Bitcoin Cannot Succeed (heres why)

[Yakamoto]

I have one issue with your write-up;

Even if these exchanges run off with tons of BTC, where will THEY exchange it?

If there's a loss of $300 million in a similar form of what happened to Mt. Gox, certain addresses will likely be blacklisted, namely those that happened to get the BTC from the wallets. How they would pull that off, I am not sure. However a large majority of the community is interested in the success of bitcoin, and so I'm sure something will come about.

Only traders/speculators need to keep significant amounts of bitcoins in exchanges, getting IOUs instead. The exposure of regular users is limited to the amount and timeframe of their BTC/fiat deposits/withdrawals.

This is very, very true. Unless you are one of the technologically ignorant, you shouldn't be keeping in excess of $400 in a single wallet, in my opinion. I've had my BTC spread out far and wide, and I still haven't lost anything, amazingly.

By the time Bitcoin is 1 million per coin the exchanges that are centralized will be extremely trustable and with famous faces behind it (Winklevoss with the Gemini one is the start) and not autists like Karpeles.

Also 1 million per coin is not a problem, again, bitcoin being divisible by a shitton etc.

Also a good statement.

I do see what it is that you're trying to say, and I do believe that it's a very real possibility that could cause many issues. I just personally believe that such a scenario is unlikely, and thus there isn't really as need to fret about it.

[Lauda]

Ridiculous and pointless thread. If 1 BTC were worth $1 million, the bitcoin global market cap would be around $10-20 trillion, depending on number of available coins. Fiat exchanges would no longer be necessary as by that point bitcoin would be an autonomous economy with little to no dependence on fiat.

I wonder how many of these threads were created in just 2015. Every once in a while someone tries to be the 'all knowing' and foresee the future. 

[johnyj]

Strange logic, should world banks all close because they have billions of customer dollar? 

[chaoman]

I don't agree with OP but there is a reason I don't trade Bitcoin much via exchanges and that is because of the bad luck so far. It just takes 1 rotten apple to spoil the bowl. If I need to sell bitcoin, I do it locally and privately.

The problem with OP is that, based on his post, he would like to steer towards a centralized system backed by a reputable source(ie a bank handling these exchanges). Would this take away from what Bitcoin is? Well I don't think so. These exchanges need just as much information from you before you can use their services. They charge fees. Some give small amounts of interest. But when you wake up the next day, your local bank will be there, your online exchange might not be.

This alone is NOT a reason as to bitcoin cannot succeed.

You make it seem bitcoin is only for investors. Its not. Fiat is not only for investors. Its an exchange tool. Its worth something and can be exchanged for goods. I love buying things with my bitcoins, especially what I've mined.

You better not let anybody know you mine bitcoins then. If bitcoins reach a million a piece there will be people looking to kidnap you. I am not trying to make you afraid, just aware of human nature.

[chaoman]

Strange logic, should world banks all close because they have billions of customer dollar? 

No because the banks are already robbing us blind.

[NiceSoft12]

OP mentioned Circle. Isn't Circle insured? So if you lose your BTC's with them you are guaranteed to get it back up to $100,000 or something?

[chaoman]

OP mentioned Circle. Isn't Circle insured? So if you lose your BTC's with them you are guaranteed to get it back up to $100,000 or something?

I'm saying Circle would just run off with all the btc they had if the price exploded.

[ebliever]

OP mentioned Circle. Isn't Circle insured? So if you lose your BTC's with them you are guaranteed to get it back up to $100,000 or something?

I'm saying Circle would just run off with all the btc they had if the price exploded.

By your logic today's large banks should just run off with everyone's fiat funds, the bankers disappearing to some small Caribbean island or something after some plastic surgery. There is more profit to be made simply staying in business (especially if bitcoin grows so greatly), than in a one-off crime. Not to mention the risk  (given the permanence of blockchain records, absolutely untraceable mixing of huge quantities would be a challenge) that they will eventually be tracked down and caught.

[Jordan23]

If Bitcoin hit $1 million very few people would have 1 whole Bitcoin.

[chaoman]

OP mentioned Circle. Isn't Circle insured? So if you lose your BTC's with them you are guaranteed to get it back up to $100,000 or something?

I'm saying Circle would just run off with all the btc they had if the price exploded.

By your logic today's large banks should just run off with everyone's fiat funds, the bankers disappearing to some small Caribbean island or something after some plastic surgery. There is more profit to be made simply staying in business (especially if bitcoin grows so greatly), than in a one-off crime. Not to mention the risk  (given the permanence of blockchain records, absolutely untraceable mixing of huge quantities would be a challenge) that they will eventually be tracked down and caught.

no just convert it all to dark coin then back to btc.

[MilesJohan]

That's not the problem with btc but everything
People always steal , no matter what it is

Thats because people let them steal. Look  at the ponzi threads for example.

[ebliever]

OP mentioned Circle. Isn't Circle insured? So if you lose your BTC's with them you are guaranteed to get it back up to $100,000 or something?

