/27/2015 - 16:50 | 6137623 0b1knob
0b1knob's picture

How can a Bitcoin be in Switzerland when it's really not physically anywhere at all?

Wed, 05/27/2015 - 16:51 | 6137628 commander gruze?
commander gruze?'s picture

It's about the jusristiction and nothing else.

Wed, 05/27/2015 - 17:40 | 6137866 0b1knob
0b1knob's picture

The whole point of Bitcoin is that it is supposed to exist outside the legal structure of any government.   If Bitcoins can be cancelled by ANY country then it is just another fiat scam.

Wed, 05/27/2015 - 18:04 | 6137946 MonetaryApostate
MonetaryApostate's picture

I guess some people have forgotten that true riches doesn't lay in fiat nor digital currency, but rather your ability to "Invent money"....

Wed, 05/27/2015 - 20:41 | 6138379 Morbid
Morbid's picture

both gold and bitcoin have a place under the sun ahead of changes soon.

Wed, 05/27/2015 - 22:47 | 6138730 Paveway IV
Paveway IV's picture

And neither one should have any place in the vaults of the Gnomes of Zurich.

Ask the Brits how that turned out for them in the 60's...

Wed, 05/27/2015 - 17:52 | 6137907 jonytk
jonytk's picture

Bitcoins no, the place you trade or store them, sure you can trade on a starbucks and store them on your phone but most people use websites. Websites may be subject to jurisdictional issues.

Wed, 05/27/2015 - 19:14 | 6138174 Condition 1SQ
Condition 1SQ's picture

"Encrypted paper wallet" .. you mean the private key in either plaintext form or QR code?  That is the key to the castle.  If you're talking about one wrapped with another layer of password protection, fine, but you're either going to have to write that one down or trust yourself to remember it.

Thu, 05/28/2015 - 08:15 | 6139372 shitco.in
shitco.in's picture

Or BIP38 encrypted. 

Wed, 05/27/2015 - 16:13 | 6137483 crazytechnician
crazytechnician's picture

Your toast if you lose your cash or PM's , and unlike cash you can make multiple encrypted backups of your private keys and store them in multiple geographical locations.

Wed, 05/27/2015 - 16:17 | 6137507 Waylon Bits
Waylon Bits's picture

Yes, it is good to join the Key Party.

Wed, 05/27/2015 - 16:51 | 6137630 Bunga Bunga
Bunga Bunga's picture

yeah, that little boating accident. And you couldn't make backup copies of your cash & PMs.

Wed, 05/27/2015 - 16:18 | 6137514 Waylon Bits
Waylon Bits's picture

If you are not comfortable backing up files and storing them safely, then no... no Bitcoin is not for vous!

Wed, 05/27/2015 - 16:28 | 6137548 Szabotoshi Nickamoto
Szabotoshi Nickamoto's picture

If you lose your physical metals you're toast! The absolute finality of precous metal transactions and the possibility of losing a fortune due to a real life loss or theft should make people wary when using precious metals.

What you're saying isn't incorrect, but there's no need to let it scare you off either.

Wed, 05/27/2015 - 19:15 | 6138176 Condition 1SQ
Condition 1SQ's picture

Silly.  Just see what happens when you lose that little USB stick or piece of paper with your encrypted wallet.

Wed, 05/27/2015 - 23:06 | 6138756 Paveway IV
Paveway IV's picture

"...Just see what happens when you lose that little USB stick or piece of paper with your encrypted wallet..."

That's not necessary or even the most significant risk. Ask yourself how you're going to buy food when they hit the kill switch on the internet (or certain segments of it) for whatever reason.

There's plenty of ways to make your digital currency useless as a medium of exchange for an extended length of time without you actually LOOSING any of it. Little comfort for someone that needs to buy water for their urban family dying of dehydration (no municipal water) if addresses, signatures and block chains are inaccessable for three weeks. Their family will be dead in two. It's a little late to move out to the country near some water, and several million other people will have the exact same idea. Good luck with that.

Impossible? What if your unfortunate enough to live in a NORTHCOM Waffen SS designated 'hostile' state and they want to prevent terrorist activity by shutting down all the internet connections and municipal services for a month? Technically possible? Well, it's damn sure possible with a few Hellfires and a drone.

Any form of Bitcoin assumes the government is willing to LET you use it for transactions. Sure, alternative networks will eventually be arranged or 'illegal' access might be available. But if you can't find either option in two weeks, you better have plenty of pretty daughters because "My bitcoin is good - I promise" isn't going to get you any water. 

Thu, 05/28/2015 - 00:48 | 6138941 JustUsChickensHere
JustUsChickensHere's picture

And all those problems apply to the electronic version of national fiat currency these days as well.

