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In other words... having people use ripple would help bitcoin because it would alleviate the blockchain... it would make transactions faster.... and consequently it might also reduce the fees for micropayments even further... but most of all it would increase liquidity allowing those who want bitcoin to acquire them.
But how does bitcoin help ripple? Here are just some speculations coming from my limited understanding:
Ripple might make it easy to transfer between currencies that it will allow people more of a choice of what they want to hold. And if they could hold bitcoins as easily as they could hold dollars why would they choose the inflating currency?
If they can choose bitcoins a reason besides inflation might be that governments and banks can't confiscate bitcoins.
And finally bitcoins might make it easier to acquire ripples? I'm not sure if you can buy ripples with a credit card but surely you can buy them with bit coins so this might be a way ripple utilizes bitcoin?
what are your thoughts?
finally ........ doesn't ripple run into a HUGE problem with the new FINCEN rules?
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is not very well thought out IMO.
Bitcoin is a voluntary currency. Therefore it's completely open to the free market. Even if bitcoin succeeds there will still be a free market. And if people still need or want to take loans then they will use a currency that offers them the best deal. If it's not bitcoin then they will simply get loans in a currency that isn't bitcoin. There could be a new cryptocurrency created for the explicit purpose of being one where loans are given in it and it could become easily interchangeable with bitcoins through exchanges and then you could have the whole loaning aspect of our financial system which people seem to think is a great idea. No one is going to want to store their wealth in that currency though because defaulted loans would devalue your wealth unless they were somehow paid for by the interest rates from other debtors.
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basically one of two groups of people is attacking gox with huge amounts of DDOS. It's either someone trying to kill the price to buy back cheap or it's the government. Did you know the US has a branch in the pentagon just for economic warfare? Maybe their plan is just to play a little bitcoin war. Who knows.
It's unfortunate because increased attacks come at one of the worst times... right when bitcoin is first getting spotlight. The amount of increased popularity from genuine people alone would probably give most sites scalability problems. But combine that with attacks and it is devastating.
Did you know mt. gox originally meant magic the gathering online? It was meant as a place for trading cards. The software has been described as poorly written. They simply are fundamentally a bit handicapped in their design (and that's why they have publicly stated they are rewriting their trading engine to decouple it from their site)
Anyways the price is currently 90. The servers just came back up. This could be a great time to buy back in... or the warfare could just continue until the price is... who knows.
Bitcoin itself is as strong as ever. Decentralization is strong. Centralization is weak. right now we are seeing the effects of what happens when bitcoin is attacked at it's weakest link (exchanges).
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Say you have a hedge fund with 400 million available to invest in bitcoin. How should they go about doing this? Let's look at the wrong way: buying 400 million worth of bitcoins either all at once or spread throughout time. Not a good idea Lets look at the right way : Spend somewhere in the vacinity of 10-25% of your available funds on actual bitcoins spread out in time. So in this case that would be 40-100 million tops. The rest of the funds you would INVEST into stability. You would use that money to create a massive bid wall at the price you entered the market. a 300 million dollar bidwall at the price you enter the market will pretty much provide some stability (in crashing). The idea is that the amount you invest of 10-25% would do so well in increasing in value that you don't need to invest everything. You win if the price goes up. And if the price tries to go down and your wall starts to get eaten... then you can use those bitcoins that were purchased to start creating stability on the inevitable price rise as well. http://www.reddit.com/r/Bitcoin/comments/1c4fxm/how_a_large_hedge_fund_should_invest_in_bitcoin/ |
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Here is what I mean.... currently you have to transfer money to an exchange before it can be used to purchase bitcoins. I think this involves sending it to a bank that is directly connected to the exchange.
But what if an exchange has proxy businesses spread out in a country? For instance what if an exchange had a proxy in 7-11's throughout the US that allowed someone to come in, deposit cash to the proxy business and that cash would be available to be spent on the actual exchange immediately without needing it to be sent anywhere?
or am I misunderstanding things completely.... is this the issue that ripple will actually solve? Instead of needing to send your money/cash to an exchange you will be able to just send it to a proxy company and it will be immediately availalbe to buy bitcoins because ripple will use the web of trust so it doesn't actually need to be sent anywhere first?
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Here is what I mean.... when you use an ATM will it be connected through internet to an exchange that will allow you to buy bitcoins at whatever the current price is? Or will they simply be "stocked" with bitcoins and the stocker of the bitcoins absorbs the risk for selling them through the ATM?
if it is done wirelessly, in that way won't an ATM basically be a "node" of sorts for an exchange where their balance of money in dollars would now essentially be stored remotely at ATM's as well as however they centrally store it now?
