Author Topic: Making Heads or Tails of Bitcoin  (Read 6604 times)

MoneyBags

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Making Heads or Tails of Bitcoin
« on: April 18, 2013, 11:45:18 PM »
The digital currency revolution is here -- maybe. The seemingly overnight rise of bitcoin has spread across the Internet faster than the Harlem Shake or videos of cats playing the piano. Unlike these fleeting Internet memes, bitcoin may herald a new era in currency exchange, though some may wonder if it is just a scam.

Nobody knows for sure who created bitcoin. It consists of a digital string of numbers and letters earned by bitcoin "miners" in cyberspace on peer-to-peer servers. Its circulation is limited to 21 million units by way of open-source code; if circulation increases beyond 21 million, everyone will know. It isn't regulated and it isn't associated with any country. Some would say that is a problem, while others would argue that that is the point.

So, is bitcoin a scam? Possibly, but there is no unequivocal proof. And even if proof of a scam should emerge, it will already be too late for holders to get out. Does bitcoin have value? That's for the market to decide. Bitcoin is accepted as payment at some locations, therefore, it has value -- at least for now. Its future value, if any, is unknown.

Legit or not, bitcoin has several serious drawbacks to consider:

    That 21-million-unit hard limit on circulation may sound fine, but bitcoin can be hacked and its parameters changed. You'd know about it, but that knowledge wouldn't prevent a loss. Even if bitcoin circulation remains within its current parameters, the potential supply of virtual currency is unlimited.
        Its creator or creators may decide they no longer wish to adhere to previously stated policies. They are bound by no law or regulation. Either way, you'd be out of luck.
        Bitcoin's biggest problem could be competition: If the concept proves successful, an unlimited number of knockoffs could appear. There is already a competing virtual currency called Ripple.

Though bitcoin is considered a joke by some, what it represents is not. It's a radical attempt at control in what is increasingly an out-of-control economic world. We accept the idea of central banks dumping billions into world economies on a daily basis; is that not a radical concept as well? For centuries, a virtual currency has been a response to economic policies that rendered real currencies valueless. This is just a partial list of currencies that abruptly lost their value:

    Bolivian peso, 1985
        Nicaraguan cordoba, 1987
        Yugoslavian dinar, 1992
        Russian ruble, 1992
        Bosnian dinar, 1993
        Brazilian cruzeiro, 1994
        Zimbabwe dollar, 2008

It's doubtful that any of these countries intentionally wrecked their own currencies; just as liquidity can be added, it can also be withdrawn. Obviously, this is not as easy as it sounds, as has been proven by so many currency failures.

Can bitcoin even be considered a currency? That's debatable, but many of the reasons given why bitcoin is not a currency are actually invalid. First, let's blow up a few currency myths.
« Last Edit: January 01, 1970, 01:00:00 AM by Guest »

mayrick

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Re: Making Heads or Tails of Bitcoin
« Reply #1 on: May 03, 2013, 12:22:50 PM »
Quote from: "MoneyBags"
The digital currency revolution is here -- maybe. The seemingly overnight rise of bitcoin has spread across the Internet faster than the Harlem Shake or videos of cats playing the piano. Unlike these fleeting Internet memes, bitcoin may herald a new era in currency exchange, though some may wonder if it is just a scam.

Nobody knows for sure who created bitcoin. It consists of a digital string of numbers and letters earned by bitcoin "miners" in cyberspace on peer-to-peer servers. Its circulation is limited to 21 million units by way of open-source code; if circulation increases beyond 21 million, everyone will know. It isn't regulated and it isn't associated with any country. Some would say that is a problem, while others would argue that that is the point.

So, is bitcoin a scam? Possibly, but there is no unequivocal proof. And even if proof of a scam should emerge, it will already be too late for holders to get out. Does bitcoin have value? That's for the market to decide. Bitcoin is accepted as payment at some locations, therefore, it has value -- at least for now. Its future value, if any, is unknown.

