A central bank is not incidentally called a lender of last resort. I intentionally stressed 'last' here which means there other lenders that a bank can appeal for help to. In case there is a bank-run, the bank can either directly borrow insufficient funds from other banks through interbank market or sell its loans (probably with discount) to anyone willing to buy them (usually other banks or the government) to fill a cash gap (cash deficiency). In either case, there is no money printing...
Also, we can't forbid banks from lending more than they have since they just can't lend more than they actually have. If you think otherwise, I'm all ears!
If there's no money printing, then what's the problem with Bitcoin? They do lend more than they have, under the fractional reserve system, which could be done also using Bitcoin. They just print bank notes or add the new money to accounts. |
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But if you borrow BTC from a bank to make a purchase, the seller will expect to receive the actual BTC, not a BTC bank credit. So the scope for FRB is far more limited.
You won't borrow BTC from a bank, the bank will issue a credit card with which you will pay for your purchases. Whether this bank (or any other bank for that matter) actually has all the BTCs it has credited you with is another question... So, unless there is a Central Bank which has set the economy on a Bitcoin standard (with all ensuing dramatic consequences), banks will still be able to create more money (virtual BTCs) than there are bitcoins out there... If you agree with this, then the fixed supply nature of Bitcoin becomes unnecessary and detrimental here But when a bank becomes insolvent, the extra money created from thin air just disappears. The monetary expansion is just temporal. Under the current system, a central bank can just print that extra fiat money to save the bank, increasing the money supply and reducing the purchasing power of the previous supply. That's not possible with Bitcoin, as they can't be created by central banks. We can't forbid banks from lending more than they don't have, unless the government forbids them to do so. But I wouldn't expect that from governments, as they have historically encouraged banks to increase the money supply, to create temporary prosperity (which increases tax revenue) and lend money to the same government. |
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If the author really thinks that, he should be shorting bitcoins then. I bet he isn't. Writing is less risky.
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Don't invest in scamcoins, you'll get burned.
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It has increased too much lately, that makes many of us reluctant about buying more. Even if it seems like it's a good buy, it makes us feel stupid for not having bought a few months earlier for a much lower price.
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Not only we need more people accepting them as a payment method, but also more ways to invest them. If in the future it becomes easy to invest in something like a stock market, there will be less hoarding, and more capital used to increase productivity.
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I wonder what do you mine to pay so much.
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Dooglus did NOT get arrested.
This is FUD started by the morons over at speedbet.
This outage was caused by me losing my BTC tonight..
My Sadness manifested as a DDoS and knocked the site off line.
Sorry guys. :/
Can't you stop that shit? From your signature I understand that you are an investor, and therefore should want others to play. |
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I also prefer the current method. pros:
* If I know I'm getting 0.1% of every bet, I can more easily offer referral schemes. I can tell people they'll get 0.05% of all volume they refer to me for instance and know that I won't be running at a loss, even if the site has a bad run.
You can also offer that kind of deal now. But instead of giving a fixed 0.05%, you would just give 50% of whatever you win, once per month. In the long run it's the same. |
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Every fiat currency is a scam. Some more than others, but all them are bad as a store of value.
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I'm going to move some bitcoin around to be able to pay for 5 or 6 shares. I would be really interested in getting Worldcoins (next to Litecoins for example). As WDC has (afaik) the most mature plan to get cryptocurrency into POS locations. With Scharmbeck having a Fincen certificated financial service there is a good driving force pushing it  You can just buy whatever coin you want if you think its price will increase, but when mining you should only care about what is currently the most profitable coin to mine. |
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About the scrypt miner:
Will it be used to mine different coins or just LTC? I would expect to mine different coins; the ideal strategy is to stay on top of new coins and convert to btc when their price initially peaks. There are other strategies to mining the most profitable coin, such as middlecoin and the like that we can also explore.
The easiest way would be just using Middlecoin, so you are mining the most profitable coin and don't have to deal with using exchanges to convert altcoins to BTC. That's what I personally use for my mini mining operation  |
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Thanks for clearing things up BTW, if I may make sugestment to your business. Make sure to invest in a good staff for customer support! Security and customer support are (in my opinion) the most important parts of a business. If for example I make a support ticket and wait many hours to days for an response, I will be reluctant to use the service. While when the customer gets a fast and friendly reply within an hour, he will grow trust in your business and will most likely stay with you. Unfortunately customer service is a weak point at many big exchanges, but I think if you make customer support to one of you priority's (after security), I am sure that you will grow to one of the biges exchanges in the market. +1, that's one of the reasons why I don't invest more. |
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So sick. Those customers should be treated very well.
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Yes there will be #4; we're just not sure what exactly we are going to offer. I'm building a test rig with 7 290x's in a 4U case next week....hint
I'll be curious to learn of your progress on that - I'm thinking that you may run into some serious cooling issues cramming that many GPU's into a 4u case running at 100%. Also, possible power issues? Each 290X pulls around 300watts (give or take) on full steam, so you could be over 2kw with just the gpus, not counting mobo, hard drive (if used), cpu. It will all be well documented, we may end up in 2 cases if that's what it takes. I have enough GPU experience that I know I can get *something* working, so we are starting with a prototype before committing to doing 40+ GPU cabs. Group #4 will own the prototype rig. How much do you pay per kw/h? And where do you plan to mine, on Middlecoin ( http://www.middlecoin.com/, so they switch between coins and sell them for you)? |
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I think it's fine where it is, but increasing the max bet will make investors more money in the long run
Please don't do this. Variance will burn us investors big time. The edge is already very low. The more small bets there are, the closer it gets to the ideal of 'you give us your money, we give you 99% back, you give it to us again we give 99% of THAT back, and every 72 turns we have half your money'. Larger bets means someone can make a score at our expense with a few large bets and some discipline. Players will play however they want, not as you want. Of course it's better for the house if variance is low. I wish we had more high rollers, as they lose more money in average, even if variance is high. If you don't and are and investor, you should at least partially divest. |
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I know its early days but considering the majority of this GB consists of members buying under 10 shares have we thought about options after the 120 days has elapsed in terms of the hardware?
What about grouping together members so 3-4 take "ownership" of an S1 and can then sell it (assuming difficulty etc has skyrocketed) and then distribute among the smaller group - not saying this is the answer but curious what everyone else thinks
I thought that MWNinja would sell them himself if they are no longer profitable. |
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+1 for a Scrypt groupbuy that kill be awesome
+1, I'd also join if the price is good enough. |
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