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Gold, Silver and Bitcoin: The ultimate interview by VisionVictory

This is a most excellent interview where Trace Mayer interviewed by VisionVictory uses excellent analogies and explanations in order to help people grasp what is Bitcoin and bitcoins and how it works and why you should care. I highly recommend spending these 30min and learning this information:

http://youtu.be/OtN9YUvh_XM

http://www.futuremoneytre...

In this interview we sat down with Trace Mayer of Run To Gold & How To Vanish and discussing the very interesting topic of the acceleratingly popular alternative currency known as Bitcoin.

QUOTES:

5:27: Regarding the Bitcoin code, "It's open source; so far there hasn't been anyone that's able to compromise the code"
6:13: "It allows for capital to be accumulated and be saved and stored in a much better way I think than necessarily gold or silver"
6:51: "Currently the bitcoin network is secured by processing power. Approximately 250 petaFLOPS. The department of Energy just built a supercomputer for $1.2 Billion that has 15 petaFLOPs"

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Article fuelled by PASSION

I wonder if any of the "LMFAO" crowd here bothers to go and read such a well written, and COMPLETE article.

Interesting to note, that the writer was probably not paid by any "special interest" except that of his OWN! I love the way information and development in Bitcoin is fuelled by PASSION!

Just plain 'Happy'about the direction the world is taking! Especially if we live to reach LEV [Longevity Escape Velocity]

I agree

I highly recommend people check out that article! It's a bit long, but gives a very good overview/explanation of Bitcoin.

ok how do you back up your wallet?

I bought $80 worth of bitcoins last year when they we trading for under $4. I lost half of them when my phone crashed. I'm not too mad because the other half I could sell for over $12 each and make a profit right now. I just don't want to lose anymore. Right now I have most of my bitcoins sitting in the mtgox exchange, flexcoin, and other server based holdings so i don't lose them on my personal wallet if it crashes again.

I rather have it all in a few personal wallets so i have more control over it but need to know how to back it up and secure it. Right now there are 8 bitcoins floating around in cyberspace somewhere currently worth $96. I would be a little pissed if they get back up to $40 each and I have 50 some bitcoins gone forever.

...and once you've finished there

you can go to the NEXT LEVEL!

BRAIN WALLET!

https://en.bitcoin.it/wiki/Brainwallet

..actually, if you master this... and it is actually not that difficult, I would call this more of a VAULT than a WALLET!

so welcome to the BRAIN VAULT!

You can make your first one here:
http://brainwallet.org/

Just plain 'Happy'about the direction the world is taking! Especially if we live to reach LEV [Longevity Escape Velocity]

Word Dawg!

Thank you Haze. :P

2 Questions I don't understand about bitcoin...

1. Where does the bitcoin physically exist? For example, if it exists on a hard drive, what happens when the computer gets smashed or destroyed? Likewise, if it exists on a web site, what happens to it when a web site is erased?
2. How is the purchasing power of a bitcoin established? Is it pegged to something, or just a medium of exchange for personal bartering between two people?

Let me help you out with those:

1. Yes, if your wallet file gets deleted, your bitcoins are lost forever. But it's trivial and carries almost no costs to make as many backups as you think you need. (Although this is practically correct, it isn't technically correct because a Bitcoin wallet file does not contain bitcoins but your private cryptographic keys that allow you to have access to your bitcoins.. bitcoins are just numbers in a distributed ledger of which everyone using a Bitcoin software has a copy of)

2. It started off with a guy deciding he'd rather have 10k bitcoins instead of a pizza so two people made that trade and it went on from there. The price is established by supply/demand established by people who have them but want to sell them and people who don't have them but want to buy them. You can see the history of the exchange rate here: http://bitcoincharts.com/charts/mtgoxUSD#tgSzm1g10zm2g25zv

MY bitcoins

Went 404!

Its not that I disapprove of Bit-coins. I disapprove of the whole OS of Microsoft and Apple. sure they give us tremendous boost in Information but if anyone remembers what the blue screen of death or Sad Mac looks like well then yah know what im talking about. All it takes is one Driver from Windows and WAM! Like a house of cards your reinstalling on an unused partition on your hard drive clearing your wallet.