 

The paper version of national fiat?  Probably ok for tiny transactions, milk and bread.  But banned or confiscated these days in the west for any 'large' amount ....  >1000 Euro in some places

 

PM's have some of these problems too in the USA, not so much in the far east.

 

ALL currency systems are subject to risks, and the attention of bad actors. Bitcoin (like PM's) can sidestep banks.... as long as you accept the caveats that go along with choosing to annoy the bank mafia.

Wed, 05/27/2015 - 19:35 | 6138214 shouldvekilledthem
shouldvekilledthem's picture

"Do not microwave your cat."

Wed, 05/27/2015 - 16:19 | 6137522 Waylon Bits
Waylon Bits's picture

You do not need a lottaBitcoin to make rich you just need a lilBitcoin to make rich.

Wed, 05/27/2015 - 15:35 | 6137314 pods
pods's picture

Makes me chuckle to see a reeded edge bitcoin.  

Wed, 05/27/2015 - 15:37 | 6137327 Pladizow
Pladizow's picture

To avoid BitClipping!

Wed, 05/27/2015 - 15:58 | 6137405 commander gruze?
commander gruze?'s picture

If you can't delegalize, out-regulate, out-litigate, and out-innovate bitcoin, the only sensible course of action to take is to join bitcoin. Many have seen that comming.

Wed, 05/27/2015 - 16:21 | 6137526 Waylon Bits
Waylon Bits's picture

Correct gruze.  You will join Satoshi or you will be annihilated.

 

https://btc-e.com

Wed, 05/27/2015 - 19:16 | 6138181 Condition 1SQ
Condition 1SQ's picture

Hey RUGAY2!  Looks like they finally banned you.

Wed, 05/27/2015 - 18:14 | 6137983 Anasteus
Anasteus's picture

That's positive, they have been eventually forced to accept the cryptocurrency. The funny thing is that bitcoin inherently doesn't need any bank to function properly. Quite the opposite, any such relation would just jeopardize otherwise smooth bitcoin manipulation and transactions. This all charade pursues just one goal; to trick the people into opening their personal bitcoin wallets within the banking sector much like traditional accounts. I can even imagine how this will be promoted, by earning extra yields in fiat for those opening 'their' wallets in the bank.

I'm not afraid about derivative bitcoin games as long as standard exchange from-to personal wallets are effective (and, fortunately, nothing and nobody can principally avoid it; anyone can open some at any time). If, furthermore, the derivative gamble would be settled in fiat, it would just be what it's always been, a scam not related to the currency itself. At worst, bitcoin will leave the weak hands.

The concept is laughable and the 'hidden' plan unveiled. It can only influence fools who will never have enough courage to enter bitcoin. And if eventually so, it'll be too late.

The most important message from the article is the banks' recognition that they definitely lost the war against bitcoin.

Wed, 05/27/2015 - 19:19 | 6138185 Condition 1SQ
Condition 1SQ's picture

Oh how wrong you are, they are setting it up for a gigantic plunge.  The sheeple will adopt whatever currency the oligarchy decides upon.  It will not be Bitcoin.

Thu, 05/28/2015 - 03:18 | 6139095 crazytechnician
crazytechnician's picture

Can I please borrow your Crystal Ball , I need to go and buy this friday's winning lottery ticket.

Wed, 05/27/2015 - 15:37 | 6137325 Magnix
Wed, 05/27/2015 - 16:30 | 6137553 Waylon Bits
Waylon Bits's picture

Bitcoin has been remarkably stable at $200 - $240 an ounce over the last few months.  We are gearing up for the next move higher.... after the Grexit (or Brexit) we will see $10,000 BTC.

Wed, 05/27/2015 - 16:55 | 6137651 Bunga Bunga
Bunga Bunga's picture

... and not to forget negative rates, bail ins, cash ban. There is a lot in the pipeline coming to any town. 

Wed, 05/27/2015 - 16:22 | 6137530 Waylon Bits
Waylon Bits's picture

A whole new we!  A brand new cryptosy feeling!

Wed, 05/27/2015 - 15:29 | 6137290 HonkyShogun
HonkyShogun's picture

In other news, Israel asks for more money to bomb Palis from their sugar daddy; the US:

http://www.globalresearch.ca/israel-wants-50-increase-in-us-provided-mil...

Wed, 05/27/2015 - 15:31 | 6137297 pods
pods's picture

If it takes longer to explain it than to wipe my ass, it will NEVER become an actual currency.

"You see you have this blockchain here..."

"These letter and number thingies?"

"Yep, that is how you know this is the only........."

