So what do you all think about Bitcoin?

[Procrustes Stretched]

thanks Jimbo. I haven't really gone deep into this 'new' currency because almost every new currency and every new economy ends up badly

 

[JimBowie1958]

FBI Fears Bitcoin's Popularity with Criminals | Threat Level | Wired.com

"The FBI sees the anonymous Bitcoin payment network as an alarming haven for money laundering and other criminal activity — including as a tool for hackers to rip off fellow Bitcoin users."

According to the WSJ, Treasury Dept is putting together rules to regulate the exchanges to prevent the money laundering. My guess is the biggest ones will comply ASAP.

Bitcoin Virtual Cash Gets Money-Laundering Rule - WSJ.com

 

[JimBowie1958]

Digital 'bitcoin' currency surpasses 20 national currencies in value | Fox News

 

[Mr. H.]

Bitcoin Hacked: Price Stumbles - Yahoo! Finance

Online currency bitcoin had 20 percent knocked off its price overnight on Thursday as one of its major exchanges became the victim of a hacking attack leading to a sell-off in the virtual currency after reaching an all-time high.

 

[editec]

I'm sorry but I don't trust the system.

The moment somebody tells me that a system cannot be hacked, I start thinking about the unsinkable Titanic.

 

[JimBowie1958]

Bitcoin Hacked: Price Stumbles - Yahoo! Finance

Online currency bitcoin had 20 percent knocked off its price overnight on Thursday as one of its major exchanges became the victim of a hacking attack leading to a sell-off in the virtual currency after reaching an all-time high.

From the article: ""Attackers wait until the price of bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit," Mt.Gox said. "

That isnt really a hack; it was just a DOS attack that lagged their system so these asswipes could take advantage of the price fluctuation they provoked.

You could do the same to almost any online exchange software.

 

[Mr. H.]

Bitcoin?s Value Drops 80 Percent In 24 Hours - Yahoo! Small Business Advisor

LOL

 

[JimBowie1958]

Bitcoin?s Value Drops 80 Percent In 24 Hours - Yahoo! Small Business Advisor

LOL

And it is back up to $90 range going over $100 sporadically. Two months ago it couldnt break $20, now it has a floor of $90 and you think that a bad performance?


Yes, someone ran a 'pump and dump' scheme, but unlike a true bubble the commodity has not gone to zero like Tulips once did or fiat has done repeatedly in one country or another for the last 110 years.

I think there is some big money behind bitcoins as well as commodity use that supports its price.

This looks like a bubble to you, honestly?

https://vircurex.com/welcome/index?base=BTC&alt=USD&d=7

 

[Politico]

It's internets money.

 

[editec]

Why is that a problem though?

How can the Federal Reserve address their Dual Mandate of controlling Inflation and Unemployment if they don't have a Money Supply to Inflate and Deflate as they see fit?

Cant tell if you are being serious or not.

I dont see how the introduction of an electronic commodity is going to prevent them from fucking around with the money supply. Hell, the 'liquidity trap' they have managed to fall into does more to limit their ability to manipulate than does Bitcoin.

Well of course, Jim, as long as BITCOIN remains a minisule sideshow in the wonderful world of specie, it is not real threat to the FED's franchise.

The FEd will continue to mess with its own money supply as it sees fit.

And, if I'm understanding the entire BITCOIN story, the system WILL limit the absolute amount of bitcoins in circulation, so it can never REALLY threaten the MASTERS of CAPITAL. (I also presume that this means the value of those coins will go up over time)

But you know how seriously the FED takes its monopoly.

I suspect that the MASTERS will find a way of crushing this alternative monetary system.

I honestly think they have no choice in the matter.

 

[LoudMcCloud]

I don't think any kind of currency will get your through whats fixing to happen. Food, water, luck, and a little know how are all you need.

 

[JimBowie1958]

How can the Federal Reserve address their Dual Mandate of controlling Inflation and Unemployment if they don't have a Money Supply to Inflate and Deflate as they see fit?

Cant tell if you are being serious or not.

I dont see how the introduction of an electronic commodity is going to prevent them from fucking around with the money supply. Hell, the 'liquidity trap' they have managed to fall into does more to limit their ability to manipulate than does Bitcoin.

Well of course, Jim, as long as BITCOIN remains a minisule sideshow in the wonderful world of specie, it is not real threat to the FED's franchise.

The FEd will continue to mess with its own money supply as it sees fit.

And, if I'm understanding the entire BITCOIN story, the system WILL limit the absolute amount of bitcoins in circulation, so it can never REALLY threaten the MASTERS of CAPITAL. (I also presume that this means the value of those coins will go up over time)

But you know how seriously the FED takes its monopoly.

I suspect that the MASTERS will find a way of crushing this alternative monetary system.

I honestly think they have no choice in the matter.

Yeah, I have many of the same thoughts and suspicions.

I think the key here is that alternate coin 'currencies' arent really currencies, of course, since they are not legal tender, i.e. no one is compelled by law to accept them in payments for debts or services, etc.

Bitcoins and Litecoins, etc, are commodities, like baseball cards or gems. You can lose them, no one has to accept them as payment and theya re basically a when-the-shyte-hits-the-fan kind of store of wealth.

But still, imagine a thousand different e-currencies to choose from twenty years from now and deciding which ones you will accept and which ones you wont. Competition in tradable commodities like the e-currencies is a good thing, I think.