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Do any of you use bitcoin?

coinrollhuntercoinrollhunter Posts: 280
in Precious Metals
Or is it too volatile/dangerous to be used as a currency? It has plenty of security risks-like when bitcoins are stolen online...think Mt. Gox. And what "backs it up"? What government stands behind it to declare its value by fiat? Do you see bitcoin being a major player in the payment system industry in the future?

Comments

  • bronco2078bronco2078 Posts: 10,225 ✭✭✭✭✭


    I don't like the idea that the chain of owners for every bitcoin is readable. to me its like paper money without the advantage of being anonymous . I'll stick with the paper
  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭
    Paper money is readable in quantity. How do drug dealers get their hands on millions in Bens?
    theknowitalltroll;
  • bronco2078bronco2078 Posts: 10,225 ✭✭✭✭✭


    << <i>Paper money is readable in quantity. How do drug dealers get their hands on millions in Bens? >>




    from the friendly folks at HSBC
  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭
    So would this be the result of the accumulation over time of small amounts at the street level or do their distributors maintain large piles of cash? Or is it "working capital" that never gets deposited/laundered?
    theknowitalltroll;
  • bronco2078bronco2078 Posts: 10,225 ✭✭✭✭✭


    << <i>So would this be the result of the accumulation over time of small amounts at the street level or do their distributors maintain large piles of cash? Or is it "working capital" that never gets deposited/laundered? >>





    That's peanuts , its only 2.7 days of the Fed's QE program at its peakimage
  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    digital currency similar to bitcoin will have it's role, but not until it becomes a product of respected banks (if you can find one). Major banks are currenly exploring this field.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • element159element159 Posts: 512 ✭✭✭


    << <i>I don't like the idea that the chain of owners for every bitcoin is readable. to me its like paper money without the advantage of being anonymous . I'll stick with the paper >>


    It is good you realize this! Sometimes people act like bitcoin is anonymous, but in truth, every transaction in the world is recorded for everyone to see forever. It wouldn't even work without that!

    I think it is also true, but not generally mentioned, that until somebody 'mines' your transaction, it hasn't really cleared. So you maybe can't really spend them at will.

    It is a very interesting exercise in computer science, but I wouldn't treat it as money.
  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    Recent Government Accountability Office report on virtual currencies

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

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