Bitcoin: What do you think?

[dave1949]

Bitcoin: It

I've heard of Bitcoin and see occasional references to it, but really know nothing about it.

I'm curious as to what folks think about Bitcoin. Anyone use it, or is that not supposed to be asked?

Do you think it has a big or small future in specific types of transactions?

 

[smstonypoint]

Dave,

I know how much you appreciate economics and economists (), so here are two links for your reading pleasure: Whatç—´ a Bitcoin Worth? (Wonkish) at Steven Landsburg | The Big Questions: Tackling the Problems of Philosophy with Ideas from Mathematics, Economics, and Physics and Robert P. Murphy, The Economics of Bitcoin | Library of Economics and Liberty.

The discussion takes us to the realm of macroeconomics. I am a microeconomist and so I am wrong about specific things -- macroeconomists are wrong about things in general.

Steve

 

[rekees4300]

I'm curious as to what folks think about Bitcoin.

I think it's a scam.

 

[grsthegreat]

im staying as far away from that crap as i can get.

 

[Tomtint]

The gubment sees it as a threat to the debt system that is in place now. This alone should tell you something. I see it as more of a barter system, the gubment also does not like this thought process. If ,ore and more people start taking and exchanging them as means of paying for goods... It could turn the irs on its head

 

[dave1949]

Dave,

I know how much you appreciate economics and economists (), so here are two links for your reading pleasure: Whatç—´ a Bitcoin Worth? (Wonkish) at Steven Landsburg | The Big Questions: Tackling the Problems of Philosophy with Ideas from Mathematics, Economics, and Physics and Robert P. Murphy, The Economics of Bitcoin | Library of Economics and Liberty.

The discussion takes us to the realm of macroeconomics. I am a microeconomist and so I am wrong about specific things -- macroeconomists are wrong about things in general.

Steve

You took umbrage at my suggestion for a Siberian vacation? :laughing:

The Robert P. Murphy article was very helpful. Thanks for that reference.

 

[MikeFarm]

Hi all

First off bitcoin is not a scam but like all monetary systems scammers will get in on the act. Aleady some have lost money when they deposited their bitcoins into an "online bank" and the so called banker vanished. Bitcoin is actually brillian in design from a mathematical aspect - but no one knows who actually created it. That itself is very interesring. As a monetary system it's doing very well, it's now accepted by the Belgium Telecom, some big stores in the US, and Lamborghini even! Mnay online gamers and games accept it and there is a big trade in bitcoin transactions and mining. Enough that banks and Govts that poo-hooed it just a year ago and now chaning their ideas. Bit coins are appreciating in value but with the expected ups and downs and sometimes big fluctualtions. As a device to hold and exchange value it works and there will be critisism and FUD from established banks and the Govt as they cant easily control it. It's a new monetary system, early adopters are risk takers, unless you understand it it's not an investment, it is here to stay and banks and govts will have to adapt.

Mike

 

[smstonypoint]

You took umbrage at my suggestion for a Siberian vacation? :laughing:

The Robert P. Murphy article was very helpful. Thanks for that reference.

Dave,

Steve Landsburg did admit that his blog entry was "Wonkish." He is a true polymath.

Steve

 

[riptides]

I think it's the future, or something like it. A true global currency that an individual can use, globally, locally.

 

[Tomtint]

I think it's the future, or something like it. A true global currency that an individual can use, globally, locally.

Will never happen, To many gubments would loose control over their disciples

 

[DFB]

There is a local currency experiment been going on around here for a while now....

BerkShares: Local Currency for the Berkshire Region

 

[grsthegreat]

Will never happen, To many gubments would loose control over their disciples

that, and too many normal people dont trust anything that relies on a computer to keep track of.....think Target.

Ill keep my $$ in safe and banks thank you.

 

[dave1949]

Dave,

Steve Landsburg did admit that his blog entry was "Wonkish." He is a true polymath.

Steve

I read that blog and the first 20 or so comments. I could see what he is struggling with a bit. Multiple variable problems can have multiple solutions I guess?? is what it boils down to. Twenty-some years ago I took an Operations Research course as part of my grad degree program. It is a fascinating area of study, really. The prof was an Air Force pilot who flew high-priority parts to various US air bases around Europe. As I recall, some of our example exercises addressed the optimal loading of aircraft cargo. :laughing:

The other article was more helpful as to what Bitcoin is about in general terms.

 

[riptides]

Oh my friends, the Fed is interested. Let us not confuse them with the Government.

http://www.chicagofed.org/digital_a...icago_fed_letter/2013/cfldecember2013_317.pdf

As BitCoin Touches $400 The Senate Starts Seeking Answers... As Does The Fed | Zero Hedge

 

[/pine]

one word:

flooz (.com)

 

[MossRoad]

If you bought any around December 1st and held them, you have lost about 1/3 of your investment.

 

[sld]

One world currency is inevitable at some point.

 

[joshuabardwell]

First off bitcoin is not a scam but like all monetary systems scammers will get in on the act.

We don't know that it isn't a scam. The currency is inherently deflationary, which means it tends to favor those who got in early. Nobody knows who Satoshi (the inventor) is/are. I don't know enough about Bitcoin to know what kind of scammish things might be hidden in its algorithms, but I don't think it's impossible that they're there. At the very least, one could argue that the "scam" is that it's inherently a pyramid-like scheme, where those who got in early (before deflation hits) get rich, and those who come late are likely to lose money.

 

[MikeFarm]

Hi

> We don't know that it isn't a scam. The currency is inherently deflationary,
> which means it tends to favor those who got in early.

Yes it favours those who get in early but why is it deflationary? The number of bitcoins are limited (by the algorithm) and it gets harder and harder to calculate subsequent bitcoins (thats part of the neat algorithm too). Hence it inherently will maintain it's value due to scarcity - there are a limited number that can be found. Monetary theory would predict that it will in the *long term* appreciate in value.

Mike

 

[brin]

Hi

> We don't know that it isn't a scam. The currency is inherently deflationary,
> which means it tends to favor those who got in early.

Yes it favours those who get in early but why is it deflationary? The number of bitcoins are limited (by the algorithm) and it gets harder and harder to calculate subsequent bitcoins (thats part of the neat algorithm too). Hence it inherently will maintain it's value due to scarcity - there are a limited number that can be found. Monetary theory would predict that it will in the *long term* appreciate in value.

Mike

Mike...Do you not think hackers will figure out how to hack into the program and create their own stash of bitcoins...? They may have already done so...since no one really knows how many bitcoins there are...what is the total amount of bitcoin in circulation and how do they know...can they prove it....Just my opinion, but too many....way too many ifs here....and just imagine a solar flare, EMP attack or other event that crashes cyber space for a very long time ....or a century or so....?????