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BitCoin and Cryptocurrencies - Will they fail? My 3 Predictions!

Discussion in 'CryptoCurrency' started by Asif A Khan LONDON, Nov 5, 2013.

  1. Asif A Khan LONDON

    Asif A Khan LONDON Executive VIP Jr. VIP

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  2. wexzone

    wexzone Regular Member

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    it's only illegal in certain jurisdictions, not the whole planet. I'm saying it's not illegal to hold funds. They sold non-illegal stuff there, too.

    So, since the FED can't prove who the coins came from, what jurisdiction they are in, and what they were buying, then they can't prove that those coins were going for drugs/illegal activity.

    If you are at a bar, and someone is selling drugs at the bar (even the bar owner), and the Fed confiscates all the money in the place, you don't think you have a legal right to your money if you weren't doing anything illegal?
     
  3. wexzone

    wexzone Regular Member

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    only if it is a credible threat to begin with. Like the 51% attack. It's not a real threat, because doing that attack makes what you gain worthless. Same with many of these other "threats"

    the majority of those "threats" are not exclusive to bitcoin, but could be said for any network/online banking system. It doesn't make online banking less valid because someone phished your password.
     
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    Last edited: Nov 8, 2013
  4. wexzone

    wexzone Regular Member

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  5. Asif A Khan LONDON

    Asif A Khan LONDON Executive VIP Jr. VIP

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    There are 2 good points in that article and 1 flaw with the final argument about technology adoption curves.
    Why use a chart that only goes to 2007 and why not use a chart for mySpace?
    Reason: It would show a totally different curve and invalidate his assumption.









    http://www.finextra.com/News/FullStory.aspx?newsitemid=25404&topic=security
    http://english.caixin.com/2013-11-07/100602058.html
     
  6. Asif A Khan LONDON

    Asif A Khan LONDON Executive VIP Jr. VIP

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  7. PinguSpy

    PinguSpy Jr. VIP Jr. VIP

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    Bitcoin is nothing more than stocks for me. Just for a moment.

    Hard to buy, hard to liquid.

    Totally anony, have advantage but +more disadvantage.

    Any u need "device" and "internet" for every transaction. Not like flat money(physical paper/coin).
     
  8. wexzone

    wexzone Regular Member

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    Last edited: Nov 8, 2013
  9. wexzone

    wexzone Regular Member

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    easy to buy, localbitcoins or coinbase. very simple

    gyft.com, easy liquid. or coinbase/localbitcoins.

    no you don't, you can trade in physical coins and/or paper wallets from trusted sources. You need a device to verify authenticity of bitcoin, and you have to do the same with fiat. Fiat can be counterfeit, bitcoin can't.

    Bitcoin is more like a credit card, though. Except that it is cheaper to send money using bitcoin and the network is not centralized.
     
  10. Asif A Khan LONDON

    Asif A Khan LONDON Executive VIP Jr. VIP

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    18-Year-Old Reports $US1 Million Bitcoin Theft From 'Bank' He Controlled -- And Says He Can't Call The Cops
    http://www.businessinsider.com.au/1-million-bitcoin-theft-in-australia-2013-11

    List of Bitcoin Heists
    https://bitcointalk.org/index.php?topic=83794.0

    REMINDER: Bitcoin Is The Perfect Asset Bubble -- Prices Could Go Vastly Higher From Here
    http://www.businessinsider.com/bitcoin-bubble-2013-11

    The Bitcoin Bubble
    http://techcrunch.com/2013/11/06/the-bitcoin-bubble/

    A Possibly Useless Guide to Pillaging the Bitcoin Mine
    http://www.businessweek.com/article...y-useless-guide-to-pillaging-the-bitcoin-mine


    [h=1][/h]
     
  11. Asif A Khan LONDON

    Asif A Khan LONDON Executive VIP Jr. VIP

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    Bitcoin Could Go To $1 Million

    $400 is a perfectly reasonable target for Bitcoin. As is $1,000. As is $10,000 or $100,000 or $1 million.
    And as is $0.01.
    This is because Bitcoin has no inherent value. It's adherents refer to it as a "store of value," but Bitcoin is only a "store of value" because, right now, its price keeps going up. Unlike gold or dollars or other things that have widely accepted utility, Bitcoin's price is determined entirely by what someone else is willing to pay for it. Right now, because Bitcoin's price is going up, and Bitcoin is in relatively short supply, people are willing to pay $340 for it. And the ever-increasing demand for Bitcoin will keep driving the price up until people don't want to buy or hold it anymore.
    At that point, by the way, the price of Bitcoin will collapse. And anyone who thinks it can't collapse all the way to zero is delusional.

