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Bitcoins have been around for a few years. There are fledgling groups who try to use it as a real currency for online transactions amongst eachother. For the most part, it was a joke even when it was receiving a lot of positive attention amongst the modern internet community.

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I think bitcoins are a great thing, from what I understand about them. One thing is for sure, our government moneprinters don't want us making transactions with anything but their pieces of paper. From following this for a few years I can say that they are not a scam or fluke(yet), and the value has went up a lot. It is possible that people will get fucked in the end, any type of non-tangible currency is subject to going bust. There was a time in Amsterdam when a bag full of Lilly bulbs would buy you a house. That didn't turn out so well in the end, but many people made a fortune before the bust of the Lilly bubble. Basically I don't endorse or own bitcoins but I like the concept, and wish I would have bought in long ago and sold today. As for me rite now, I am waiting to invest my capitol in mags when the prices come back down. Not for resale but just to hoard.

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hmm... maybe they could put a chip in your hand... that would allow you to make your purchases in the currency of the time... and track everything... ME? I will pass... too revelationistic for this boy... :unsure:

 

:smoke:

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hmm... maybe they could put a chip in your hand... that would allow you to make your purchases in the currency of the time... and track everything... ME? I will pass... too revelationistic for this boy... unsure.png

 

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Where's the LIKE button.... when you need it? smile.png

 

 

Well said.

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  • 3 weeks later...
Coming Soon: BitStocks! Shares of imaginary companies that don't exist.

Got a laugh out of that.

 

But the more I learn about this, the more I think they should drop the second "i" from "bitcoins".

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There was also a bit of scandal of russian mafia using bitcoins and also currency systems in MMOs to launder real money, and even pay for mob hits.

That's just "thinking outside the bank."

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I want to say i remember hearing something that they were using the bitcoin system in "darknet" or "blacknet" or whatever it's called, to pay for drugs, "hits", and everything else that you don't want to leave a money trail for

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Just came across this. Pretty funny.

 

In May 2010 a US programmer swapped 10,000 bitcoins - then worth less than a cent each - for two pizzas.

At last Tuesday's price the pizzas cost him about $1.7 million.

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hmm... maybe they could put a chip in your hand... that would allow you to make your purchases in the currency of the time... and track everything... ME? I will pass... too revelationistic for this boy... unsure.png

 

000.gif

 

People of certain professions, and people who patronize those professions may want to put chips elsewhere ....

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  • 10 months later...

Who could have seen this coming?

 

Major bitcoin exchange said to be insolvent

 

http://news.yahoo.com/major-bitcoin-exchange-said-insolvent-151829294.html;_ylt=AwrSyCRbvgxTUTIA4L3QtDMD

 

TOKYO (AP) — A major bitcoin exchange has gone bust after secretly racking up catastrophic losses, other virtual currency companies said Tuesday — a potentially fatal blow for the exotic new form of money.

Edited by Darth Saigus
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Bitcoin was brilliant. A digital currency that completely exposes our issues with a floating currency. It was great because how difficult it was to trace. No libertarian can claim Bitcoin was a bad thing, it was the definition of Govt being completely excluded from banking, as our Founders intended. It YOUR money to do with as you choose, and just like all sin, YOU make the decisions in its use and YOU pay the price.

 

It gave govts fits because it was not tied to their floating system. Govts print currency to increase money supply, drive inflation. You may notice that despite constant printing the US published inflation has been low. Take a look at your wallet and your bills and tell me inflation has been 2-3% for the last few years. By cherry picking and tweaking they can publish what Inflation number they want, in order to keep retirement and govt wage costs down, while in actuality our money becomes worthless and we are worse off.

 

Bitcoin was established as a system that would have defined expansion based on a predetermined rate, NOT the whim of some pseudo-govt entity trying to manipulate markets. Like Gold, it could be used as checkpoint for volatility of the market, as its supply would change only based on the bitcoin protocol. In this way it exposed true volatility of the worlds floating currencies.

 

Think about it: The Fed could drop a billion dollars on the market tomorrow, we have no control over our money. Bitcoin has a pre-defined expansion rate guaranteed.

 

Its a brilliant concept, but because its such a great idea and because there is NOONE else in this field, they were swamped by investors and speculators. I thought it would be a miracle if they even pulled it off, much less survived once governments realized the threat. I believe we will continue to see such crypto-currencies crop up and die until a mega-corp with enough juice establishes one off-shore somewhere.

Edited by mostholycerebus
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...

 

 

The problem with your gushing enthusiasm is that any system of currency not made of fine metals is fiat money.  Is a few 1s and 0s in a computer really different than a printed piece of paper?  Hell, most of my "money" is just numbers is some computers anyway.

 

Whether it's a government or a corporation making the fiat money concerns me not.