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the idea is this: what if there is a crowdfunding site like kickstarter for bitcoins.. where people pledge some small amount to projects. When they pledge an amount they are given (if the project begins) colored coins in exchange for their donation. Later on if the project is succesful the creators of the project can use some of the profit to buy back the colored coins at whatever amount. Just like the funding is voluntary the buying back can be done voluntarily. But the idea is the more that "funders" are refunded... the more they can fund new things and it would lead to a chain reaction of funding if they picked successful projects.
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the annual rate of deflation?
I guess I should clarify: In relation to the dollar. Obviously the dollar inflates at least 3 % or something per year. So that means bitcoin would appear to at least deflate 3% per year (not including growth) right?
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just wondering if a project is successful with bitcoin it would be easy to reimburse people. Just send funds back to the public addresses that sent them.
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so for transactions of small value... when will there be a microprocessor that takes them totally off the block chain? users might put a small amount of coin there and from it they can spend to multiple places around the net with instant confirms and maybe less fees?
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Okay let me clarify. There are some taxes that will be easily avoided with bitcoins... and some that won't. This is good. It means bitcoin can cooperate with the government.
First lets give an example of what taxes you can mostly avoid with bitcoins: Death tax might be easier since you can just send unknown funds to relatives. Inflation tax. Right now a lot of money is printed to finance the government. With bitcoins this inflation tax is somewhat mitigated(your salary is still affected and such)
But here is where things won't change. Already it's up to companies to collect taxes. Just because cash is "anonymous" doesn't somehow mean when you walk into a store and pay with cash they won't charge you taxes on that. They would get caught easily. So in the future if bitcoins are accepted at companies they will charge tax just like dollars. Currently online transactions require the individual to report the tax purchases... so this doesn't change anything. If they someday require companies to collect taxes from people and try to kill internet trade.... well then you will be paying taxes with bitcoins too. If a company decides to pay you a salary then they will also report it and comply with laws because they will get caught if they don't.
In fact bitcoin might even make it easier for the government to do certain things. Imagine if they said to a company to use a certain public bitcoin address for their revenue? It would be completely transparent. They could watch transaction and verify and audit everything so easily it's not even funny.
Property taxes are another example of one you aren't going to avoid with bitcoin. They will still be there.
So thoughts?
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What happens when person A wants bitcoins and buys them from person B with dollars? The dollars transfer to person B. They don't disappear. There is no decrease or increase in the amount of dollars in the economy. They simply change hands. You can't possibly know if person A wants bitcoins so they can spend them or save them. And you can't possibly know if person B is selling his bitcoins to use that money for saving such as buying gold.. or if they want to spend them. But if someone spends bitcoins and consumes goods and services from the economy then the supply of goods and services is slightly reduced meaning the same amount of dollars are chasing less goods and services.
Of course you may be wondering.... if economists claim that deflation is bad for the economy then how is this possible? Essentially economists are automatically wrong because they don't comprehend reality. In reality... there isn't just a deflationary currency (bitcoin). There are dollars and now there are dollars and bitcoins. So how bitcoins will impact the economy (even though bitcoins themselves are deflationary) will most likely be to contribute some small amount of inflation. Will the dollar die and the bitcoin replace it? No because we are forced to use dollars. Government is force. Laws are force. You are forced to accept dollars so by definition as long as there is government there are dollars.
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I haven't heard any news or updates......
any alpha members in here? is this transition going to be like butterfly labs release of their asics?
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I saw this question on reddit the other day and was wondering....
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I printed out 2 paper backups. Should I put ALL my coins that I am saving on this with essentially 3 backups?
Should I do more backups? Is it possible to backup to a usb stick as well?
(when I rescue a wallet and it has all that data... is the passphrase involved at all? is the passphrase somehow stored in the data as well? What if the passphrase is lost? Just curious.
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http://www.facebook.com/MtGox/posts/453409538076792parts that concern me: What can be done? Believe it or not, there is pretty much nothing that can be done. Large companies are frequently victims of these kinds of attacks. Even though we are using one of the best companies to help us fight against these DDoS attacks, we are still being affected. but then they go on to say this: There are a few things that we can implement to help fight the attacks, such as disconnecting the trade engine backend from the Internet. By separating the data center from the Mt.Gox website, we will continue to be able to trade. also this: We are working on it by creating a new trade engine that will solve many problems, but it’s not a magic bullet
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okay it's kind of silly but the idea is this:
How "don't put all your eggs into one basket applies to bitcoin"
answer = divide your hoard up into different wallets
>: D
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