General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThere's a Paradigm Shift Happening Right Under Your Nose
No central authority.
Non-inflationary.
No merchant fees.
Private.
You own it.
IBM is examining the cryptocurrency's inner workings in an attempt to build a new form of international payment system. The idea behind the scheme is to get people to swap cash without having to use a bank or wire service. Instead, users would use a bitcoin-style system to transmit money anywhere in the world without having to use a third party that charges service fees.
http://www.engadget.com/2015/03/13/ibm-blockchain-payments-system/
A shadowy company called 21 Inc. announced that it has raised $116 million for bitcoin-related operations, according to a new report. That figure is apparently the largest ever sum for a digital currency start-up, The Wall Street Journal reported, explaining that the company "isn't yet publicizing ... the precise nature of its operations."
The business will involve software and hardware designed "to drive mainstream adoption of bitcoin," 21 co-founder and Chief Executive Matthew Pauker told the Journal. Major investors in the company include Andreessen Horowitz, Chinese private equity firm Yuan Capital and Qualcomm's venture-capital unit, according to the Journal. The publication quotes Pauker as hinting that the chipmaker's strategic stake could lead to developing consumer products that use so-called blockchain technology.
http://www.cnbc.com/id/102493458
Our media is very good at distracting the general public with scare stories - which ironically, have no effect on our lives, except to cause never-ending anxiety. They will continue to pronounce bitcoin dead; they will focus on the illicit purchases and the criminal element. This gives smart money time to invest so they can profit off the masses later. Meanwhile IBM and Qualcomm are already using the technology; there are two Bitcoin ETF's in the works - one which is already listed on Fidelity's website. Similar to the first Gold ETF, this allows anyone to purchase bitcoins through the stock exchange. Those who were first to invest in that ETF made out like bandits.
Decentralized Digital Currency. Taking the power of currency from the banks and Wall Street - and giving it to the people. This is Huge. But that wall of fear the media builds is high and wide - so you might have to turn off the 'news' if you want to keep up with the news.
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sendero
(28,552 posts).... to figure out just what the implications of this are. If a company raises $116 million, they are expected to make a profit from it. How they do that without charging fees and etc seems a bit questionable. There are other puzzling things going on such as folks wanting to create derivatives of Bitcoin, a fabulously bad idea IMHO.
I've always been skeptical of Bitcoin and the multiple fraudulent exchange incidents haven't helped any. The huge volatility in Bitcoin value hasn't helped either.
I'm still a wait and see kinda guy on Bitcoin.
Yo_Mama_Been_Loggin
(107,711 posts)The preferred currency of those who'll infect your computer with ransomware.
NightOwwl
(5,453 posts)
Yo_Mama_Been_Loggin
(107,711 posts)I had my computer infected by a bit of ransomware called CryptoWall 3.0. This encrypts your data using RSA-2048
http://deletemalware.blogspot.com/2015/01/how-to-remove-cryptowall-30-virus-and.html
What they demanded to decrypt the files was $500 in Bitcoin. The amount would be raised $1000 if I did not answer within a week.
Fortunately I backup my computer files once a week. It still took about three days to remove the virus from my computer.
NightOwwl
(5,453 posts)It's still the Wild West out there in bitcoinland - that's why the ETF is generating so much interest.
Personally, I wouldn't buy bitcoins now - prices are too volatile.
I'm excited by the technology and by the fact it removes ownership from the banks. This is just the tip of the iceberg, though. bitcoin gets all the press, but it's the technology that allows decentralized transactions to occur that really has potential.
NightOwwl
(5,453 posts)It's kinda cool, though, that we the people are basically setting the value. Personally, I'm waiting to see what happens with the ETF.
As more companies start accepting bitcoin (Dell is the latest), as the positive news starts overtaking the negative - it will settle down.
Purveyor
(29,876 posts)and are not comfortable converting $$ for Bitcoin.
upaloopa
(11,417 posts)change to bit coin? I'll let you younger people inherit the brave new world. I am happy to remain an old fud.
NightOwwl
(5,453 posts)But I understand your apprehension and I respect your view.
