Interesting new money

[LightningCrash]

Interesting copy-pasta, though number two is untrue.

 

[Hobbes]

Unfortunately, there's a bit more to Bitcoin than no government control.

(1) There are no real assets behind the currency, just like Federal Reserve notes.
http://globalguerrillas.typepad.com/...sic-value.html

"Bitcoins have properties resulting from the system's design that allows them to be subjectively valued by individuals."
https://en.bitcoin.it/wiki/Myths

(2) Bitcoins can be stolen from a digital account. There is no insurance I'm aware of for losses.
https://bitcointalk.org/?topic=3977.0
https://bitcointalk.org/index.php?topic=16457.0

(3) Bitcoin service exchanges have been hacked, resulting in losses.
http://www.nbcnews.com/technology/te...t-heist-980871
http://rt.com/usa/internet-stolen-bitcoin-currency-226/

Bitcoin does have value as a medium for digital transactions. But, if the internet is down, so is Bitcoin. The digital units' safekeeping and storage is left up to the individual. And, if the electronic storage medium (hard drive, USB thumb drive, etc.) is broken, the digital units stored there are lost, unless there is a backup

Everything you have posted is true of any other currency as well.

There are no real assets behind the currency, just like Federal Reserve notes.

As you said, there are no real assets behind the dollar or the euro or any other fiat currency.

"Bitcoins have properties resulting from the system's design that allows them to be subjectively valued by individuals."

Traders swap into and out of international currencies all day long as they fluctuate against each other on perception.

Bitcoins can be stolen from a digital account.

And money is stolen from banks and credit cards every day, same thing.

Bitcoin service exchanges have been hacked, resulting in losses.

Bank accounts have been hacked too.

Bitcoin does have value as a medium for digital transactions. But, if the internet is down, so is Bitcoin. The digital units' safekeeping and storage is left up to the individual. And, if the electronic storage medium (hard drive, USB thumb drive, etc.) is broken, the digital units stored there are lost, unless there is a backup

Backups are critical because if you lose access to the private encryption key then your bitcoin is lost forever.
The suggested backup method of choice is to print your private key info on paper and store it in a safe deposit box or other safe location that no one else has access to.


I've done some reading up and bitcoin has some definite advantages that no other major currency has.

1. Your money is unreachable, undiscoverable, and untaxable if you do it right.
2. One party can pay another party without the intervention or knowledge of a 3rd party, like a bank clearinghouse ( this also has the advantage of very small fees or none at all because there is practically no overhead as there is when you transfer funds through a 3rd party).
3. Payment can be made and verified anywhere in the world in around 10 minutes that it takes for the bitcoin network to record the transaction.

http://www-cs-faculty.stanford.edu/...10-11/DigitalCurrencies/advantages/index.html

It also has a couple of disadvantages:

1. You have to secure your wallet.dat file that contains the private encryption keys safely and that means no online service, you do it yourself.
If you don't know how to properly secure a computer file from hackers, thieves, and malware then bitcoin probably isn't for you.

2. Transactions are irreversible so once payment has been sent there is no way to retract that money as you can with a CC.
This is actually something of an advantage too though since it means someone can't pay you BC and then retract payment or cancel the check after you have provided a good or service.

3. The biggest disadvantage is that not too many merchants accept BC right now so you might end up having to swap out of BC into another currency and then you encounter
the same overhead as any normal currency swap.


Overall, my conclusion is the BC will continue to thrive and there may be evolutionary changes that improve it over time.

 

[OKC03Cobra]

Bitcoin has too many drawbacks:

- It would cause deflation (as the number of units is limited) if it would be the official currency.

- The world earns nothing by mining Bitcoins. In fact, it consumes energy, it takes CPU/GPU time and is being wasted.

- Bitcoin transactions are not as anonymous as they claim to be ( read here: eprint.iacr.org/2012/584.pdf ).

- Bitcoin prices are motivated mainly by fear nowadays, which is never a good thing.

- It might be working as a pyramid scam, where the early adopters make money on behalf on the new buyers. (The question is - is Bitcoin here to stay or not, cause otherwise many would lose their money on Bitcoins).

(And the list goes on).

 

[Hobbes]

Know how to tell when a new currency is viable?


When the .gov feels threatened enough that they try to control it.



http://slashdot.org/topic/cloud/as-feds-suggest-guidance-bitcoin-foundation-pushes-back/

 

[OKC03Cobra]

Its technobux, sounds good when you’re a cyberpunk. But to most its digi-wampum for the self legendary nerd elite.

 

[Hobbes]

You know what they say about name calling being the last resort of a limited mind.

 

[J.P.]

Regardless of the varying theories bitcoin trade is alive and well for now, particularly in the grey to blackest of online markets.
B'lee-dat.

 

[poopgiggle]

This thread: people complaining about fake currency, only to discover some unpleasant truths about "real" currency.

 

[OKC03Cobra]

Bitcoin is an algorithm controlled ponzi scheme that persists by effervescent greed rather than inherit value.

 

[been]

One of my friends said I should get in on this because they are doing really well (yesterday). I said I just dont think now is a good time. He told me that today their value plummeted.