All i can say is invest but never put all your eggs in one basket, at least for Bitcoin's anyways, like he said just $25,000 would get you some millions so that's sounds like a cap to me.

His name is Edward Snowden

What is Capitalism?
http://youtu.be/yNF09pUPypw

If you back up

your wallet file you never have to worry about losing your bitcoins. Also, Bitcoin runs on any operating system that follows the protocol. There are currently free software clients available for Linux, Macintosh, and Windows.

thats my point

I dont mind Bitcoins i think they are great. But im not betting on any OS especially that of Microsoft after i lost all my bitcoins. also what happens if Mt. Gox crashes?

His name is Edward Snowden

What is Capitalism?
http://youtu.be/yNF09pUPypw

Sorry to hear that, here is info for next time..

The next time, or anytime, you may want to make your encrypted wallet on an offline computer, then back it up on a truecrypt pendrive, then take the pendrive, and transfer the encrypted file to a dropbox account and email it to yourself.

Save in a separate, unencrypted, text file 10 or more public bitcoin addresses that you can RECEIVE bitcoins at.

eg: 1ExeYNH35c2aKBpoEnth1SyWZthrff5CyJ

and if all that was happily done without any crashes taking place midway, you are ready to to use the public addresses to receive bitcoins to whenever you want.

You can only spend them by opening your encrypted wallet.

Depositing you can do by simply giving any one of the 10 or more public addresses to people you wish to receive from. This includes the "people" at MtGox.

so, after you buy on MtGox, and you don't trust they will be around for another day, and do not trust them to "hold" your bitcoins, just send it to your public bitcoin address. They will be securely YOURS as long as only you have the ability to unencrypt your wallet that has the private keypair to the public address you have just received your bitcoins.

Just plain 'Happy'about the direction the world is taking! Especially if we live to reach LEV [Longevity Escape Velocity]

Good grief---can't believe Nystrom is putting this ADVERTISEMENT

on the front page, as if it's an article we'd be interested in. Good grief.

I've got news for you

Libertarians should be interested in Bitcoin, for the same reasons they should be interested in gold.

There are benefits Bitcoin has over gold as a currency, however.

Unlike gold bitcoin was designed to be a currency. That means you can transact it easily, including up to 8 decimal places of precision. You can transact it over distance, globally, at little or no cost. No government can confiscate your bitcoins (unlike gold), and nobody can prevent the use of bitcoins without shutting down the entire Internet.

It's only libertarians that don't understand bitcoins that have anything bad to say about it. If you have something specifically negative to say then say it, by all means.

Libertarians should be

Libertarians should be interested in Bitcoin, for the same reasons they should be interested in gold? Bitcoins are like gold? Really?

Yes bitcoins are

like gold for the reasons that I have given.

Bitcoins get their value from people deciding they are valuable, not by government decree or fiat.

The value of bitcoins is determined by the free market, and nobody can manipulate how fast bitcoins enter the market, aka inflation, which is also similar to gold.

Bitcoins can also be transacted completely anonymously if precautions are taken, which is another way they are like gold.

Bitcoins are NOT gold, but they have many SIMILAR currency characteristics. That's why it's called a digital form of gold.

Except the most

important characteristic, its not physical, meaning it can be stolen and lost in many many ingenius ways.

Physical money, is Physical money.

True

This is true, but I have had my physical possession stolen from me by many "ingenious" ways also... but the most insidous way that GOLD may be stolen is by the likes of Executive order 6102

http://en.wikipedia.org/wiki/Executive_Order_6102

Good luck trying to get people's digital gold (bitcoins) using one of these Executive Orders

How do you protect your physical gold against EO6102's next of kin?

Just plain 'Happy'about the direction the world is taking! Especially if we live to reach LEV [Longevity Escape Velocity]

Bitcoins are like gold?

Who calls bitcoin "a digital form of gold" other than people pushing bitcoin?