The buzz is not just about the currency - it's also about the technology underneath that allows transactions to occur between two people without a middleman.
upaloopa
(11,417 posts)bitcoin, just happy clappy yea something new! I'll wait until we all can know all there is to know about it.
NightOwwl
(5,453 posts)upaloopa
(11,417 posts)NightOwwl
(5,453 posts)Period.
upaloopa
(11,417 posts)NightOwwl
(5,453 posts)Bitcoin is digital money used for secure and instant transfer of value anywhere in the world. It is not controlled or issued by any bank or government - instead it is an open network which is managed by its users. Much in the way email improved communication by making it fast and cheap, bitcoin is an improvement on existing payment methods which were not designed for the internet era.
Is Bitcoin safe?
Bitcoin’s core protocol is viewable by anyone, has been vetted by thousands of security researchers around the world, and has proven to be robust and reliable after immense scrutiny. Using bitcoin is similar to using other private applications on the internet, such as email or online banking. Just like these other web services, you must access your bitcoin with a password in order to ensure only you have access to your money.
Is it tied to the value of the dollar?
The value of a bitcoin is not tied or pegged to the value of any other currency. Similar to stocks or property, bitcoin’s value is determined by buying and selling in the open market. A bitcoin’s price changes in real time based on the number of people who want to buy or sell it at a given moment.
Much more here...
https://www.coinbase.com/
https://bitcoin.org/en/
upaloopa
(11,417 posts)
pnwmom
(108,955 posts)NightOwwl
(5,453 posts)You can buy it through an ETF soon.
Educate yourself.
arcane1
(38,613 posts)NightOwwl
(5,453 posts)
Blue_Tires
(55,445 posts)Bitcoin value 13 MAR 2014: $630.72
Bitcoin value 13 MAR 2015: $288.80
Please, tell me more...
arcane1
(38,613 posts)Do I need to buy an iPhone just to be able to buy a subway ticket?
NightOwwl
(5,453 posts)I'm not suggesting you go out and buy bitcoins today.
Just stay informed, is all.
No more inflation, no more banks controlling money you own - because you are the owner. I can get behind that.
arcane1
(38,613 posts)NightOwwl
(5,453 posts)Under Dodd-Frank, depositors are an unsecured creditor to the bank. The federal government under “Orderly Liquidation Authority” outlined in the legislation can seize any financial firm, not simply the largest ones, if the Federal Reserve, the secretary of the Treasury and the FDIC determine a particular bank failure may cause instability in the U.S. financial system.
http://www.wnd.com/2013/10/yes-feds-can-take-your-deposits/
Does this cause me to lose sleep and worry? Nope. That's not what I'm focused on.
bitcoin is only one aspect of this technology. Blockchain, the engine underneath, is the what allows decentralized transactions - which could potentially be used for more than just currency. Like I said, it's all very new - so there is still uncertainty. That comes with the territory.
arcane1
(38,613 posts)Bradical79
(4,490 posts)randome
(34,845 posts)The answer appears to be "the honor system", which is a very Libertarian way of viewing the world. And a view that doesn't work unless your goal is to make government small enough to drown in a bathtub.
[hr][font color="blue"][center]Everything is a satellite to some other thing.[/center][/font][hr]
drm604
(16,230 posts)How do we fund government if all transactions are anonymous?
Worse, governments will lack sovereignty over their money supply. I know the libertarians see this as a plus, but I think they're mistaken.
NightOwwl
(5,453 posts)The venture capitalists who have been investing in Grayscale Investments at $19 a share will be able to turn around and sell at $24 - $28 the first day the ETF is traded.
alcibiades_mystery
(36,437 posts)Bitcoin is nothing but multi-level marketing applied to currency. There's a sucker born every minute, though, so I expect people will continue to get soaked.
randome
(34,845 posts)What do you have against "we, the people"? 
[hr][font color="blue"][center]Everything is a satellite to some other thing.[/center][/font][hr]
NightOwwl
(5,453 posts)Try the news.
Blue_Tires
(55,445 posts)NightOwwl
(5,453 posts)If all you want to focus on is the negative, that's all you are going to see.
Who wants control of their own currency, anyway! 
randome
(34,845 posts)No enforcement mechanism means the majority will 'secede' from taxation.
