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bigfoot66
bigfoot66
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April 5th, 2013 at 11:43:25 AM permalink
Quote: AlanMendelson

Who or what guarantees my bitcoin account/stash/balance?



Good question. You do!!! Again I am not an expert by any stretch but it is something like this: you open a bitcoin wallet which is formed of two keys, one of which is made public and one of which is private. People can send you bitcoins via your public key but you need the private key to spend them. The two keys are mathematically related but it takes a LOT of computer power to derive one using the other, we are talking billions of years on your home computer. If you puiblish the private key then anyone can spend your bitcoins. If you have it on the same computer that you use to look at really sketchy websites, then theoretically someone might be able to grab it off of your computer. The safest way to do it is to create a "paper wallet" and physically write the information on a piece of paper and then wipe the info from your computer.
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bigfoot66
bigfoot66
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April 5th, 2013 at 11:48:22 AM permalink
Quote: pacomartin

You cannot pay taxes with bitcoins. This ability to accept currency for taxes is one of the principal means that a governments give value to their currency.


Some of us believe that this is a major benefit ;).

Quote: pacomartin


The Fed controls money supply using the dual mandate of maximum employment and stable prices . Bitcoins have no such mandate and their value is likely to fluctuate wildly. Or they may become a significant way to "hold value".



We are still at the very early stages of the bitcoin, assuming it is successful. It is gaining a lot of value right now as the demand is skyrocketing, howevery once the demand levels out and the supply remains fixed bitcoins should gain value very slowly at less than 5% annually.
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EvenBob
EvenBob
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April 5th, 2013 at 12:53:40 PM permalink
Bitcoin is the Franklin Mint in the 80's. Remember when
your granny bought FM silver collector coins because
they were an 'investment'? Then silver tanked? Now silver
is way up, what goes around comes around.
"It's not enough to succeed, your friends must fail." Gore Vidal
24Bingo
24Bingo
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April 5th, 2013 at 1:25:55 PM permalink
Quote: bigfoot66

We are still at the very early stages of the bitcoin, assuming it is successful. It is gaining a lot of value right now as the demand is skyrocketing, howevery once the demand levels out and the supply remains fixed bitcoins should gain value very slowly at less than 5% annually.



Demand's not going to "level out." It's going to drop. Right now, bitcoins are getting a lot of press, and a lot of the people buying into them are the usual magpies, and soon they'll have moved on to the next way of saving the world. After that, there will probably be a slow resurgence, like the slow climb before, but it will only be after the bubble bursts.

Now, I'm not saying it's necessarily a bad idea to put some of your money into bitcoins, but for the love of Variance, don't do it now!
The trick to poker is learning not to beat yourself up for your mistakes too much, and certainly not too little, but just the right amount.
Ahigh
Ahigh
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pacomartin
pacomartin
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April 6th, 2013 at 1:25:35 PM permalink
Quote: Ahigh

Here's a good read:



Two very interesting things in that article:

(1) It was written before the bitcoin was increasing in value at a meteoric rate (it went from $105 to $126 in one day- big windfall for people who bought at less than a dollar a few years ago).

(2) This sentence in the article:

One of the key elements of The Mark Of The Beast is to be able to prevent those that refuse to take the Mark from buying and selling. Bitcoins are decentralized and prevent any such control.

If you are unfamiliar with Revelation 13:16-18 (King James Version)
16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.

Fundamentalists are often very afraid of changes in money since they think it will be a harbinger of the day prophesied in Revelation. In the past they have often been the loudest critics of credit cards, leaving the gold standard, electronic money, etc.

But here is a fundamentalist advising people to invest in bitcoins (before they shot up in value) because of their decentralized nature will provide them a currency outside of the control of governments. So his advice has nothing to do with their potential return, only because they are outside of national governments that he distrusts.

When all the speculators are played out, if there are millions of people who believe in the bitcoin for broader reasons (like religious or philosophical reasons), it means the currency is more likely to maintain value.
EvenBob
EvenBob
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April 6th, 2013 at 4:53:15 PM permalink
The thing about Bitcoin is its volatile and other currency's
are not. The USD, euro, yen, pound, whatever, don't have
wild swings. You don't worry the bottom will fall out overnight.
Not so with Bitcoin. Its more like a collectible than a currency.
"It's not enough to succeed, your friends must fail." Gore Vidal
AlanMendelson
AlanMendelson
Joined: Oct 5, 2011
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April 6th, 2013 at 5:05:36 PM permalink
Here's my problem with bitcoin:

1. I don't accept it as payment from my clients
2. I can't pay any of the TV stations I do business with with bitcoin
3. I can't use it to buy gas at the Shell station on the corner
4. I can't use it to pay for groceries at my Ralph's market
5. Visa, Mastercard and Harrah's Rincon and Caesars Palace won't allow me to bet it either

So why do I need bitcoin?
bigfoot66
bigfoot66
Joined: Feb 5, 2010
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April 6th, 2013 at 5:18:14 PM permalink
Quote: AlanMendelson

Here's my problem with bitcoin:

1. I don't accept it as payment from my clients
2. I can't pay any of the TV stations I do business with with bitcoin
3. I can't use it to buy gas at the Shell station on the corner
4. I can't use it to pay for groceries at my Ralph's market
5. Visa, Mastercard and Harrah's Rincon and Caesars Palace won't allow me to bet it either

So why do I need bitcoin?



I outlined some reasons earlier:
You can buy illegal drugs with bitcoin.
You can circumvent currency controls and move money freely across international borders.
You can move money freely and anonymously and perhaps avoid taxes.
If you do accept bitcoin as payment the payer cannot "chargeback" without your consent.
You can legally (at least for now) gamble online with bitcoins.
Ben Bernake can't inflate bitcoins.
And all of this without transaction fees.
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onenickelmiracle
onenickelmiracle
Joined: Jan 26, 2012
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April 6th, 2013 at 5:26:20 PM permalink
Quote: bigfoot66

I outlined some reasons earlier:
You can buy illegal drugs with bitcoin.
You can circumvent currency controls and move money freely across international borders.
You can move money freely and anonymously and perhaps avoid taxes.
If you do accept bitcoin as payment the payer cannot "chargeback" without your consent.
You can legally (at least for now) gamble online with bitcoins.
Ben Bernake can't inflate bitcoins.
And all of this without transaction fees.


Backed by drugs, as good as being backed by silver or gold.
F, I blew this one.
In the land of the blind, the man with one eye is the care taker. Hold my beer.

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