Why a volatile & decentralized currency will not be successful (I am not bashing

[bitcoinlitcoinbtcltc]

The following news item  was posted on Forex News:

Bitcoin prices at troubled exchange MtGox spiked over 150% to reach a high of $290 today. The basis for the rally was a rumor posted on Reddit that the company has started processing bitcoin withdrawals again. User that goes by the nickname ‘’bcn00b’’ posted his analysis of some blockchain transactions that may indicate that the exchange is in the process of testing bitcoin withdrawals. While most agreed with the assessment that there is movement of bitcoins out of MtGox, some speculated that the reason for this may be ‘’insider selling’’ before the announcement of more bad news. The general consensus, as indicated by the market, is that this is good news for the firm and may lead to the eventual restart of btc withdrawals.

After the rally to $290, prices on MtGox fell to a low of $180. One bitcoin is currently trading at $195.3 on the exchange. The news propelled btc prices higher on all exchanges. On BTC-E, prices rallied from $545 to $574. One bitcoin is currently quoted at $594 on BitStamp. Prices also spiked higher on BitcoinBuilder. This is an exchange that was specifically setup to connect buyers and sellers of MtGox BTC. A GOXBTC refers to a bitcoin that is stuck inside MtGox. The cost to purchase one GOXBTC went up from 0.350 to a high of 0.640 BTC in the few hours after the news. Buying one GOXBTC will currently set you back 0.537 BTC on BitcoinBuilder. The chart below shows how price moved in the last 12 hours. You can find the most recent chart for the BTC/GOXBTC pair here.

I would like to begin with pointing out that the Reddit post was just a rumor, and nothing else. There is no proof in the post, despite referring to several links/images that are supposed to be 'proof'. If MtGox reinstated withdrawals, only the following would qualify as sufficient proof:
A video in which an MtGox customer successfully withdraws bitcoins, with time & date stated. From beginning to end.
An official announcement by MtGox.

None of the above happened. Despite this, people got excited and invested new money in bitcoins and other cryptocurrencies. Not only did they do that, they also made new deposits into their MtGox account. This means that MtGox received more money, money those people might never get back.

The manipulative rumor which was posted earlier today, has probably resulted in more people losing more money. I don't like conspiracy theories, but we can not exclude the measures MtGox is willing to take to squeeze more money out of its current customers, and people who are influenced by greed and false rumors.

This is one of the main reasons for bitcoin's volatility. Bitcoin's volatility is a major issue which will not only scare away your average Joe, but also investors. And if both 'normal' citizens and rich investors are scared away, than there is little hope for the currency's development and adaption in the long run.

A lot of people are in it to make a quick buck, which is understandable. Our society is based on capitalism, but we are also used to some kind of control. I understand that the main idea behind bitcoin & other cryptocurrencies is decentralization and more financial independence. But most of you forget what centralization really means. It's not only about the dollar. Centralization is about a lot more. It is about security. Without a centralized state, or banks, there would be little control. Little control results in chaos. I could start referring to the Wild West and alike, but the point is; I don't have to do that. I could refer to MtGox and that would prove my point. It was not centralized and it was not backed by anything. The people who have their assets in this troubled exchange, don't have any guarantee at all. Nobody will protect them, and there is nobody to sue in case the exchange goes bankrupt (if it hasn't already). Why you ask? Because it was not backed by anything, and the commodity traded is not recognized/regulated. Governments and banks have even warned you for using the currency, but you didn't listen and went on with it. That's a risk you take, and the moment you took that risk, you accepted all the possible consequences. Unfortunately, those 'possible consequences' are about to become a reality.

A certain degree of centralization is needed. Only then, bitcoin will be developed further and adapted by investors and government institutions. Nobody likes to take risks, but at the moment, bitcoin is nothing more than an online gambling game.

[Alonzo Ewing]

How would centralization help?

[bitcoinlitcoinbtcltc]

How would centralization help?

Security. It would be less volatile, and exchanges would be controlled/run by qualified people. There would be more transparency and real investors with real capital, would jump in and back exchanges (trust). None of that exists in the current bitcoin 'economy'. An economy doesn't work when it is based on faith only. It will fail.

[protokol]

Gox is centralized, Bitcoin is not.
This volatility is just the free market collectively influencing the price on various centralized platforms, based on their levels of trust i.e. Gox/bitcoinbuilder.

I think it's pretty fucking interesting to watch, and is likely to settle down in time.

[Alonzo Ewing]

How would centralization help?

Security. It would be less volatile, and exchanges would be controlled/run by qualified people. There would be more transparency and real investors with real capital, would jump in and back exchanges (trust). None of that exists in the current bitcoin 'economy'. An economy doesn't work when it is based on faith only. It will fail.

You speak of faith.  Your statement, "It would be less volatile, and exchanges would be controlled/run by qualified people" is a matter of faith.

Tell me, where would these "qualified" people come from?  Why would they be attracted to Bitcoin?  How would these people be filtered from "unqualified" people?

[bitcoinlitcoinbtcltc]

How would centralization help?

