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Bitcoins - fad of flop?

Discussion in 'Introductions' started by Banaphone, Sep 30, 2012.

  1. Banaphone

    Banaphone Newbie

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    Dear all,

    As the topic reads I am conducting an in-dept study of the technology regarding Bitcoin, online e-currency used for transactions.
    Regarding the topic I wish to approach the Backhat and Whitehat community to brainstorm, ask for experiences and to comment on the viability of the technology - it's positive and negative sides.

    If possible I would ask for individuals to give interviews which their identity would be ensured.
    This is not a request to break any laws, but a inquiry for communication and sharing past-tense information.

    (Note to moderator: I did not locate the appropriate forum for my inquiry. If one finds it matching another sub-topic, please do not hesitate to move it).

    Best regards,
    Banaphone
     
  2. lancis

    lancis Elite Member

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    How do you plan to use that info?
     
  3. Banaphone

    Banaphone Newbie

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    I will use it to base most of my concerns about Bitcoin I can not extract from the internet. As those sources are secondary I am aiming for primary sources. I would use quotes (if they are usable) or refer to "the interview". Whitehatters can of course opt for full name or on-line name to be displayed. The assignment is purely educational and is not to be delivered to the authors or makers of Bitcoin unless asked for, whereas individual sources would ask to accept. If declined the document will be re-written to not include names, or be replaced by fake-names.

    Was it clarifying?

    The work is purely educational and since I won't be receiving any founding for the research program I have also little to give in exchange for information when it comes to capital.. Apologies.
     
  4. proxygo

    proxygo Jr. VIP Jr. VIP Premium Member

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    post belongs in the lounge this is the introduce yourself section
     
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  5. Banaphone

    Banaphone Newbie

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    Thank you!

    However, am I able to move the entire post, or should I ask for a moderator to do such?
     
  6. proxygo

    proxygo Jr. VIP Jr. VIP Premium Member

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    ask a mod - i did report the post to be moved
    no biggy though -
     
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  7. Banaphone

    Banaphone Newbie

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    Ok, so I I don't have to 2x the reports then I guess.

    Thank you anyways :)
     
  8. lancis

    lancis Elite Member

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    I'm not sure I understood your intentions correctly, but instead of posting another question I would rather ignore the Introductions section and start with the actual discussion. :)

    Bitcoin is here to stay.

    Why?

    1. Its limited. Therefore its like a food during war times - sometimes priceless.

    2. Its anonymous. Its the only relatively widespread currency solving the "anonymity" problem, thus its a currency that creates new markets. It doesn't have to be black market only, it can solve problems of money delivery between countries that are in the state of war. For example, 2 businessman, 1 from Syria, another from Israel can create a business channel.

    However, Bitcoin still has one big problem to solve before it actually becomes the currency of choice. Its almost unaccessible to an average Internet user, who has no idea how to convert his savings into Bitcoins without overheating his brain.
     
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  9. ja1myn

    ja1myn Senior Member

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    I still don't understand the concept of Bitcoin.
     
  10. farlack

    farlack Newbie

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    My only regret for bitcoins is that I didn't buy as many as I could a month ago when they were less than $10 each. They're trading pretty strong. Look how many are traded every day.
     
  11. Banaphone

    Banaphone Newbie

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    I can't post links yet, but search it in google.
     
  12. farlack

    farlack Newbie

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    Its a virtual currency backed by nothing, except the fact that people use it.
    Its a peer to peer network, you have a bitcoin on your computer, and you can trade it to other peoples computers with a code. And bitcoins cant be cracked, or generated as the way new bitcoins are introduced is the community has to farm them. Someone trades you a bitcoin you trade them in paypal etc vice versa.
     
  13. Banaphone

    Banaphone Newbie

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    So you mean there is not an issue that the market fluctuates so easy because it's only variables are supply and demand? Nor the danger in conducting online transactions vs physical transactions? I agree that the speed is major, but you cannot see any dangers regarding cybercrime violations?

    If you wish to continue this conversation over an instant-message system I have skype primarily. It would also enable me to answer your complete set of questions :)
     
  14. Banaphone

    Banaphone Newbie

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    Appreciate the short presentation of the concept :)

    However history shows that people have been able to produce bitcoins, interrupt transactions and caused a downtime in services.

    Say they fix these problems accounts can still be accessed and value extracted...
     
  15. lancis

    lancis Elite Member

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    The market fluctuates because its still relatively small, and 1 major player can affect it. An example from real world would be a large bank that dictates the prices. It holds 90% of the money and the demand goes up, then it releases 10% to the market and the price falls. In the process the bank looses his share, so eventually the money spreads among a large group of people. Once that process is over the fluctuations will become smaller.

    Cybercrime is a concern indeed, and a well designed virus may mean the apocalypse of Bitcoin. However, IMHO, the chances of such an event are too small. Most likely cybercrime will happen on a smaller scale, and people will lose bitcoins just like they lose dollars now due to stolen credit cards.
     
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  16. ja1myn

    ja1myn Senior Member

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    So if it's backed by nothing then it's obviously worth nothing?
     
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  17. lancis

    lancis Elite Member

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    In my world the original of Mona Lisa worth nothing as well. I mean if the entire planet consisted of people like me, people who are unable to appreciate the value of art, Mona Lisa would be smiling at the rotten tomato in my garbage bin.

    But for some reason its worth over $700M, while being backed only by people beliefs.
     
  18. Banaphone

    Banaphone Newbie

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    E.g: Norway has sold away all their gold reserves (which backs up the Norwegian currency). It is still worth something based on 3 factors:

    1: It's trade-able
    2: There's a supply and demand for the currency
    3: The coin or note itself

    However, notes and coins are only representatives for the value. As serve Bitcoin the same feature for you and me. What we in principle do when trading is offering either working for a third party (employer) to get paid so that you can trade your amount of work into a new car, house or other investments. By leveraging on your employee skills you are able to covert it into a more liquid asset - money/currency
     
  19. r4ys--

    r4ys-- Junior Member

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    welcome the the third generation currency where you cant even hold your "money" and it's value is only what people believe it is.

    imo bitcoin is suitable for the leet. mass population is so not ready with it.
    the original idea to have fix amount of bitcoin in the market is somehow make the demand unnecessary high atm
    and the fact that anyone can have their own bitcoin mines potentianally makes the currency inflateable beyond control
     
  20. r4ys--

    r4ys-- Junior Member

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    Essentially in Norway case, all their gold reserve is used for collateral on the legal tender (notes and coins) and in return get a promissory note (that have "drop in actual value" over time).
    Instead of holding something that have actual value, some smart politician rather have legal tender.
    Smart move?