"I'll just have some more krugs, thank you very much."

pods

Wed, 05/27/2015 - 15:35 | 6137313 Skateboarder
Skateboarder's picture

You need to be a computer nerd in order to use bitcoin, and a stupid one at that.

Wed, 05/27/2015 - 15:37 | 6137328 crazytechnician
crazytechnician's picture

In 1997 it was a similar story

"You need to be a computer nerd in order to use that internet, and a stupid one at that"

Wed, 05/27/2015 - 15:49 | 6137366 pods
pods's picture

Ummm, not exactly.  

The internet is a luxury.

BTC is supposedly a currency, correct?

A currency that is dependent upon electricity and networks and faith in the same?

Might as well call them Star Credits.

But go ahead, there still is oil, use that oil to generate electricity, to turn around and burn it up by "mining" some "Star Credits."

Mark my words, people will be fucking EATING each other before BTC becomes anything other than a novelty or long ball "investment."

pods

Wed, 05/27/2015 - 16:05 | 6137445 commander gruze?
commander gruze?'s picture

Wrong on many account.

BTC is not a currency. It's a very specific type of network - not necessarily a computer network. It's a distributed consensus network. Currency is an application of that network.

Bitcoin network is all but dependent upon faith. In fact, trust is replaced in bitcoin with computationally provable math. You don't have to trust it, just verify it works by computing Merkle root, block hash, transaction script, chain height, etc.

Mining you mistook as a measure for producing BTCs. It does that too, but the goal of mining is to secure the network, and BTC is just a reward.

Bitcoin is alreay useful to avoid extortion fees by the likes of Western Union. It is also used as automatic notary service. First attempts at building contract resolution platforms are already there, too.

Wed, 05/27/2015 - 16:10 | 6137469 crazytechnician
crazytechnician's picture

That is about 80 points above his IQ score. You need to explain bitcoin slooowly to these Flat Earther Doomer Preppers. Imagine you are trying to explain it to somebody who is mentally retarded , that way you may get somewhere.

Wed, 05/27/2015 - 16:17 | 6137509 pods
pods's picture

Wow, that's a good one.

Sorry, I looked into BTC.  It doesn't pass the smell test.

And everytime there is some problem brought up, it is never about the technology.  It is always dismissed as someone being a scammer, etc.

But what good is a fantastic, Satoshi inducing (that is a complete release of all the body's store of dopamine) crypto CURRENCY if it is that easy for people to scam you out of it, or for it to be seized, or stolen.

At least with us Flat Earthers, you physically have to steal any valuables we may or may not have.

I may be a retard, but at least I can see when a dog won't hunt.

pods

Wed, 05/27/2015 - 16:20 | 6137523 commander gruze?
commander gruze?'s picture

No need to be this harsh. Distributed consensus was not possible prior to bitcoin and this stuff is inherently hard for humans. All western civilization relies on building hierarchies rather than networks. Plus, only now we have sufficient technology to see blockchain based systems in operation. I think it was Nick Szabo who estimated that distributed computer is 10,000 times slower than centralized one, but it can actually be trusted for the trust now can be operationalized as computation and verified at all times.

Wed, 05/27/2015 - 17:09 | 6137722 Budnacho
Budnacho's picture

Mentally retarded huh?...."See, you have all these ones and Zeroes behind a network of security requiring a key and..".....

 

vs.

 

"Heres some Gold"...

 

One has been used as a medium of commerce since time began, the other is another electronic exercise in financial mental-masturbation. 

 

Trying to explain to the kids today that computers aint safe is below their IQ threshold.....takes time to explain to these techies that networks and computers can and will always be hackable.....these are the same geniuses that put every incriminating thing they do on their Facebook pages and then wonder why they get arrested. 

 

 

 

 

 

 

Wed, 05/27/2015 - 16:06 | 6137449 crazytechnician
crazytechnician's picture

Time will tell.

Wed, 05/27/2015 - 19:41 | 6138229 shouldvekilledthem
shouldvekilledthem's picture

Internet as luxury? ROFL, are you stuck in the 90s?

It's 2015, the internet is a basic utility by now.

Wed, 05/27/2015 - 19:41 | 6138230 shouldvekilledthem
shouldvekilledthem's picture

Internet as luxury? ROFL, are you stuck in the 90s?

It's 2015, the internet is a basic utility by now.

Wed, 05/27/2015 - 20:53 | 6138420 Zoomorph
Zoomorph's picture

pods is right.

Something similar to Bitcoin may become big, but it would need to be sponsored by the governments and powers that be.

Digital currencies are just the next step beyond fiat (assuming the game keeps on going). They are worth even less than the fiat (you can't wipe your ass with digital currency) but centralize power even more (no tax evasion, no secrecy, instantenous manipulation, etc).

