Bitcoin Forum

http://www.rabidquill.com/bubbles-and-bitcoin/

What about all those advocating altcoins that do exactly the same thing... Then price does matter. One could be cheaper and less volatile. Less prone to any pullback.


In fact due to the price rise in bitcoin, are people producing too much of these other coins? The problem is that it is not just bitcoin, it's the whole crypto industry. You could argue central bank policies are allowing others to create more altcoins and guess what, the fear of central banking probably is. Furthermore, the altcoins are retaining their value!

Also the Bubble effect is not important if it is something like Enron. Some people argue that bitcoin is Enron, and it will fail due to the flaws...


That's gold, why not gold then??? We need something like e-gold that is hedged to gold, but is also electronic and can't be taken away by the government. When that happens, pop, due to technological change. Remember, the change from walkmans to mp3 players? You can already transact with vaulted gold. "Gold certificates". I'm surprised we aren't using something similar already...

Come on entrepreneurs! Then again e-gold wasn't really that popular in that it didn't go mainstream at all. So, I don't know about whether the arguments the article puts forward are even valid... Are we really interested in the:
If anything, something trusted like you local mint might provide a gold transaction platform in the future. Something like mintchip but with gold. Would you abandon bitcoin then? Most people probably would. Gold is backed by physical vaulted gold. Bitcoin won't be...

Don't discount the prospect of technological change.

Either way, you can't buy drugs with mintchip, not without someone knowing. So, bitcoin still has something going for it.

Bitcoin basically is electronic gold, only better. It's scarce, can't be counterfeited or inflated, it has no weight and can't be confiscated or destroyed by uncle Sam.

Gold rarely goes up 500% in a few weeks for no real reason!

Bitcoin also has a massive global infrastructure in place...the alt coins offer little to anyone except a second chance to get rich.

I know that some of them are pitched as having some "desirable" features, but that is a relative term.
 

Does gold ever go down 50% in a few days?

Well , history has already contradicted this point. Let's wait another year and look back at this.
Maybe there will be another one wrong.

If you are thinking about SR or Gox holding people hostage, that falls under willingly handing your money over to someone else. I'm talking about cracking wallets. From what I understand it is as close to impossible as anything computer related gets.

Peter Schiff had a massive comeback.

http://www.youtube.com/watch?&v=0L7SOPDOvvI

Turns out he believes in digital gold too. He wants it to happen. But bitcoin isn't gold. Digital gold was E-Gold, backed by physical gold.

Digital gold would be a currency that is backed by the commodity that is used in jewelry, medicine, electronics, nanotechnology, space travel, catalytic converters. Like paper money backed by gold.

Looks like all the gold-bugs should be investing in an electronic gold structure. I know I will be looking at coding a prototype in Assembly x86, buying some equipment and working with some chip designers to ensure integrity. I'm thinking of taking the mintchip idea and sponsoring my own prototype and then partnering with a non-profit group.

Either way I have a lot of time on my hands as I am retired. I've seen a lot of things change in this world, and after I leave this planet, more will change. At the moment I'm thinking of using machine learning techniques to do proof of stake, i.e. you will have to physically deposit gold at a place to receive a share which can then go through a bitcoin system. The owners themselves would have no control or ability to manipulate fictional amounts. Although, when E-Gold was around, we didn't see Douglass Jackson just printing money for himself. Either way for confidence there will need to be a system for this. Unless I team up with the Mint, but I'm not sure they will accept the proposal as it would require worldwide acceptance with all the other mints. We would be effectively creating the gold standard again.

No need to mine, with servers located around the world. No transaction fees. The only startup costs would be the chip or software which should realistic only cost $25 like the raspberry pi. Servers will be funded by donations wikipedia style. All transactions will be publicly published unlike E-Gold. If you get scammed, you will be able to identify and sue the party on the other side. It's going to work. Either way, best to have something in the making in case bitcoin fails. Hopefully ASIO won't knock on my door.

I look forward to creating a thread and/or forum to discuss this soon. The one thing I believe mintchip did wrong was not backing it by gold. There were no benefits to using digital cash because we already have digital cash in the form of debit cards. What we don't have is a good trusted low transaction fee digital gold. We have some gold wallets, but their fees are too high. E-Gold was big and had relatively low transaction costs, bullion storage costs were low due to economies of scale. I should know, I used it a lot until it was taken down. If an old grandma like myself can get involved in e-currency, then I'm hoping others with less skill will use proper digital gold.

I also hope to exceed bitcoin's R&D budget due to the lack of need for mining. Lots of money going into bitcoin R&D was actually going into GPUs, FGPAs, and then ASICs. None of it was going into developing the actual coin. The developers aren't even bothering to sell their coins to fund further development. Either way, bitcoin has taught me a lot of why some things fail. Knowing how to fail, let's you know how to succeed.

The problem with backing something with gold is that it can be confiscated. The worse the economy gets, the more draconian the state gets. Doesn't help that homeland defense has bought about 300 bullets for every american. Too big a risk.

Upvoted, great article.  Thanks, OP.

If you ever worry about this, you can encrypt it with more password parts remembered with 2+ people each

I think I'd rather just give it all up than be tortured to death haha.

ROFL

I am so putting this link in my .sig for all the bubbleheads to refer to.

I'm sure that other person will really appreciate your brilliant plan resulting in them being beaten with a wrench as well.

What about dig your paper wallet with most of your BTC pretty well, and place next to your safe box. You can reveal the one in safe box only !

I am quite sure that it has done so often in history.  Sutter's Mill 1849 comes to mind.  When the bitcoin market matures volaility will be similar to other monetary commodities.

Yeah, well, I'd assume it would be like bitcoin now. Not everyone would put all their money into the system backed by "gold". Most would store it physically. You only need around $10,000 to conduct most transactions. This could be lifted for business owners. There would be public service annoucements made on the website and youtube videos to advise people of what the system is actually used for.

Either way, I'm starting today.

True, and those 2+ people could be several police officers in different countries.

A brilliant business opportunity for policeman and military : The bitcoin guardian!  ;D ;D