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It was never going to be a smooth ride.
For it to be steadily rising price or stable you would have to somehow match the increase in supply, currently fixed at BTC 7200 per day, with an unpredictable amount of demand for new BTC.
Currently inflation is at the 7,200/6.086e06 per day, i.e. 43.8% annualised rate. Wrap your head around that, monetary issuance is expanding at 43.8% annualised and the value is still rising ...
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There is also the U$1 quadrillion in notional assets up on derivative mountain awaiting the BTC bonfire.
In the end, it is about the shifting of power. People with U$D billions and those who own the printing presses don't use it just to buy nice toys with (although they do some of that), they use it so that things are done the way they want them done.
"He who holds the gold makes the rules."
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It is an interesting academic exercise. Say you linked the price of bitcoin to the price of 1 kWh, 1:1, as traded on several exchanges (for redundancy) how would you do that in the code?
You would have to increase or decrease the rate of issuance from the miners to compensate for the fluctuations in the exchange rate differentials between energy and bitcoin. The problem with this is that the strength of the network, it's measure of security, is driven by the network difficulty. And the network difficulty is what sets the rate at which transactions are encoded into blocks, presently around 10 mins per block. If you changed the incentive for miners to solve blocks, by varying the reward per block to keep up with some external pricing factor (fixed exchange to energy), then you are changing the incentive structure set-up that ensures network security and network difficulty and therefore security would become unstable. There may be some clever way to stabilise a p2p network crypto-currency having its value fixed to physical assets, but I do not see it right now.
After the bitcoin network matures (at much higher prices), then the bitcoin will be backed by the energy represented by the power that went into mining the bitcoins plus some premiums dependent upon network security and perception of its 'goodness' to act as money. During this initial growth phase it will be very hard to price other things in bitcoins because the price will be so volatile as it becomes monetised.
If/when bitcoin becomes widespread so that is fully monetised, and there are competing crypto-currencies, then the price will be exceedingly stable compared with other assets with perhaps some slight deflation dependent upon the economic conditions of the times.
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First they came for the on-line poker, then the WoW gold, then the bitcoins? http://www.blacklistednews.com/FBI_raids_wrong_home,_searching_for_WoW_gold/13733/0/38/38/Y/M.htmlRecords that have been made public at this stage show that the agents executed a search warrant at 8:45am March 30th, seizing laptops, hard drives, gaming consoles, credit cards, a mobile phone, paperwork and other computer equipment. For a student, we imagine this is quite a frustrating experience. According to the FBI, “at least one person” at the address is believed to be engaged in a scheme using fraudulent bank accounts to buy and sell in-game gold. The investigators were looking for any records of online transactions relating to World of Warcraft, Blizzard, a Chinese-based gold-farming website, and a number of online banking websites and auction houses. The apartment, home to two male students at the University of Michigan, believe the FBI have the wrong people as neither of them play WoW. “They thought we were involved in some kind of fraud. I’m pretty sure they have the wrong people, but they took all my stuff.” Both men – who cannot be named as they have not actually been charged with a crime – are exploring their legal options with student services. more .... http://www.annarbor.com/news/crime/fbi-agents-search-university-towers-apartment-during-probe-involving-world-of-warcraft-gamers/No arrests have been made, FBI Special Agent Sandra Berchtold, a bureau spokeswoman in Detroit, said Wednesday. Berchtold said she could not comment further on the March 30 raid because many documents in the case remain sealed. |
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pay 0.01 btc to get on the whitelist.
+1 (0.01 * 100) I'll pay 1.00 btc provided I get my 1.00 back after I don't hit the servers 10,000 times in 24 hrs. Not a bad idea. Put up a bond to be a trusted IP. |
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We clearly already have govt. employed cowards posting amongst us. Why don't they just come out and say that they are paid for by us to post in on-line forums? Yeah, I wonder why not.
Statist cowards protecting us from ourselves because we are too stupid to see the benevolence of their bankster masters.
Tellingly they have showed up at the same time as PayPal crapped its panties and Mt. Gox was DDOS.
I predict their next trick will be to start posting abusive and/or inflammatory material at an ever increasing rate to make the whole forum look like a an obscene war zone to scare off legitimate noobs and mainstream adopters ... seen it all before on the gold/silver forums about 4-5 years back. They are above nothing and they passed all the laws they need to do this under guise of anti-terrorism,
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It's just ridiculous to think of the big brave govt. thugs showing up with the machinery of the state, paid for by the tax-payers, raiding the homes of gamers living in their mom's basement, to cart away their "illegal video game rigs". Who would even think to ask such a question, govt. paid foil, statist troll, failed bankster .... I wonder?
But there you go anything is possible in a crypto-facist state, I suppose. Banning on-line video games for trading tokens.
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The asking of the question is more instructive of the wider society's statist mindest surrounding financial affairs that the banksters have brain-washed everybody into. It is a ridiculous question asked by slaves to the current facist financial-political structure.
