Bitcoin

crypto

#41

Bitcoin is very handy for micropayments. This means its very handy for tipping people online. I’ll tip ฿0.25 (worth €1.05) to the first 5 people to post bitcoin addresses in their signatures.

Here are just some of the ways you can get an address.


#42

The Bitcoin community crowdsourced funds to produce this video explaining how Bitcoin is an alternative to the present banking cartel.

https://www.youtube.com/watch?v=5CrOKDOyW-Y


#43

Base it on energy and it’s hyperinflation proof
Robert Swan of the new economics institute explains


#44

https://arstechnica.com/business/2012/06/porn-gambling-and-malware-bitcoin-as-the-nets-wild-west/ pic.twitter.com/3xPVUGAS

also - here’s something I wouldn’t have thought of


#45

Bitcoin is near perfect for micropayments.

Everyone on this forum should put a Bitcoin address in their signature, and good posters can be tipped a couple of cents for informative posts.

You can get a Bitcoin address instantly at Instawallet


#46

lol are you fishing for tips?


#47

:smiley: Not really

I guess Im suggesting that Bitcoin is an incredibly efficient way of crowdsourcing funds, for paying for things like website hosting.

Bitcoins could be used to pay for hosting this forum on btcwebhost.com/


#48

Does that offer still stand?


#49

Yep, check your balance :smiley:


#50

AlJazeera gets Bitcoin

aljazeera.com/indepth/opinion/2012/05/20125309437931677.html


#51

I’ve been trying to get my head around Bitcoin. I’m not sure exactly what its is.

It appears to be very secure code that is well written. I cant fully appreciate it as I’m not in the field but it appears well respected.

As a currency I think it may have “thrown the baby out with the bathwater”

They claim to be free of central bank, bank and government interference such as quantitative easing etc which is true and adventitious while they are small and unpopular.

But they cant increase money supply if they become popular which will cause value inflation. Money supply is roughly at a fixed predetermined rate, eventually maxing out with no more coins released.

If they become a popular means of transacting the “value” of each coin relative to other currencies will increase due to the effective restriction of supply.

To me this fails to meet the basic desire from a currency “value Stability” the value of your coins will rapidly increase and What Goes Up! its happened already as confidence in the currency failed like it can with other FIAT currencies after a hacking theft and an attack on the exchange mtgox.com/

Below is the price chart vs USD since Sept 2010 when the coins were worth virtually nothing.

img839.imageshack.us/img839/6246/chartnd.png

The value increase over time means ultimately early adopters who save get very valuable coins and later adopters get less and less growth potential. Kinda pyramidish

If they do become valuable and popular they will attract the attention of criminals and governments. With someone (probably the US) capable of writing the Flame and Stuxnet viruses. You A. may find your Bitcoins stolen or B. the network sabotaged by pissed off Govs.

So it only works if it’s kept small and not popular otherwise it rapidly becomes an unstable currency and attracts the negative attention of vested interests.

FWIW I’m still curious so here’s my BitCoin address if you want to send me lads of money!: 1KGSsYSGWL9Mue2doXySQjS6ARe6PqtsPL


#52

Its called deflation. And deflation is very good for a currency. It means the currency is a perfect store of value.

The swiss franc has increased in value from £0.05 in the 1950’s to £0.67 today. It hasnt done Switzerland any harm. Quite the opposite, in fact.

Dont fall for the scaremongering about deflation by the bankers and their economist shills. Its all nonsense propaganda to promote their inflationary banker money which enriches bankers and financiers. Deflation is not a real problem. It doesnt usually last more than a couple of years. At some point prices stop falling and people start spending their hoarded currency.

The limited supply of Bitcoin was designed to mimic the supply properties of gold. Gold functioned very well as money for thousands of years, not just in europe but in China and the arab world as well. On the gold standard there were regular bouts of deflation. It had no effect on the economy over the medium to long term.

Its not unusual for early adopters of any technology to make money. People make money by noticing a trend and taking a risk. Its not a reason to reject a concept or technology. Early adopters of Apple shares have seen their value go from less than $10 to over $500. That doesnt make Apple a pyramid scheme.

