Can someone explain Bitcoin to Jim Rogers?

[entropy137]

That's really all we need to send bitcoin sustainably above $30.

[Jonathan Ryan Owens]

That's really all we need to send bitcoin sustainably above $30.

[proudhon]

Ok.

Dear Jim,

Do you want to be able to have $100 worth of purchasing power today turn into $75 worth of purchasing power tomorrow?  Now there's a somewhat easy way - Bitcoin!  Sign up for a Dwolla account, then begin the week or more process of transferring money from your bank to Dwolla and finally to MtGox.  Then buy bitcoins on MtGox.  It's so easy!  Next, wait till the next day and almost magically (note: sometimes it can take a few days for the real magic to happen) the purchasing power of your bitcoins will be less than the purchasing power of the dollars you sent to MtGox.  For more information go to bitcoin.org and mtgox.com.  I hope you'll join the revolution!

Proudhon

[entropy137]

You know that when Jim Rogers buys he buys heavy and holds for multiple decades right?

[proudhon]

You know that when Jim Rogers buys he buys heavy and holds for multiple decades right?

No, I didn't know that.  I've fixed my letter:

Dear Jim,

Do you want to be able to have $100 worth of purchasing power today evaporate completely or almost completely in a few years?  Now there's a somewhat easy way - Bitcoin!  Sign up for a Dwolla account, then begin the week or more process of transferring money from your bank to Dwolla and finally to MtGox.  Then buy bitcoins on MtGox.  It's so easy!  Next, wait a few years and almost magically the purchasing power of your bitcoins will be 10% (probably even less) of the purchasing power of the dollars you sent to MtGox.  For more information go to bitcoin.org and mtgox.com.  I hope you'll join the revolution!

Proudhon

[entropy137]

Haha, if the price drops, he can just buy more. At the current market cap, he could buy all the bitcoin owned by The Manipulation, Wagner, and Satoshi combined. And most traders will sell at 3.5 or 5 thinking it's a false rally and have nothing to sell when it's at 30 to drive the price down.

But of course there's still the miners...

[BadBear]

Ah yes the old "This really rich guy could just buy em all up and leave you losers behind" tactic.  The problem with your thinking is, most people who have that much money have more sense than you. 

[proudhon]

Haha, if the price drops, he can just buy more. At the current market cap, he could buy all the bitcoin owned by The Manipulation, Wagner, and Satoshi combined. And most traders will sell at 3.5 or 5 thinking it's a false rally and have nothing to sell when it's at 30 to drive the price down.

But of course there's still the miners...

Wait a minute, you're not Jim Rogers trolling us are you?

[Jonathan Ryan Owens]

Ah yes the old "This really rich guy could just buy em all up and leave you losers behind" tactic.  The problem with your thinking is, most people who have that much money have more sense than you. 

If Jim Rogers wanted to do it right, he'd create an entirely new CryptoCoin, peg it to a value, guarantee that value, put MtGox out of business, and finance structured ASIC development and sell the opportunity as monopolized hardware. He wouldn't buy into Bitcoin. Ever.

[BadBear]

Ah yes the old "This really rich guy could just buy em all up and leave you losers behind" tactic.  The problem with your thinking is, most people who have that much money have more sense than you. 

If Jim Rogers wanted to do it right, he'd create an entirely new CryptoCoin, peg it to a value, guarantee that value, put MtGox out of business, and finance structured ASIC development and sell the opportunity as monopolized hardware. He wouldn't buy into Bitcoin. Ever.

This sounds more like what someone with significant funds to put into bitcoin would do. 

[Matthew N. Wright]

Ah yes the old "This really rich guy could just buy em all up and leave you losers behind" tactic.  The problem with your thinking is, most people who have that much money have more sense than you. 

If Jim Rogers wanted to do it right, he'd create an entirely new CryptoCoin, peg it to a value, guarantee that value, put MtGox out of business, and finance structured ASIC development and sell the opportunity as monopolized hardware. He wouldn't buy into Bitcoin. Ever.

This sounds more like what someone with significant funds to put into bitcoin would do. 

Agreed.

I just realized how strange that word is. A greed. I wonder how it came to be.

[entropy137]

If Jim Rogers wanted to do it right, he'd create an entirely new CryptoCoin, peg it to a value, guarantee that value, put MtGox out of business, and finance structured ASIC development and sell the opportunity as monopolized hardware. He wouldn't buy into Bitcoin. Ever.
[/quote]

Peg it to a value in what? Dollars? You can get dollars at the bank. Gold? There are already gold backed credit cards. ASICs can get reverse engineered. Has Intel ever "monopolized" CPUs?

It would seem to me that the way to "do it right" would be to buy up a million or two of bitcoins and then invest in bitcoin startups that would build the infrastructure of the bitcoin economy allowing technical illiterates to use it as well as merchants to hedge for currency risk. Then talk about bitcoin every time he goes on TV.

[FlipPro]

If Jim Rogers wanted to do it right, he'd create an entirely new CryptoCoin, peg it to a value, guarantee that value, put MtGox out of business, and finance structured ASIC development and sell the opportunity as monopolized hardware. He wouldn't buy into Bitcoin. Ever.

Peg it to a value in what? Dollars? You can get dollars at the bank. Gold? There are already gold backed credit cards. ASICs can get reverse engineered. Has Intel ever "monopolized" CPUs?

It would seem to me that the way to "do it right" would be to buy up a million or two of bitcoins and then invest in bitcoin startups that would build the infrastructure of the bitcoin economy allowing technical illiterates to use it as well as merchants to hedge for currency risk. Then talk about bitcoin every time he goes on TV.

The way to do it right is to buy out all the coins, and start investing in good ideas.
Starting a "whole new coin" that's "backed by something" has already been done before, and it didn't turn out well .