Discuss: Bitcoin Latest Issues

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March 7, 2014 at 05:59:02
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Hi all,

This week's poll question is about news of continued issues stemming from the failure of Bitcoin exchange Mt. Gox. Discuss here if you think Bitcoin can survive its recent setbacks, and, if you like, the poll results themselves.

Thanks!
Justin


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#1
March 7, 2014 at 06:31:14
Guess I am old school but I wouldn't get involved with cyber money. From what I have read about Bit Coin the rise in value was due to speculation. Just as in the stock market, there has to be true value or eventually the uptick collapses.

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#2
March 7, 2014 at 08:19:32
Was watching a local new channel.
The local reporter was doing a story on BitCoin.
He went to a BitCoin machine at a local Mall and got $20 worth of Coin,
walked across the hallway to a resturant that accepts BitCoin and bought a sandwich,
as an illustration of how easy it is to use.
Just a swipe of his smart phone and he was done.

The interesting part came when he realized that he did not have $20 in BitCoin,
he had only $18.50, seems he had Lost about $1.50 in value just walking across the hallway.
BitCoin is actively traded and the value can go UP but it can also go DOWN, very fast.


MIKE

http://www.skeptic.com/


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#3
March 7, 2014 at 10:34:41
That's really why bitcoin isn't a currency. You'd need to be able to buy goods and services in bitcoin, not in dollars through the intermediary of bitcoin. I doubt that'll happen in my lifetime, though.

How To Ask Questions The Smart Way


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Related Solutions

#4
March 7, 2014 at 10:41:49
It's really hard to say. The bitcoin market has been volatile. Also, Not sure if anyone saw but the CEO of Bitcoin evidently committed suicide.

Edit: It was a CEO of a Bitcoin exchange firm

~winipcfg

ASCII Question, Get an ANSI

message edited by winipcfg


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#5
March 7, 2014 at 11:54:34
Just my opinion but, bitcoin is imaginary money.

At least "real" money is loosely based on gold and has to be honored by the government who creates the bank notes.

I'll insist on getting paid in real money until the day I die.

As for the convenient "swipe" factor, you can do that with bank cards too.

It matters not how straight the gate,
How charged with punishments the scroll,
I am the master of my fate;
I am the captain of my soul.

***William Henley***


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#6
March 7, 2014 at 12:50:55
Bitcoin eems to be popular with crooks. That would put me off for starters.

Always pop back and let us know the outcome - thanks


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#7
March 7, 2014 at 13:18:42
Curt R: At least "real" money is loosely based on gold
Not in the USA, not since 1971. Now it's all pure momentum.

How To Ask Questions The Smart Way


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#8
March 7, 2014 at 17:02:18
I've got bags of imaginary money here but my local bank can't even be bothered counting it.

In all seriousness Curt I think most currencies go with the flow today. At one time in the dim distant past a government could not print more money than it had gold reserves, I think Britain still works on that principle, Derek will know!


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#9
March 7, 2014 at 18:16:40
Ewen

Yes it is just the same in the UK. In fact the previous government sold off our gold reserves.

Always pop back and let us know the outcome - thanks


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#10
March 8, 2014 at 06:29:36
Still, for what it is worth, currencies are backed by the good faith and trust of the country that issues them. Not so with BitCoin.

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#11
March 8, 2014 at 07:30:28
But what do you gain from that? Knowledge that you can use the official currency when paying taxes?

How To Ask Questions The Smart Way


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#12
March 8, 2014 at 07:54:49
In the case of US currency we are the international reserve currency. That means most international transactions are done in US Dollars. That makes the dollar stable to a degree.

It isn't a perfect world but IMO better than using BitCoin. I have an old Monopoly set. I wonder if I could get someone to accept that play money as payment for real goods and services?


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#13
March 8, 2014 at 08:11:54
Still, for what it is worth, currencies are backed by the good faith and trust of the country that issues them. Not so with BitCoin.

That's what I was getting at. The government has to honor the currency it puts out.

Who honors bitcoins if I had some and wanted to exchange them for "real" money?

It matters not how straight the gate,
How charged with punishments the scroll,
I am the master of my fate;
I am the captain of my soul.

***William Henley***


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#14
March 8, 2014 at 13:35:06
"Honors" how?

How To Ask Questions The Smart Way

message edited by Razor2.3


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#15
March 9, 2014 at 13:05:23
You don't know?

Ok, well, if the US government puts out money in it's name and it states on the bills (and it does) "This note is legal tender for all debts public and private" and is signed by the Secretary of the Treasury (and it is) then the government has to "honor" it.

As in the following definition of honor:

"fulfill (an obligation) or keep (an agreement)."

If you're still feeling lost or confused just google "definition of honor" and read a few of the links that come up.

It matters not how straight the gate,
How charged with punishments the scroll,
I am the master of my fate;
I am the captain of my soul.

***William Henley***


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#16
March 9, 2014 at 21:22:23
I'm not looking for you to pull out a dictionary; I'm looking for the difference between a fiat currency printed by the government, and one derived from crypto calculations.You say the government honors it, so what real, tangible benefit does that honor grant you?

The only answer anyone has been able to give me about why the dollar is a superior currency is that we have always used it. That amuses me, because that would imply we have a literal religion of money.

How To Ask Questions The Smart Way


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#17
March 9, 2014 at 22:07:33
There is a relationship between all the official currencies used in the world markets. Currently the US Dollar is the most used reserve currency in the world. This means every other currency has a value based on US dollars. So, countries can buy and sell goods and services to one another using US dollars, which they buy.

Bitcoin does NOT fit into this scheme of exchange because the value of Bitcoins is volatile. If you Look at the day to day value of Bitcoins it varies as much or more than the stockmarket.

I suggest you Google Bitcoins value and you will see they are actually marketed like stocks and bonds.

Virually all major currencies in use today are far more stable than Bitcoin. Buying Bitcoins with Dollars, Euros, Pounds, etc. is like playing the futures market.


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#18
March 10, 2014 at 07:45:11
See, now we're getting somewhere. The US dollar has value because it's the imaginary number that all other imaginary numbers are based on. Does that give it value? (No.) Does that give it relevance? (Maybe.)

Let's avoid misunderstandings. I'm not arguing for Bitcoin. It's an answer to a question that I'm not sure anyone asked. Unless the question was, "What would happen to money if there was no central authority?" In which case, we've got the greatest social/political experiment of the decade. No, I agree with the notion that Bitcoin is a bad idea. I'm questioning the path everyone took to get here.

How To Ask Questions The Smart Way


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#19
March 10, 2014 at 09:20:20
Well, one thing Bitcoin did do that might have been right. There supposedly is a finite amount of it. 21 million Bitcoins, I believe.

In the early days of currency coins made of valuable metals were used. Then paper money based on that amount of gold or silver started to be issued. Eventually, the relationship between the money and the precious metal reserves was abandoned.

I believe this was done for a number of reasons. If every person is to possess sufficient paper money to exchange for needed goods and services then more precious metal would need to be acquired to back up the paper money. There is not enough precious metal in the world to completely backup the paper money.

Of course the requirement to have precious metal on hand to backup the paper money would mean that more money couldn't simply be printed, as it is being done now in the USA.


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