Bitcoin - Ponzi scheme or digital gold?
Impressions of the first european conference Bitcoin end of November 2011 in Prague
Guest post by Fabio Bossi
Fabio Bossi is a financial analyst and blogger from Munich. More www.bavaria-for-ron-paul.blogspot.com
Was the alleged drug problem of the nature of "money" for years, if not decades, few economists - also off the beaten track - reserved, it was popularized in the To-ge of the youngest financial crisis and also reached parts of the youth and the Internet (sub) culture. The indignation at the trillion dollar bank bailouts and € crisis aroused the awareness of broader Bevölkerungsschichten Darfur, that "something" wrong with our monetary system. Left Alternative youthful protesters in Madrid besieged Puerta del Sol recommend flyers Youtube documentaries like "Money as Debt", the heterogeneous hacker group Anonymous, he-cleared by the U.S. Federal Reserve and Wall Street, the cyber war and Occupy Wall Street movement is about the world.
Borsen shot in the High. Fueled by the media hype and possibly market manipulation of the exchange rate reaches the Bitcoin beginning of June 2011 in the online Borse "Mt.Gox" an all-time high of almost 30 USD for a short time later to dramatically enhance sammenzustürzen-as on 19 June, a user of the unknown
Internet money "Bitcoin"
In summer 2011, more reports appeared about a new cryptographic Internet money called "Bitcoin". Öffent self-Lich-service media reported with a certain enthusiasm-sion of what the "Federal Association of the Digital Economy", which occurs in the network under the modest slogan "We are the network," veranlasst1 the following warning:
"Through the use of Bitcoins as payment the neces-sary state control in the cases of tax evasion or Geldwäsche is impossible. Therefore Bitcoins are simply dangerous and have the potential of the entire society just by fraud, or harm to other illegal shops Geldwäsche sustainable. "
The ausgeklügelten with cryptographic methods produced cyber-financed monetary units were known to exchange rates and the exchange-like sprouting from the ground-line exchange
Borse an account with 500,000 Bitcoins (BTC) captured, representing a three-tenths of the total amount present at the time of Bitcoins. As in July and August because data losses occurred at a Polish-Borse and the diversion of online "wallets" in e-wallet service MyBitcoin.com, the new online money appeared to have been doomed to failure again. In November, the Bitcoin even listed as the under-3 USD.
Early American Conference first Bitcoin
But was of a hangover on the first european bit coin-Conference 25 and 26 Last November in Prague spätherbstlichen nothing to tracks. Mierern Program In addition to about 70 and Internet enthusiasts and entrepreneurs gathered Taaki like Amir, a former online poker players and game developers, or the eccentric and Hochst banks critical journalist Max Keiser in the Czech capital.
But what is "Bitcoin," the invention, which, according to the well-essencing Rick Falkvinge, the father of Swedish origin tenpartei Pira, "for the banks will be what email was for the company-postun" überhaupt exactly? The concept of cryptographic Internetwährung on a high priority for the Japanese pro-grammer Satoshi Nakamoto zurückführen, which, however, has seen none of those present at the conference each insider. Nakamoto programmed the first "Bitcoin Client" in the open
Exchange rate of the Bitcoin in USD
2/11 4/11 6/11 8/11 10/11 12/11
50 20 10 5
2 1 0,5
1) BVDW warns consumers and handlers before Bitcoins as payment - 01.06.2011 www.bvdw.org/medien/bvdw-warnt-verbraucher-und-haendler-vor-bitcoins-als-zah-
media treatment medium = 3006?
Source process and called for early 2009 and the first Bitcoins, but withdrew in 2010, Back from the development.
Bitcoin uses the principle of decentralized networks, such as online-sen-Tauschbör are known as e-Donkey. Users around the world "demand" (English "to mine") Bitcoins by their non-computer cryptographic motor tasks. However, the Fördergeschwindigkeit is reduced by the "reward" for the request is also reduced gradually, the more computing power is made Ver-jointing. Initially, the "mi-NEN" about every home computer yet so meaningful want with it, it took from mid-2011 already hochgerüstete computers with specific graphics cards to cover costs reasonably ask, therefore, can be particularly large number of non-Rechenaufga ben.
A "finite" safeguarding
Accordingly, it is difficult to estimate even when the system is from internally defined limit Bitcoin be reached 21 million. End of 2011 had caused some 7 million Bitcoins. That also prone to Bitcoins Spe-kulationsblasen are, the summer has proven 2011th However, all the precious metal silver, for example, the early 1980s, a percentage not experienced dramatic collapse. A Ponzi scheme is just as Bitcoin Sil-ber, since constantly new "investors" are needed to pay al-te investors. A Bitcoin is a finite digital unit, which are destroyed in the never entirely predictable, and reality can get lost, just as she was physically present.
In a sense, has a Bitcoin - even more than a "€" - the characteristics of what the majority of people presenting with "money", to be a finite, no more or less arbitrarily reproducible namely Good. This view is now followed by almost an academic monetär-Okonomi-between school of thought, because all of the established monetary theories suffer for Of course, determining that only the state can do what has to be a monetary unit, a "coin", and that we as citizens only his coins, and he explains what to use as money did. Ruled out of the guidance is dramatically enhance pri-father alternatives to the "legal tender with a debt-assumption liberating force" not yet. Can serve as long as one is ne-taxes in the state preservation and ensuring the information they need "stock" about Geldwechselvorgänge präferierten money personally in the unit, you can theoretically expand private-law contract on other means of payment.
Wide acceptance vonnöten
Of course, however, widespread acceptance is vonnöten to can the character of a monetary unit of money präferierten really wide harness. This applies for example Money for Gold (the organi-zation of our columnists, James Turk, p 57) as, too, for Bitcoins. To strengthen our market position and expand the
To make money so to marktgängigen estate in the terminology of the Austrian company school, see David Birch, IT consulting ter conference in Prague, according to the British Tele-graph one of the world's most renowned experts on the topic of digital currencies, biggest than the problem . He reminded the more tech-savvy young membership base because of the broad mass of consumers, it does not care whether the use of their monetary system is decentralized and used anonymously. Most people just wanted to safely and easily exports the desired payment or accept-can. Practical solutions such as debit cards or smart phone applications that are still in infancy Bitcoin to be asked therefore. A haptic gerat he currently works, Prof. Dr. Clemens Cap, Chair for Infor-mation and Communication Technology at the University of Rostock. In Prague he präsentierte about a credit card sized flat gerat, which resembles a sleek MP3 player and a por-table and cheap Geldbörse for the cryptographic should serve ulti-sel. A beer can had the meet-and-greet at the first-th Conference dinner at the Hard Rock Cafe in Prague thus already be pay-can - if the wireless connection of the cafe had ned functional, because the treasury was extra on the possibility predetermined rides been to accept Bitcoins. But no connection, no pay. This episode was one of the plastic on weak points of Bitcoins, tüfteln involving many programmers and developers still (Bitcoin activists are getting involved, too, for the development of a decentralized Internet via wireless mesh networking). In early January, the price reached for a coin-bit back $ 7. An exciting experiment that is worth to follow closely is Bitcoin it all.
The author is pleased about a donation Bitcoin