Gold has been money for millennia because of the intrinsic physical properties it has, and any comparison that ignores this fundamental fact is bogus from the start. If you leave some gold to your great-great-great-grandchildren, you can be very very confident that they'll be able to use it to buy stuff. You can be confident that nobody is going to add a new precious metal to the periodic table.

Bitcoins are integers, selected by an algorithm. They have value *only* by consensus. FRNs also have value *only* by consensus (other than the negligible value of the paper itself). The necessary and sufficient condition for something intrinsically worthless (whether paper, in the case of FRNs, or integers, in the case of bitcoins) to function as a medium of economic exchange is *consensus*.

If the government decrees one thing, but consensus says the opposite, consensus wins. If the government says no, and consensus says yes, then the paper or the integers are exchanged on the black market. If the government says yes, but consensus says no, then the currency collapses because nobody wants to exchange things of value for those bits of paper or those particular integers. Consensus currencies are inherently unstable, and neither government decree nor good algorithm design can change that.

What bitcoin *does* offer, if you can look beyond the pumpers who sound more than anything like people on yahoo chat boards pushing geocities stock in 1998, is a mechanism for anonymous transfer of funds between any two points that have internet connectivity. That's cool.

Actually

gold gets its value from consensus too...

People generally agree to gold's aesthetic beauty, which they use for jewelry and similar application. It's that combined with the fact this yellow metal is very rare that gives it its high value. Like it or not, that's perception. It's a commonly shared perception, but a perception nonetheless.

Hey, you seem a bit worked up over this. I'm a big fan of gold too. I'm not knocking it. I'm simply trying to explain how bitcoins are like gold in terms of usage as currency (and ways they work better). If you don't like bitcoins that's totally fine. I promise I won't lose any sleep over it. :) Bitcoins are a voluntary currency.

Semantics

Its misleading because you are using semantics as an arguement.

By your definition, every single thing ever used in a transaction gains its value from consensus, while true, its misleading, Because it misses the point of the original post.

Gold has an inherant value! The consensus on gold, is that it is valueable, and always has been, it also has a physical value to it, where as others dont.

I'm not knocking bitcoin

as a means of anonymously transferring funds between any two points with internet connectivity. That's genuinely cool. I'm knocking the style of promotion of it that is based on misleading claims, like the pump-and-dump of stocks.

The inherent properties of gold are such that it has functioned as money for millenia, and such that there are extremely good reasons to expect it to do so for the foreseeable future. If you leave gold coins to your great-great-great-grandchildren you can have very high confidence that they will be able to use that gold to buy stuff.

You can't get anything comparable to that with pieces of paper or integers. Gold is what it is as a fact of nature. Pieces of paper or 256-bit integers have value *solely* based on consensus selecting one arbitrary choice over other possible arbitrary choices.

Which

misleading claim?

The tangible value of gold is

The tangible value of gold is a perception? What are you smoking?

The definition

of tangible: Perceptible by touch.

What is the value of gold that is perceptible by touch?

Give me an ounce of gold, I'll experiment.

Why do you resist?

Free includes debt-free!

Bitcoin is no better than federal reserve notes

well maybe

Sorry

but you're completely wrong there.

That's like saying gold is no different than federal reserve notes.

Bitcoin is like gold, a digital version of it, not FRNs.

Why?

FRNs can be inflated by the people that control them. FRNs can also be seized, tracked, taxed, accounts frozen, etc.

Bitcoins can't be inflated beyond 21 million coins by anyone. Nobody controls bitcoins. Anybody can use bitcoins without anybody else's permission. Accounts can't be frozen. Transactions can't be stopped worldwide, and bitcoins can be used anonymously.

Still think bitcoins are are like FRNs? ;)

"Bitcoins can't be inflated

"Bitcoins can't be inflated beyond 21 million coins by anyone"

lol. one of the dumber things I've read on here.

Curious about that, too.

Why 21 Million? Who sets the rate, and why on Earth couldn't it be twice that number? Or ten times? I have trouble understanding bitcoins which is why I've been staying away. This number seems completely arbitrary, and I see no reason why it couldn't be changed by the same folks who created it in the first place. Somebody please enlighten me.