[hr][font color="blue"][center]No squirrels were harmed in the making of this post. Yet.[/center][/font][hr]
NightOwwl
(5,453 posts)randome
(34,845 posts)Going through banks means an electronic trail. Sending something through the Internet...well, I guess the IRS could monitor the entire Internet 24/7 but that's not very feasible.
In addition, since the IRS treats Bitcoin as property, not currency, it's a bummer for those who have losses they want to declare.
And if some sort of tracking/enforcement mechanism was put into place, Bitcoin would be exactly like our current monetary system which means there would be no point to promoting it in the first place.
There is no 'there' there.
[hr][font color="blue"][center]No squirrels were harmed in the making of this post. Yet.[/center][/font][hr]
NightOwwl
(5,453 posts)because I explained that the media will try to fill your head with exactly the propaganda you are repeating.
Here is a list of the some of the companies who accept bitcoin:
Amazon
Target
Ebay
Paypal
Dell
Sears
T-Mobile
Overstock.com
CVS
Gap
Dish Network
Subway
Home Depot
Kmart
Sears
Intuit
Victoria’s Secret
Namecheap
Virgin Galactic
Tesla
Expedia.com
Zappos
Whole Foods
Sacramento Kings
Bloomberg.com
alcibiades_mystery
(36,437 posts)For most, it is the "family and friends" of the sucker/mark, who will try to talk them out of success through a life-changing venture. For the Bitcoin pyramid scheme, it is the evil "news" or the "banks and Wall Street" etc.. It is a predictable pattern. As with most pyramid schemes, the suckers don't even know that they're suckers, remaining proselytizing true believers to the bitter end. Sad, but like I said, one born every minute.
NightOwwl
(5,453 posts)I am not suggesting people run out and buy bitcoins.
This is an emerging technology that will take control of currency from the centralized banking system and put it in the hands of the people. It is already happening, but it is in the early stages. I find it all incredibly exciting.
Stay informed. Don't rely on the usual media suspects to give you the full story. That's all.
alcibiades_mystery
(36,437 posts)I know a con (and a sucker) when I see one.
NightOwwl
(5,453 posts)Responding like an asshole to a polite post - because you feel threatened in some way - says a lot more about you than those 'cons' and 'suckers' you speak of.
Have a nice life.
WDIM
(1,662 posts)Its basically all digital money now with most of the worlds wealth exisiting only on computers. A billionaire doesnt actually have a billion dollars in the bank but a computer says he does it exist only in thought not in reality.
The digital money revolution will come as a way of tracking everything people do with money and at the same time give the 1% complete control over the money supply.
Response to WDIM (Reply #37)
NightOwwl This message was self-deleted by its author.
randome
(34,845 posts)Bitcoin is a Libertarian experiment that will go nowhere because it has neither of those.
[hr][font color="blue"][center]No squirrels were harmed in the making of this post. Yet.[/center][/font][hr]
NightOwwl
(5,453 posts)If that is too much responsibility for you - cash is always an option.
Understanding Bitcoin traceability
Bitcoin works with an unprecedented level of transparency that most people are not used to dealing with. All Bitcoin transactions are public, traceable, and permanently stored in the Bitcoin network. Bitcoin addresses are the only information used to define where bitcoins are allocated and where they are sent. These addresses are created privately by each user's wallets. However, once addresses are used, they become tainted by the history of all transactions they are involved with. Anyone can see the balance and all transactions of any address. Since users usually have to reveal their identity in order to receive services or goods, Bitcoin addresses cannot remain fully anonymous. For these reasons, Bitcoin addresses should only be used once and users must be careful not to disclose their addresses.
Use new addresses to receive payments
To protect your privacy, you should use a new Bitcoin address each time you receive a new payment. Additionally, you can use multiple wallets for different purposes. Doing so allows you to isolate each of your transactions in such a way that it is not possible to associate them all together. People who send you money cannot see what other Bitcoin addresses you own and what you do with them. This is probably the most important advice you should keep in mind.
