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Bitcoin Battered After "Governance Coup"
Naysyers are warning that the recent plunge in Bitcoin prices - from almost $318 at its peak during the Greek crisis, to $221 yesterday - is due to growing power struggle over the future of the cryptocurrency that is dividing its lead developers. On Saturday, a rival version of the current software was released by two bitcoin big guns. As Reuters reports, Bitcoin XT would increase the block size to 8 megabytes enabling more transactions to be processed every second. Those who oppose Bitcoin XT say the bigger block size jeopardizes the vision of a decentralized payments system that bitcoin is built on with some believing the split could spell the end of bitcoin. However, the turmoil in the price also coincides with some rather notable global macro events from Asia (where Bitcoin is extremely popular).
So while the price action is serious - we have roundtripped from the beginning of the peak of the Greek crisis. However, as Reuters reports, the split in cryptocurrency developers could spell the end of Bitcoin...
On Saturday, a rival version of the current software was released by two bitcoin big guns: Gavin Andresen, who was chosen by the currency's elusive creator, Satoshi Nakamoto, as his successor when he stepped aside in 2011, and Mike Hearn, who along with Andresen is one of five senior developers.
For months Andresen and Hearn have been locked in an argument with the other three lead programmers over whether the "blocks" in which bitcoin transactions are processed should be enlarged from their current 1 megabyte, so as to enable more than three payments to be processed per second.
The new version, which calls itself Bitcoin XT, would increase the block size to 8 megabytes, which would allow up to 24 transactions to be processed every second. That is still a fraction of the 20,000 or so that VISA can process, but would increase every year, so that bitcoin could continue to grow.
Those who oppose Bitcoin XT say the bigger block size jeopardizes the vision of a decentralized payments system that bitcoin is built on, as the extra computer memory needed would shut out many of the thousands of individual "nodes" that currently power the network.
Some reckon the split could spell the end of bitcoin. But Hearn, speaking to Reuters on Tuesday, said that whether or not Bitcoin XT was adopted, the crypocurrency would live on.
Andresen and Hearn argue that it was Nakamoto's intention for bitcoin to be scaled up as technology developed so that it could widen its reach. But opponents argue that bitcoin was never intended as a rival to traditional payments systems.
"I have followed this from the beginning & I agree that it is an attempted governance coup," tweeted Jon Matonis, founding director of the Washington, D.C.-based Bitcoin Foundation, of which Andresen himself is chief scientist.
"Bitcoin was designed to be protected from the influence of charismatic leaders, even if their name is Gavin Andresen, Barack Obama, or Satoshi Nakamoto," the user wrote.
We leave it to the reader to decide which is more responsible for the recent crash as one lead developer noted,
"If we thought it might be the end of bitcoin, we wouldn't do it,"
* * *
Finally, we note that add that the biggest winner from this is gold
The flight to central bank loss of control safety "pet rock" will never have governance problems.
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From $1,242 to $221. There's some wealth preservation for ya.
From $00.01 to $226 dumbass...
Tell that to the people who paid $1242, dumberass......
We will tell them, tell them to get fucked, stop bitching and buh more....
Because people want a payment system where they lose 1/3 of their buying power overnight.
People can go in and out of Bitcoin in less than 10 minutes to any other national currency, smart people will spend years there...
buh buh black sheep......
At least you don't give up Fonestar, even ALL the way down.
All the way down? Do we care what BTC is priced at in your beloved BENNYBUCKS? Do you think we are going to cash out into your shit confetti? Nah... you people are done!
You have to cash out into fiat paper. That sucks for you.
Says who moron? Several PM dealers accept BTC directly... you people really are teh dumbest fucks online.
ZH really is the biggest collection of luddite goofs anywhere online. America... from tech leaders to tech losers in < 2 decades.
Jesus dude calm down. If bitcoin is the real deal we will know in the next few years. The dollar and all fiat currency is crashing around us. The end game is near. Maybe bitcoin makes it out of the rubble. Personally I'm betting on silver bullion.
I Just Heard... Chinese Farmer Take Bitcoins...Lol
PHYs GOLD, Bitcoin Bit-Chez...
