Author: gork

Bitcoin will Revolutionise FX/International Xfer Market   [Copy link] 中文

Post time 2013-11-21 07:26:03 |Display all floors
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Post time 2013-11-21 19:00:48 |Display all floors
So you invent BitCoin, which is similar to those World of Warcraft coins where you can accumulate digital currency. But you realise it's a Ponzi scheme. So you anonymously call yourself Satoshi Nakamoto, generate thousands of BitCoins for yourself, then, and only then, do you release the code for everyone else to use.

Satoshi Nakamoto could even be the one who claimed he was doing a thesis on encryption and claimed he bought $20 of BitCoin when it was worth less than $1 and forgot about them, only to discover he had become a $ millionaire.

Compounding is the magic ingredient.

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Post time 2013-11-21 20:05:57 |Display all floors
LaughsatYou Post time: 2013-11-20 18:26
Only if you want your money to be worthless. Go ahead

you might have a point there and we all have to be careful bout tis online thingy thing  
a man who uses his hands is a laborer. one who uses his hands and his mind is a craftsman. but he who uses his hands, his mind, and his heart, is an artist...

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Post time 2013-11-28 00:45:52 |Display all floors
Another BitCoin Heist

This is the third major heist this month. About $1.4 million worth was stolen several weeks ago from an anonymous Australian who ran an online wallet service known as Inputs.io, and a Chinese exchange abruptly vanished two weeks ago, taking more than $4 million with it.

Smaller thefts, which affected consumer exchanges in the Czech Republic and Poland, have also taken place this month.

- It's 10 o'clock somewhere -- do you know where your bitcoins are?

Max Kiester is very vocal about the rapid rise in the exchange rate of BitCoins. But having the market move your way doesn't necessarily mean you were right.

As well as his recommendation to "buy silver; crash JP Morgan" which hasn't served his Silver Liberation Army so well of late, more followers of the Kiester may have lost money with BitCoins.

Kiester is right to recommend both as the USD is not only being hyperinflated but is losing its reserve status too. But better advice would be to invest with gold and to hold only physical.

At the current rate of inflation, BitCoins would grind to a halt by the end of the decade, but some suggest that the increasing difficulty of "mining" will mean it lasts for over a century. That just suggests that the miners will give up unless the exchange rate of BitCoin continues to rise at a rate high enough to compensate the miners.

As with the above news, BitCoin exchanges and wallet services, don't appear to have the same levels of security as the banksters and stealing electronic money from a bankster bank means it has to be transferred to another bankster bank; unlike an anonymous peer-2-peer system. Neither is there the state guarantee of deposits (because they can freely print paper money at will and enjoy doing so), though it's not clear how this is compatible with a bail-in (which IS compatible with the mid 19th century change in the law to make depositors unsecured creditors).

With no real-world presence such as industrial use or even as jewellery, BitCoins' only value is in international travel and transactions which are virtually free for retailers. Without any link to any real-world items, BitCoins are volatile and fair value difficult to assess.

Whereas silver can be priced according to its industrial demand, gold is still money as far as the central banks are concerned. Under a new gold standard, which seems to be the only viable replacement for the fraudulent dollar standard, gold would have to be about $50,000.
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Post time 2013-11-28 17:49:50 |Display all floors
This post was edited by gork at 2013-11-29 16:16

There are reports of someone who's dumped his hard drive, only to realise it's got $4m of Bitcoin data on it. Apparently the coins have gone forever; highly deflationary.

If I had $4m BitCoins, I'd dump them and buy . . . . . . .. . .gold. There's never been a better time to be a contrarian investor.

Apparently the biggest holder has 110,000 BitCoins; about $110m! That's one hell of a nest egg in one hell of a basket!

The above story is even fishier than the one about an IT student who bought 100,000 BitCoins for just $20 and forgot about them. Did BitCoins ever fall down to that level?

The one about the hard drive requires you to believe that this guy spent so much time mining BitCoins that his girlfriend compolained about the noise of the laptop whirring away all the time. Yet he's then so careless that he spills a drink on it and then throws the laptop drive away. Is that plausible?
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Post time 2013-11-29 17:18:21 |Display all floors
Anyone who is a momentum better should be buying into BitCoin. Investors however should be considering

Litecoin.

Then again, perhaps they've missed the boat on LiteCoin too. After all that IT student became wealthy by

buying 100,000 BitCoins for $20. LiteCoin is already too expensive. Perhaps Namecoin or Peercoin or

Primecoin or Feathercoin or Novacoin or Infinitecoin or Quarkcoin or Megacoin or Protoshares or Worldcoin

or Freicoin or Tickets or CryptogenicBullion or Anoncoin or Lxcoin or Terracoin or BBQcoin or DevCoin or

Mincoin or Digitalcoin or Goldcoin or Yacoin or Copperlark or Zetacoin or Fastcoin or IOCoin or TagCoin or

BitBar or Luckycoin or FlorinCoin or Bytecoin or Franko or CraftCoin or Phoenixcoin or Junkcoin.

I wrote that BitCoin has no physical presence. But I was wrong, there's the cost of the electricity to mine them. However, arbitrage now suggests one of the alternative crypto currencies above should be better value and it's possible the exchange rate of a BitCoin could fall below the cost of mining!!! Ooops!

BitCoins are now trading for more than the price of an ounce of gold. Whilst both are arguably Ponzi schemes, I don't see a price above an ounce of gold as being psychologically sustainable.
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Post time 2013-11-30 05:27:41 |Display all floors
Everyone Rush Out of BitCoin!!!

Bitcoin though has nothing on its smaller cousin Litecoin which has now run from $1.11 to over $48 in the last 5 weeks.
- The Bitcoin Parabola Continues: Up 10% In 12 Hours, Hits $1170

As I posted above, the obvious ploy is now to "invest" in a competitor before the price is bid up as BitCoin has been. BitCoin will now probably crash and recover a little. Hopefully it will survive as it's a very useful currency for international transfers.

The big no-no is to try and use BitCoin as a store of value. There is little other than the cost of mining to determine what value a BitCoin should have. It's main function is a medium of exchange NOT as a store of value and unlike the gold standard it is not anchored to anything.

One article has a graph comparing BitCoin's exchange rate with the tulip bulb mania; very similar. That doesn't mean BitCoin WILL have the same fate, but it's a real possibility. Perhaps that £4m lost on that hard drive in Wales won't be such a bid deal after all.
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