Good times still ahead. I just put this in the main discussion forum... Bitcoin posts record annual gain: 5,317% in 2013Bitcoin has posted a record annual gain, measured in USD. At the start of Jan 1st, 2013, Mt Gox had a bid/ask of 13.45-55, or mid-price of $13.50At the close of Dec 31st Bitstamp and BTC-E have 730.4-732 & 730-733, or mid-price of $731.35(Mt Gox is not comparable because its US$ withdrawals do not take < 1 week, hence its bitcoin price is biased upwards). Trace Mayer's statistics for previous years, now with 2013 completed: 2009 4,867% (uncertain price discovery period) 2010 387%
2011 1,320%
2012 170%
2013 5,317%One observation is that, so far, odd-numbered years exhibit high-growth, while even-numbered years are consolidation/growth periods. Even 170% gains in 2014 will be stellar. Happy New Year to all Bitcoin holders! |
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Indeed. We can still consider the general macro-evidence...
Japan: deflation = stable living standards, wealth preservation.
Venezuela, Argentina: inflation = decreasing living standards, destruction of wealth.
Zimbabwe: hyperinflation = destruction of living standards, endemic subsistence poverty.
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Bitcoin has posted a record annual gain, measured in USD. At the start of Jan 1st, 2013, Mt Gox had a bid/ask of 13.45-55, or mid-price of $13.50At the close of Dec 31st Bitstamp and BTC-E have 730.4-732 & 730-733, or mid-price of $731.35(Mt Gox is not comparable because its US$ withdrawals do not take < 1 week, hence its bitcoin price is biased upwards). Trace Mayer's statistics for previous years, now with 2013 completed: 2009 4,867% (uncertain price discovery period) 2010 387%
2011 1,320%
2012 170%
2013 5,317%One observation is that, so far, odd-numbered years exhibit high-growth, while even-numbered years are consolidation/growth periods. Even 170% gains in 2014 will be stellar. Happy New Year to all Bitcoin holders! |
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Are there more robocoin ATMs installed in Canada other than the one at Vancouver?
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Regarding US capital gains changes, I doubt many hodlers are looking to trade in dramatic fashion tomorrow to avoid the 2014 hike, but I'm not Nostradamus.
edit: spelling error - holders to hodlers
I am under the impression that day tarders cannot possibly reduce taxes anyway by opening a new position and/or transferring coins offline. Is this correct? The US capital gains changes took effect Jan 1st 2013, so it is 2014 which is the first return year. If CGT is to be saved then bitcoins would have to have been sold in 2012. |
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Surely the BF could have some general rules of conduct and status which means that anyone publicly under investigation by a government agency should temporarily suspend their active membership and executive position (if applicable).
Once such investigations are closed, then they can resume their BF status - assuming no conviction resulted.
This is common in professional bodies, and the BF wants to present a professional front.
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monetary economics is the only sphere of human activity immune to technological improvement.
That's a bold statement. Never really thought about it that way, but I'm not so sure I agree.. Where is it coming from? Could you explain it? I would, intuitively and with not enough knowledge, say that technological improvement should somehow positively affect monetary economics. Why not? Ah. You misread my post. I am summarizing Krugman's latest view - and disagree with it. |
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“…Products can be specified for which the token cannot be used to purchase. For example, a limitation upon the use of the token can specify that the token cannot be used for the purchase of alcohol or cigarettes.
Oooh Goody! Censorship built into money, there really are some Einstein-geniuses out there. The world is going to embrace CensoredCoin like sliced bread. (Not!) FFS. This is the mainstream answer to Bitcoin? |
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Krugman "they're confusing technology with monetary economics"FFS. He digs a deeper hole! Unlike transportation, medicine, film, music, agriculture, electronics, media, etc, etc, monetary economics is the only sphere of human activity immune to technological improvement. Krugman is flapping like a fish in the mud with the tide out. |
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Hmm. Rally in all markets just started...
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It'll be interesting to see how much pure hype can propel a fad.