Anyway, most of the early adopters of Bitcoin have not gotten rich, nor are they going to. Many of them sold their bitcoins when the price was around $1.


#53

13 fold increase in 60 years. That’s a lot more stable than Bit coins 3000 fold increase (before its crash) in 6 months!

Bad example. Who would compare Apple shares to Gold. Apple make stuff people want. Gold is Gold its unproductive and only worth what people think its worth. People regularly give Apple money, its a productive profitable company.

How do you know they sold them for this? any way those Bitcoins are still there and someone than has a lot of them for $1.

If bit coins are a good idea there will be evolution of the “technology” its vulnerable to extinction if something similar but better comes along.


#54

Short term volatility is a different phenomenon to steadily increasing value. My reference to the swiss franc was to address your concerns about “value inflation” caused by the fixed supply of bitcoins.

The short term price spike last year was a temporary phenomenon, which is not a problem long term. Media coverage caused a sudden interest in bitcoin and a sudden influx of big money into what had previously just been a toy for geeks. A spike in price was natural.

That volatility is now over and Bitcoin is stable around $5 or €4. This makes it easier for businesses to accept it as payment method.

They are comparable in the point that you raised about early adopters getting rich at the expense of later adopters. All assets are prone to that phenomenon. Bitcoins, gold, Apple shares. But if that aspect of free markets upsets you, then thats fine, you are free to keep your savings in a form that loses value, if you want.

Because theyve said so on public forums. Bitcoin is an open source project, so users and developers communicate openly on public forums. Most early adopters were developers who contributed code to the project and debugged it. I dont know why you would be annoyed that they might have made a couple thousand dollars out of a project they contributed to.


#55

I think you’re both edging towards one of the problems with bitcoin - is it primarily intended to be a medium of exchange or a store of value?
I presume the former is the primary purpose?


#56

Both.

Money must perform both of those functions. And bitcoin is superior to fiat currency in both of those functions.

As a medium of exchange you can send one bitcoin or a million bitcoins to a person or a business, for a flat fee of €0.001. Thats one tenth of a cent. The shop pays nothing to receive the payment. Contrast that with a shop accepting credit card payments and has to pay 3% of the sale price in fees. Eg. a business that sells a lawnmower for €1000 has to pay €30 to visa or mastercard.

Then look at the function of money as a store of value. Euros, pounds, dollars lose at least 2% of their value every year. The pound sterling has lost 25% of its value in the last 3 years. Bitcoin doesnt have that problem. Bitcoin is never diluted down. It is a perfect store of value.

Bitcoin performs these functions of money, even better than gold. Bitcoin is more easily divisible than gold. It is less easily counterfeitable than gold. It is verifiable. It can be sent across telecommunication networks, and spent at a distance where gold have to be put on trucks. Bitcoin is person to person, gold has to go through an intermediary. Bitcoins are easier to secure than gold. They are value dense. Millions of euros of bitcoins can be held in a single string of text, on a smartphone, pc, or flash drive. You can even print out this string or memorise it and remove any physical trace of its existence. It is the most perfect form of money every invented.


#57

You’re missing the point of the question. Again, what’s the primary purpose? Store or exchange? Or are you saying they’re of equal importance for bitcoin?

Yes, money does perform both functions, but that doesn’t mean they’re intrinsically compatible.


#58

With historic forms of money like gold, silver, banknotes, copper coins etc, it was indeed impossible to achieve both functions at once, so thats why gold was used as a store of value while banknotes were circulated as a more efficient means of exchange.

But Bitcoin was designed to achieve both those functions simultaneously. Both functions were optimised in the design. There was no trade off. You can do that when you design something from scratch.

That is why I said that bitcoin is the most perfect form of money ever devised.


#59

Thanks for that!
I’ve made money on the internet :smiley:


#60

One thing I never understood about bitcoin. What is to stop someone writing a new algorithm to create a new but very similar currency or even just reusing the bitcoin algo to start crating new ones. Would such competing currencies have the same “value” as bitcoin?