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Downside to the Digital Money Boom

Discussion in 'BlackHat Lounge' started by steelballs, Apr 9, 2013.

  1. steelballs

    steelballs BANNED BANNED

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    Downside to the Digital Money Boom

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    In recent days thread after thread are popping up hyping and bullshitting about Bitcoins and Litecoins et al

    People just be very wary of jumping in on this boom (as it has already being raped round the clock all day everyday for months)

    Remember the golden rule about speculating?

    What Goes Up ? Always Goes Down!

    If anyone wants to get in now be very careful as the major players may go in reverse and start selling short?

    A trusted guru who did a lot of work for me in the late 1990s had this to say?

    ?What?s behind that billion-dollar value? Nothing, except some people would claim a billion dollars? worth of burned electricity,? said Ben Laurie, a software engineer and visiting fellow at Cambridge University.

    http://en.wikipedia.org/wiki/Ben_Laurie
    http://seattletimes.com/html/businesstechnology/2020727526_bitcoinbubblexml.html

    Caveat Emptor ? Buyer Beware!
     
  2. dgruergerugerhiye

    dgruergerugerhiye BANNED BANNED Jr. VIP Premium Member

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    Since 1971, the dollar has been backed by nothing but the faith of the people using it. People are banking from cryptocurrencies right now and there's not a lot anyone can do to stop it.

    btw wtf is up with copy + pasting to replies in bhw? It automatically formats the text and makes things hard to read
     
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    Last edited: Apr 9, 2013
  3. steelballs

    steelballs BANNED BANNED

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    The currency has since climbed further to on Tuesday pass the $200 mark in trading tracked by website Bitcoin Charts.
     
  4. WPRipper

    WPRipper Supreme Member

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    Yeah ur right. I remember when Zynga launched the poker game. 1billion poker chips was like 1.5k ( a lot of smart guys made a lot of cash for almost 2 years ), but now its $100. So yeah ur right.
     
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  5. ReALeST

    ReALeST Power Member

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    Sooner or later the US $ will colapse,followed by other fiat currencies arround the world and the likes of bitcoin and litecoin will replace all of the worlds currencies.Theres all kinds of advantages to using cryptocurrencies from the consumer to ppl selling goods and services.Just as the internet revolutionised things in the 90's...bitcoin will change economics as we know it forever!
     
  6. Pollux0R

    Pollux0R Registered Member

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    If thing's revolutionize to that extent, I can imagine bitcoins creating hundreds if not thousands of new millionaires in the near future.

     
  7. Furious George

    Furious George Supreme Member Premium Member

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    The appealing part of bitcoin is that it's untraceable (with proper tumbling), unregulated, and anonymous.

    Normally, I would agree with you "what goes up...."

    However, bitcoin is not infinite. There will only be so many mined, ever. And that number probably won't be reached. As more and more are mined, it's just supply and demand. + untraceable, unregulated, etc...

    It's genius. I just never thought it would ever get this much attention. But now that it has momentum, I think it's going to skyrocket even further.
     
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  8. DownTheRabbitHole

    DownTheRabbitHole BANNED BANNED

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    [​IMG]
     
  9. VirgilH

    VirgilH Registered Member

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    What I dont understand is how exactly this is supposed to work. I'll openly admit I know jack shit about economics..seriously I paid no attention in school so humor me. How would it become a legitimate currency if everyones just hording it? If it never became widely "used" how is it valuable in the longrun. will people just horde it until it gets to a set price, then sale it, and after it goes down it will start being used by the masses? Is that how it works?
     
  10. ReALeST

    ReALeST Power Member

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    lol u dont have to buddy....what u dont realize is that were in a revolution...just like when ppl switched from batter trade to using money...instead of wasting time speculating b wise and take advantage of this opportunity in transitioning to generate wealth easily and fast...i mean the thing is rising through the roof every minute!!!!Last time i checked it was at 220$ and now its trading with highs of $240!
     
  11. Furious George

    Furious George Supreme Member Premium Member

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    People could horde it, sure. People horde cash...

    I'm not an economist. If people horde it, the prices goes up. I think. It's becoming widely used now.
     
  12. pike222

    pike222 Regular Member

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    I think we can expect this bubble to burst at some point..If there is one thing i have learned in life is when something is hyped and everyone jumps on vagon fall is inevitable...just my 2 cents
     
  13. prab1996

    prab1996 Elite Member

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    i have read same comment when bitcoin was $20

    it is modern currency it will rule the world in 2050

    yes the bubble will bust but there is not one bubble , how hard is to make second bubble ?


     
  14. mrankin

    mrankin Jr. VIP Jr. VIP Premium Member

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    Right now BTC is more of a commodity than a currency - and it's a digital commodity. The price is going up daily due to hype and more people wanting to buy it than there is new BTC being created. To say that is is being used 'widely now' is so far off the mark it's funny. There are a few places that accept BTC for payment, but until there are some merchant services that accept BTC as a payment method, then I can't see it gathering momentum for actual payments. The majority of the currency movement is through exchanges, not through transactions using the currency.

    The value of the BTC right now reflects market sentiment as to what it's worth. This could change at any point, and for any reason. It could keep going up as the number of BTC's mined continually reduces, or it could come crashing back down as a large BTC holder takes their profit and starts a run on selling.

    The problem with BTC is there is nothing backing it, so it's not possible to determine what's it actually worth. With hard currencies, their worth is to a degree linked to that countries GDP, debt etc. With BTC it's all in the mind of the trader.
     
  15. steelballs

    steelballs BANNED BANNED

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    Insanity

    ALL TIME HIGH Voltage
    USD/BTC 255.10 USD / BTC
    bid: 254.00 ask: 255.00

    http://bitcoinity.org/markets
     
  16. warner410

    warner410 Regular Member

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    it would be lucky even if it survives till 2015.

    all fiat currencies are monopolies in their respective economies and that is what keeps them from crashing.

    bitcoin is not a monopoly. there already are other crypto-currencies.

    if people start using crypto-currencies as real currencies, other companies and individuals will jump in and create their own crypto-currencies.

    even governments may create their own crypto-currencies too.

    who knows, someday we will have a google coin and an microsoft coin and a facebook coin and an iranian crypto-coin and a korean crypto-coin?

    the market will be flooded with all sorts of crypto-currencies, many of them backed by large corporates and governments.
     
  17. steelballs

    steelballs BANNED BANNED

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    So a selling run is underway as we forecast...

    Note to most folks on BHW this great forum is all about IM...

    One thing BHW is not is a boiler room crypto-currency exchange...

    Another warning don't let hype and greed let you get sucked into this quasi online ponzi scheme...
     
  18. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    You are wrong. With all money the only thing that backs it is consumer preference. You can't exactly eat gold or burn it to get heat you know. Yet it 's valuable because of consumer preference.
    Also, no country has a hard currency (i.e. commodity based), we are in a fiat currency system (i.e. "we print, you take it")
     
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  19. steelballs

    steelballs BANNED BANNED

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    And at last here comes 'Hollywood' lol

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