8 votes

Bitcoin

(disclaimer: I'm not a Bitcoin expert. Below is just from what I understand of it)

Some people push Bitcoin ("Lew Rockwell even accepts it for donations!") but I have a feeling it's a dangerous idea. Wouldn't the government absolutely *LOVE* the idea of a fiat currency that they can track its usage of electronically? Sure, the government doesn't control and/or bitcoin right now but they might decide it's in their best interest to. I almost could see this being a GSE (government sponsored entity like Fannie and Freddie). The owners of Bitcoin would probably become incredibly wealthy from this but the government would require control of the money supply, ability to automatically debit customer accounts (to put the citizens under their thumb), and to spy on every transaction.

The way I see it - electronic currency is dangerous.



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Employers

Some employers have started paying in BitCoins. Seems like there is an article every week about a new employer offering a hybrid or full BTC option.

http://gigaom.com/2013/03/15/finnish-development-firm-offers...

EMPs or viruses ?

While it is hard to hack bitcoins, what about destructive EMPs aimed at servers, or viruses that wouldn't hack bitcoins, but make them impossible to use, or even denial of service type attacks.

I am not opposed to bitcoins, just curious.

The same as any Bank server.

The same as any Bank server. But with BitCoin, it's spread out, so you would have to EMP the whole world. Even if you take down the whole internet, once a small part of the network is back, so is all of BitCoin.

This is a Must See interview:

On the third part of this show Alex Jones asks founder of Def Cad Cody Wilson what it is that he wants to talk about. Cody goes straight into the topic of Bit Coin: Cody lights up when he talks about bitcoin. It's funny to see Cody being passionate about bit coin while Alex Jones is still skeptical. Alex tries to bring the conversation back but Cody keeps talking up bitcoin. This is from a previous post here in the DP: start at about minute 15-17: enjoy!!!

http://www.dailypaul.com//278933/printable-3d-gun-creator-me...

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

Yep, this is AJ's major flaw.

I've posted about this before:
http://www.dailypaul.com/266908/alex-jones-no-alternative-to...

All we have to do is stop using dollars and the empire disappears immediately.

Government can't CHOOSE to control Bitcoin.

Bitcoin is a Peer-To-Peer technology. It cannot be controlled.

To understand how this is possible, you must also have an understanding of cryptography and mathematics.

When a user sends bitcoins to another user, he broadcasts it to every single user on the network. It's almost like a Tweet in that respect. The users on each end are only identified by their Bitcoin address - so long as the users haven't publicly disclosed their Bitcoin address, they may remain unidentifiable.

With all the transactions going on, the Bitcoin network is very noisy. But there are users who are gathering all the transactions that are floating around into blocks. In order to validate that block of transactions, it has to audit that the users sending the Bitcoins actually have the coins to spend. This is where the Cryptography comes in.

The transactions are locked with a key that can ONLY be unlocked (by the general public) using guess-and-check. (See this video for how this is possible: https://www.youtube.com/watch?v=3QnD2c4Xovk). So while the government may be "snooping" on your transactions, so is everybody else... and this is encouraged! (Remember, you are anonymous until you publicly disclose your Bitcoin address.)

The users who are working to create these blocks are ACTIVELY trying to guess-and-check these transaction blocks to ensure that they are valid transactions. In fact, they are in a race to do so! The user that is the quickest to find the solution to these blocks of transactions and publishes the result to the "Block Chain" receives a reward.

Now because the users are in a competition to audit the Block Chain, it becomes extraordinarily difficult to "control" Bitcoin transactions in any way. One must possess over half the power of the entire Bitcoin network! At present, this network already has over 10 times the hashing (decrypting) power of the world's most powerful super-computer, and it's increasing by the day. Building a government hack machine is already cost-prohibitive by any reasonable standards.

That doesn't mean that such a move isn't a concern to Bitcoin users. (It is.) The implications of such an attack have been calculated, and though an attacker couldn't replace any preceding transactions (steal your Bitcoins) one *could* falsify future transactions. Such an attack, however, would be difficult and costly to maintain.

Most likely, users would see the attack coming and even those who are not active miners (like myself) would add their hashing power to the network to protect Bitcoin, or as a worst-cast scenario, switch to an alternate cyrptocurrency like Litecoin, which has many of the same properties as Bitcoin, but uses a different cryptographic algorithm.

It is generally believed that these disaster scenarios have an incredibly small likelihood of occurring.

It is important that people new to Bitcoin know the risks before adopting, which why I included information about the ("51% attack"), knowing full well that some of the skeptics will jump on and blindly state, "See? Bitcoin is hackable. DOA." I ask that these people pause before posting and consider their words with care. Bitcoin as it stands today is more secure than any bank, and it cannot be seized or intercepted by government. It is true ownership of one's purchasing power, and a viable alternative to FRNs today! More and more sites and "real-world" establishments are accepting Bitcoin every day. They are people who are sick of being told what they can and cannot buy/sell. They are people who are sick of having their money confiscated annually to fund other people's wars. They are people who want to OWN their purchasing power, and have taken that desire into their own hands.