    Source:http://www.businessinsider.com/bitcoin-price-2013-11


    Is This Why Bitcoin Is Surging?
    http://batrdailybusinessreport.blogspot.co.uk/2013/11/is-this-why-bitcoin-is-surging.html

    Bitcoin grows up
    http://www.cnbc.com/id/101176320
     
  12. Asif A Khan LONDON

    Asif A Khan LONDON Executive VIP Jr. VIP

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    Sorry to keep bumping this thread BUT there are just too many good stories at the moment.

    Here's What Happens When You Criticise Bitcoin

    The other day I argued that Bitcoins were fundamentally valueless.
    I won't repeat the argument here, but I thought it would be worth pointing out what kind of reaction I got.
    Max Keiser said it would be good if I committed suicide in public.
    [​IMG]
    One guy called me Joe WeisenF- and then perhaps intimated that I be killed?
    [​IMG]
    A guy on a Bitcoin message board is trying to turn me into a meme.
    [​IMG]
    Some people are really excited about rubbing this into my face.
    [​IMG]
    Someone on Reddit said this, which I don't understand.
    [​IMG]
    Anyway, this is just a small sampling of message boards, my Twitter responses, and my email inbox over the last day.
    Just remember: One hallmark of a bubble is angry, religious fanatacism over the asset of choice.

    Source:http://www.businessinsider.com.au/heres-what-happens-if-you-criticize-bitcoin-2013-11
     
  13. Asif A Khan LONDON

    Asif A Khan LONDON Executive VIP Jr. VIP

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    Bitcoin price could be highway robbery, PayPal's quandary, and how to stop a nasty rumour


    Supply and demand - with menaces

    Bitcoin's price keeps going up, and nobody knows quite why. The Chinese are still in the frame, just because, as are a string of strong stories on investment in, reliance on and general official warming to, the cryptocurrency.
    And of course, there's the ever-present chance that it's a bubble about to burst. You can find all opinions available out there. Pick your favourite.
    But there could be another reason, and it's rather sinister. You may have heard of a piece of malware called CryptoLocker - a nasty piece of work that, once it gains access to your computer, promptly encrypts all your documents and pictures and then issues a demand: Send money to get a key, or your files will be deleted.
    That's been around for a while, but over the past week the number of reported infections has increased enormously, to the point that email disinfecting companies say it's the most prevalent malware of the moment.
    John Law can confirm this, as he knows victims and has tales of hundreds more.
    There are also tales of stores running out of MoneyPak prepaid cards - one of the two methods that the CryptoLocker criminals demand payment with. The other, of course, is bitcoin.
    Quite a lot of bitcoin, as it happens. You get to pay two BTC if you want to recover your file within 72 hours, or 10 BTC afterwards. (The official advice from security bods is - don't pay, recover your files from your backups. You have got backups, right?)
    Nobody knows how many people have been infected by CryptoLocker, nor how many have paid up. But there are millions of infected emails out there; it's a major attack - and at two BTC per hit, that's pretty good payback for the bad guys.
    They're being quite careful, too, with every ransom going to a different bitcoin address, and running their main servers out of the Ukraine and on the Tor network.
    Is this one of the factors driving the bitcoin price up? Well, with well over 200,000 bitcoins traded per day at the moment - a very large increase on a week ago - it's certainly feasible that a good chunk of those is panicked hostage traffic.
    And Mt. Gox, which had just lost its crown as top exchange to BTC China, has roared back into the lead - as you might expect for an exchange with multiple currencies, if lots of people from around the world suddenly needed bitcoin in a hurry. Nasty.
    John Law recommends you spend fifty quid on an external hard disk instead, and make some backups. It's much cheaper, and you should be doing it anyway. And for heaven's sake, don't click on any links in emails you weren't expecting. And if you can, run anything but Windows.
    Are we going to see more of this sort of thing? Yes. There has been ransomware before, but it was never easy to send the money anonymously and securely.
    Now it is, and every bad hacker on the planet can see how to do it. The good news is, if you have a secure computer and don't do silly things with it, you'll be safe: the bad news is, most people don't and do.
    Don't be most people.

    Source:http://www.coindesk.com/bitcoin-price-robbery-paypals-quandary-nasty-rumour/




    Is Another Bitcoin Bubble About to Burst as Value Soars Past $300?