Sure, if the currency supply was controlled, decentralized, etc, etc, a digital currency might work more favorably for the honest worker than paper fiat, but for that reason alone that won't happen.

Thu, 05/28/2015 - 03:22 | 6139103 crazytechnician
crazytechnician's picture

bitcoin has a controlled supply which emulates the mining of gold. It is decentralised. It's growing rapidly. It's not a question of it may work , it is already working.

Wed, 05/27/2015 - 16:17 | 6137492 agent default
agent default's picture

You do realize that the trusted computing platform was never really died as a concept do you?  When they lock down your hardware and only allow approved apps to run, how will you run your bitcoin wallet?  You will not believe what the TCPA came up with in 1999.  But they are well on the way of implementation.

Thu, 05/28/2015 - 05:05 | 6139164 crazytechnician
crazytechnician's picture

"when they lock down your hardware" , and who exactly are "they" ? ever heard of engineers , technicians and hackers , you know the very people that build all this stuff ? It can never be locked down you moron , it's getting more and more open by the day , grow some balls man .

Wed, 05/27/2015 - 15:44 | 6137351 crazytechnician
crazytechnician's picture

"If it takes longer to explain it than to wipe my ass, it will NEVER become an actual currency."

It already is an actual currency.

Wed, 05/27/2015 - 15:51 | 6137375 pods
pods's picture

Sorry, a VIABLE currency.  

Wed, 05/27/2015 - 16:01 | 6137417 oddjob
oddjob's picture

Better keep some handy, who knows when you'll need a custom Tshirt.

Wed, 05/27/2015 - 16:25 | 6137541 Waylon Bits
Waylon Bits's picture

Nobody needs to explain shit.  People don't need QE explained when they use a $5 bill to buy a hotdog.

Wed, 05/27/2015 - 16:02 | 6137428 Latitude25
Latitude25's picture

If the FBI can confiscate it then its no better than a TBTF bank account.

Wed, 05/27/2015 - 16:58 | 6137667 Bunga Bunga
Bunga Bunga's picture

Cannot in Switzerland.

Wed, 05/27/2015 - 19:44 | 6138243 shouldvekilledthem
shouldvekilledthem's picture

Strong pass, hide the private key and you are done. Nobody can confiscate it.

If you are smarter than the average ZH retard then multisig or brainwallet.

Wed, 05/27/2015 - 16:45 | 6137597 Bunga Bunga
Bunga Bunga's picture

Banks have no choice. They are smart enough to try to get a slice of the cake instead of losing it all.

Wed, 05/27/2015 - 15:18 | 6137249 Latitude25
Latitude25's picture

Wahahahaha!   What will actually be in this bank?I'll take my bitcoin in ounces of gold.

Wed, 05/27/2015 - 15:21 | 6137255 crazytechnician
crazytechnician's picture

Sounds like they will be holding the Private Keys of high net worth individuals and businesses.

Still far safer to hold the keys yourself.

Wed, 05/27/2015 - 17:03 | 6137689 Bunga Bunga
Bunga Bunga's picture

Outsource this to experts, since they have to meet certain standards by law.

Wed, 05/27/2015 - 15:21 | 6137258 H H Henry P P P...
H H Henry P P P Paulson's picture

What does a bitcoin bank and fort knox have in common?

empty safes.

Wed, 05/27/2015 - 15:22 | 6137259 NoDebt
NoDebt's picture

First person who says the name Satoshi gets it right in the neck.

Wed, 05/27/2015 - 15:57 | 6137400 pods
pods's picture

Leave the little hot dog eating guy outta this!

Wed, 05/27/2015 - 16:16 | 6137500 Waylon Bits
Waylon Bits's picture

Satoshi you are so beautiful!

Satoshi you bring light to our virtual lives!

Wed, 05/27/2015 - 15:25 | 6137273 adr
adr's picture

A few big time guys must have bought Bitcoin at the top and they are trying everything they can to pump the price up higher than the previous peak so they can unload for a profit.

I read an article about how for Bitcoin to become legitimate it must turn into the thing it was supposed to destroy. A regulated and centrally backed currency.

Wed, 05/27/2015 - 15:27 | 6137279 ted41776
ted41776's picture

Mr. Johnson, we want to reassure you that you are making the right decision by choosing to deposit...... AAAAAAND IT'S GONE

Wed, 05/27/2015 - 15:27 | 6137283 Usurious
Usurious's picture

 

 

BISis

Wed, 05/27/2015 - 15:31 | 6137296 DutchBoy2015
DutchBoy2015's picture

This is old news,  RT had a story about this 8 months ago.   Showed the building inside with nothing but computers and ethernet cables.  A real energy hog.

