4 votes

What's wrong with Bitcoin?

I've been reading a lot about Bitcoin on Daily Paul, and I just cant see why the folks on DP are so interested in a bits-and-bytes currency when its so vulnerable to identical competition. Call me old fashioned, but I still prefer hard money.

http://shadesofthomaspaine.blogexec.com/index.php/entry/bitc...

Tell me what you think.

Comment viewing options

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

What I'm saying is GM was the big boy on the block in 1972

and Toyota came up and ate their lunch by making mild but noticeable innovations. You were saying earlier that only quantum leaps can unseat an incumbent and imitators generally fail (they generally do, except when they don't).

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

I would say that Toyota's

I would say that Toyota's efficiency scheme was a significant innovation. It was significant enough to end up in textbooks. GM simply couldn't compete in price.

What is

Your definition of losing? A low price? Bitcoin could be 1 dollar or a million dollars, the fact that you can transfer value with them is not going away. The more currencies options out there the more headache for the government.

Tracking a person through just 1 crypto currency can be difficult, Imagine tracking someone weaving in and out of multiple currencies.

That's my point

Its 75 bucks now. If you buy now, twenty currencies show up, and it goes to a dollar, you lose 98 percent of your money. That's bad!

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

That won't happen in a day.

That won't happen in a day. Now you are being totally unreasonable. Even a rookie investor will have enough time to step out before that happens. But Liberty requires personal responsibility and requires you to THINK. If you invested a large amount of money without considering the risks, you are doing something wrong. Not even gold is without its risks.

I wouldn't say "totally unreasonable"

seeing as how Bitcoin has lost 90% of its value at times, only to gain it all back and then some. The losses back around June 2011 looked pretty immediate, too.

It's on a parabolic trajectory again, will it stick?

I think sudden losses in a faith-based currency are a reasonable concern.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

It's still a new currency, so

It's still a new currency, so that is to be expected. Even I think that there's a great possibility that BC is currently undergoing a bubble right now. But as time passes this will become less of a problem and the exchange rate will stabilize. Of course, this is assuming no other disasters happen in the meantime.

But let's assume that your hypothetical new crypto currency arrives TODAY. Bitcoin is here since 2009. What you are saying, is that this hypothetical identical currency would be such a large threat that it could immediately render a 3-4 years head start to NOTHING and make it go down 90% in value.

I understand skepticism, but you may want to look at that claim of yours yourself and ask yourself the question if you aren't making other people more skeptical about yourself than Bitcoin itself.

Pretty much.

"What you are saying, is that this hypothetical identical currency would be such a large threat that it could immediately render a 3-4 years head start to NOTHING and make it go down 90% in value."

Take out the word "immediately", add some other circumstances (major security issues, new currency is widely accepted by major businesses) and that is my basic claim.

Don't get me wrong, I think Bitcoin and its ilk are a step in the right direction of getting away from government money, and for short term exchanges under the radar, right now Bitcoin is king.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

That's why

you don't use bitcoins as your primary store of wealth. You can still use them for what they're good for, though.

Bingo.

As I said in the article: "I like bitcoin; I think it's great someone is trying to stick it to the man."

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

Yes, this I can agree on. But

Yes, this I can agree on. But that doesn't mean, you cannot invest in BC.

Some currency traders can make money REGARDLESS if the exchange goes up and down. The key is minimum risk and not letting greed get to your head. Start the day in FRN, buy BC, sell BC the same day and end the day in more FRN. This is possible if you buy and sell small amounts the very same day and if you use multiple exchanges.

Whenever you have enough FRN, reserve 10% as a hedge in BC. THAT'S the responsible way to do it with minimum risk and yet still profit from BC.

The way you describe it, it's like ANY involvement in BC is bad.

Bitcoin has its purpose

but as an investment vehicle, I think its pretty scary for the reasons we've been talking about, especially over the long term.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

Yes, this is true. Do not go

Yes, this is true. Do not go into BC without understanding the risks. I fully understand that BC could crash tommorrow (most likely through a bug or the government). That's why I use the minimum risk strategy I described. You can make 30-50 dollars each day, with perhaps only a few days each month where you post a loss.

You won't get rich that fast with such a method, but by slowly building up your principal of FRN/euro's, you'll have more chance of avoiding major losses and increasing your gains even beyond 50 dollars.

And in the early stages of BC, your principal can increase quite fast even with a minimum risk strategy. The nice thing about this strategy is that you support the BC economy this way, without actually having your money hedged in BC. If it fails tommorrow, you will post only a small loss that particular day, because most of your money will already be converted in FRN/euro's.

The keypoint is patience and not letting greed get to your head.

Amazon

Does have Amazon coins, they are nothing like Bitcoins.

Big mistake on Amazon's part,

Big mistake on Amazon's part, right?

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

That's a good

thing not a bad one. If something better comes along then people will prefer that. That's the point to competing currencies, the market decides what is best. Nobody is saying bitcoins are flawless.