I'm saying Circle would just run off with all the btc they had if the price exploded.

By your logic today's large banks should just run off with everyone's fiat funds, the bankers disappearing to some small Caribbean island or something after some plastic surgery. There is more profit to be made simply staying in business (especially if bitcoin grows so greatly), than in a one-off crime. Not to mention the risk  (given the permanence of blockchain records, absolutely untraceable mixing of huge quantities would be a challenge) that they will eventually be tracked down and caught.

no just convert it all to dark coin then back to btc.

Nonsense. Look at the market cap of Darkcoin compared to BTC, much less if BTC market cap explodes. Trying to launder it that way would would just leave a trail anyone could follow in the end.  And they'd need to use exchanges to make the BTC/altcoin trades; it is in the self-interest of the exchanges to fully cooperate with authorities to snag such a criminal so that the value of their cryptocurrencies is upheld. They all go out of business if BTC fails as you suggest. So the criminals in your scenario would have a LOT of enemies, people wanting to track them down, people pretending to cooperate or do business with them only so they could turn them in. The only thing they could do is sit on their precious bitcoin stash untouched while their conscience and regret eat them alive.

The bottom line is your logic is flawed. It presumes that people will never resist temptation, and treats self-respecting business people the same as the two-bit scammers who found opportunities in the first phases of bitcoin development. It ignores the ongoing shift towards professional businesses dominating the bitcoin ecosystem. You will never see another sort like Mark Karpeles having such an outsized level of control on people's bitcoins.

[chaoman]

OP mentioned Circle. Isn't Circle insured? So if you lose your BTC's with them you are guaranteed to get it back up to $100,000 or something?

I'm saying Circle would just run off with all the btc they had if the price exploded.

By your logic today's large banks should just run off with everyone's fiat funds, the bankers disappearing to some small Caribbean island or something after some plastic surgery. There is more profit to be made simply staying in business (especially if bitcoin grows so greatly), than in a one-off crime. Not to mention the risk  (given the permanence of blockchain records, absolutely untraceable mixing of huge quantities would be a challenge) that they will eventually be tracked down and caught.

no just convert it all to dark coin then back to btc.

Nonsense. Look at the market cap of Darkcoin compared to BTC, much less if BTC market cap explodes. Trying to launder it that way would would just leave a trail anyone could follow in the end.  And they'd need to use exchanges to make the BTC/altcoin trades; it is in the self-interest of the exchanges to fully cooperate with authorities to snag such a criminal so that the value of their cryptocurrencies is upheld. They all go out of business if BTC fails as you suggest. So the criminals in your scenario would have a LOT of enemies, people wanting to track them down, people pretending to cooperate or do business with them only so they could turn them in. The only thing they could do is sit on their precious bitcoin stash untouched while their conscience and regret eat them alive.

The bottom line is your logic is flawed. It presumes that people will never resist temptation, and treats self-respecting business people the same as the two-bit scammers who found opportunities in the first phases of bitcoin development. It ignores the ongoing shift towards professional businesses dominating the bitcoin ecosystem. You will never see another sort like Mark Karpeles having such an outsized level of control on people's bitcoins.

It is in the self interests of the exchanges to take all the coins and disappear. History repeats itself.

[galbros]

It is all about what they think the value of being honest is versus the value of Running Away With the Coins^TM.

A rise in bitcoin price will not make them more likely to do this because the commissions they get will be increasing in value too.  So I don't think you can expect just a rise to the "Moon" to end the bitcoin ecosystem.

There are also trust innovations, not to mention the possibility of regulation, all the time.

[LordSonjai]

Are you fucking kidding me?
You say bitcoin will not succeed because people steal?
Get the fuck out of here.

[Monnt]

btw, his username is funny, Chao ching chong!

Hey can i call you Chao chairman? you better not related to that piece of shit.

Lol. The OP is probably really pissed by now. So many people disagreeing with him 

[vvv8]

Threads like these are the reason I don't read these boards that much anymore


soo many misinformed and uneducated people, reading threads like these gives a me a sort of nasty brain freeze that ends up in a migraine


The price us learned people must pay for bitcoin to become mainstream 

[LordSonjai]

btw, his username is funny, Chao ching chong!

Hey can i call you Chao chairman? you better not related to that piece of shit.

you mean chairmen mao?

[LRENZ]

Threads like these are the reason I don't read these boards that much anymore


soo many misinformed and uneducated people, reading threads like these gives a me a sort of nasty brain freeze that ends up in a migraine


The price us learned people must pay for bitcoin to become mainstream 

Too right. This place has turned into a complete shit hole full of trolls and noobs, not a good combination. Compare it with bitshares forum, they working on their decentralized exchange.. Enough said, fuck this thread.

[koelen3]

That's not the problem with btc but everything
People always steal , no matter what it is

Thats because people let them steal. Look  at the ponzi threads for example.

Yep! it's like people are saying.
Man! i got too much , let's go invest in a ponzi or cloud mining or may be do a deal w/o Escrow or no i shall better leave my coins in an exchange