Wed, 05/27/2015 - 15:34 | 6137307 ...out of space
...out of space's picture

why the fuck allways shove picture of  btc like they are real coin made from gold or silver

Wed, 05/27/2015 - 16:12 | 6137482 paint it red ca...
paint it red call it hell's picture

The image is part of the Sales Pitch, the mind connection with something physical. Physical and bitcoin are opposites but not presented that way....

Have we learned nothing from 60 years of tv commercials????

Wed, 05/27/2015 - 19:48 | 6138252 shouldvekilledthem
shouldvekilledthem's picture

The average pleb would have a hard time visualizing elliptic curve cryptography, blockchain, double sha256 hashing algorithm, merkle trees and the like.

Wed, 05/27/2015 - 15:38 | 6137334 Raul44
Raul44's picture

Wasnt bitcoin`s prime advantage supposed to be being bankless??

Wed, 05/27/2015 - 16:38 | 6137580 Szabotoshi Nickamoto
Szabotoshi Nickamoto's picture

The advantage is the choice. having a third party store or partially store your bitcoins is optional. Think of how you can store precious metals yourself, keep them in a lockbox in a bank, or completely indirectly hold gold via an etf. All three equivilants are becoming possible with bitcoin, with some extra aspects that aren't possible with precious metals, like real-time proof of reserves, and multi-signature accounts

Wed, 05/27/2015 - 15:40 | 6137347 Joebloinvestor
Joebloinvestor's picture

Why move there?

All Swiss security is a farce.

Wed, 05/27/2015 - 15:46 | 6137355 OceanX
OceanX's picture

Well, I added to my bitcoin position...

Wed, 05/27/2015 - 15:53 | 6137379 paint it red ca...
paint it red call it hell's picture

If bitcoin being publicly embraced by zurich does not prove the crypto currency is a designed strawman to fool the foolish into relinquishing hard currency for fiat cyber credits.

Here's the ringer of crypto currencies 2.0, bitgold. Where does it all go, I do not know.........

https://www.bitgold.com/

Wed, 05/27/2015 - 15:53 | 6137383 Q-Q-Q
Q-Q-Q's picture

Bitcoin is f#cked if UBS start 'creating a market' in it.

Wed, 05/27/2015 - 16:09 | 6137452 DutchBoy2015
DutchBoy2015's picture

Notice that the US govt loves people to buy iphones which have NO removable microSD card.

I just bought a 128GB micro sd card for my Galaxy S4 and its the size of a small pinkie fingernail and can pop it out in about 10 seconds. (along with battery).

As  a test a few months ago I sent a 64GB micro SD card filled with music to a friend in the STATES.,  I put it UNDER the postage stamp and sent it to him SNAIL MAIL.  He got it safe and sound , no problem.

Watch them try and ban postage stamps now.

Wed, 05/27/2015 - 16:09 | 6137461 p00k1e
p00k1e's picture

'Applying for a license'.     

Wed, 05/27/2015 - 16:22 | 6137531 DutchBoy2015
DutchBoy2015's picture

Bittorrent is still up and running despite mulitple govts trying to shut it down.

Only way you can shut it down is shut down the entire internet., thereby shutting down most of the world's commerce and banking.

Wed, 05/27/2015 - 16:48 | 6137615 Bunga Bunga
Bunga Bunga's picture

Even my kids couldn't do homework anymore. It's all online nowadays.

Wed, 05/27/2015 - 16:47 | 6137605 Bunga Bunga
Bunga Bunga's picture

VISA founder gets on the board of Xapo. Big!

https://blog.xapo.com/announcing-xapos-advisory-board/

Thu, 05/28/2015 - 06:41 | 6139233 JustUsChickensHere
JustUsChickensHere's picture

Offshore accounts?  New version = CyberSpace accounts set up by your friendly Swiss banker

Immune to military threat ... yes

Vulnerable to the usual scams .... yes

Profit for middlemen explaining to noobs  .... yes

 

Enjoy.

(The above business plan was brought to you by the usual Chickens (tm))

Wed, 05/27/2015 - 16:48 | 6137609 DutchBoy2015
DutchBoy2015's picture

Isle of Man is already a major exchange place for Bitcoin.

Its also a great cheap place to set up an offshore account and has been for decades.

Everyone talks of the Caymans but Isle of Man is never mentioned.

Wed, 05/27/2015 - 16:57 | 6137663 DutchBoy2015
Wed, 05/27/2015 - 16:58 | 6137669 Budnacho
Budnacho's picture

I eagerly anticipate the day BTC is hacked and all is stolen/wiped out. 