Funny how ZeroBrains never worried about "the grid" or "EMP" while placing their digital AT&T phone call, using a digital credit card, to be digitally processed and shipped with UPS to APMEX all these years? Oh right, they're idiots....
I'll tell you guys a secret:
Andresen IS Satoshi.
That's all.
ZeroBrains can bitch and moan as much as they like.... sad fact of the matter for them is that Bitcoin and crypto-currency exists. So you can go on in denial, talking about paper/gold/paper/gold/paper but the rest of the world is moving on without you....
And apparently anyone can print them, or increase, them by merely changing the block size.
Yes, bitcoins exist as bits inside a computer(s) just like bullshit fiat currencies. A small percentage of bullshit fiat currency exists as pieces of paper, but the bulk of it is nothing more than computer entries.
Bitcoin is game theory meets computer science meets Austrian economics. So it should have been something that was championed by "alternative" media and blogs. Instead (largely in the US where little Jimmy and Johnny are raised to believe that being smart is the same as being weak) it is trashed as being useless. I have little sympathy for victims who threw away their most useful tools before going into the woods, let's put it that way....
Fonestar told me that it only costs 5 dollars to dig BitCoin out of the ground.
Regards,
Cooter
Methman FTW!
The shit is everywhere!
Lulz, the halcyon days of ZH trolling.
Bitcoin is tulips meets computers meets World of Warcraft
Face it, dipshits like you could never appreciate the brilliance that has gone into the Bitcoin network. Pearls before swine...
Yes. You are correct. Idiots like me that can smell your scum that you're trying to peddle, really don't buy it because we cannot appreciate the beauty of being ripped off. In fact you have attained such greatness, that I recommend you kill yourself to seal your legacy.
Like most of the retards on Zerohedge, your experience with the public internet has been limited to DPORT 80 & 443. No loss to the world when you geezers die off....
Wow, just wow. I have no real opinion one way or the other regarding bitcoin, but you sure don't want to make me know anymore.
I don't understand. If bitcoin is all that great, why is everyone who is proponent of it so defensive? When I know or think I'm right about something, I don't bother to argue with folks about it; I just smugly hug the truth to myself and go on my way.
The only use I might ever make of bitcoin would be to quickly transfer value from one place to another, but I would only hold bitcoin for as long as the transaction required to complete.
Sold my level 75 resto shaman for $50 usd to a loser in an internet cafe, way back when...
Don't tell the BTC bugs that "Tulip mania got actual tulips instead of zeros and ones". That will be the quote for the grandkiddies....
Digital anything isn't going to be worth yak scat when the lights go out.
But please, take advantage of this temporary drop and load up some more.
We'd ask how that will work out for you, but honestly...we don't have to wait for the confirmation.
Are you planning on the lights going out forever all around the world? And never coming back on? Are you planning on going out in a blaze of glory fire fight with the feds? So why bother with anything then?
So, you planning on the lights coming back on at some point and what? Stick a flash drive in a computer and tell somebody (I don't know who, somebody you think gives a frack), look, I got all these BitCoins, see? Let's make a market!
Uhh huh...
Precisely that. It is in teh best interests of citizens, producers, industrialists in every country to make sure that they have a functioning and stable electrical grid. You can bet on it.
Obviously, you are not aware of the sad state of the electrical grid in this nation, what powers it and how vulnerable it is to sabotage and failure.
Pretty sure most other nations are not in much better shape.
If you are not planning self-sufficiency you are acceptiing victimization at some point.
Good luck.
Not everyone lives in "this nation" nor plans on staying in a place where people actually take pride in being ignorant, stupid and uneducated....
Impressive, so not on earth then. What planet are you on?
I guess the connection to Uranus just failed...
Try getting out and doing some travelling. It's cheap right now with your "dollar" and believe it or not, not everyone on Earth harbours attitudes like your nation does.
Actually, I don't have a nation, mine was stolen from me. I know I used the term "nation" above but it was for purposes of brevity only, it is easier than typing "the nominal nation I currently reside in to which I no longer share any allegience or responsibility towards".
So...that's my attitude, if it is not to your liking...well I am pretty sure I don't care.
