[2013] Bitcoin May Be the Global Economy's Last Safe Haven

[T_R_Oglodyte]

Bitcoin May Be the Global Economy's Last Safe Haven (from BusinessWeek.com)

One of the oddest bits of news to emerge from the economic collapse of Cyprus is a corresponding rise in the value of Bitcoin, the Internet’s favorite, media-friendly, anarchist crypto-currency. In Spain, Google (GOOG) searches for “Bitcoin” and downloads of Bitcoin apps soared. The value of a Bitcoin went up to $78. Someone put out a press release promising a Bitcoin ATM in Cyprus. Far away, in Canada, a man said he’d sell his house for BTC5,362.

Bitcoin was created in 2009 by a pseudonymous hacker who calls him or herself Satoshi Nakamoto (and who might be several people). It’s a form of virtual cash used to buy goods and services online. Even by Web standards, it’s a strange and supergeeky phenomenon. This is what happens when software and networks meet the concept of currency, when you take peer-to-peer networks and advanced cryptography and ask, “How can I make a new economy?”

There are 10,952,975 Bitcoins in circulation. (With a digital currency you can be specific.) Bitcoin isn’t about to replace hard currency—with a market cap of $864 million, all of it is worth less than what Facebook (FB) paid for Instagram—but it’s bigger than anyone expected. And many people will tell you that the emergence of a virtual global money supply beyond the reach and control of any government is very real and that it’s time we take it seriously. As long as the Internet remains turned on, Bitcoin will be there—to its adherents, it’s the Platonic currency.

[snip]

 

[JudyS]

I propose the world use Wyndham/RCI/Bluegreen Points as its safe-haven currency!

(just kidding)

 

[T_R_Oglodyte]

I propose the world use Wyndham/RCI/Bluegreen Points as its safe-haven currency!

(just kidding)

Many years ago - when I was a lad - many companies ran promotions in which you could get a prize or a refund or some such by sending in one or two box tops. Commercials about this were ubiquitous, especially for packaged foods.

Which was the genesis for a story line in Rocky and Bullwinkle in which Boris and Natasha are sinking the world economy by producing counterfeit boxtops.

They also did a Fractured Fairy Tales episode on King Midas, which ended with gold being so common that it didn't have value any more. So the people switched from a gold standard to a turnip standard.

 

[ScoopKona]

All currency is basically an article of faith. When you think about it, what is the dollar worth, really?

Nothing. That's what. It is worth something because we believe it is worth something. If our faith falters (2007-2012), then the dollar is worth less. When we as a society believe it's worth more, than it is. Presto!

It's all a game. Play to win.

 

[T_R_Oglodyte]

All currency is basically an article of faith. When you think about it, what is the dollar worth, really?

Nothing. That's what. It is worth something because we believe it is worth something. If our faith falters (2007-2012), then the dollar is worth less. When we as a society believe it's worth more, than it is. Presto!

It's all a game. Play to win.

Not since the dollar stopped being a silver certificate. There was a time, in my life, when one theoretically present your dollar bill to the US Treasury and exchange for an equivalent amount of silver.

But then, silver and gold only have value above and beyond their value as direct industrial commodities, because people believe they are worth more.


******


And that's kind of the beauty of something such as bitcoin. What happens when there is a worldwide currency that people trust and are willing to use, and that currency can't be controlled and manipulated by governments and politicians?

 

[presley]

My son was all over my case to set up a computer to mine bitcoins last year. If only I listened back then.....

 

[Passepartout]

All currency, hard or paper only has the value that is placed in it. Or as Steve has said, the industrial value of the material.

Anyone for wampum? You could at least wear a string or two of wampum beads as adornment. Mr. T would be right in style!

Sure would beat tulip bulbs.

 

[VegasBella]

There's a bagel shop near me that takes bitcoin. They also take US dollars of course, but I like the sound of it: "bagels for Bitcoin"

 

[ampaholic]

Before you buy bitcoin from the developer - consider this, you can't buy from the developer, you can only buy from those with bitcoins to sell.

To do this you need to deal with an exchange - opening youself up to scams by the exchange owner/creator.

See: https://bitcointalk.org/index.php?topic=119334.0

If you read the entire thread you can see how trust is the real commodity in play.

 

[T_R_Oglodyte]

If you read the entire thread you can see how trust is the real commodity in play.

