by Jim_TX 48 Replies latest social current
happy to answer any specific questions as factually as possible based on what I know as of today.
What's not clear <to you> with BitCoin is exactly what problems it's trying to solve and how specifically it will solve them
If you need certainty then wait for the shrink-wrapped software bundle in Walmart :-)
What problem did the Internet solve in 1990?
I am also bearish on Bitcoin. Spent lots of time on Bitcointalk to get a better grasp of what is going on (I am tech savvy) and to see how I can get involved. I like the concept, the idea and think that everything has gone digital (music, documents, photos, etc.) so currency is a logical step.
I just don't like two things:
- Need of electricity / being online: it will be difficult to bring this to poor rural areas in developing countries (I know, some people are working even on this) but it means more dependence on technology for something so important as trade.
- Not being anonymous (I had multiple discussions on that forum with experts and the truth is that all your transactions could be traced back to you - even the smart folks at Silkroad eventually made that mistake. This is a governments wet dream come true.)
I LOVE CASH! Nothing is more anonymous than dropping a bill on the counter and leaving. That is why governments really hate cash and in some countries there is very little cash moving around.
Just my opinion. Doesn't mean you shouldn't play around or try your luck with this.
If you need certainty then wait for the shrink-wrapped software bundle in Walmart :-)
"Ouch", LOL
What problem did the Internet solve in 1990?
Instant and free communication (Email) and global community (usenet). The free and available access to information and ability for anyone to publish information globally and instantly was starting around that time too (world wide web). All things that couldn't be done before - put in the hands of citizens. It was revolutionary and liberating and later on lucrative too - no wonder BTC wants to claim to be like it.
Bitcoin basically allows the trasfer of money between two parties. I think that's been done already.
The only real change is that a new group have figured out a way for them to be the middle-men.
The notion that there are no middle-men is just part of the hype. There are always middle-men.
just signed up for a circle.com account - very slick...also check out xapo.com as an alternative...
I have rigs running 24/7.
I mine scrypt and bit c directly.
Anyone that says contary to alt coins has no experience... where these things wil end up whom knows. but i have nothing in there that i cannot afford to loose. you have to view it like gambling poker... if you cannot afford to loose it then dont play the game.
With the price seemingly on a steep decline, how do the ecomonics of mining still work out?
I read an article saying that the increased mining power may be the reason that the price is dropping as miners convert the minted coins into cash. There was also the fraud of the mining machine maker who used the new machines to mine themselves and then delivered them to people who had paid and were waiting for them once they were effectively near useless and past the price / performance ratio required.
The other thing that seems strange to me - most of the companies offering services and hyping up bitcoin actually don't want bitcoin themselves, they seem to want to sell bitcoin to you in exchange for your fiat currency. For all the pro-bitcoin / anti-fiat rhetoric they seem pretty keen to get *real* money. If people really though a bitcoin was going to be $10m one day (ha, that seems laughable right now!) then surely no one would ever let go of them? Which then means they will be valueless as they couldn't be used for currency - is this the problem? Everyone wants everyone else to spend theirs so that their own appeciates in value?
Is it all a "bitcon"? One article I read said it could be the gratest ponzi scheme of all time. I guess only time will tell *
Right now though there seems to be so much uncertainty and some of the proponents sound like cult members - whatever happes to the price it's touted as being great news and proof of success.
So, I guess I'm still a sceptic for now.
* this isn't to say there aren't many people who are above board and legitimate
just for you Simon:
Thanks besty, I'll check it out :)
With the price seemingly on a steep decline, how do the ecomonics of mining still work out?
I read an article saying that the increased mining power may be the reason that the price is dropping as miners convert the minted coins into cash
I think a lot of miners would find it uneconomical below $250 fiat at current difficulty. It would be interesting if the exchange rate to USD drops below that general range. Miners have various cost inputs - the capital cost and electrical efficiency (hash/w) of mining rigs, the cost of electricity, staff and space costs etc. Of course 'the short-term price' of Bitcoin is where a lot of media attention goes, but the bigger picture is the long-term value of blockchain technology.
There was also the fraud of the mining machine maker who used the new machines to mine themselves and then delivered them to people who had paid and were waiting for them once they were effectively near useless and past the price / performance ratio required.
Yep Butterfly Labs take a bow. Bad actors in the BTC space will be dealt with by traditional law enforcement.
The other thing that seems strange to me - most of the companies offering services and hyping up bitcoin actually don't want bitcoin themselves, they seem to want to sell bitcoin to you in exchange for your fiat currency. For all the pro-bitcoin / anti-fiat rhetoric they seem pretty keen to get *real* money. If people really though a bitcoin was going to be $10m one day (ha, that seems laughable right now!) then surely no one would ever let go of them? Which then means they will be valueless as they couldn't be used for currency - is this the problem? Everyone wants everyone else to spend theirs so that their own appeciates in value?
It would be a hard sell to ask for Bitcoin in exchange for...erm...Bitcoin :-) that would be kind of pointless?
In the case of services related to Bitcoin I agree that any company in this space should be accepting Bitcoin as payment, and if they don't then perhaps you need to ask them why not.
So, I guess I'm still a sceptic for now.
That's the only rational position to take until you see enough evidence to change your mind, which I'm sure you will over the next few years as the dust settles.
I'll leave you with this little gem from Steve Jobs, 1985:
PLAYBOY: Those are arguments for computers in business and in schools, but what about the home?
JOBS: So far, that’s more of a conceptual market than a real market. The primary reasons to buy a computer for your home now are that you want to do some business work at home or you want to run educational software for yourself or your children. If you can’t justify buying a computer for one of those two reasons, the only other possible reason is that you just want to be computer literate. You know there’s something going on, you don’t exactly know what it is, so you want to learn. This will change: Computers will be essential in most homes.
PLAYBOY: What will change?
JOBS: The most compelling reason for most people to buy a computer for the home will be to link it into a nationwide communications network. We’re just in the beginning stages of what will be a truly remarkable breakthrough for most people—as remarkable as the telephone