Hope you and your BitCoin hoarding fellow Uranusites all have a swell TEOTWAWKI.
https://www.youtube.com/watch?v=acxnmaVTlZA
You don't have to go as far as Uranus, try going a few minutes north or south of your borders. Some people actually are inquisitive, see oportunities when they arise, recognize advancement rather than take pride in being stupid and dismissive as so many people do inside your borders (which not surprisingly, have some of the lowest amounts of travellers of any industrialized nation).
Ease up on the guy geeez! I was just reading about some 13500 year old bit coins that had been exhumed and still had their green silicone luster.
Some museum had them on exhibit and marveled at how they had made it down through the ages. They theorize the find is Atlantian in origin.
They come back on, just not w/ Mr. Bitcoin.
So explain logically, how they choose what computer services come back and which do not? Teh we is waiting for some amusement...
First and foremost, an economic collapse that would lead to the dollar death, will lead to massive outages both interwebs and electric transmission grid wise. So at that point, BTC is worth less than lollars, cause at least I can wipe my ass with lollar. Good luck using BTC as a medium of exchange whilest calamity is peaking. By the time things settle down and all connections are restored, BTC will still be worthless as the world will have moved on to a prefered new medium of exchange. But keep thinking you're the smartest guy in the room, it is great comedy.
Teh dollar death will mainly effect people in USA. My brother was in Germany during 9/11 and he said nobody really cared about it or talked about it. People do not care about your country choke full of ignorant luddites and proud dipshits. Again, go and travel and see for yourself....
Hahahahahaha! You truly are economically retarded. Thinking that 9/11 didn't effect Germany, you have to be blind, deaf, and dumb. Germany has been greatly changed as the rest of the world due to those events and what unfolded after. Again, if you think the dollars death would be a small violin, then you are doomed to die with it. Kinda like if that small little country that no one cares about leaves the Euro.
Yep, people were like "oh well that sucks" and then they were, "what else is on the news?" Again your American-centric world view is no different than faith-based currency. It will easily crumble along with teh dollar and you will see that you are nobody special, never were anyone special. Teh world will move on and forget about you in a few months...
You definitely are quite special, in that short bus kinda way.
You know you're right, we was just lying. Teh entire world is titillated by your Kardashians, held in suspense about a Fed rate hike, glued to CNBC and Queerlyn Jenner. It's all they're talking about actually.....
You are what the beginning of a gvt default looks like, you are ahead of your time here, it's the dog days of summer, get used to it.
I actually made about $4k on Bitcoin early on. Easy money with spare computers. But in an economic collapse, if it ain't in my hand, it does no good, same as paper gold.
Santini (Hot) Air: GTFO if you think ZH'ers are losers. Quit your trolling and get the fuck out.
They're about 2 points brighter than the FOX/CNN sheep... at least they know they're gonna get hit.
I think there has been a mistake.
I think you meant to join a Call of Duty video game forum with the other screaming 12 year olds.
-
lol fair enough. I didn't know I could use bitcoin to buy gold. That is kind of cool actual. Yet still, I don't feel like taking dollars, buying bitcoin to buy gold. I'd rather use my dollars and go straight to gold. Less the daisy chain that way.
SG, I have bought gold (and platinum) with BTC from two different suppliers:
http://www.providentmetals.com
htpp://www.veldtgold.com
Faster shipping when paying by Bitcoin.
Plus easy returns with hearts of tungstun.
I have bought silver and gold from both of those suppliers as well as amagimetals.
Shipping times differed between them but in the end they all did what they promised.
Very happy.
I could give you a few ideas.
I've seen some trading platforms that allow you to deposit bitcoins and use that as margin collateral. You can trade securities, ETFs, currency pairs, etc. (including paper gold). Some of the benefits are that you own bitcoins rather than USD by default (so you don't get to touch USD even if they close your position or account for whatever reason) and you don't have to jump as many hoops or wait days just to get your money in or out of the trading account.
