[NYTimes] Currency that exists only online and yet has real-world value?

[BitcoinPorn]

Speed Bumps on the Road to Virtual Cash

MONEY is accumulated, traded and transferred online every day, but can there be a form of currency that exists only online and yet has real-world value?

Gavin Andresen, who is the lead developer of the open-source software that operates the currency, said in an interview from his home in Amherst, Mass.: “I expected it to have lots of speed bumps along the way — but I didn’t expect there to be so many speed bumps in a row.”

“I’ve sold 24 collars, 13 leashes and 1 pair of ‘Disco Knickers’ with Bitcoin over the last few months,” she wrote in an e-mail. “The first order I had was for 42 BTC, which was worth about $40 at the time, but now those coins would be worth around $680! Originally I had a fixed Bitcoin price, but now I do a conversion based on the exchange rate.”

“This is a censorship-proof currency that allows transactions to happen,” he said. “Right now what are those sort of transactions? Gambling, buying drugs — that is what is going to jumpstart it.”

Two page article at http://www.nytimes.com/2011/07/04/business/media/04link.html

I would not say this is necessarily a positive spin for Bitcoin, but the smarter reader I think can take a lot out of this piece.

[MtRev]

it's an digital age, it's bound to happen sooner or later. It maybe harder for older generations to accept digital currency, but I can assure you, the younger generations after us will accept it as a normal currency. It's just a matter of time, if not BitCoin, there will be another digital current that will be widely accepted as much as Paypal or other payment processors.

If they are worried about people using BitCoins to buy/sell drugs then maybe they should worry about paper currency as well?

[noedaRDH]

Speed Bumps on the Road to Virtual Cash

MONEY is accumulated, traded and transferred online every day, but can there be a form of currency that exists only online and yet has real-world value?

Gavin Andresen, who is the lead developer of the open-source software that operates the currency, said in an interview from his home in Amherst, Mass.: “I expected it to have lots of speed bumps along the way — but I didn’t expect there to be so many speed bumps in a row.”

“I’ve sold 24 collars, 13 leashes and 1 pair of ‘Disco Knickers’ with Bitcoin over the last few months,” she wrote in an e-mail. “The first order I had was for 42 BTC, which was worth about $40 at the time, but now those coins would be worth around $680! Originally I had a fixed Bitcoin price, but now I do a conversion based on the exchange rate.”

“This is a censorship-proof currency that allows transactions to happen,” he said. “Right now what are those sort of transactions? Gambling, buying drugs — that is what is going to jumpstart it.”

Two page article at http://www.nytimes.com/2011/07/04/business/media/04link.html

I would not say this is necessarily a positive spin for Bitcoin, but the smarter reader I think can take a lot out of this piece.

Smart readers probably don't read the times. They're a dime a dozen.

[Lupus_Yonderboy]

Smart readers get their news from a variety of sources across the spectrum and don't let pettty prejudices get in the way of information flow.

[Gabriel Beal]

You certainly can’t stock the pantry or furnish your home with Bitcoins.

They obviously didn't see Bitmunchies or Tina Produce (home decor).

When reached by phone, a bookstore owner on the list, Sonny Saul, from Woodstock, Vt., said that he had had the account for only a week and a half and that he had “no practical experience with it yet, other than your phone call.”

I wish they had called me.  I could have honestly told them I do hundreds of dollars (equivalent) a week and I only accept bitcoins.

[Bruce Wagner]

You certainly can’t stock the pantry or furnish your home with Bitcoins.

They obviously didn't see Bitmunchies or Tina Produce (home decor).

When reached by phone, a bookstore owner on the list, Sonny Saul, from Woodstock, Vt., said that he had had the account for only a week and a half and that he had “no practical experience with it yet, other than your phone call.”

I wish they had called me.  I could have honestly told them I do hundreds of dollars (equivalent) a week and I only accept bitcoins.

Gabriel,  what do you sell?   Please contact me by email or phone.

[datafish]

Gabriel,  what do you sell?   Please contact me by email or phone.

Umm...check his sig maybe?

[SlaveInDebt]

The coins, which trade for about $17 each at online exchanges, have a cumulative value of about $100 million. “I do think of it as the market cap of Bitcoin,” said Mr. Andresen.

This quote concerns me greatly. Just look at the market after the $30 run up. Almost seems the big holders in btc slowly tried to bring us down and are maintaining this market cap intentionally.

<-Runs off to make tin foil hat.

[CurbsideProphet]

The coins, which trade for about $17 each at online exchanges, have a cumulative value of about $100 million. “I do think of it as the market cap of Bitcoin,” said Mr. Andresen.

This quote concerns me greatly. Just look at the market after the $30 run up. Almost seems the big holders in btc slowly tried to bring us down and are maintaining this market cap intentionally.

<-Runs off to make tin foil hat.

I think the quote is also erroneous because it assumes that all of those coins could be sold at $17 (or whatever price point you want to choose).  The MtGox hack proved that it takes only a small percentage (~6% if I recall correctly) of BTC's to be sold to bring the value down dramatically.

[SlaveInDebt]

I think the quote is also erroneous because it assumes that all of those coins could be sold at $17 (or whatever price point you want to choose).  The MtGox hack proved that it takes only a small percentage (~6% if I recall correctly) of BTC's to be sold to bring the value down dramatically.

About a month ago during the CBS interview the owner/operator of Bitcoin Watch said the same thing about a 100 million dollar market cap. Yes that's assuming if all the coins would be sold at ~$15 at the current number of BTC. It does take an small amount of coins to move the market, more the reason it would be simple to let go a few here and there each time the 100 million cap gets broken to bring the market cap in check. This would create stability to an extent and also give the big players capital to buy up coins should the market start to fall again helping maintain the balance and cap. Watching the market as of late it seems a correction occurs each time the markets wonders off from the 100 million cap, we've been moving around that wall all day and working towards that mark for the last week.

I am skeptical of my own theory I must admit but I see some reasoning behind why some would do this. The stage has been set. The network has it's power, the market a substantial value and now it's time to introduce innovative and refined was and means to use this system for a larger market of goods and services all the while making more ease of use in day to day transactions. Once that phase is implemented the demand for a larger market cap will be seen. Reason for the cap now? Only to keep Bitcoin from turning into a mere speculators tool that could not be sustained much larger than the current market cap unless there is more substance and real use of Bitcoin as a currency.