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Author Topic: [ARTICLE] The Bitcoin Economy Is Collapsing With No Sign of Recovery  (Read 1058 times)
BitcoinPorn
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August 08, 2011, 12:45:17 PM
 #1

No need to post the whole thing, I think we are aware of what is going on, here is just the meat.

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The problem with Bitcoins is the same thing that people love about Bitcoins: They leave no trace. It takes an incredible amount of computing power to create new Bitcoins with a PC (you can also, of course, just buy them on an exchange, which is what most people using them do). And a complicated algorithm keeps the total supply steady. Once these digital coins are created, they're still just a handful of bits and bytes, a little piece of encrypted code. There is no fundamental value.



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But Bitcoins are nothing. You can't live in them and you can't wear them. You can't turn them into real estate or jewelry. Right now, you can use Bitcoins to buy books and computers and other goods and services, including, most famously, illegal drugs. But when -- if -- the exchange rate crashes, you can bet that those merchants will stop accepting Bitcoins, that the Tor-accessed websites will shut down. "[T]here's no significant community of people who conduct commerce exclusively (or even primarily) in Bitcoins," Lee pointed out. "And this means there's no logical stopping point to Bitcoin's price decline. So far Bitcoin enthusiasts have been buying Bitcoins as the price falls, convinced that the price will go back up eventually. But as the hoped-for rally has failed to materialize, more have gotten discouraged or bored and cash out, pushing the price down further."

Full thing is at http://www.theatlantic.com/technology/archive/2011/08/the-bitcoin-economy-is-collapsing-with-no-sign-of-recovery/243253/

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August 08, 2011, 05:49:21 PM
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I don't think The Atlantic has ever had a good word to say about Bitcoin.

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August 08, 2011, 05:53:52 PM
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This sort of reasoning would have argued that bitcoins would have never risen above $0 in the first place, which is clearly wrong. Until they can fix their theory and explain how bitcoins acquired value, in spite of having "no intrinsic value" and so on, these sort of opinions are worthless.
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August 08, 2011, 05:55:10 PM
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Once these digital coins are created, they're still just a handful of bits and bytes, a little piece of encrypted code. There is no fundamental value.

Do you guys think it would be a good idea to send out a mass e-mail to every single media outlet on the world saying "Bitcoins fundamental value is the unique combination of properties it offers as a method of payment"? So we can finally get this 'Bitcoin has no fundamental value' nonsense over with.

Like my post(s)? 12TSXLa5Tu6ag4PNYCwKKSiZsaSCpAjzpu Smiley
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ShaggyB (BitCoinWorldMarket)
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August 08, 2011, 05:58:08 PM
 #5

When I read that article, I thought to myself, this guy obviously doesn't visit these forums, else he would have heard of Bitcoinworldmarket.com or any of the other dozen or so smaller guys out there selling tangible goods for bitcoin.


Finally a major marketplace to shop with Bitcoin! Over 10,000 products.    www.BitCoinWorldMarket.com
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August 08, 2011, 06:00:35 PM
 #6

Am I the only one thinking that our problems started ever since Gavin visited the CIA?
This is in no way an attack on Gavin.It just looks to me that some entity is doing a stress test on Bitcoin.
  

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August 08, 2011, 06:10:53 PM
 #7

Am I the only one thinking that our problems started ever since Gavin visited the CIA?
This is in no way an attack on Gavin.It just looks to me that some entity is doing a stress test on Bitcoin.
  

I think the CIA is having a hand in lowering the value of Bitcoin so that they can purchase a few, wait for the value to rise, then cash out, just to fund this Black Oops operation: https://bitcointalk.org/index.php?topic=34496.msg433346#msg433346
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August 08, 2011, 06:14:24 PM
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This sort of reasoning would have argued that bitcoins would have never risen above $0 in the first place, which is clearly wrong. Until they can fix their theory and explain how bitcoins acquired value, in spite of having "no intrinsic value" and so on, these sort of opinions are worthless.

+1

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August 08, 2011, 06:19:03 PM
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most people realize now they aren't buying in but instead just giving their money to hackers instead.
i would say 99% of the new people who actually "Bought in" since May have had a considerable loss.
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