LOL.  I got to cross post this out of the noob zone.

Nice.  Ok how about can bitcoin break 1 oz of gold in 20 years?

Moral of the story: Don't scam people out of millions of dollars if you value the privacy of your family.  Before it is all said and done a lot more is going to happen then some internet posts.  It is just human nature.  Even if 99% of the victims take it lying down it only takes the 1%.

Still the poutrage is getting kinda old.  You are a SA troll.  Your telling me that has never happened at SA?  Did you going around ranting everytime it happened?  I think not.

By that logic if Pirate ends up in jail doing 10-20 for conspiracy to commit fraud & operating a ponzi scheme you will feel justice is served.  Right?  I mean you can't have your cake and eat it too.  Maybe he can bunk with Madoff and they can trade tips on how to run it better "next time".

Bitcoins have value or do you think the IRS won't want their cut if your bitcoins are worth $50M USD someday?

It can't be both ways.  It can't be "not money" when it comes time for deductions and "oh yeah it has value" when it comes time to pay taxes.

Obviously when you owe $5 mill USD at 3400% the best possible thing to do is wait 2 weeks (extra $1 mil USD owed) and pay everyone at once instead of paying it down from day 1.

(I think Pirate scamming skills have grown weak.  Nothing in his post made any sense whatsoever. Then again his shills and idiot victims bought every dubious half truth or nonsensical response in the past so he likely has grown use to the bar being set low).

-1.  Nobody has gone after anyone.  If Pirate or his family encounters someone looking to "negotiate" I am willing to bet it will be one of suckers he stole $5 mil from not someone looking to do any protection.

Hey can you loan me 1000 BTC?  I'll give you 7% interest per week and you can withdraw on demand.   Let except now you can't withdraw and I will pay you when I choose.   Oops let cancel the interest.  You will get your BTC back in a year or two so it isn't considered a default.  Unless of course you annoy me, ask to often, or insult me then it is more like 3-5 years.   

When can I expect the 1000 BTC?

Pirate defaulted 10 days ago ...

The accounts were demand account meaning they could be drawn on demand.  Last Friday Pirate violated the terms of his own contract.  If that isn't enough he made an explicit promise to bitlane that he would be repaid on Monday a promise he failed to keep.  So Friday or Monday is when the default occurred.  Everything since them has just been the moving of goal posts.

True but you can opt out of it.  Any fractional reserve bitcoin bank will need to compete with "pure" digital wallets.  With current FRN system every dollar is a product of fractional reserve.  If you feel a bank's reserve requirements are inadequate you can take your money out of the bank but your money is still debased anyways.

Why would one need to payout everyone at once (after two weeks where interest has increased the amount owed by ~$1M) in order to stop the bleeding?  We is paying 1% per day on the oustanding balance.  The way to reduce the bleeding is simple ... pay down some/all of the debt.  The quicker and the more he pays the less capitalized interest he accrues.

Hypothetically if Pirate had paid 100K BTC on Friday it would have saved him almost 10K in interest so far.  
Hell Pirate claimed to have 30K in personal (non ponzi) BTC.  Using that to pay down the debt early would have saved him 3K in BTC.

Even weirder is why he thinks that would that piss people off "Oh man I got my money all at once... grr."

I hope he had some really good dreams; it has and continues to cost him ~$2,000 per hour.  

Well that isn't exactly true.   

Person sells x BTC worth of debt.
Person creates uncertainty in the market and buys that debt back for y BTC.
Persons profits (x-y) BTC.

Not saying Pirate is doing that but there it isn't correct to say there is no sense in rebuying your own debt.

There is a reason why a company wouldn't lower the price. 

ASICs have interesting economics.  You have huge upfront cost both in dollars and time.  Once completed your per unit price is very low.   The Jalapeno per unit cost (excluding the NRE) is probably <$60.
The more units they sell they more ways the NRE cost is split.  Splitting a multi-million NRE over 10,000 chips makes all the products more competitive than splitting it over 1,000 chips.  The other thing to consider is that the perceived value of these are probably plummet once released and the hashrate explodes 10x current rate.  So by keeping the price low and securing a large number of preorders they may profit more than having a higher price and then having to sell more units after launch at a lower price.

Well it is different in that he owes ~10% more than he did 10 days ago.  Even if it is is his goal to reduce the value of BTC to repay investors that becomes more difficult as the amount he owes rises.

Well no it is registered before the paper was published.  Have you read the paper?  It is obvious Satoshi didn't write it in a couple hours.  The idea of Bitcoin preexisted the paper which preexisted the first version of the client and the genesis block.

You can do the same thing with dollars and insurance companies routinely employ re-insurance to hedge risk.  The reason why insurance companies are large is:
a) a large number of diverse policies reduces the risk of adverse cashflow.   some require payment, most don't.  you don't need to win all the bets just a large enough % of remain profitable.
b) the margin on the average policy is relatively small.  there are significant fixed costs.  writing 2,000,000 homeowner policies is more profitable than writing 2 because houses are essentially the same and the risks don't vary that much other than by geography.

You keep making these claims.  51% attack doesn't allow you to spend coins which are not yours. So while in theory he could technically repay investors by stealing from them in a 51% attack you couldn't do it with 1 BTC.   He would need 550K BTC today and that number is continually increasing by 4 BTC per minute.

Pirate wins if he repays.  He doesn't need to wait 2 weeks to win the bet.  He wins if he repaid on Friday.  He wins if he repays today.  The sooner he repays he not only still wins but he saves himself half a million in extra interest per week.

I would also point out that was as of the day he shut down.   He owes closed to 550K BTC (and 5.5K BTC per day in interest) today.  In a month he will owe ~723K BTC and daily interest will be more than the number of coins minted each day. 

What are you talking about.  If Pirate pays everyone back he wins the bet.  He could have won the bet already by paying everyone back on Friday.