Use change addresses when you send payments
Your IP address can be logged
Because the Bitcoin network is a peer-to-peer network, it is possible to listen for transactions' relays and log their IP addresses. Full node clients relay all users' transactions just like their own. This means that finding the source of any particular transaction can be difficult and any Bitcoin node can be mistaken as the source of a transaction when they are not. You might want to consider hiding your computer's IP address with a tool like Tor so that it cannot be logged
Be careful with public spaces
Unless your intention is to receive public donations or payments with full transparency, publishing a Bitcoin address on any public space such as a website or social network is not a good idea when it comes to privacy. If you choose to do so, always remember that if you move any funds with this address to one of your other addresses, they will be publicly tainted by the history of your public address. Additionally, you might also want to be careful not to publish information about your transactions and purchases that could allow someone to identify your Bitcoin addresses.
NightOwwl
(5,453 posts)The Bitcoin protocol itself cannot be modified without the cooperation of nearly all its users, who choose what software they use. Attempting to assign special rights to a local authority in the rules of the global Bitcoin network is not a practical possibility. Any rich organization could choose to invest in mining hardware to control half of the computing power of the network and become able to block or reverse recent transactions. However, there is no guarantee that they could retain this power since this requires to invest as much than all other miners in the world.
It is however possible to regulate the use of Bitcoin in a similar way to any other instrument. Just like the dollar, Bitcoin can be used for a wide variety of purposes, some of which can be considered legitimate or not as per each jurisdiction's laws. In this regard, Bitcoin is no different than any other tool or resource and can be subjected to different regulations in each country. Bitcoin use could also be made difficult by restrictive regulations, in which case it is hard to determine what percentage of users would keep using the technology. A government that chooses to ban Bitcoin would prevent domestic businesses and markets from developing, shifting innovation to other countries. The challenge for regulators, as always, is to develop efficient solutions while not impairing the growth of new emerging markets and businesses.
Who controls the Bitcoin network?
Nobody owns the Bitcoin network much like no one owns the technology behind email. Bitcoin is controlled by all Bitcoin users around the world. While developers are improving the software, they can't force a change in the Bitcoin protocol because all users are free to choose what software and version they use. In order to stay compatible with each other, all users need to use software complying with the same rules. Bitcoin can only work correctly with a complete consensus among all users. Therefore, all users and developers have a strong incentive to protect this consensus.
https://bitcoin.org/en/faq#who-controls-the-bitcoin-network
Will be interesting to see.
We definately need something that will break us from the current corrupt banking system we live under.
randome
(34,845 posts)What can be done with Bitcoin that can't be done with existing currency?
[hr][font color="blue"][center]No squirrels were harmed in the making of this post. Yet.[/center][/font][hr]
NightOwwl
(5,453 posts)It's all about decentralized distribution.
"Bitcoin is a token, a currency, but that's not all it is. That's the first of many many applications of this blockchain technology," said Jeff Garzik, one of five bitcoin core developers who have taken over maintenance of the technology from mysterious creator Satoshi Nakamoto. "[Currency] is not the killer app, it's just the first app."
http://www.cnbc.com/id/102178309
seveneyes
(4,631 posts)Is more substantial than bits of electrons.
KingCharlemagne
(7,908 posts)and conflates it with the term 'money.'
'Currency' is the physical representation of money, i.e., the bills and coins we carry in our wallets, purses and pockets. Wall Street has never had control of the 'power of currency,' and I'm pretty sure that, at least since the creation of the Fed and probably well before it, neither have 'the banks.' The U.S. Treasury Department had and retains the 'power of currency' and the government's Bureau of Engraving prints all the bills any of us carry. (Can't remember off-hand what agency is responsible for creating our coinage.)
'Money' is a more abstract concept -- unless one doesn't have enough 'currency' to pay the bills 
-- that in our system refers to banks' balance sheets and the loans they have created and carry. (Quick illustration: you borrow $1,000 from your bank to finance your vacation this year; the bank creates a ledger entry in your checking account that you have '$1,000' that you did not have before. The bank has 'created' money, but not currency! The Fed controls the 'money supply' through various instruments and tools, notably its discount rate and reserve requirements.
Judging by the confusion you manifest in your OP and at other places throughut this thread about fundamental concepts of economics (like 'inflation'), readers are advised to use several grains of salt when reading this thread.
