2012-11-02 ZH - ECB Explains What A Ponzi Scheme Is; Awkward Silence Follows

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ZeroHedge: The ECB Explains What A Ponzi Scheme Is; Awkward Silence Follows

Covers the ECB report on virtual currencies.  Can be read as Bitcoin-positive, or at least neutral, which is an improvement over prior dismissive & skeptical pronouncements from ZH.

http://www.zerohedge.com/news/2012-11-02/friday-humor-ecb-explains-what-ponzi-scheme-awkward-silence-follows

[evoorhees]

Nice

[molecular]

jesus, these journalists!

And as an added bonus, here is the part in which the ECB appears to be so worried about BitCoin taking over as legitimate "legal tender" from the EUR (which the ECB's Coeure said two days ago is as "solid and longlasting as a diamond") it dedicated an entire report to bash the recently conceived electronic currency:

• BitCoin instead of Bitcoin
• nowhere does the ECB paper say they're worried about Bitcoin taking over as legitimate "legal tender"
• the report isn't entirely dedicated to Bitcoin
• the report doesn't bash Bitcoin

Oh, and one might add:

• Bitcoin wasn't recently conceived

[hazek]

jesus, these journalists!

And as an added bonus, here is the part in which the ECB appears to be so worried about BitCoin taking over as legitimate "legal tender" from the EUR (which the ECB's Coeure said two days ago is as "solid and longlasting as a diamond") it dedicated an entire report to bash the recently conceived electronic currency:

• BitCoin instead of Bitcoin
• nowhere does the ECB paper say they're worried about Bitcoin taking over as legitimate "legal tender"
• the report isn't entirely dedicated to Bitcoin
• the report doesn't bash Bitcoin

Oh, and one might add:

• Bitcoin wasn't recently conceived

It's seems just impossible to find an objective news outlet anymore. ZH is pretty good but I still see a lot of bias and reporting through a specific lens which is regrettable but I guess understandable if they want to keep a huge readership entertained.

[cypherdoc]

my favorite part:  "And while it is one thing for the Chairsatan to say gold is not money but is merely "tradition", it is a whole new level of panic when a major central bank is forced to defend itself against an electronic currency."

[benjamindees]

Jeez... don't nitpick ZH.  They aren't really "journalists," and their dramatic license is usually spot on.  This is positive press for BitCoin

[Steve]

My favorite comment:

"There will be 21million bitcoins one day.  There are ~5 billions ounces of above ground gold.  Make the calculation.  

ONE bitcoin's scarcity is higher than 230 ounces of gold.

This is nothing short of the asymmetric bet of the decade."

[paraipan]

My favorite comment:

"There will be 21million bitcoins one day.  There are ~5 billions ounces of above ground gold.  Make the calculation.  

ONE bitcoin's scarcity is higher than 230 ounces of gold.

This is nothing short of the asymmetric bet of the decade."

That is a bit unfair, he could have compared bitcoins "above ground", currently 10.3M, or approximately estimate the remaining "below ground" gold on all Earth and compare with the precise number of bitcoins that will ever exist.

Then, ONE bitcoin's scarcity then is higher than ~485 ounces of gold.

[Roger_Murdock]

Then, ONE bitcoin's scarcity then is higher than ~485 ounces of gold.

And that's why we're already rich. Now if we could just get the rest of the world to acknowledge that, we'd be set. 

[molecular]

My favorite comment:

"There will be 21million bitcoins one day.  There are ~5 billions ounces of above ground gold.  Make the calculation.  

ONE bitcoin's scarcity is higher than 230 ounces of gold.

This is nothing short of the asymmetric bet of the decade."

wuuut? this from bitpay? Love it

[kjlimo]

https://bitcointalk.org/index.php?topic=100699.0;all

Seems like ZeroHedge has been targeted for a while.

Question: would you ever try to used gold to buy anything?  If so, who would accept it?

[Rygon]

If hyperinflation occurs in the fiat currencies, the typical person who is familiar with debit cards and electronic purchases aren't going to rush to PM's. They will want digital money to buy junk off the internet. Robust payment systems for Bitcoin are being developed now, and adoption of those systems could happen within days after a crisis. Plus, Bitcoin could be rapidly distributed throughout communities through early adopters selling their coins for goods and services, via something as simple as a phone app. I'm sure PM's would be traded as currency, but we'd have to rely on some central exchange to produce small denominations, and it would be a huge shift for people to carry around coins again. If/when the SHTF, you can bet that Bitcoin will be in a prime position to gain widespread use as a currency.

[Wekkel]

If hyperinflation occurs in the fiat currencies, [...]

Lending in fresh FIAT will be a boon too, since paying of the debt after a few months would be easy (if the interest rate is reasonable)

[Rygon]

If hyperinflation occurs in the fiat currencies, [...]

Lending in fresh FIAT will be a boon too, since paying of the debt after a few months would be easy (if the interest rate is reasonable)

Yep! And buy up income generating sources like land, rentals, and depression-resistent businesses with that new FIAT is even better. When we start seeing the moderately super wealthy (Has more than millionaires, but less than billionaires) trampling over each other to buy real estate and rental complexes at seemingly ridiculous prices, it'll be a sign of impending inflation.

[Wekkel]

Yep! And buy up income generating sources like land, rentals, and depression-resistent businesses with that new FIAT is even better. When we start seeing the moderately super wealthy (Has more than millionaires, but less than billionaires) trampling over each other to buy real estate and rental complexes at seemingly ridiculous prices, it'll be a sign of impending inflation.

Another counter-intuitive result could be the relative rise of wages: labour is valued better in a hyperinflationary environment (and wages will more or less be revised in accordance with the increased amount of curreny in circulation. Those who are without (labour) income or have a fixed income are the ones suffering most.

But let's not derail the topic further.