Isn't trust the fundamental commodity in play in any currency?

 

[Tia]

Interesting

 

[ScoopKona]

Isn't trust the fundamental commodity in play in any currency?

That's it.

The reason we trust in currency is because bartering turned out to be such a pain in the caboose. But currency itself is worthless, only the trust has value.

If civilization fails, the only things that will have real value are shelter, food, water and defense. Pessimists stock up on such things.

 

[ampaholic]

Isn't trust the fundamental commodity in play in any currency?

I was pretty sure I wasn't saying anything fundamental or profound - so you can let that rest.

These exchanges can come and go or even "fly by night" - it makes the fact that the bitcoin itself is rather solid moot if the exchanges are rickety - was my point.

 

[ampaholic]

There's a bagel shop near me that takes bitcoin. They also take US dollars of course, but I like the sound of it: "bagels for Bitcoin"

Can't wait till the street corner beggar's sign reads: "Brother can you spare a Bitcoin"

 

[MULTIZ321]

What is Bitcoin? Super Mario Bros. explains it all in a one-minute video - by David Holmes/ PandoDaily.com

PandoDaily made a video explaining how Bitcoin works through classic Super Mario Bros clips


Richard

 

["Roger"]

Safe haven?

Bit coin has gone from $20 to $266 and then back down to $100 (the last move in one day). The major trade center for bitcoin has temporarily shut down. See this article.

I suppose if you hit it right, you can make a lot of money trading in and out of bitcoin, but to me it smacks too much of tulipmania. Maybe in the long run things will settle, for now, I would not label it as a "safe haven" (see original post).

 

[MULTIZ321]

Bitcoin is No Longer a Currency - by Matthew O'Brien/ The Atlantic.com

Richard

 

["Roger"]

More bad news for bitcoins.

A cyber attack on the main distributor, phishing expeditions, and cybertheft. BBC Story

 

[MULTIZ321]

Iterations: How Five Real Economists Think About Bitcoins Future - by Semil Shah/ Opinion/ TechCrunch.com

Richard

 

[easyrider]

Bitcoin is a ponzi. Don't buy it. The value of something created out of an ideology at 1 cent per coin and now worth $270 a coin after 3.5 years is bound to collapse, catching all the suckers holding a bag of worthless bitcoin, imo.

 

[MULTIZ321]

Bitcoin Exchange Bitfloor Shuts Its Doors, Promises to Return Everyone's Money - by Jeff Blagdon/ The Verge.com

Bitcoin exchange BitFloor is closing its doors, halting trading and announcing that it will return everyone’s funds. In an announcement on its main site, the company’s founder, Roman Shtylman, says that "due to circumstances outside [BitFloor’s] control" it "must cease all trading operations indefinitely."


Richard

 

[MULTIZ321]

Study: 45 Percent of Bitcoin Exchanges End Up Closing - by Ian Steadman,wired.co.uk/ Ministry of Innovation-Business of Technology/arstechnica.com

Good luck getting your money back!

- Bryan Mills


Richard

 

[MULTIZ321]

Paypal Considers Accepting BitCoin Payments - by Brian Sin/ SlashGear.com


Richard

 

[MULTIZ321]

US Authorities Launch Their First Attack on BitCoin - by Adam L. Penenberg/ PandoDaily.com

"Yesterday the Department of Homeland Security served the Dwolla mobile payment service with a court order requiring it to immediately cease all account activities with the Mt. Gox bitcoin exchange. Today it appears that Mt. Gox, based in Japan, has been cut off from Internet. If you try to get to http://mtgox.com you get a “502 Bad Gateway” message or a blank screen..."

Richard

 

[artringwald]

Many years ago - when I was a lad - many companies ran promotions in which you could get a prize or a refund or some such by sending in one or two box tops. Commercials about this were ubiquitous, especially for packaged foods.

Which was the genesis for a story line in Rocky and Bullwinkle in which Boris and Natasha are sinking the world economy by producing counterfeit boxtops.

They also did a Fractured Fairy Tales episode on King Midas, which ended with gold being so common that it didn't have value any more. So the people switched from a gold standard to a turnip standard.

You must not be the only one who remembered that episode. Some game designers put it into a pinball game: http://www.xbox360achievements.org/forum/showthread.php?t=281455