 

If it isn't in your hands...it isn't real. Electronic Ones and Zeroes got us into this mess to begin with....seems logical to think that it will continue this way. Add to this when ISIS *wink wink* gets caught being funded by BTC....wonder how open and valuable it will be then....

 

Or as my "Doomist" Co-worker says....."Bitcoin....valuable till the first EMP strike"....

Wed, 05/27/2015 - 17:04 | 6137695 DutchBoy2015
DutchBoy2015's picture

If its in your hands its real, UNTIL they come to confiscate it. Then you shoot to kill and they kill YOU.  Nothing in your hands anymore then.

Wed, 05/27/2015 - 17:11 | 6137734 Budnacho
Budnacho's picture

Oh for fucks sake....

 

Ok Rocket scientist, here's a simple test. Which is easier for a Govt to do...

 

#1.) Go to each and every household in America (without being shot to pieces) and physically TAKE PM's...

 

-or-

 

2.) Flip a switch

 

Take your time.....think deeply....

Wed, 05/27/2015 - 17:17 | 6137774 DutchBoy2015
DutchBoy2015's picture

Flip what switch, Dumbo?

The internet?  Thereby destroing all banking and commerce?>

You better start thinking deeply and stop living in 1995.

Wed, 05/27/2015 - 17:51 | 6137901 Budnacho
Budnacho's picture

"A Virus of what we believe to be Russian/North korean/Chinese manufacture has infected thousands of Govt. servers. Until the virus can be identified and neutralized, by executive order I am shutting down all internet communications for the duration. Information will be given to local radio and newspapers to provide you with up to date information...."

 

Kinda like that Pumpkin.....don't like that?...how about a terrorist attack or an outside attack on our banking system over the net.... 

 

It's you kiddies that never lived without the net that just simply can't fathom a world without it. Us old timers would shrug our shoulders and just go back to work. Then we would take our "Old and Outdated™" PM's and begin to trade for good while you furiously slapped your laptop begging the electronic gods to come back to life. 

Wed, 05/27/2015 - 17:52 | 6137910 DutchBoy2015
DutchBoy2015's picture

You are a fucking idiot ,  BTW, I turned 70 today and debt free . 

Take a hike, PUMPKIN!!

Wed, 05/27/2015 - 17:54 | 6137917 DutchBoy2015
DutchBoy2015's picture

Hey retard, 

Try taking a gold coin down to Safeway supermarket to buy a loaf of bread.,

Shitheads like you are a dime a dozen in the USA>  LOSERS

Wed, 05/27/2015 - 19:05 | 6138160 Budnacho
Budnacho's picture

Wow....70!

 

Congrats on living all that time and learning not a fucking thing!.....

 

Last Time I checked my ASE's had a numerical value on them. You might not be able to see it through your bullshit-colored lenses but trust me gramps...it's there.

 

Wish I could say the same about your common sense but hey...Alzheimers can strike at any time.

 

Now hush and go back to whacking off that flaccid-pecker to your Vargas prints...if you're good tonight I'm sure the nurse will give you a second scoop of Tapioca to eat while watching Matlock....Adults are talking here....

Wed, 05/27/2015 - 17:05 | 6137703 Bunga Bunga
Bunga Bunga's picture

You can print out the private key and hold it your hand.

Wed, 05/27/2015 - 17:05 | 6137707 DutchBoy2015
DutchBoy2015's picture

or bury it in the yard,

Wed, 05/27/2015 - 17:22 | 6137793 DutchBoy2015
DutchBoy2015's picture

You are not too bright, sonny.

Suggest you get educated.

Wed, 05/27/2015 - 17:27 | 6137819 DutchBoy2015
DutchBoy2015's picture

I eagerly await the day, that dipshits like you pull your head out of your ass.

Wed, 05/27/2015 - 17:14 | 6137752 DutchBoy2015
DutchBoy2015's picture

In 2002  I was flying down in Africa and overnighted in Harare, Zimbabwe.  I had over 2000 euros cash and wife said she needed money back in Holland. 

So I went to the Western Union and they said  ''NO wiring outgoing money, just incoming allowed'

So this is what I did ( a big risk but worked).  I took a magazine out of the hotel room and put 1000 euros cash in the middle pages and then put in big envelope and went to the DHL business center and said i need to send these contract papers ASAP up to Amsterdam.  They got to my wife the next day and I emailed my wife to look in the middle of the magazine for the cash.

With BitCoin I could just send directly from my phone or a PC.  and she could have it in seconds with NO FEES .

Wed, 05/27/2015 - 18:05 | 6137950 jonytk
jonytk's picture

the same thing happens in nowadays Vietnam, you can't wire out!

Wed, 05/27/2015 - 17:27 | 6137818 BoPeople
BoPeople's picture

This pretty much confirms that Bitcoin is a central bank baby.

