I'm surprised this didn't happen sooner as the silk road allowed the trade of all sorts of illegal drugs and items to be dispersed on a seemingly endless scale. For god sake you can even hire an assassin through the silk road. Apparently he got caught through using his email address on a forum. :/
Last edited by Itchymoku; October 3rd, 2013 at 08:04 AM.
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So this Bitcoin sounds like it will solve the worlds problems created with fixed fractional banking and fiat currency.
Interested, I look in to Bitcoin. The first thing that hits home is the fragmented market place of various exchanges. Immediately I think of arbitrage. The spreads seem ridiculously wide between platforms:
Basically, a few rinky dink retailers you've probably never heard of.
This leaves bitcoin as a speculative play as you really cant do much with them. With 50% of the balance already in circulation, and no one really accepting them - other than i-net nerds, where's the value beyond novelty?
How can I short? The 'exchanges' dont seem to allow short selling?
10 years from now, TV shows on Saturday night will be laughing at this idea, and we will be laughing at the goons that bought into this with out doing any due diligence and just caught up in the latest fad wave.
I see 'traders' on Mt Gox, the largest exchange are already having difficulty converting their bitcoins back into proper currency.
I think you are behind the progress a bit. The difficulty of mining is exponential, so it will take much much longer to reach the end. In fact the end will never be reach, just like the speed of light. It gets astonishingly difficult to get to these last bits.
You also forget that bitcoin is perfectly divisible. So as it grows more and more expensive, you could buy just 1/10 or 1/100 of bitcoin. No problem here.
And last but not least: Baidoo, largest China online retailer is now accepting BitCoins. You can safely assume a proper exchange for it is coming very soon and most likely it will started to trade in Hong Kong and Singapore too.
In next 100 or more years world will belong to Asian powers, so follow them, not financially but even worse morally and intellectually bankrupt west.
I would not put a fortune on bitcoin, simply because there is no guarantee it is a final incarnation, there might be an improved variation that will suit large adopters. But the fact it is well alive and kicking is very promising.
Statistically, the likely hood of you or I being around in 100 years is negligible.
OK so Amazon (I hear) and some Chinese retailer take bitcoin. Why would the west who still own most of the wealth buy from China.com - the goods still have to be shipped over. People tend to buy from online stores where the depots are closer to home.
The fact remains that the official bitcoin graph I posted clearly shows over half the coins have already been produced. Yet the 'currency' still remains a gimmick.
No government would ever except bitcoin as payment - and there in lies the problem. Bitcoin will be shut-down within 5 years as it's basically just a conduit for terrorists and drug dealers to launder their ill gotten gains.
Supporting bitcoin is supporting terrorists, drug dealers, paedophiles, human traffickers and other undesirables. Every time you buy a bitcoin, you are pushing up the price - in so doing, you are pushing up the wealth of these undesirables. And you talk about being morally bankrupt!!
All good, just don't forget to put at the end of it big IMO.
Government can't shut down a distributed system. Which government? US and A? Who cares. In 25 years China will own most of industry there. China already building up nuclear reactors in UK. LOL isn't it? Baidoo sells to Chineese people who do actually have savings, not debt like USA people. Once Dollar is reserve currency no more, there will be no buying power whatsoever. I am sympathetic to Americans, but this is something only blinded by government lies cannot see.
Trade to live. Not live to trade.
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American citizens are not used to look over the fence:
1) watching only one film industry which manipulates american speaking spectators with mostly nonsense
2) not speaking a second or third language to get some information from outside channels
3) still believing in the old and overused phrase "yes we can" which never really delivered proofs
With the undecided US debt situation the situation will be even more dense next January...
Under all these circumstances even a "Mafia-currency" like bitcoin might survive easily.
PS: good to keep some eye on the recent development EUR/USD and other pairs to feel the pulse
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I agree re the USA. Remember there are other governments though. The Chinese Govt for example. Do you think they will accept bitcoin to pay their taxes?
What if Bitcoin or some other mickey mouse currency became the global reserve currency of choice, and the head programmer decides to manufacture 10x causing massive inflation the world over?
The USA can and do print as much money as they can get away with. What's to stop some nutter doing the same with Bitcoin? They say bitcoin is unhackable. I remember the CIA saying similar things a few years back about their systems; Gary McKinnon decided otherwise while he was 'searching for information on UFO's!'
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Slighly off-topic but following the general comment stream I wouldn't be quite so quick to write off the USA yet - the massive reversal in the bulk energy story (moving towards 5X-8X cheaper than Europe or Asia) is blindsiding many observers at present. Private corporations, fast moving start-ups and heavy industry consumers of energy will just get on with business, often physically moving back to the USA regardless of government collapses, totalitarian depressions or full-on monetary resets. To say nothing of the fact that China's still to come deleveraging might make even the US look half decent again - and good old/bad old London will always do whatever it can to preserve any old thin-air paper, whether it's Dollars, Euros, Sterling or Renminbi.