Posted on 12/05/2013 8:17:24 AM PST by Errant
The bitcoin bubble appears to have burst as a stepped series of price crashes are underway with the price currently standing at 1074 down form 1240 barely a day earlier. A clue to its future direction can be discerned from the unfolding technical price patterns, that just as I wrote wrote in the run up to the peak of the Bitcoin bubble with the price converging on USD 1250 that the market was primed to crash and all it was waiting for was any even marginally negative news to act as trigger for increasing waves of market panics as GREED amongst the bitcoin mania hoarders turns into fear of loss of paper profits.
(Excerpt) Read more at marketoracle.co.uk ...
Anyone can solve (mine) for these solutions given the technical expertise and hardware. Therefore, it is individuals and not government indebting them, or bankers skimming off the creation of fiat that creates this new form of money. In lieu of government and banks, technology keeps everyone honest and provides for the distribution thereof. Basically, technology is replacing government and banking monopolies here and why the US Senate, the Red Chinese and London Banks are upset.
We’ll see. Personally, I don’t so. I think the cat is out of the bag and there will be a heck of a fight trying to get it back in.
How is it like Enron?
- accounting deception?
- Special Purpose Vehicles?
- CEO calling equity analysts “a****le”?
- used connections in state & local government to secure monopoly power?
Or, none of the above. It’s just like Enron except for the fact that it’s nothing like Enron.
Amazon bucks?
>>> “Well OK since 21 Million Bitcoins seem so popular lets get doubly popular and do it again!” There is nothing to stop them.
Already been done.
For that matter, try finding out who owns the Fed!
I just invented ButtCoins. You can own as many as you want. You can trade them freely. But at income tax time, the government takes them all.
Now, ask these same questions about the US dollar.
Difference between BTC and USD? USD is inflated at the whim of the Federal Reserve, with no limit.
It's more complicated than I can simplify in a short post. I have probably invested in about 4 hours total of research to understand the whole system. But I'll try to make it simple...
There is a controlled process set up to limit the total Bitcoins that can actually be put in electronic circulation (Capped at 250K). They are created when someone sets up a support site with a program that interacts with others to validate transactions (currently 50 Bitcoins). A person that writes the program/algorythm necessary for the system is rewarded and new Bitcoins are created. There are currently something like 125K in circulation. The system that support Bitcoins will not take more than 250K. So once the magic number is reached, all of the infrastructure (alledgedly) will be in place to support all transactions. And all transactions are are regulated and approved independently and by private consensus through the software that was set up by each of the users.
Pros - It is solid as long as there remains confidence, government doesn't regulate, demand stays consistent and acceptance expands. Cons - If you lose your wallet (figuratively and literally per the system), it's gone. There is no paper or value to hold for proof. If you lose a decryption code.... Also, trading is all speculation at the moment. The designers have tried to set it up to closely resemble the price fluctuations of precious metals. But, best I can tell, there is nothing tied to those values. The value of a Bitcoin is all confidence and speculation driven by the trading price.
Disclaimer: I am no where near an authority on this and only started researching it a couple weeks ago. So far, unless the price drops back to $1/Bitcoin, I'll not be investing. And as far as I am concerned, it is only viable as an investment. Trading them for goods would require timing purchases and sales just right to validate the value of any barter for the seller and buyer.
Your great article on Bitcoin linked to the SR-71. Do you have the correct link...asking for a friend. Tanks.
I can sell you some wigits at a discounted rate. Let's talk.
Not a thing. The idea behind it is clever -- attempting to mimic the mining of gold, -- but in the end it's just another fiat currency. An intangible one at that.
You’ve benLurkin but you haven’t ben read’n. Just this week there’s been about 5 stories on FR explaining this.
.... My cap numbers are way wrong. It’s 21 million not 250K. Had something else on my mind. Sorry.
Sorry about that! The article was on the screen with the link to the SR-71 article in the URL! Have no idea how that happened....
Here’s the correct link....
Value is also reflected to a large degree by supply and the cost to produce them. The cost to produce Bitcoins has risen substantially and now requires expensive and limited ASIC miners to generated profit beyond even what the electricity would cost using the most efficient GPUs, and forget using CPUs - even for mining Litecoins.
Bitcoins are vapor...
All Your Bitcoin Are Belong to Us. You have no chance to survive make your time!
My wife and I used to watch the CBS show "Numbers".
We invented a drinking game where anytime someone on the show uttered the word 'algorithm', everyone would shout out "Algorithm!"
The last person to say it had to take a swig.
Sort of like the German 'Good Burp' sign.
Sure there is, you only have to create a paper copy and store it like you would paper money. Someone is even selling plastic Bitcoins you break open to get to the code hidden inside.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.