Bitcoin versus other monies.

[Sparko]

The problem with digital transfer is not the storage (well, that's a problem, too), but the transfer itself. Some of the cases involve transfers that are spoofed: the receiving computer actually received the bitcoins, but send an invalid code to the exchange that the transfer failed. The exchange then sends a second bitcoin in place of the "failed" transfer. That's likely part of what happened at MtGox.

If ANY point in the chain is unsecure, the entire chain is compromised.

That is why the Sparko Bacoin is fool-proof! It is meant to be stolen! And if you are caught with them you can always eat the evidence.

[Truthseeker]

The problem with digital transfer is not the storage (well, that's a problem, too), but the transfer itself. Some of the cases involve transfers that are spoofed: the receiving computer actually received the bitcoins, but send an invalid code to the exchange that the transfer failed. The exchange then sends a second bitcoin in place of the "failed" transfer. That's likely part of what happened at MtGox.

If ANY point in the chain is unsecure, the entire chain is compromised.

It is not a chain. It is a network. And the network should record that any receiver only got N coins, not N+p. To be sure, I don't know what would happen should someone attempt to spend "excess" bitcoin.

[Truthseeker]

More trouble for Bitcoin. Warren Buffett. "Not a currency," he says. It'd be gone in 15-20 years. Why such a

definite number of years, I do not know. If it was going to fail, why would it take so long? AFAIK, businesses

accepting bitcoins are growing in number "daily." Exponential growth? Also consider that Overstock.com's policy

is to immediately trade bitcoins that it gets for dollars. That puts downward pressure on the dollar-

exchange value of Bitcoin. So, it's quite something for that to be still so high.


Also consider that banks have repeatedly failed us, their customers. Privacy breaches, huge overhead costs,

failing to return deposits on demand promptly.


Very, very interesing that Paul Krugman thinks Bitcoin is evil. Why would Buffett and Krugman hate it? Could it be that, like gold, universal adoption of Bitcoin would kill inflation?


An article pointed out that it took Buffett's company, Berkshire Hathaway, to rise 447% since March 13, 2000. Gold and Bitcoin did better, however over a shorter span of time. The article speculated that is a reason why he hates both.

[Sparko]

I agree it is not a currency. It is more like shares of a stock being traded around.

[Truthseeker]

I agree it is not a currency. It is more like shares of a stock being traded around.

I fail to understand. First, I doubt I know what you mean by "currency" given that bitcoin traffic is heavy everyday now. 2) Possibly you know a stock is fractional ownership of a business. Pray tell us of what business is a bitcoin a share.

[Truthseeker]

I was surprised to read a report published November 22 http://sinosphere.blogs.nytimes.com/...-central-bank/

[Truthseeker]

CNN Money ran an article on a Bitcoin company, Bitpay, which provides services similar to credit card services. In 2012, less than 3 years ago, Bitpay serviced ~1,000 businesses. Today, 26,000 bizzes. 2600% rise. Gr-r-rise!

[Truthseeker]

New IRS rules, some people are wailing, virtually make spending bitcoins a nightmare. But surely one can make an app that can record Bitcoin exchange values versus time and keep records. http://money.cnn.com/2014/03/31/tech...oin/index.html
I'll report others' reaction by and by, perhaps next week.

[Sparko]

like I said earlier, bitcoins are more like shares of stock than anything else. It looks like the government is agreeing with that.

[Truthseeker]

The article said that the government declared Bitcoins to be property, not currency. But money IS property; the government is using an arbitrary definition for its own ends, somewhat like a corrupt judge using jesuitical casuistry toward his judgment. Do you approve of the Dred Scott decision?

Inconsistent treatment of barter transactions that is in a way self-refuting. The IRS requires that in every barter transaction each good that is traded in that transaction be "fair-market" valued. But that implies free markets, hence no government involvement in the economy! Any questions?

[Raphael]

http://www.theregister.co.uk/2014/04...dering_charge/

The lawyer for the chap who is supposedly the mastermind behind the Silk Road, is arguing that bitcoins aren't money and therefore his client's bitcoins should be returned to him.

[Sparko]

http://www.theregister.co.uk/2014/04...dering_charge/

The lawyer for the chap who is supposedly the mastermind behind the Silk Road, is arguing that bitcoins aren't money and therefore his client's bitcoins should be returned to him.

IRS, foot meet mouth.

[Sparko]

[Truthseeker]

Can't eat bitcoins. Can't use bitcoins to build anything. Can't breathe bitcoins. Can't drink 'em. Yet they are being used in trades daily. People ARE using bitcoins as money.
But I'm not arguing with that lawyer's efforts to get the confiscated bitcoins back for his client, using the government's own declaration that bitcoins are not money.

[Sparko]

Can't eat bitcoins. Can't use bitcoins to build anything. Can't breathe bitcoins. Can't drink 'em. Yet they are being used in trades daily. People ARE using bitcoins as money.
But I'm not arguing with that lawyer's efforts to get the confiscated bitcoins back for his client, using the government's own declaration that bitcoins are not money.

Same can be said of shares of stock. Yet they are not money, even though they can be used to barter with.