There's also this service that they praise a lot (I can't vouch for it personally) called purse.io which allows you to buy stuff from Amazon (and maybe other places too) with bitcoin, with steep discounts, on the order of 5-25%. The way it works is you place an order with your desired discount, your Amazon wishlist, shipping address, and then someone buys the items for you. As far as I understand it, many people have their own Amazon gift cards and stuff like that laying around that they want to quickly monetize, but perhaps a lot of it comes from stolen gift cards, credit cards, etc. Apparently bitcoin is the preferred currency for the fact that you can't reverse Bitcoin transactions and you can anonymize them, and so some people are willing to buy stuff for you for deep discounts. Maybe something like that can save you some money so that you have more for stacking.
I don't know if you can buy gold with a discount yet though (other than a few gold dealers that charge fees if you buy with credit card but no fee with bitcoin). Maybe it will happen too.
Just to remind you, a lot of the stuff in Bitcoin land is just things that are being planned but not implemented yet, in "beta", or working, but not well tested, established or trusted. Do your own research before you send your money to someone.
....which is derived from the fiat price of the digital tulips. You lose again.
I smell Blythe ( or whatever name of that bitch ).
Many large PM dealers take Bitcoin for payment. I was at a local BTC meetup last week and someone had a few oz of physical silver for sale and was ONLY accepting BTC, no fiat. Sold it for a few cents below spot, too!
It's laughably easy to buy gift cards with BTC and convert those gift cards into whatever you want. BTC>Amazon Gift Card>Whatever you want. Toilet paper, water, food, books, soap, clothing, you name it. Not really hard.
You also "have" to convert gold or silver to fiat, in order to buy some gas at the gas station. So what? I'll keep stacking PMs and add a little BTC as well as a speculative investment.
You figured me out, Foney. I went to a garage sale on the weekend, bought a wheelbarrow, filled it with $1 Benny Bucks, and now I just lie in it. So relaxing.
Yep, your weirdo love/hate relationship with the Fed and their cotton rectangles you pretend not to love. Know teh American psyche very well....
"cotton rectangles" - that was a funny one. Seriously. Gonna have to borrow this one from time to time!
There are plenty of ways bitcoin could completely fail but also possibility for impressive returns, time will tell.
For anyone who can afford it, and can tolerate the extreme volatility, sure, owning some Bitcoin is great diversification.
But, under 1% of your assets.
"Buy what you can afford to lose."
It's a lottery ticket...
....and for those (non-pussies) with a greater risk tolerance, major, major gains lie ahead with crypto. But you have to keep your eye on teh ball because this is a game that can change very fast!
Gains may look at head with Crypto but it doesn't necessarily mean Bitcon.
100's of rival alt currencies with more being created everyday and bitcon has the biggest target on its back. If there was ever the perfect manipulation mechanism it's cryptocurrencies.
Teh only ones that Bitcoin needs to worry about percentage wise are Litecoin, Dash and Bitcoin XT.
Don't forget Dogecoin
To the moon!
This is yet another reason why they are fundamentally worth nothing. The minute one gets valuable, you can just create a new one and print moar.
The test has always been, if no one accepts something as money, what do you have? With PMs you still have jewellery and industrial material, not great but there's a definite floor. With fiat you have paper, a much bigger loss. With Bitcoin you have... a few flipped electrons?
It's a cute way to wire money though. eGold would be much better.
Whoever programmed this bot needs to change the spelling of "The/the" in the local db.
Its the Winklevi twins trying to use 'hacker' jargon to appeal to all their base (that belong to us)
hmmm... yes, somebody set up us the bomb.
http://politicaloutcast.com/2012/09/obama-ready-to-sign-internet-control... Of course Obozo would NEVER shut down the 'net would he?
Speaking of going down in flames, anyone up for Subway?
pods
Does it come with a kiddie toy?
"Get your picture with Jared day" has been cancelled, sorry kids.
Damn. I bet the DJ had this cued and ready to rock!
https://www.youtube.com/watch?v=wv-34w8kGPM
Oh, now we're Jared Fogleing, eh?
Whats 'Jarod Fogeling' look like I wonder?
Gobbling down a 12" Italian while jacking off on a pile of Beanie Babies?
Turns out the accused lives in Zionsville.
Coincidence?
