Bitcoin may be a good investment, but are they a good investment in freedom Bill Still (wikipedia ) Bitcoin (sign: BTC) is a decentralized digital currency based on an open-source, peer-to-peer internet protocol. It was introduced by a pseudonymous developer named Satoshi Nakamoto in 2009. Internationally, bitcoins can be exchanged by personal computer directly through a wallet file or a website without an intermediate financial institution. In trade, one bitcoin is subdivided into 100 million smaller units called satoshis, defined by eight decimal places. Bitcoin does not operate like typical currencies: it has no central bank and it solely relies on an internet-based peer-to-peer network. The money supply is automated, limited, divided and scheduled, and given to servers or "bitcoin miners" that verify bitcoin transactions and add them to a decentralized and archived transaction log every 10 minutes. The log is authenticated by ECDSA digital signatures and verified by the intense process of bruteforcing SHA256 hash functions of varying difficulty by competing "bitcoin miners." Transaction fees may apply to new transactions depending on the strain put on the network's resources. Each 10-minute portion or "block" of the transaction log has an assigned money supply. The amount per block depends on how long the network has been running. Currently, 25 bitcoins are generated with every 10-minute block. This will be halved to 12.5 BTC during the year 2017 and halved continuously every 4 years after until a hard limit of 21 million bitcoins is reached during the year 2140. Bitcoin is the most widely used alternative currency. As of March 2013, the monetary base of bitcoin is valued at over $800 million USD. The large fluctuation in the dollar value of a bitcoin has evoked criticism of bitcoin's economic suitability as a currency
i'm quite sure you haven't thought this through carefully nor taken the time to study the Bitcoin Protocol.
ReplyDeletefirst of all, this isn't a money for the wealthy elite. most of the early adopters were young computer geeks, many of whom do not have alot of money. they view it as their opportunity to gain monetary freedom and i agree. why wouldn't anyone who understands the fiat currency system for what it is agree?
secondly, you claim ppl will hunker down with their Bitcoin and gold causing Fin Armageddon. have you bothered to look at the thriving economy which is exploding around Bitcoin. Wordpress, Reddit, Megaupload and hundreds of other businesses have cropped up around the system b/c they see it as just; not a money grubbing money making opportunity. just read the Wordpress press release and you will understand why. they're enabling bloggers, like you by the way, to pay for and publish freedom minded ideas w/o censorship from the likes of Paypal or cc companies.
i personally run a thriving Bitcoin business. can you say the same thing about gold? no, i'll grant you that. the seamless, liquidity capabilities are helping to drive Bitcoin adoptance worldwide as i can pay an 18 yo programmer in the Ukraine to help me with my website for a transaction fee of less than a penny. try that with any other payment system.
and so what about the price fluctuation? wouldn't you expect that from a fledgling new currency?
somehow you view a transnational currency as something bad. what you're doing is drawing a parallel btwn your fear based pre-conceived bias against a New World currency like the SDR or Amero and leveling that against Bitcoin for no good reason. you certainly haven't explained why.
ReplyDeleteagain, i see the transnational basis of Bitcoin as a huge advantage. especially as it pertains to securing the Bitcoin Network. if the US gov't decided to shut down the internet in the US to try and destroy Bitcoin, it wouldn't work precisely b/c of this transnational nature. Bitcoin would just route around the US and continue working worldwide. this is actually quite an important concept as much of the world's miseries are caused by USD hegemony. you of all ppl should understand this. the USD is the world's reserve currency and is controlled by 0.02% of the population (the Fed and banksters). they print money for their own advantage which causes all sorts of distortions for the rest of us.
now we have a new, revolutionary tool, Bitcoin, which can allow us to function as a true democracy where the consensus/majority can rule. you need to do some studying.