BITCOINs

[MikeHurley]

Hi,

Is anyone else following this? Its fascinating and after 2 months of research I am convinced its here to stay. Couple of interesting recent online articles to help explain to those who would like the whole BTC thing explained......


BBC Article
http://www.bbc.co.uk/news/business-25809011

Russian Article
This is interesting especially in light of the responses from readers of the article:
http://rt.com/usa/chase-ceo-bitcoin-...-downfall-100/

Australian Article
http://www.theage.com.au/business/di...124-31dt3.html

Yahoo Finance Article
http://finance.yahoo.com/blogs/talki...141729681.html

Any traders on the site using or accepting BTC?

[wraymond]

Can't help thinking it's the digital age answer to pyramid selling but there is no tangible asset to exchange other than the perceived value of the 'currency' itself. Therefore nothing on which to base a value judgement.

[Tatts]

No, I'm not following this Bitcoin saga!

There's another internet currency called 'Ripples' thats making a splash (no pun intended!) in the World Community Grid that I'm a member of.

[MikeHurley]

Found this which seems to list all Cryptos but not Ripple

http://www.cryptocoincharts.info/v2/coins/info

Will be reading the following to understand Ripple's difference

https://ripple.com


http://en.wikipedia.org/wiki/Ripple_...editworthiness
http://letstalkbitcoin.com/the-rippl.../#.UuKX7tJFDMw

All makes for interesting times.
At least they cant falsely create additional units of currency in times of financial crisis, ie "Quantitative Easing" in order to keep the Wall Street Parties and Bonuses continuing at the expense of taxpayers through their Govts bailing out the merchant banks.

These new currencies are now gaining value in that they are being accepted as means of payments by both large and small retailers. Like Gold you cant create more than what exists, instead of printing cash on the basis of pretending there is more Gold there to the valve of new printed cash!

[Greeners]

feel sorry for the poor bloke that threw his hard drive away with million on....

http://www.bbc.co.uk/news/uk-wales-s...wales-25134289

[Avulon]

Originally Posted by wraymond

Can't help thinking it's the digital age answer to pyramid selling but there is no tangible asset to exchange other than the perceived value of the 'currency' itself. Therefore nothing on which to base a value judgement.

No different to the £ GBP and many other currencies then. The £ hasn't been based on gold standard for getting on for a century.

[mark_bonsai]

Or this guy

http://www.forbes.com/sites/ericmack...million-today/

[wraymond]

Originally Posted by Avulon

No different to the £ GBP and many other currencies then. The £ hasn't been based on gold standard for getting on for a century.

Aren't national currencies backed up with things like "promise to pay the bearer" and government bonds like Gilts etc? Whereas bits are not?

[Avulon]

Originally Posted by wraymond

Aren't national currencies backed up with things like "promise to pay the bearer" and government bonds like Gilts etc? Whereas bits are not?

Promises can be (and are) broken - often by government. Currencies can be devalued easily (e.g. 'Quantitive Easing') as we've seen so recently. Currency is just a promise between people to honour a nominal 'value' for something which is otherwise (essentialy) worthless. The value of currency can also be affected by other economic forces beyond the control of the man in the street (the cause of our recent quantitive easing). The illusion of currency having true value is one which is convenient to maintain for those that would 'rule'. Just think how much more interesting and decentralised life would be if without currency and everything having to be bartered for with real goods and services of value.

My point is that Bitcoins are not dissimilar in these respects to other currencies.

[wraymond]

Originally Posted by Avulon

Promises can be (and are) broken - often by government. Currencies can be devalued easily (e.g. 'Quantitive Easing') as we've seen so recently. Currency is just a promise between people to honour a nominal 'value' for something which is otherwise (essentialy) worthless. The value of currency can also be affected by other economic forces beyond the control of the man in the street (the cause of our recent quantitive easing). The illusion of currency having true value is one which is convenient to maintain for those that would 'rule'. Just think how much more interesting and decentralised life would be if without currency and everything having to be bartered for with real goods and services of value.

My point is that Bitcoins are not dissimilar in these respects to other currencies.

I take your point about the short termism and volatility of governments but the whole basis of Bitcoin is peer-to-peer lending which is just about OK when you fully know the peers to whom you lend or borrow. It is based on illicit money transfer and by its very nature depends on the autonomous and unidentified players on keyboards.

You say a currency is essentially worthless whereas in fact it is backed up by globally published stats which are evidence of standing. This standing is underpinned by internationally approved rating agencies such as Standard & Poors etc.

The value of a State currency is not 'nominal', it is supported by the entire financial stability of the issuing State and is hugely susceptible to the ebb and flow of international confidence in that State. It's true the said currency has no value in itself, it is merely an indication of the State's trading stature as seen by the rest of the world - a far wider audience than the narrow spectrum of bitcoin traders.

I for one wouldn't like living in the 'decentralised' dystopia you envisage, it's too risky by half. Which is my reason for likening bitcoin to pyramid selling.