I think not...
fonestar youtube channel -
https://www.youtube.com/user/weihrauchfan1999/feed
Yay for teh we!
Smart people play the currency market? No, smart people invest for the long haul. Bitcoin is no wealth preserver.
Bitcoin will do better than preserve wealth, it's already made early adopters very rich. Done very nicely for weself too, much better than someone who bought gold/silver in 2009.
What? In early 2009 gold was $850 and silver $11 bucks.
http://www.kitco.com/londonfix/gold.londonfix09.html
sorry dude "its great, if you got in right at the beginning" doesnt work for pretty much everyone except the handful that got in at the right time. were you smart enough to sell at 1200? yeah, didnt think so.
Sounds more like a pyramid scheme or a penny stock pump and dump than a stabile currency
Bitcoin is worse than a penny stock. At least some penny stocks have assets backing them.
With bitcoin there is no liquidity. The only cash in the system, is the cash injected when someone BUYS a bitcoin with cash. A bitcoin "paid" to a miner, is actually a liability, becasue nobody injected new cash to back that bitcoin.
Just like with half of all bitcoins (assumption) issued or bought for less than $10, where does the cash come from to pay out all those bitcoins if the owners want to cash them in? Answer, there IS NO CASH backing.
"...it's already made early adopters very rich."
Being a 'fan' of bitcoin doesn't mean being there from the start. It means being there until the end. And there in lays the rub. In the end, bitcoin will show its true worth... zero.
You can't get "out" of large amounts of bitcoin. Try and cash out several million dollars.....
Tell us, what's the daily limit of various exchanges?
You forgot the people who had bitcoin with Mt Gox.
Fuck Mt. Gox, never traded there and only visited their site two or three times...
I traded there back and forth with a bot and got out with my btc right before it imploded. How cool is that?
No, I didn't forget them. I just didn't want to confuse Fonestar with too many facts.
http://www.reactiongifs.com/lol/W7Tcv.gif
They could of and should of kept it in thier own wallet or just printed it and held it offline if they wanted security.
Exactly how much do you have to unload?
Why the fuck would we "unload" the world's most powerful currency before the fireworks even begin?
So, how are things at Goldman (or whatever primary dealer bank you work for)?
Why the fuck would Goldman be into BTC? You people fail at basic logic and life....
Goldman, just like anyone else, can buy as much of any cryptocurrency that they would like.
Or are you going to contradict yourself and try to argue that they couldn't?
Sure they "could".... and they will not dare....
They are buying bitcoin. They see the potential threat. 10s of banks and credit card companies are studying it and strategising. Don't know if GS specifically has invested, but many banks are interested, and former CEOs of the likes of JP Morgan itself have invested in bitcoin companies. The evil queen blythe masters is deeply involved with the space already. They are trying to corner the market.
They can't simply buy bitcoin in large quantities and expect to corner that market. Millions of average Joe's have little piles of bitcoin. They are trying to manipulate the market so they can shake those people out and consolidate ownership. There is no way early adooters would sell to them if the price was mooning.
It's an experiment for sure, but one with extreme consequences for the world.
If they do they'll just make their own currency and lobby to have the DOJ prosecute and freeze all the major bitcoin wallet exchanges holding US funds. GG to the posterchild.
Correct. I have a former employee at JPM doing just this. These banks are in "business" to make money, period. They will do anything to make sure that happens (including buying senators/regulators etc.)
Now if only these "businesses" were allowed to actually fail...
I wish that was true, or that it would become true.
The banks don't want to hold Bitcoins, they want to invest in bitcoin COMPANIES. Those companies make their money by handling bitcoin for others, and it's the others that take the risk.
people who paid 1242 buck for it can loose 10, 20, or more times more.
well, for those five original "investors", yes.
Yup. Volatility is surely the sign of a great alternative currency.
Hey what happened to silver you phooking mental reject? Oh right, the BULLSHIT you guys pander only applies to everything else and not your chosen ones....
Hey Foney, I got two bitcoins in my pocket, if ya feel around and find them, you can have them.
pods
All the pictures of bitcoin show them as gold coins. Why would they do that?
I can't speak for centerline, but all of my ounces are still intact and in my possession.
