Bitcoin thread anyone?
- Thread starter COB
- Start date
So is using cash. Should we ban cash too?
You guys realize the Feds closed e-gold and won a conviction against Bernard von NotHaus for minting the liberty dollar (a silver coin)? The basis for the lawsuit was that Van Nauthaus engaged in "financial terrorism" for manufacturing a currency that competed with the US Dollar. Any private money issuer/transmitter that guarantees anonymity or prints a currency valued by the marketplace, has a big crosshairs painted on their back. Who's to say the Feds can't/won't do the same for Bitcoin, if it gets the kind of traction you hope it will?
I love the idea. But what this idea represents is a threat to the Federal Reserve Banking system and their monopoly over the creation and issuance of credit. Anonymity is really a distraction and something they use to politicize the issue and win consensus ("drug dealers use it = it's bad"). The problem with the free market is it generates ideas and products - even currencies - that threaten the established monopoly of the State and the money powers behind it (Banks). And they don't like that. They arrest and label people "domestic terrorists" who do that. Whether Bitcoin passes or fails, it's the idea the Feds are determined to stamp out - the issuance of debt-free, market-created currency. They can't have it. That's how our whole financial system is used to control us.
I love the idea. But what this idea represents is a threat to the Federal Reserve Banking system and their monopoly over the creation and issuance of credit. Anonymity is really a distraction and something they use to politicize the issue and win consensus ("drug dealers use it = it's bad"). The problem with the free market is it generates ideas and products - even currencies - that threaten the established monopoly of the State and the money powers behind it (Banks). And they don't like that. They arrest and label people "domestic terrorists" who do that. Whether Bitcoin passes or fails, it's the idea the Feds are determined to stamp out - the issuance of debt-free, market-created currency. They can't have it. That's how our whole financial system is used to control us.
I hope we get more e-golds and hard-currency types. Bitcoins appeal is limited to tech-heads and programmers who understand the algorithm and how it engenders "value". Your average person on the street barely knows how to turn their computer on, and would never invest in it because they have no idea how it "works". That the value proposition is driven by an algorithm, is a big red flag, since that can be changed, by someone, somewhere, which can totally mess with Bitcoins value. These mini flash crashes are case and point, where somebody hacks a "secure" database of bitcoins and dumps them all on the open market? It could be a ponzi scheme. Just like Facebook and WoW dollars, the supply is virtually determined. That's one reason why the whole idea is flawed. Hard currency is where it's at. Oil-dollars. Gold-back notes. Silver coins. Cattle dollars. etc. You can't make it up, lay people understand it, and thus it engenders confidence, and each note represents a valued commodity, so people use it. Scarcity, store of value and confidence.
What we need is something like a gold and silver warehouse that's rigorously audited on a monthly basis, say by 2 or 3 independent banks or insurers. Then the warehouse sells certificates (digital) against the inventory, and they circulate in the market. Basically, exactly like the old goldsmiths warehouse but this would be audited, which would create transparency. Not just for silver and gold, but other commodities (oil, cattle etc). Gets harder with commodities since storage costs become a big factor. What else has value that people want?
The great thing about this is it kills the demand for debt-based currency. When the marketplace accepts e-gold, or e-silver, or e-oil, the entire debt-money system implodes. People only hold fiat dollars because they're forced to. The marketplace doesn't accept anything else and the Government demands we pay our taxes in it. But if the supermarket, mechanic, restaurant, business suppliers etc accepted e-gold/silver/oil, most people would liquidate their fiat cash and buy commodity money because it's a better store of value. Iow, they would be impervious to the Government and Bankers robbing them every year through inflation/currency debasement. So most people would move their savings into asset-backed money, as a logical choice. That would put both the Feds and the Bankers in the poorhouse because they depend on robbing everyone through debasement to earn their vig or print their way to prosperity. They can't print gold/silver/oil, so they wouldn't be able to steal our money. They would be fucked. That's the whole scam.
The great thing about this is it kills the demand for debt-based currency. When the marketplace accepts e-gold, or e-silver, or e-oil, the entire debt-money system implodes. People only hold fiat dollars because they're forced to. The marketplace doesn't accept anything else and the Government demands we pay our taxes in it. But if the supermarket, mechanic, restaurant, business suppliers etc accepted e-gold/silver/oil, most people would liquidate their fiat cash and buy commodity money because it's a better store of value. Iow, they would be impervious to the Government and Bankers robbing them every year through inflation/currency debasement. So most people would move their savings into asset-backed money, as a logical choice. That would put both the Feds and the Bankers in the poorhouse because they depend on robbing everyone through debasement to earn their vig or print their way to prosperity. They can't print gold/silver/oil, so they wouldn't be able to steal our money. They would be fucked. That's the whole scam.
Achilles made a very good point. The US government will never allow such a system to get popular. As long as it is a novelty, they let it exist.
Another fun thing. Here is a pro-bitcoin site, trying to disprove myths about bitcoin. The funny part is that about half of the myths are actually true:
https://en.bitcoin.it/wiki/Myths
For example:
Myth: Bitcoins are worthless because they aren't backed by anything.
Response: Gold isn't backed by anything either.
Well, first, gold has an intrinsic value itself, being a valuable industrial metal for practical usage or as a jewelry item. Second, this is not a valid argument, just an invalid comparison.
Here is another one:
Myth: Anyone with enough computing power can take over the network.
Response: CONFIRMED,
Well, a confirmed myth is also known as FACT.
Here is one talking about what Achilles brought up:
Myth: Bitcoin violates governmental regulations.
Response:There is no known governamental regulation which disallows the use of Bitcoin.
This is simply not true, and the myth is again, true and a fact...
Myth:After 21 million coins are mined, no one will generate new blocks
Response: blah-blah-blah
The response doesn't deal with the question and the myth is again, factually correct.
Myth:Quantum computers would break Bitcoin's security
Response: Yes, but...
But, but, but if it is a yes, then it is not a myth.
Another fun thing. Here is a pro-bitcoin site, trying to disprove myths about bitcoin. The funny part is that about half of the myths are actually true:
https://en.bitcoin.it/wiki/Myths
For example:
Myth: Bitcoins are worthless because they aren't backed by anything.
Response: Gold isn't backed by anything either.
Well, first, gold has an intrinsic value itself, being a valuable industrial metal for practical usage or as a jewelry item. Second, this is not a valid argument, just an invalid comparison.
Here is another one:
Myth: Anyone with enough computing power can take over the network.
Response: CONFIRMED,
Well, a confirmed myth is also known as FACT.
Here is one talking about what Achilles brought up:
Myth: Bitcoin violates governmental regulations.
Response:There is no known governamental regulation which disallows the use of Bitcoin.
This is simply not true, and the myth is again, true and a fact...
Myth:After 21 million coins are mined, no one will generate new blocks
Response: blah-blah-blah
The response doesn't deal with the question and the myth is again, factually correct.
Myth:Quantum computers would break Bitcoin's security
Response: Yes, but...
But, but, but if it is a yes, then it is not a myth.