Isn't it an oxymoron to call the current financial-political structure fascist and yet state it is ridiculous question to ask whether bitcoin might be made illegal? No, because the the slaves think they live in a free system, so why would they ask a question like this? (I should have called it a crypto-facist financial-political, I suppose.) |
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Troll. (as I suspected from the first)
Someone should close this thread down, post haste.
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p.s. Those of you who are filling up the thread with your personal hobby horses aren't being very helpful. These forums are getting too swamped for every thread to get hijacked like this--try to take a little time and think through a careful response to the OP. Pretty hypocritical don't you think, seeing as your post is the longest with perhaps the largest baggage agenda (statist bitcoin adoption) of anyone who has posted on the thread? Mirror, you, look. It is just another example of a noob asking a provocative question, why would he assume it will be made illegal? It is like someone just invented a new browser (al gore) and the first question the noob asks is "what if they made that illegal? The asking of the question is more instructive of the wider society's statist mindest surrounding financial affairs that the banksters have brain-washed everybody into. It is a ridiculous question asked by slaves to the current facist financial-political structure. |
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I think we should start a book on the date for when PayPal officially folds, Chap. 7 or 11. ... they have made so many backward looking moves for a supposed "tech. company" I just can't see them being around that long, at least in the money business. Maybe they are already technically insolvent and that is why they are so govt, risk averse? Doesn't speak of a strong corporation.
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No, bitcoin is the currency of denomination, disclaimers are not expected or necessary as far as I'm aware. Shareholdings are considered differently. Disclaimer: I own Bitcoins. (In fact i might put this in my signature.  ) |
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The major potential I see for Bitcoin are not so much large retailers but small entrepreneurs, freelancers, and the grey market, especially in developing countries where a lot of trade happens off the radar anyhow. Even in richer countries like Italy there is a huge underground economy that the government struggles to tax or regulate.
It is going to be almost impossible to enforce a Bitcoin ban in this sector. That would be even harder than trying to enforce a ban on cash!
Many of the slums in the world's megacities are a cash-only economy, because a lot of slum dwellers don't even have documents, let alone a bank account. This isn't a small economy though. In 3-5 years time every favelado in Rio is going to own a smartphone. Imagine what an improvement Bitcoin would offer for them compared to cash. When the Brazilian government struggles to keep the armed gangs under control, do you really think that enforcing a Bitcoin ban is going to be high on its list of priorities? They've got other things to worry about!
True, but imagine holding onto a currency that you can't spend in your own country. Seems kind of pointless, doesn't it? You haven't exactly spelt how they would physically stop someone spending it "in their own country". They can ban it, like all you statists are drooling about, but what would that mean if everyone ignored it because they know it is uneforceable ... laws like that delegitimizes their authority, and anarchy follows after that. |
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The govt. would not ban bitcoin commerce without a very good pretext in place first. Govt.s acting arbitrarily against seemingly peaceful activities can get voted out in an awful hurry ... they need a good reason to ban it or else they just look like petty tyrants ... perception is everything.
If/wehn they do ban all trades in bitcoin then another better block chain will have already started, call it bytecoin ... will they ban that too? What will they legally allow and not allow, some things like IPv4 address trading may get caught up in the ban if the wording is not perfect.
It is a legal minefield and would drag govt.s into courts for years trying to figure of out fine distinctions in crypto-technology that politicians have no clue about.
In the mean time crypto has figured a work around whatever is the rule-of-the-day coming form the central-planners of crap fiat money and the game goes on.
They will exhaust themselves chopping heads off the hydra ... good luck to them, it is the greatest trojan attack ever. If they engage they are fucked, if the adopt it they are fucked because the hard monetary standard will only support the most minimal of state structures.
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What OCN has "Upper management"? ... they are hardly big enough to have any management, what pompous, self-important know-nothings.
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Actually no. Gold has utility in large transactions involving land, property and loan backings.
BTC should be good for real estate and may well get a start there. Would be interesting to see the legal contract drawn up for the sale agreement though.
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You really need to contact Justmoon. He has said that there is BTC left over from the animated movie bounty that can go towards stuff like this (can't find where anymore, this forum is becoming unworkably large) ... working in with weusecoins.com will make it smoother experience for the newcomers, i.e. direct them there to watch the weusecoins clip on youtube. http://bitcointalk.org/index.php?topic=697.msg79433#msg79433http://www.weusecoins.com/ |
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Resistance if futile.
The banksters have their hands full propping up their collapsing house of cards, bitcoin is off their radar. imagine halfway through next year, they are in the middle of a war, debt bombs going off everywhere, runs on sovereign bonds, banks going bust, riots in the streets and then BITCOIN shows up on their radar looking like the size of the mothership from planet Nemesis ... it'll be the killer-blow, they're fucked.
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Key difference is no sighup. Good pooint, very big difference. |
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