It is shocking how dumb the press is -

[Barek]

To begin with, Satoshi and the other early adopter `whales` should ease up on their enormous cache of coins. Satoshi, with his million coins, could act as a pseudo central authority until bitcoin gains some degree of stability. But that`s unlikely to happen, because just like the Winkevoss twins and others, he`s in this to make money, obviously.

So you think having Satoshi's coins in circulation would make the price stable? That would mean once another million coins are mined, the price would be stable?

[rocks]

The question where Bitcoin comes from is an understandable one. Calling it mining might have been a bad idea. Instead, saying a with time decreasing number of Bitcoins are given away every 10 minutes in a lottery, would have made the whole process much less interesting (but actually more accurate) and would have shifted focus to more relevant topics.

More processing power = more tickets. If you want to explain the GH, you can say a Hash is a ticket. I think people are smart enough to figure out what GHs stands for and seeing that as 10^9 tickets per second is just fine to understand how the block reward is awarded.

This is one of the better explainations I've seen, thanks. I like this description because it emphasizes how the currency is initially created and distributed in a fair manner. Everyone has an equal chance at a lottery giveaway fixed every 10 minutes, and lottery tickets are distributed according to how much processing power you contribute.

In response to the OP,

We all should be thanking the Washington Post and other members of the MSM. It is because of them that we still have the ability to purchase undervalued bitcoins. The truth will get out despite the MSM's best efforts, but we don't need to worry about that because in the end the truth always does get out there.

[kireinaha]

To begin with, Satoshi and the other early adopter `whales` should ease up on their enormous cache of coins. Satoshi, with his million coins, could act as a pseudo central authority until bitcoin gains some degree of stability. But that`s unlikely to happen, because just like the Winkevoss twins and others, he`s in this to make money, obviously.

So you think having Satoshi's coins in circulation would make the price stable? That would mean once another million coins are mined, the price would be stable?

It`s basic supply and demand. Mining coins isn`t the answer now, because mining requires such a large initial upfront cost that miners have no recourse but to hoard the fruits of their labor. Even then they`re lucky to make any ROI.

I`m not saying Satoshi should release all his coins at once. This would cause a market crash obviously. But he needs to put some out there during periods of high demand to keep the price a bit more steady.

[beetcoin]

i'm not shocked that the press is dumb. they just push along their boss' agenda.. all for profit. their whole shtick is to think for you instead of letting you come to your own conclusion. people are lazy and don't want to dig deep, so they outsource it to the media.

[Barek]

mining requires such a large initial upfront cost that miners have no recourse but to hoard the fruits of their labor. Even then they`re lucky to make any ROI.

If a miner finds a block, they receive value, based on the exchange rate at that time. If the exchange rate rises from there, that profit is not from mining but from speculation. The miner makes the conscious decision not to sell the coins.

It`s basic supply and demand.

If you understand supply and demand, then you should understand that it does not matter where the coins come from.

I`m not saying Satoshi should release all his coins at once. This would cause a market crash obviously. But he needs to put some out there during periods of high demand to keep the price a bit more steady.

You mean like 25 every 10 minutes or so?

[Snail2]

I'm thinking on making a bitcoin bullshit generator for journalists. (Something like the corporate bsg: cbsg.sourceforge.net.) Journalist goes to the site, deposits 0.1 BTC press "More bullshit, please" button, will get a lot of bitcoin related factual bs.

[lindatess]

You realise the idea that bitcoin subject to a different style of manipulation is actually not such a big deal.

I bet you weren't saying "well done to the central banks when they were raising interest rates and removing money from the economy"

It's a basic economic problem involving open market operations.

So, tell us, were we all rooting for the central bank when they were raising interest rates, making it effectively a better investment than bitcoin? Rather than a fixed amount of bitcoins, there would be a reduction in the amount of dollars in the system.

I'd choose a reduction of dollars. In fact, many countries are looking to raise interest rates now!

Long term bond yields are rising... It doesn't make bitcoin look any better for the speculators.

In the long run, interest rates go through mean reversion, i.e. return to the average. So, it's up to you to decide whether bitcoin really is an optimal investment. You are trading one type of manipulation for another. Bitcoin is artificial, it's not even natural.