Security. It would be less volatile, and exchanges would be controlled/run by qualified people. There would be more transparency and real investors with real capital, would jump in and back exchanges (trust). None of that exists in the current bitcoin 'economy'. An economy doesn't work when it is based on faith only. It will fail.

You speak of faith.  Your statement, "It would be less volatile, and exchanges would be controlled/run by qualified people" is a matter of faith.

Tell me, where would these "qualified" people come from?  Why would they be attracted to Bitcoin?  How would these people be filtered from "unqualified" people?

Those qualified people are probably not attracted to bitcoin at all. They see the dangers of bitcoin and act accordingly; they warn for its dangers, and advise not to do anything with it. You filter those qualified people from the unqualified people very easily. THe unqualified people are the bitcoin supports who:

1) Downvote anything anti-bitcoin
2) Don't know anything about finance/economics at all, and think they are investors and experts because they made a few bucks out of the currency
3) They shout ''to the moon''

99.99% of the pro-bitcoin community fits in the above description. This means 00.01% of the pro-bitcoin supporters is qualified. It would be impossible to find this person in a sea of stupidity. Even if we find this person, he will be regarded as anti-bitcoin by the rest of the pro-bitcoin community because his profile doesn't fit theirs. Bitcoin's last 'hope' will be bullied away, the experiment dies, the morons (99.99% of the pro-bitcoin community) lose all their assets, they cry, become homeless/jobless, and nobody really cares.

[protokol]

How would centralization help?

Security. It would be less volatile, and exchanges would be controlled/run by qualified people. There would be more transparency and real investors with real capital, would jump in and back exchanges (trust). None of that exists in the current bitcoin 'economy'. An economy doesn't work when it is based on faith only. It will fail.

I agree Bitcoin needs more regulated, trustworthy exchanges, the reason for this volatility is Gox being a dick. Again.

That doesn't mean the system itself needs to be centralized, only certain "nodes" i.e some exchanges. I think people are working on some sort of decentralized exchange system as well?

But yeah, right now Bitcoin could do with some more risk-free avenues to buy it with fiat I think. Doesn't mean you need to centralize any of the bitcoin network itself though.

[podyx]

How would centralization help?

Security. It would be less volatile, and exchanges would be controlled/run by qualified people. There would be more transparency and real investors with real capital, would jump in and back exchanges (trust). None of that exists in the current bitcoin 'economy'. An economy doesn't work when it is based on faith only. It will fail.

You speak of faith.  Your statement, "It would be less volatile, and exchanges would be controlled/run by qualified people" is a matter of faith.

Tell me, where would these "qualified" people come from?  Why would they be attracted to Bitcoin?  How would these people be filtered from "unqualified" people?

Those qualified people are probably not attracted to bitcoin at all. They see the dangers of bitcoin and act accordingly; they warn for its dangers, and advise not to do anything with it. You filter those qualified people from the unqualified people very easily. THe unqualified people are the bitcoin supports who:

1) Downvote anything anti-bitcoin
2) Don't know anything about finance/economics at all, and think they are investors and experts because they made a few bucks out of the currency
3) They shout ''to the moon''

99.99% of the pro-bitcoin community fits in the above description. This means 00.01% of the pro-bitcoin supporters is qualified. It would be impossible to find this person in a sea of stupidity. Even if we find this person, he will be regarded as anti-bitcoin by the rest of the pro-bitcoin community because his profile doesn't fit theirs. Bitcoin's last 'hope' will be bullied away, the experiment dies, the morons (99.99% of the pro-bitcoin community) lose all their assets, they cry, become homeless/jobless, and nobody really cares.

maybe 90% but definately not 99.99%

[Alonzo Ewing]

How would centralization help?

Security. It would be less volatile, and exchanges would be controlled/run by qualified people. There would be more transparency and real investors with real capital, would jump in and back exchanges (trust). None of that exists in the current bitcoin 'economy'. An economy doesn't work when it is based on faith only. It will fail.

You speak of faith.  Your statement, "It would be less volatile, and exchanges would be controlled/run by qualified people" is a matter of faith.

Tell me, where would these "qualified" people come from?  Why would they be attracted to Bitcoin?  How would these people be filtered from "unqualified" people?

Those qualified people are probably not attracted to bitcoin at all. They see the dangers of bitcoin and act accordingly; they warn for its dangers, and advise not to do anything with it. You filter those qualified people from the unqualified people very easily. THe unqualified people are the bitcoin supports who:

1) Downvote anything anti-bitcoin
2) Don't know anything about finance/economics at all, and think they are investors and experts because they made a few bucks out of the currency
3) They shout ''to the moon''

99.99% of the pro-bitcoin community fits in the above description. This means 00.01% of the pro-bitcoin supporters is qualified. It would be impossible to find this person in a sea of stupidity. Even if we find this person, he will be regarded as anti-bitcoin by the rest of the pro-bitcoin community because his profile doesn't fit theirs. Bitcoin's last 'hope' will be bullied away, the experiment dies, the morons (99.99% of the pro-bitcoin community) lose all their assets, they cry, become homeless/jobless, and nobody really cares.