It'll be interesting to see what happens when one of these altcoins collapses utterly and what kind of domino effect it will have and how far up the chain it will go. This has already happened. Chinacoin was launched 6 months ago, difficulty soared, people sold out, lost interest, Cryptsy delisted it. Now it is back again and Cryptsy has relisted it. I think the alt-coins are here to stay, but whether any finally get widespread merchant acceptance is the big question. |
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Anyone concerned about the growth of silent pools (Ghash.io, discus fish etc) should support this initiative.
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Paul Krugman has been a strong supporter of foreign exchange controls http://www.cato.org/publications/commentary/siren-song-exchange-controls so it is hardly surprising that he would consider Bitcoin evil. Convertible fiat currencies such as the USD, EUR etc have nothing to fear from Bitcoin, but non convertible fiat currencies such as the INR, VEF or ARS have everything to fear from Bitcoin. A convertible hard virtual currency that can be instantly sent across international borders, without the intervention of a bank, is the death knell of any foreign exchange control regime. This is why Bitcoin has so much potential already: it eliminates capital controls. This is a "killer app" for it. Even the EUR is afflicted as capital controls exist in Cyprus. |
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Bitcoin isn't deflationary by any fundamental feature for at least 100 years; and it's current price growth is limited to it's potential market size, which cannot exceed the whole of the Earth. At some point it must reach maturity, and once it does it's year on year price variance shouldn't exceed +-2%.
As I am catching up. I come to another question. If currency amount is stable, then inflation and deflation (in currency value) will mainly be function of growth of total economy, no? As economy grows, more goods chase less money, so money goes up in value. If true, does this not mean that if there is too much deflation, it is because economy is growing fast, and if deflation makes businesses fail and jobs go away, then economy will slow down, and so will deflation? With a stable monetary base GDP growth causes deflation in prices and wages (although I suspect that in 50 to 100 years technology will have eliminated most jobs). I think this will cause a balanced economy which functions far smoother than the world economy we see today with massive systemic dislocations. Another point is that although bitcoins are finite, cryptocurrency is infinite. So, market forces would compel litecoin and others to fill the gap in the monetary base if bitcoin is insufficient and the deflationary pressures really are as doom and gloom as some predict. |
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It is not the basic consumer that anyone has to worry about, it is the investor and job creator that one has to worry about stopping cash flow through the economy, causing job losses which then do cause less consumer spending, and spiraling downward economic output. Deflation vs. inflation will hardly affect those who spend the vast majority of their income, assuming wages and prices are reflected similarly. Basic arguments about consumption totally ignore the greater systemic risk posed by deflation.
This is a fallacy. People will always buy what they need, which puts a floor under any deflationary spiral. In the current system people are encouraged to consume for the sake of consumption, buying what they don't need, and worse, borrowing to do it. With a sound monetary system borrowing would be done for purposes of new and increased production - driven by legitimate market forces (not excessive FRB and CB-spiked money creation). Further. Bitcoin is not even a deflationary currency. It just inflates at a smaller and smaller rate. The inflation rate in Bitcoin right now is about 11%, which is larger than any real GDP growth! Eventually it will be less than real GDP growth, but even then, lower prices and wages will not reduce living standards. |
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The first CB sponsored cryptocurrency will be 51% attacked to death in its first few weeks.
This will be a huge embarrassment, and will also reinforce how strong the Bitcoin network is.
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.....
Don't take this lightly. The virus has already infected 250k systems. It is causing massive negative publicity to Bitcoin.
It is? You cannot blame a currency when criminals use it, just as you can't blame a telecoms company when blackmailers issue extortions by phone, you can't blame the postal service when someone sends ricin in letters. Cars can't be blamed for road deaths. People have known for years that they need good antivirus, antitrojan software. If people aren't using one of Norton, F-secure, Kaspersky, McAfee etc then the user is to blame as much as anything else. I hope the CL group gets closed down by police action. In the meantime Bitcoin is proving that it is a superior currency than fiat for transfers and privacy. This is significant. |
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Another clueless "professor" who understands little about currency and far less about payment systems. No wonder governments are bankrupt when they pay salaries and pensions to such total airheads.
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