Legit or not, bitcoin has several serious drawbacks to consider:

    That 21-million-unit hard limit on circulation may sound fine, but bitcoin can be hacked and its parameters changed. You'd know about it, but that knowledge wouldn't prevent a loss. Even if bitcoin circulation remains within its current parameters, the potential supply of virtual currency is unlimited.
        Its creator or creators may decide they no longer wish to adhere to previously stated policies. They are bound by no law or regulation. Either way, you'd be out of luck.
        Bitcoin's biggest problem could be competition: If the concept proves successful, an unlimited number of knockoffs could appear. There is already a competing virtual currency called Ripple.

Though bitcoin is considered a joke by some, what it represents is not. It's a radical attempt at control in what is increasingly an out-of-control economic world. We accept the idea of central banks dumping billions into world economies on a daily basis; is that not a radical concept as well? For centuries, a virtual currency has been a response to economic policies that rendered real currencies valueless. This is just a partial list of currencies that abruptly lost their value:

    Bolivian peso, 1985
        Nicaraguan cordoba, 1987
        Yugoslavian dinar, 1992
        Russian ruble, 1992
        Bosnian dinar, 1993
        Brazilian cruzeiro, 1994
        Zimbabwe dollar, 2008

It's doubtful that any of these countries intentionally wrecked their own currencies; just as liquidity can be added, it can also be withdrawn. Obviously, this is not as easy as it sounds, as has been proven by so many currency failures.

Can bitcoin even be considered a currency? That's debatable, but many of the reasons given why bitcoin is not a currency are actually invalid. First, let's blow up a few currency myths.
Hi  MoneyBags,
Dans le premier cas, lorsqu'un bien est obtenu en échange de Bitcoins, les règles fiscales et comptables relatives au troc s'appliquent. Le gouvernement canadien estime que la monnaie virtuelle est une "chose" donnée en échange d'une autre, et qu'il s'agit donc d'une double transaction où chacun est censé déclarer la valeur des biens échangés, et payer les taxes correspondantes.
« Last Edit: January 01, 1970, 01:00:00 AM by Guest »

queshadesta

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Re: Making Heads or Tails of Bitcoin
« Reply #2 on: May 04, 2013, 07:52:39 PM »
Do not rely on street kiosks in another country to give you a completely accurate nor fair exchange rate.
« Last Edit: January 01, 1970, 01:00:00 AM by Guest »

andyreynolds

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Re: Making Heads or Tails of Bitcoin
« Reply #3 on: August 29, 2013, 03:26:08 PM »
All revolutionary things, at the begining causes uncertainty and is why produce afraid, I think we should give a little more time for swiftcoin and bitcoin become stable globally currency accepted

andyreynolds

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Re: Making Heads or Tails of Bitcoin
« Reply #4 on: September 03, 2013, 04:43:52 PM »
Actually in a lot of comments, the people show a lot of comfort with swiftcoin and bitcoin platforms... its really secure

andyreynolds

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Re: Making Heads or Tails of Bitcoin
« Reply #5 on: September 04, 2013, 09:30:57 PM »
In videos and other forums poeple are glad with all of comfort that offers swiftcoin platform and their digital currency

andyreynolds

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Re: Making Heads or Tails of Bitcoin
« Reply #6 on: September 05, 2013, 05:39:30 PM »
Well I think more and more people will be attent and pleasured with this ecurrency platform that offer FNIB throughout swifcoin

andyreynolds

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Re: Making Heads or Tails of Bitcoin
« Reply #7 on: September 10, 2013, 01:21:25 AM »
Yes everyday there are people interested and exciting to invest and point for ecurrency like bitcoin, because is the currency o the future

mayrick

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Re: Making Heads or Tails of Bitcoin
« Reply #8 on: September 19, 2013, 05:03:15 AM »
People don’t really trust Bitcoin, and that’s understandable but I think this is a innovating way of trade and traders should try it, but I really like the way to work of Swiftcoin.

mayrick

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Re: Making Heads or Tails of Bitcoin
« Reply #9 on: September 28, 2013, 03:08:46 AM »
I really recommend Swiftcoin since it's protected by the FNIB it brings a lot of security. 8)