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Bitcoin a scam?

Lets see.... hmmm....

21,000,000 times 100,000,000 thats 21 with 14 zeros behind that.

2,100,000,000,000,000

Just how big is that? Well, 21 hundred trillion... hmmm.... I guess you made your point.
If bitcoin hits a millions dollars a coin(some people think it's going there) then the smallest denomination of bitcoin is worth pennies.
 
@Arkady

You know Arky I wasn't just kidding when throwing that quantum computer issue into the fray of the discussion over bitcoin. Think about. What do you think it means?
 

Arkady

President
@Arkady

You know Arky I wasn't just kidding when throwing that quantum computer issue into the fray of the discussion over bitcoin. Think about. What do you think it means?
If a quantum computer could solve those problems much faster and for much less money, it would greatly deflate the value of bitcoin -- but only to a point. The protocol prevents the creation of any further bitcoins after that point.
 
One makes the number infinitely large and the other infinitely small.
Your thinking on the matter is unimaginative.

Btw tangentially,

$260 billion ‘cryptocalypse’ as cryptos plunge 30 per cent amid fresh China, South Korea fears
BITCOIN, ethereum, ripple and other virtual currencies have been smashed overnight in a bloodbath of Titanic proportions.

http://www.news.com.au/finance/money/investing/260-billion-cryptocalypse-as-cryptos-plunge-30-per-cent-amid-fresh-china-south-korea-fears/news-story/3775fe60f78da3c9bd53cedf3ef0f23b
 
bitcoin's main attraction is a tax dodge. it has no inherent value itself.

- you can't grow crops on it
- you can manufacture things with it
- you can't eat it
- you can't wear it
- it doesn't provide any cultural/entertainment/sexual excitement
 
If a quantum computer could solve those problems much faster and for much less money, it would greatly deflate the value of bitcoin -- but only to a point. The protocol prevents the creation of any further bitcoins after that point.
It corners the market and/or elevates it into corporate status currency.


But never mind Bitcoin, if the market/economy/banks are going block chain technology what do you think that means for the average joe?
 
bitcoin's main attraction is a tax dodge. it has no inherent value itself.

- you can't grow crops on it
- you can manufacture things with it
- you can't eat it
- you can't wear it
- it doesn't provide any cultural/entertainment/sexual excitement
It isn't a tax dodge as much as it facilitates clandestine transfers of wealth across borders.

1) It takes 50 minutes currently to close a transaction.
2) There is no mass consumer payment system for goods such as candy bars or dish washers.

It is more a financial vehicle than a currency at this point.
 
bitcoin's main attraction is a tax dodge. it has no inherent value itself.

- you can't grow crops on it
- you can manufacture things with it
- you can't eat it
- you can't wear it
- it doesn't provide any cultural/entertainment/sexual excitement
Where gold derives its value is a huge question in academic finance. In finance assets are valued as the present value of their future cash flows. Gold has zero cash flows, no dividend payments, no interest payments, no lease payments, no nothing. Gold is best described as "a store of value". Same as bitcoin.
 

Arkady

President
It corners the market and/or elevates it into corporate status currency.


But never mind Bitcoin, if the market/economy/banks are going block chain technology what do you think that means for the average joe?
Good question, but I've got no good answer. I haven't thought much about it, and only know the rudiments about the technology.
 
Where gold derives its value is a huge question in academic finance. In finance assets are valued as the present value of their future cash flows. Gold has zero cash flows, no dividend payments, no interest payments, no lease payments, no nothing. Gold is best described as "a store of value". Same as bitcoin.
gold is "scarce" but not finite. the 1849 discovery of gold in California was a shock to the world.

the creators of bitcoin CLAIM the quantity will never exceed 21 million coins. however, the bitcoin "miners" earn newly minted bitcoins by participating in the accounting (blockchain verification/settlement/record keeping)

A couple questions to ask yourself:

  • when bitcoin issues its, 21 millionth coin, will it stop compensating the "miners" who make the system go?
  • what happens if someone "steals" a bunch of bitcoins ($500 million worth were stolen last year). Will bitcoin "replace" them, to keep the integrity of the system sound?
  • what about bitcoin copycats? don't those lesser crypto currencies pretty much negate the concept of a fixed supply. New issuers pop up every week.
 
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