Wed, 05/27/2015 - 17:32 | 6137830 Chuck Knoblauch
Chuck Knoblauch's picture

Why do they show Bitcoin as a coin?

Why is coin in the name Bitcoin?

It shoul be name Bitbyte.

Would you buy a Bitbyte?

Me neither.

Wed, 05/27/2015 - 17:35 | 6137842 DutchBoy2015
DutchBoy2015's picture

When your salary or wages is sent to your current account it goes in as BitBytes.

SMDH.   

Wed, 05/27/2015 - 17:38 | 6137856 Chuck Knoblauch
Chuck Knoblauch's picture

All the retards think Bitcoin is a physical coin.

It's a coin in name only.

Like the Fed is federal in name only.

I cannot believe I share this planet with so many morons.

Wed, 05/27/2015 - 17:41 | 6137864 DutchBoy2015
DutchBoy2015's picture

..

 

Wed, 05/27/2015 - 18:05 | 6137954 DutchBoy2015
DutchBoy2015's picture

Difference is the max amount of BitCoins that can be mined is 21 million.

Bet you didn't know that.

Wed, 05/27/2015 - 18:37 | 6138062 Chuck Knoblauch
Chuck Knoblauch's picture

The thing you refer to isn't mined at all.

Wed, 05/27/2015 - 18:40 | 6138072 DutchBoy2015
DutchBoy2015's picture

A room of computers working 24/7 is called mining.  

 

Wed, 05/27/2015 - 17:48 | 6137893 DutchBoy2015
DutchBoy2015's picture

So the plan is actually to put the world on the BitCoin standard eventually.,

Wed, 05/27/2015 - 18:00 | 6137931 Chuck Knoblauch
Chuck Knoblauch's picture

BITBYTE

MORON

Wed, 05/27/2015 - 18:03 | 6137944 DutchBoy2015
DutchBoy2015's picture

Its on the BitByte standard now, MORON.

Wed, 05/27/2015 - 18:35 | 6138040 Chuck Knoblauch
Chuck Knoblauch's picture

Stop printing bitcoin on coins.

When the word has nothing to do with a coin.

Pull someone else's finger dickhead.

Wed, 05/27/2015 - 18:39 | 6138070 DutchBoy2015
DutchBoy2015's picture

Chuck you Farley,.   Garlic man (knoblauch in german is garlic)

Go brush your tooth, Jethro.

Wed, 05/27/2015 - 18:09 | 6137970 22winmag
22winmag's picture

I guess we could not go a month without at least one Bitcoin story.

 

Too bad.

Wed, 05/27/2015 - 18:37 | 6138065 DutchBoy2015
DutchBoy2015's picture

Just ignore it and keep stacking your PM.   LOL

Thu, 05/28/2015 - 00:42 | 6138936 dellievan
dellievan's picture

All bitcoin conversations devolve into spit fights.  I'm agnostic, but do not see what the fuss is all about.  It is too confusing for me,  but I applaud what the pro group are doing.  If it works,  all the best.  If not, they at least did something to fight the Fed Dragon.  Seem's the best of those in the  ZH forum  can do is Fuck The Fed, boating acccidents and the like.  There will be no magic bullet,  the Fed will go with a thousand cuts.  Let's get along !

Wed, 05/27/2015 - 18:09 | 6137972 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

If don't have the keys you don't own it, beware of any centralized institution !

Wed, 05/27/2015 - 18:12 | 6137982 DutchBoy2015
DutchBoy2015's picture

True so I suggest investigating this furthur. Address your questions to that start up bank.

Wed, 05/27/2015 - 18:16 | 6138001 DutchBoy2015
DutchBoy2015's picture

Just think about Uber which has killed the taxi companies world wide.

Wed, 05/27/2015 - 18:17 | 6138006 TwoHoot
TwoHoot's picture

The problem with bitcoin is the same as the problem with gold and silver: Conversion from local currency into bitcoin (or PMs) and back to local currency that will buy a hamburger or pay the electric bill.

In both cases the market is inefficient with wide and uncertain bid/ask spreads. MAYBE a bank would help reduce bitcoin market inefficieny, but a bitcoin bank would introduce a third party that will have to be paid (just like the PM dealer).

I would use bitcoin if I needed to regularly transfer money from one jurisdiction to another. I'd use PM's if I wanted to preservepurchasing power over time.

Wed, 05/27/2015 - 18:39 | 6138071 Chuck Knoblauch
Chuck Knoblauch's picture

The word is fungible.

The dutch moron doesn't seem to understand that.

Wed, 05/27/2015 - 18:42 | 6138082 DutchBoy2015
DutchBoy2015's picture

Says the Garlic Man shithead who doesn't know shit from shinola about ANYTHING and has no real world experience.