[BurtW]

Bitcoin is artificial, it's not even natural.

What exactly do you mean by natural?

[MWD64]

I'm thinking on making a bitcoin bullshit generator for journalists. (Something like the corporate bsg: cbsg.sourceforge.net.) Journalist goes to the site, deposits 0.1 BTC press "More bullshit, please" button, will get a lot of bitcoin related factual bs.

Bitcoin Bullshit Generator
http://freedomfeens.com/bs/

[JypsiCreme]

This has to be the dumbest article ever. Bitcoins were created precisely because the creators wanted government out of the monetary system. To those who don't like don't use it, after all it's a "free" country

[Catmoonglow]

I actually believe that this person really believes this to be true. Thank Satoshi that it's simply impossible since these people's fingers are itching to 'pump Bitcoin into the system'.

[RepublicSpace]

Adoption and volume will stabilize the currency. What bitcoin doesn't need is an external force pushing the price in one direction or another.

[TheTruth4]

All these complaints about price volatility of bitcoin are stupid. Obviously the volatility results from current market conditions in which Bitcoin is not yet universally regarded as a standard payment option and not yet used in commerce on the scale on which national currencies are used.

[TheTruth4]

If Bitcoin should survive to reach its adulthood, then voluminous use in international commerce will stabilize prices and speculation-driven fluctuations will become a relatively small influence.

[bryant.coleman]

What bitcoin doesn't need is an external force pushing the price in one direction or another.

Are you referring to the market manipulation in December 2013, by Mark Karpeles and his friends in Mt Gox? Bitcoin will always be vulnerable to such manipulation, as the number of exchanges are limited.

[mamarried]

Here's what they've missed. 
While there is a limit on the number of Bitcoins, there is no limit to the amount and type of crypto-currencies that can be created. So it is that if Bitcoins are hoarded, and demand for virtual currencies grow, new ones can be created (and have been ie Litecoin). So, there is no issue with liquidity in the world of crypto-currencies.
 

[mamarried]

Deflation is not a problem at all. Deflation provides opportunities for working class humans to move up the economic food chain. Imagine how much better of average everyday Americans would be if everyone simply let their mortgages go, banks were forced out of business, and the houses or underlying properties went up for auction at pennies on the dollar.

[mamarried]

Regular people would have been able to buy houses in cash for $3,000 or less at county tax foreclosure auctions. It would have been a bust for bankers and a boom for average citizens. If Bitcoin should happen to crash to $0.05 again, that would simply be a 2nd chance for more average people to get on board the money wagon!

[redwhitenblue]

The news is generally written at a 9th grade level. There are some news outlets that may write at a slightly more advance level, however it is unlikely that you will find any mainstream news written even at a college level.

The news is also written towards the masses (they need ad revenue to pay their bills), this is done by the above as well as trying to sensationalize the news.

In essence any news article will be dummied down significantly.

The concept of Bitcoin is inherently advanced, and uses concepts that are usually taught when obtaining an advanced degree. The result of the news writing about advanced concepts to an audience of the masses at a 9th grade level will inevitably result in some inaccuracies and oversimplifications.

The press is doing Bitcoin a big "favor" as it gives it exposure to the masses which will hopefully lead to more widespread adoption by the masses and become accepted by more merchants/vendors/stores.

I put the word "favor" in quotations because the news is getting something out of the stories as well (readership, ad revenue, and the like).

[rocks]

Deflation is not a problem at all. Deflation provides opportunities for working class humans to move up the economic food chain. Imagine how much better of average everyday Americans would be if everyone simply let their mortgages go, banks were forced out of business, and the houses or underlying properties went up for auction at pennies on the dollar.

It continues to amaze me how the government and MSM promote the idea that increases in the price of housing is beneficial for people, which is completely absurd. All it means is that it is more and more expensive for the next generation to survive and that the next generation has to pay more interest to the banks.

For fucks sake they are now talking about 50 year and interest only mortgages for "home owners" who are in reality anything but and are in actuality permanent renters to the banking class.

I've come to believe that future generations will look on these times as the dark ages and bitcoin will be viewed as the savior for humanity from the barbaric (and by then acient) banking class.