Again, totally a matter of faith.  Some people have faith in people in the sky; others like you have faith in people wearing fancy hats and toting guns.  There is ZERO evidence that centralization would create more reliability.  Stop pretending yours is a rational viewpoint; it's only a matter of faith.

[bitcoinlitcoinbtcltc]

How would centralization help?

Security. It would be less volatile, and exchanges would be controlled/run by qualified people. There would be more transparency and real investors with real capital, would jump in and back exchanges (trust). None of that exists in the current bitcoin 'economy'. An economy doesn't work when it is based on faith only. It will fail.

You speak of faith.  Your statement, "It would be less volatile, and exchanges would be controlled/run by qualified people" is a matter of faith.

Tell me, where would these "qualified" people come from?  Why would they be attracted to Bitcoin?  How would these people be filtered from "unqualified" people?

Those qualified people are probably not attracted to bitcoin at all. They see the dangers of bitcoin and act accordingly; they warn for its dangers, and advise not to do anything with it. You filter those qualified people from the unqualified people very easily. THe unqualified people are the bitcoin supports who:

1) Downvote anything anti-bitcoin
2) Don't know anything about finance/economics at all, and think they are investors and experts because they made a few bucks out of the currency
3) They shout ''to the moon''

99.99% of the pro-bitcoin community fits in the above description. This means 00.01% of the pro-bitcoin supporters is qualified. It would be impossible to find this person in a sea of stupidity. Even if we find this person, he will be regarded as anti-bitcoin by the rest of the pro-bitcoin community because his profile doesn't fit theirs. Bitcoin's last 'hope' will be bullied away, the experiment dies, the morons (99.99% of the pro-bitcoin community) lose all their assets, they cry, become homeless/jobless, and nobody really cares.

Again, totally a matter of faith.  Some people have faith in people in the sky; others like you have faith in people wearing fancy hats and toting guns.  There is ZERO evidence that centralization would create more reliability.  Stop pretending yours is a rational viewpoint; it's only a matter of faith.

You belong to the 99.99% of pro-bitcoin supporters I described. The fact that you mentions that centralization wouldn't create more reliability, proves that your bloodline has a very low average IQ. If you refuse to acknowledge that centralization doesn't create more reliability, than it would be a good thing to sterilize you before you reproduce and filth the earth with your children.

[knightcoin]

I think he's used the term "descentralization" in the way that bitcoin is produced ... but if you look the blockchain as a big ledger ... you will understand that bitcoin is far less fragmented than traditional finantial system... you need to make sure in witch sense you put the term on, witch context ...etc

[ArticMine]

There is a huge difference here between the currency itself, Bitcoin, which cannot be regulated by design and those who take bitcoin deposits on behalf of others for whatever reason, they can and should be regulated.

[BittBurger]

Original Poster:   Decentralized organizations can't be stopped.  Volatile or not, it doesn't matter.  I can back up this statement.  Since you are insulting people's IQ's, would you be willing to listen to a 40 minute talk, without skipping through it, or tuning out?  

I truly believe listening to this will give you a different perspective.   It really transformed my understanding of what is happening right now with Bitcoin, and why decentralization is King.  No matter what.   This speech is given by someone with a High IQ at Google headquarters to a bunch of people with High IQ's, so that's taken care of.  Seriously.  Will you give it a full, uninterrupted listen?

The Starfish and the Spider
https://soundcloud.com/mindtomatter/e39-2-the-starfish-and-the

-B-

[knightcoin]

Original Poster:   Decentralized organizations can't be stopped.  Volatile or not, it doesn't matter.  I can back up this statement.  Since you are insulting people's IQ's, would you be willing to listen to a 40 minute talk, without skipping through it, or tuning out?  

I truly believe listening to this will give you a different perspective.   It really transformed my understanding of what is happening right now with Bitcoin, and why decentralization is King.  No matter what.   This speech is given by someone with a High IQ at Google headquarters to a bunch of people with High IQ's, so that's taken care of.  Seriously.  Will you give it a full, uninterrupted listen?

The Starfish and the Spider
https://soundcloud.com/mindtomatter/e39-2-the-starfish-and-the

-B-

Thanks for the link, I am listen now... for some reason the first thing that came to my mind in the first 5 minutes was Cathedral and the Bazaar by Eric S. Raymond. Holy Crap I really getting old.

[redwraith]

You belong to the 99.99% of pro-bitcoin supporters I described. The fact that you mentions that centralization wouldn't create more reliability, proves that your bloodline has a very low average IQ. If you refuse to acknowledge that centralization doesn't create more reliability, than it would be a good thing to sterilize you before you reproduce and filth the earth with your children.

These kinds of responses indicate that your parents made a huge mistake in allowing you to be born.  Your an idiot who relies on insults to back up your non-arguments.    I can't believe I keep wasting my time responding to your tripe.

[Elwar]

The price could easily be centralized by a few big players in such a small market.

The protocol is not the market.