This, I honestly believe, is the power of Bitcoin. This is how we peacefully End the Fed.

-Jix

BITCOINS @ 73.00$!!!!!!!!!

BITCOINS @ 73.00$!!!!!!!!!

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

Also...

...the housing market is rebounding!

Gold, Silver, then Bitcoin

Gold, Silver, then Bitcoin

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

Sorry for taking up space from the fruitful conversation:

Please feel free to ask ANY questions!!!!

Here is a good rundown to start comprehending and using Bit Coins.

The Following 2 are great introductions:

This is a great forum:

www.bitcoinmoney.com/

This is a great pod cast:

www.omegataupodcast.net/2011/03/59-bitcoin-a-digital-decentr...

Services:

www.bitspend.net

www.bitpay.com

www.bitinstant.com

www.localbitcoins.com

Some sites:

www.bitcoinmagazine.com

www.weusecoins.com

www.coinbase.com

www.bitcoincharts.com

www.mtgox.com

www.elbitcoin.org

The software options:

www.multibit.org

www.bitcoinarmory.com

www.bitcoin.org

www.electrum.org

www.blockchain.info

www.strongcoin.com

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

Thanks, Rafel!

Always good to see posts with new websites/information. One of the main reasons I come to the DP.

If you don't know your rights, you don't have any.

My pleasure Brother!!!

Thanks for serving our country.

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

Oh, I'm not quite

done with that yet. That's why I'm here ;)

If you don't know your rights, you don't have any.

I think I have a good question for the Bitcoin pros:

How much will Bitcoin raise my electricity bill in relation to how many bitcoins I mine? I understand that mining bitcoins will differ on if I join a "mining pool" or "go solo."

Just looking for anyone that saw a huge increase on their bills in relation to Bitcoin mining.

Thanks, DP!

If you don't know your rights, you don't have any.

Its s complex question, but

The answer depends on your electricity costs, your mining rigs, the pool you join (if any) etc.

I think what you want to know is...Can bitcoin become unsustainable?
The answer is no. The complexity of the problem thatis solved by the mining equipment fluctuates automatically depending on how much processing power is in the netowrk. If it becomes so competitive, that no longer make profit from running your mining rig, you would turn it off, and the network would work fine.

The network will work perfectly well, with 1 home laptop mining, or with all of the worlds computing power mining.

www.SuccessCouncil.com
Protect your assets and profit from the greatest wealth transfer in history.

Thanks

Success! I figure, if I just have a machine sitting around, maybe it can make some "money" for me.

Off Topic: is that a new website, Success?

If you don't know your rights, you don't have any.

Successcouncil.com is my website yes...

along with my partners.

We teach people how to protect their assets and profit from the coming economic collapse.

We created an 11 part video series on Bitcoin in January. Every member who took our advice has quadrupled their money since then.

We have heaps on content on Gold and Silver of course. Preparation, Internationalization etc.

We have some really cool free webinars running this week, which many argue is the best history of money video they have ever seen.

Check it out if you like.
www.successcouncil.com/live_presentation/register_here_now.php

www.SuccessCouncil.com
Protect your assets and profit from the greatest wealth transfer in history.

Will do

and thank you. Again, just thinking of a good use for my tower sitting in the guest bedroom and I think I might have found that use.

If you don't know your rights, you don't have any.

I'm definitely not

I'm definitely not anti-bitcoin but, the one thing that I cant get over is its digital. I find it hard to believe is that if someone(governments) wants them gone, they will be.

I didn't realize that

I didn't realize that the DP was so full of Pro-FED, Pro-Government intervention people. BitCoin is the opposite of both, so the only reason to dislike BitCoin, is if you like the Federal Reserve, or you simply don't understand real economics. Even Ron likes BitCoin.

That's known in the vernacular

...as an either-or fallacy.

Also, the assertion that Ron Paul likes bitcoin is hardly impressive.

It's clear that most people's

It's clear that most people's problem is the fact that its electronic, and they don't understand how it works. Instead of name calling, why don't you just educate?

Bump

Bump

Dr Paul has recently stated that he doesn't understand it. Making it prudent for him not to give a definite approval- this was stated on a radio show called something like the stateless man or something.

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

Thanks, Tom.

There's a lot of questions that I had that are on that list. +1!

If you don't know your rights, you don't have any.

Wow, it's a good thing you two aren't working together

Ha.

I don't

have BitCoin yet so....yeah.

If you don't know your rights, you don't have any.

a question for the bitcoin pros.

what happens when other crypto-currencies become available and just as ubiquitous as bitcoin aspires to be?

OpenSource

Any competing crypto-currency that is closed source, would not be trusted. Any improvements in the security of other CC's, could be applied to BitCoin.

you don't see a leveling of the playing field?

I have been misunderstood here on the DP as being anti-BC...I am not, but I remain skeptical of where all of this is going.

It's good to hear that it is rising in value, which I believe is a bubble and maybe I'll get in after it corrects, but I have no illusions that people with a few BCs are going to strike it rich.

I think the popularity and value of it will rise to a point where competitors will enter the scene, and the value of these competing CCs will level off.