Still a very useful commodity, what is your point douchebag?
Governments don't like competition. Bitcoin is either allowed to live because it furthers a larger aggenda, or it is already a covert op anyhow aimed at said larger aggenda. Electronic currencies is what they (gov) would love. Everything gets tracked. Everything gets taxed. Tip of the Orwellian iceberg.
On another note, I never mentioned silver. But, nonetheless, what I have is in my possession. Insurance, not lottery tickets.
same with the BTC in my possession. And they are still useful to buy stuff that you can't with your ounces.
Hindsight is 20/20
Like any good hedge or hedgefund, you can make a lot of money, but there is certainly a bit of risk as well...
i bought bit coin at $3, sold it at $15 and said good riddance to the fucking gox and crims stealing e-wallets.
this iteration of crypto was a darpa funded experiment , with much attention from the bernake etc; and is now an historical note, still seen as relevant by desperate small hopey people, nothing more.
keep yer oyos peeled for the one that comes next without all the problems and dweebs in basements, Ill assume it will be the one issued by the "MAN' himself, when the chips get implanted.
ah oh, disregard all of the above, too much info for the plebs.
f
Article is bullshit. Bitcoin only goes up.
Bitcoin goes all over and we will be there, beside Satoshi through every gust and gale...
You're really Blythe Masters right?
Blythe has nothing to do with BTC you fucking moron.
Oh yeah? Then what is this genius?
http://www.coindesk.com/former-jp-morgan-exec-blythe-masters-swaps-wall-...
Why would I ever invest in bitcoin on the recommendation of an idiot who is unable to do a simple web search?
How teh fuck does Blythe have dominion over thousands of miners, millions of Bitcoin users? Face it, you're fucking stupid and far out of your depth here....
Ouch!
Thats gonna leave a mark.
Stack, Mortimer, Stack!!!!
I'll trade my useless fiat dollars for the only real money that's been around for 5,000 years..silver and gold. Keep on stackin...while it is still available.
Paging fonestar
fonestar is with you!
member for 1 week 3 days
I haven't seen many posters from the Fonestar Brigade in months.
They were all pretty confident when BTC was flying high.
He got punched in the cocksucker like Ester Smucker...
And also with you!
have you achieved inner satoshi conciousness yet, or does that happen at BC= 23 cents
Silver is up over 2% today. This during fiat money turmoil. Just sayin'.
:)
You have to be impressed by Matonis. You have a system that could become the defacto payment system and currency worldwide and he doesn't want it to scale in order to be able to handle transactions in a timely manner!?! You cannot make this stuff up!
It's more subtle than that. Everyone wants Bitcoin to scale and it will eventually scale, one way or another. People just want it to be done right, without compromising what Bitcoin is.
It's just that easy to create wealth these days.
Run a computer without doing shit and you create "wealth".
Morons, bitcoin for me is nothing more as a mirror of what's wrong with our current financial system.
And for bitcoin it's just a transaction platform for drugdealers and morons who believe that crap will make them rich. The only people who got rich from it where those who found the idiots to sell their bitcoinsto when it rose from half a penny to 1000 dollars.
And now those who paid a 1000 dollars will soon be forced to find morons who will soon be willing to pay a penny fof it.
Next stop ZERO
So, again, your money relys on an electronic device "connected" to the web?
Right... Being a systems analyst/systems programmer for 30 years I say.... Good luck with that in the days ahead.
Actually, my bitcoins rely on a combination of offline devices and my own brain. Users are often reminded not to rely solely on connected devices (except in combination with offline factors). As for the Bitcoin network as a whole - it relies on the dynamic participation of thousands of devices connected to the internet.
This governance issue has created so much noise, the fact that the block size debate has come up at all shows that Bitcoin has grown so much that it needs to scale.
This is just another hurdle along it's long evolutionary line, nobody said redefining global finance would be a walk in the park.
What is it that people don't get about the Cryptos not being "secure" as in stolen (as in not yours anymore for NAY reason) or falls in value like anything else, plus it's all 1's and 0's and online and thus, is "owned" by "them".
Like the 777 .... Or OnStar or Mercedes ... Oh, never mind.