 

That which has been created out of nothing, in the end is nothing.  It is a placeholder.  A promise.  And promises...  Well, they get broken.

Edited by Darth Saigus
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The problem with your gushing enthusiasm is that any system of currency not made of fine metals is fiat money.  Is a few 1s and 0s in a computer really different than a printed piece of paper?  Hell, most of my "money" is just numbers is some computers anyway.

 

Whether it's a government or a corporation making the fiat money concerns me not.

 

That which has been created out of nothing, in the end is nothing.  It is a placeholder.  A promise.  And promises...  Well, they get broken.

First, im not sure how my gushing enthusiasm has a problem. Second, Bitcoin is not technically a fiat currency as it is not generated by a government, and is not printed at will. I concur that the inherent trust is just as much a requisite for cyber money as it is for fiat currency. The difference is going to be that corps will be legally required to conform to their contracts, which will define set money supplies. Almost like a fiat/hard currency hybrid. Actually closer to Gold in effect.

 

Last, i disagree with your assessment that all money is flat out a bad thing. Barter systems are difficult and inefficient. Another thing that gold hoarders miss is that golds value itself is is the same boat as fiat money. Gold is basically worthless compared to goods. It holds value only because it has a static supply and is believed by everyone to hold value. The same could be said for virtually any metal, or gem, or yes digital imaginary currency. Belief if greater than reality.

 

But yes, as an economist I find the whole thing very interesting. Even more interesting will be the long-term social aspects, as digital currencies will be yet another nail in the coffin for government in general. Govt will find itself in the same position as Unions: prove your value to the consumer or die.

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...

 

 

The problem with your gushing enthusiasm is that any system of currency not made of fine metals is fiat money.  Is a few 1s and 0s in a computer really different than a printed piece of paper?  Hell, most of my "money" is just numbers is some computers anyway.

 

Whether it's a government or a corporation making the fiat money concerns me not.

 

That which has been created out of nothing, in the end is nothing.  It is a placeholder.  A promise.  And promises...  Well, they get broken.

 

There are some factually inaccurate statements here - by one common definition, all state-issued currency is fiat money. Fiat money can be defined as any money declared legal tender by state fiat - regardless of whether that money is represented by "fine metals."

 

Your suggestion that currency is either fiat money (by which I believe you mean, it is not representative currency) or it is backed up by metal is also patently false. Precious metal has been a convenient backer of currencies because of its properties - rarity, portability, permanence, its ability to be measured and split into denominations, how readily it can be isolated from ore, and the ease with which it can be worked - perhaps also that it can be made very shiny and attractive. Iron makes a poor precious metal because it rusts - it lacks permanence. Copper makes a poor precious metal because it, too, can oxidize away into nothing - and it is also far too common. Nickel is a bit too common to be a precious metal. Gold, silver, and platinum-group metals all fit the bill. They're rare, easy to work, and they stand the test of time. Under other worldly circumstances, nickel, chromium, niobium, tantalum or indium might have been considered precious metals.

 

Societies have used all manner of representative money, even before the existence of coinage. It is well-documented that many ancient societies issued chits or other representative bearer items to represent the storage of commodities by a central authority - and those chits could be freely exchanged, and the current holder able to exchange the chit for the commodity it represented. Source: http://academiccommons.columbia.edu/download/fedora_content/download/ac:114139/CONTENT/econ_0102_08.pdf

 

Bitcoin (and other similar cryptocurrencies) represent a new kind of currency system that has never been tried before - nor could it have been, without modern technology. It is inherently flawed, as any monetary system. If what I've read is accurate, the system only works for a finite period, until all the bitcoins have been mined - after which dramatic deflation is inevitable.

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Heard something on the news tonight abut this stuff going tits up. 

 

http://www.latimes.com/business/la-fi-bitcoin-collapse-20140226,0,5968430.story#axzz2uP4X4dqa

 

In a stunning blow to a novel way to buy products and services, the world's largest exchange for trading bitcoin currency shut down Tuesday, triggering a massive sell-off and sending many prospective investors away — perhaps for good.

"This is extremely destructive," said Mark Williams, a risk-management expert and former Federal Reserve Bank examiner. "What we're seeing is a lot of the flaws. It's not only fragile, it's fragile as eggshells."

The mysterious circumstances that triggered the failure of the exchange, Mt. Gox in Tokyo, is only adding to the renewed anxiety over the virtual currency, which just a month earlier had been gaining momentum and supporters.

After saying users could not withdraw their funds, Mt. Gox suddenly ceased all operations, including shutting down its website. Mt. Gox users may have lost more than $300 million worth of bitcoins in what was the latest and biggest in a series of recent setbacks for the virtual currency.
 
 
Wonder if the banksters killed it off so it wouldn't become a threat to them?
Edited by Jpanzer
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