As BitCoin Touches $400 The Senate Starts Seeking Answers... As Does The Fed

Zero Hedge ^ | 9 November, 2013 | Tyler Durden

[D-fendr]

thanks very much.

[Errant]

Now way on earth a sane man would put a nickle there.

Yeah, better to stick with the manipulated markets where prices are artificial and determined by a committee of insiders instead of the free market. /s

[Errant]

You’re welcome!

[BfloGuy]

It is a new form of money that hasn't existed before the age of computers.

You make some interesting points. I'm having some difficulty wrapping my pea-brain around how BitCoin fits into the definition of money I've always held to.

I am, nonetheless, fascinated by it. I still have to call it "fiat", though, as it is willed into existence -- even if by algorithm.

[Errant]

as it is willed into existence -- even if by algorithm.

A Bitcoin is definitely not willed into existence. It now takes about 120 GH/s (giga hashes processed per second) for a week to generate 1 Bitcoin. That's a heck of a lot of processing power, and that difficultly will increase even more in just a few days. That's what you are buying when you purchase a bitcoin, all of the effort that went into creating it plus any value added because of the demand for Bitcoins. It does take awhile to get your head around the process and everything it involves.

[kearnyirish2]

“Bitcoin as long term investment may not be particularly wise .. but as a means of exchanging value in the short term it maybe be quite valuable.”

Maybe; I just don’t know enough about it, or the liqudity of it, to say either way.

[Mr. K]

anything where the initial investers of $37 have $100,000 has got to be worthless Ponzi scheme.
If everyone tried to cash out now it would collapse

[Errant]

anything where the initial investers of $37 have $100,000 has got to be worthless Ponzi scheme.

That's an amazing statement, if you think about it. Btw, what do you call anything that loses 98% of is value - priceless??? lol Pardon meh if I lean toward using a money that is instead increasing in value from inception.

A "Ponzi Scheme" better fits fiat. Isn't it a coincidence that the Federal Reserve and FRNs were established at about the same time Charles Ponzi invented the scheme?!

Information about the biggest Ponzi scheme in world history contained herein: http://www.hiddensecretsofmoney.com/videos/episode-4

I'm not saying cryptomoney is a fix all or that it doesn't have its on issues. I do believe it has possibilities and advantages that need serious consideration in light of the danger fiat has placed the entire world into (i.e., global economic collapse).