    Bitcoin has reached an all-time record valuation of more than $310 (192) per coin as a repeat of April's boom and bust looks set to rock the currency once more.
    Shredded to bits
    But investors should exercise caution. Currencies Direct senior analyst Alistair Cotton warns Bitcoin is "a currency that is substantially more volatile than any other traditional peer on the market. This is a currency that rose by 14% in one day recently and fell by 40% in a matter of hours...This remains an extremely speculative bet and any [COLOR=blue !important][FONT=inherit !important][COLOR=blue !important][FONT=inherit !important]individual [COLOR=blue !important][FONT=inherit !important]investors[/FONT][/COLOR][/FONT][/COLOR][/COLOR] would do well to steer clear if they want don't want their [COLOR=blue !important][FONT=inherit !important][COLOR=blue !important][FONT=inherit !important]investment [/FONT][COLOR=blue !important][FONT=inherit !important]portfolio[/FONT][/COLOR][/FONT][/COLOR][/COLOR] shredded to bits."[/FONT]
    The more businesses and services offering to accept Bitcoin, the more its value in a practical sense grows, along with its [COLOR=blue !important][FONT=inherit !important][COLOR=blue !important][FONT=inherit !important]financial[/FONT][/COLOR][/COLOR] value. However, this makes it more appealing to hackers looking to make a quick buck, either by stealing a user's wallet, or by [/FONT]attacking Bitcoin exchanges to bring the value down, knowing it will later recover to earn them a [COLOR=blue !important][FONT=inherit !important][COLOR=blue !important][FONT=inherit !important]profit[/FONT][/COLOR][/COLOR].[/FONT]
    Until these Wild West scenarios can be eradicated, Bitcoin will struggle to establish itself as a safe, reliable means of [COLOR=blue !important][FONT=inherit !important][COLOR=blue ! important][FONT=inherit ! important]investment[/FONT][/COLOR][/COLOR].

    Source:http://www.ibtimes.co.uk/articles/5...-value-inflation-boom-bust-bubble-economy.htm



    [/FONT]
    [h=3]The Chicago Fed on Bitcoin[/h]
    A senior economist at the Chicago Fed, Francois R. Velde, is out with a paper on Bitcoin.

    Of note, he writes:
    Although some of the enthusiasm for bitcoin is driven by a distrust of state-issued currency, it is hard to imagine a world where the main currency is based on an extremely complex code understood by only a few and controlled by even fewer, without accountability, arbitration, or recourse.​
    and

    So far, the uses of bitcoin as a medium of exchange appear limited, particularly if one excludes illegal activities. It has been used as a means to transfer funds outside of traditional and regulated channels and, presumably, as a speculative investment opportunity. People bet on bitcoin because it may develop into a full-fledged currency. Some of bitcoin's features make it less convenient than existing currencies and payment systems, particularly for those who have no strong desire to avoid them in the first place. Nor does it truly embody what Hayek and others in the Austrian School of Economics proposed. Should bitcoin become widely accepted, it is unlikely that it will remain free of government intervention, if only because the governance of the bitcoin code and network is opaque and vulnerable. That said, it represents a remarkable conceptual and technical achievement, which may well be used by existing financial institutions (which could issue their own bitcoins) or even by governments themselves.

    Source:http://www.economicpolicyjournal.com/2013/11/the-chicago-fed-on-bitcoin.html
     
    Last edited: Nov 8, 2013
  14. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    I read the article, he should label him self as senior citizen, senior wannabe or senior loser, but certainly not senior economist. Here 's a sample of superficial understanding:

    What Hayek says is that once you have unrestricted competing currencies, the one with the most advantages will tend to get used more often than the others. That is the competitive environment -> competition between currencies. BitCoin is a currency and it competes with the others for a share of usage. Its price is determined by market forces by design - unlike government issued currencies whose value can be manipulated by its issuer by design. Oh, and obviously it is issued privately, albeit not by one company, but many individuals/companies. We can't blame Hayek for not having p2p networks availalbe in his time :)

    The predictable rate of new bitcoins entering the market in is helping in the road for a stable value, not the opposite. Compare that to the fact that we know not how much new money the government will print by its whim.

    Unbelievable shallowness.
     
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  15. MaverickonRoids

    MaverickonRoids Power Member

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    Sorry if this has been mentioned before, but, WTF, bitcoin prices at 325USD now??? I haven't been following BTC lately, but seeing as though this thread pops up quite a bit, I thought to check in with current prices. My god. How can the prices be this high even after The Silk ... shut down? People were saying the BTC prices would tank. How can the prices be this high?