Just a kid thats Chuck the Fucktard Knoblauch.

Wed, 05/27/2015 - 18:46 | 6138093 Chuck Knoblauch
Chuck Knoblauch's picture

You sound like a demented squirrel with all his nuts invested in a bitvice.

Wed, 05/27/2015 - 18:47 | 6138101 DutchBoy2015
DutchBoy2015's picture

You sound like a typical shit for brains American imbecile.   Spewing myths and bullshit.,

Go upstairs , kid, mommy has milk and cookies for you.

Wed, 05/27/2015 - 18:58 | 6138137 Chuck Knoblauch
Chuck Knoblauch's picture

Pay your carbon taxes or else the central bank utility will turn your money off.

Wed, 05/27/2015 - 18:46 | 6138098 DutchBoy2015
DutchBoy2015's picture

Look here you little shit for brains IMBECILE.

When gold is mined they spend lots of money on equipment and manpower to get it out of the ground,.

Mining BitCoins takes lots of raw computer power working 24/7.  Plus cooling water and people to maintain the PC's.

Why are idiots like you so fucking ignorant???

Wed, 05/27/2015 - 18:48 | 6138106 Chuck Knoblauch
Chuck Knoblauch's picture

Keep mining your brain for some intelligence.

You'll strike it soon.

If not, write it off.

Thu, 05/28/2015 - 15:57 | 6141139 A is A
A is A's picture

I could be wrong but I think what he was describing was liquidity, not fungibility.

Wed, 05/27/2015 - 18:50 | 6138087 Chuck Knoblauch
Chuck Knoblauch's picture

Turning utilities into central banks?

Why not!

I makes perfect sense.

 

Wed, 05/27/2015 - 18:51 | 6138115 DutchBoy2015
DutchBoy2015's picture

I hope your one brain cell soon recovers.

Wed, 05/27/2015 - 18:56 | 6138122 Chuck Knoblauch
Chuck Knoblauch's picture

Like the fool you are, you're focusing on the infrastructure.

You're new god we trust is electricity.

Why not put a picture of Thor on your bitbyte?

As long as the power is on, your money is safe.

 

Wed, 05/27/2015 - 18:57 | 6138134 DutchBoy2015
DutchBoy2015's picture

More fucking gibberish.,  as long as their is sun their is electricity,   if there is no sun we are all dead.

 

Wed, 05/27/2015 - 19:09 | 6138149 Chuck Knoblauch
Chuck Knoblauch's picture

I feel so .... illuminated by you technocratic genius.

You only have the Chinese, Russians, and Indians to convince.

That should be fun to watch.

Instead of Thor, how about Lucifer.

Wed, 05/27/2015 - 19:07 | 6138141 Chuck Knoblauch
Chuck Knoblauch's picture

Pay your carbon taxes or else the central bank utility will turn your money off.

Sorry, no carbon tax, no money.

Didn't they tell you that?

Don't worry, they'll take it out of your utility bank account.

young fools

Thu, 05/28/2015 - 01:30 | 6138989 onmail
onmail's picture

The pirates of west dont want to move in ship, land in remote corners, butcher the local people , grab their spice farms, grab their business, make profit.

Rather simply , they want to hack into people's account and loot billions in a flash of a second. Piracy made easy.

Thats the beauty of digital currency.
Pirate friendly.

Thu, 05/28/2015 - 13:11 | 6140439 Nicolas D.
Nicolas D.'s picture

Oh my goodness, so much negativity on Bitcoin. I don't have time to convince you, but I will ask you this question,
What is your proof that gold can't be manufactured, like diamond, economically in a laboratory ? What is your proof that your gold coin is 99% pure ?
Well, for Bitcoin, you know both for sure. The claimed "difficulty to grasp" of Bitcoin is about a proof that even gold can't be claimed to have.

The "historical" trust of scarcity that give Gold his value is replaced by a mathematical proof.
For those who can't understand the proof, then Bitcoin is without any value, because it does not have historical trust.

But those who understands the proof are reshaping our financial system with this knowledge, as you will more and more see around you.

Bitcoin is not going away.

Thu, 05/28/2015 - 15:55 | 6141128 A is A
A is A's picture

LOL. The reason diamond is diamond is completely different from the reason gold is gold. Diamond is what it is because of the way it is bonded, i.e. the relationship between elements; in this case carbon, which is abundant on earth. Gold is an actual element. I'm not saying never but it is going to be a damn long time before we can make gold. As far how you prove gold's purity, Google it. There is more ignorance (bordering on purposeful) to point out in this post of yours, but I have better things to do.

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