    It's nuts.
     
  16. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    If you expect to understand the world by what "people are saying", you 're in for a nasty surprise.
     
  17. IAMAZEME

    IAMAZEME Jr. VIP Jr. VIP Premium Member

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  18. Asif A Khan LONDON

    Asif A Khan LONDON Executive VIP Jr. VIP

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    pst.. it's a bubble...artificially high...will fall...




    [​IMG]

    Bitcoins Real Revolution Isnt Hard Money Its Economic Panarchy
    Source: http://falkvinge.net/2013/11/06/bitcoins-real-revolution-isnt-hard-money-its-economic-panarchy/
    The earth-shattering thing about bitcoin isn't its fixed money supply. It's not the carefully tuned algorithm that keeps its growth at a steady rate, or the inability of a political body to play with its value. What's new and government-toppling about bitcoin is that it's a framework for starting a new economy.

    Gold and silver have coexisted with governments and nation-states for thousands of years. If the economic properties of bitcoin — its finite supply — were inherently state-smashing, we'd be living in a very different world before the computer were even invented. No, bitcoin's revolution isn't what the Bitcoin Foundation calls its "non-political economy."
    In fact, you could argue that "non-political economy" is an oxymoron. If we define "political" as only referring to the workings of a state, then sure, you can have a non-political economy. But in the colloquial way that people often talk about "politics" — the "internal politics" of a workplace or social club, for example — there's no such thing as a non-political economy. Any kind of money — whether it's gold, dollars, bitcoin, or licking things to claim them as your own — only has any value if everyone in the economy agrees that it does.
    What about supply and demand?
    You could say that this observation doesn't challenge the neoclassical economic theory of money very much at all. For example, bitcoin has value because there's a demand for it, plus it's in short supply. This is like saying that general relativity is consistent with the Genesis story, because the Earth could have been created in six "relative" days. It's not technically wrong, just not a very helpful way of looking at the world.
    I like the way David Graeber puts it in Debt:
    [Money] is not a "thing" at all. You can no more touch a dollar or a deutschmark than you can touch an hour or a cubic centimeter. Units of currency are merely abstract units of measurement...If money is just a yardstick, what then does it measure? The answer [is] simple: debt. A coin is, effectively, an IOU.
    Brett Scott expands on this:
    Perhaps we can tinker with the word ‘money' itself. It's a mass noun, like you'd use for some kind of tangible substance, and it makes money sound like a ‘thing-in-itself'. As a kind of mental discipline, I prefer to use a different word: COGAS. It stands for ‘claims on goods and services', which is all money really is.
    So money is just a way of measuring who owes what: you give me something or do something for me, and now I owe you something equally valuable in return. That's a social relation. And if a big group of people get together to agree on how their social relations should work, it suddenly starts to look political. Even the decision to use bitcoin requires the initial political decision to not screw with its politics in the future.
    But wait just a minute. You see what just happened? A group of people decided that instead of using a national currency, with properties they don't like and can't control, decided to instead use bitcoin. That's your revolution.
    Bitcoin's real contribution to the world is its source code. The blockchain, the network protocol, the cryptographic verification — anyone can take this and build a currency with any economic properties their community needs. I'm not convinced that bitcoin's Austrian School properties can sustain a global (or even local) economy, but you know what? That's okay. If I ever feel the bitcoin economy has become too unequal, unbalanced, or stagnant, it's now trivial for me to start my own damn currency.
    A single bitcoin belongs is a measurement like a centimeter, but the bitcoin community is a social network. People use bitcoin because other people they trade with use bitcoin. If my town is running low on bitcoin but has a lot of resources to share internally, we can create our own local currency to free up bitcoin for importing and exporting. Or I could join an online network of artists who work on one another's projects, and we'd create our own internal currency that plays by whatever rules we need it to.
    There is no perfect monetary system for every situation. Bitcoin is not going to be the one world currency, and it doesn't need to be. A lot of people compare Bitcoin to the Internet, but it's more like CompuServe. It's the first of many digital, non-state currencies to come, that will all interoperate with each other in ways we can't even dream of yet.

    http://falkvinge.net/2013/11/06/bitcoins-real-revolution-isnt-hard-money-its-economic-panarchy/




     
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  19. ContentLockPro

    ContentLockPro Power Member

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    Everything good ends one day. Only Google stays there for you
     
  20. Asif A Khan LONDON

    Asif A Khan LONDON Executive VIP Jr. VIP

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