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Bitcoin Rises Over $500
Zero Hedge ^ | 17 November, 2013 | Tyler Durden

Posted on 11/17/2013 2:04:56 PM PST by Errant

One day before the Senate's digital currency hearing titled "Beyond Silk Road: Potential Risks, Threats, and Promises of Virtual Currencies", Bitcoin is largely oblivious to any potential regulatory threats, either at the legislative or the city level, where as reported previously the New York superintendent is in a rush to enforce BitLicenses on businesses that accept BitCoin, and moments ago crossed $500 for the first time ever. Instead, it appears that as we also reported previously, the Chinese Bitcoin craze has reached the parabolic threshold, going so far as making Bitcoin an acceptable payment for real estate, which means that while for the time being Bitcoin becomes the alternative inflation protection medium for hundreds of millions of Chinese, all bets on how high it can get are off.

(Excerpt) Read more at zerohedge.com ...


TOPICS:
KEYWORDS: bitcoin; china; crypto; dollar; europeanunion; gold; goldbugs; india; tylerdurden; tylerdurdenmyass; zerohedge
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1 posted on 11/17/2013 2:04:56 PM PST by Errant
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To: Errant

I found this interesting:

http://online.wsj.com/news/articles/SB10001424052702303789604579196171277465460


2 posted on 11/17/2013 2:06:07 PM PST by nascarnation (Wish everyone you see a "Gay Kwanzaa")
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To: Errant
Bitcoin, a more honest fiat currency.

/johnny

3 posted on 11/17/2013 2:06:30 PM PST by JRandomFreeper (Gone Galt)
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To: JRandomFreeper
Bitcoin is a Scam

http://monetaryrealism.com/bitcoin-is-a-scam/

4 posted on 11/17/2013 2:11:06 PM PST by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: SVTCobra03

To me it’s difficult to believe it’s anymore of a scam than fedbucks issued by Ben & Janet’s.


5 posted on 11/17/2013 2:12:48 PM PST by nascarnation (Wish everyone you see a "Gay Kwanzaa")
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To: JRandomFreeper

Agree, but something new that couldn’t have existed before computers. While not gold or silver, at least something with at lest the possibility of being better than central bank fiat even in its infancy.


6 posted on 11/17/2013 2:14:02 PM PST by Errant
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To: SVTCobra03
All fiat currencies are a scam.

/johnny

7 posted on 11/17/2013 2:16:57 PM PST by JRandomFreeper (Gone Galt)
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To: SVTCobra03
Bitcoin is a Scam

It might wind up being a fiasco, depending upon how well it was thought out prior to deployment, but it's not a scam. So far, it seems to have been far better thought out than the brightest minds who conceived Obamacare did in their wildest imaginations.

8 posted on 11/17/2013 2:18:25 PM PST by Errant
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To: Errant

But it’s a scam, a ponzu, what happens if the lights go out, what about a EMP, it can be hacked, only drug dealers use it, the government will stop it, tax it, outlaw it.

Did I get them all?

Oh, by the way, someone investing in it a month ago—and who has been prudently paring their holdings has just about doubled their money.

As long as you keep emotions in check, why not make some money.


9 posted on 11/17/2013 2:19:38 PM PST by Vermont Lt ( 1-800-318-2596, Mr President.)
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To: Errant

Why should bitcoins be equal to 7,000 ounces of gold? Cheerleader articles like this, plus a rise from $5.00 for early investors to $500 now has all the makings of a bubble. I’ll buy Tulips instead


10 posted on 11/17/2013 2:22:36 PM PST by sharkhawk (Mr Gorbachev, tear down this wall.)
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To: SVTCobra03
hahahha! FedBux are a bigger scam.

Bitcoins are simple. There will never be another one made, and the Banks can't manipulate them. Yet. Imagine what the gold price would be if the Banks didn't manipulate the paper price. Bitcoins give you an idea.

11 posted on 11/17/2013 2:23:27 PM PST by servantoftheservant
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To: Vermont Lt

Unless you’re the one holding the Tulips when the Bubble bursts. You can’t create value out of nothing


12 posted on 11/17/2013 2:23:49 PM PST by sharkhawk (Mr Gorbachev, tear down this wall.)
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To: sharkhawk
You can’t create value out of nothing

What are federal reserve notes?

/johnny

13 posted on 11/17/2013 2:25:15 PM PST by JRandomFreeper (Gone Galt)
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To: sharkhawk
"You can’t create value out of nothing"

A pile of steaming pile of Hopium is worth something isn't it?

14 posted on 11/17/2013 2:26:08 PM PST by Paladin2
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To: sharkhawk

The value is not nothing. The value is that they can be used to buy real things, and there will never be another one made.

Ever. So, they are a pretty good arbiter of the rapidly declining value of the dollar.


15 posted on 11/17/2013 2:27:54 PM PST by servantoftheservant
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To: JRandomFreeper

Currently the only use for bitcoins is speculation, or buying coffee in one shop in Vancouver. How do you study them, get a good idea of value? They’ve doubled in value in 2 months, why?


16 posted on 11/17/2013 2:31:00 PM PST by sharkhawk (Mr Gorbachev, tear down this wall.)
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To: Errant

I’m wondering if Zero Hedge is where Bitcoin was born. It’s all they talk about lately.


17 posted on 11/17/2013 2:35:29 PM PST by ToastedHead
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To: Errant

last week they were $319...damn! - Missed another opportunity...should have bought like $500 worth in 2009!


18 posted on 11/17/2013 2:36:03 PM PST by BCW (Salva reipublicae)
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To: sharkhawk
Actually, they are used for more than buying coffee in Vancouver. Quite a bit of international online trade is done with bitcoin as the medium of exchange.

/johnny

19 posted on 11/17/2013 2:36:46 PM PST by JRandomFreeper (Gone Galt)
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To: sharkhawk

Time will tell. Have you seen the number of Chinese buying those things?


20 posted on 11/17/2013 2:41:12 PM PST by Vermont Lt ( 1-800-318-2596, Mr President.)
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To: servantoftheservant

So how much are all the bitcoins currently in existence worth? How many are in the hands of the early creators? And even if they create the 21 million bitcoins planned, at the current rate that’s $10 billion worth of value, hardly enough to send world economies into a tailspin


21 posted on 11/17/2013 2:41:44 PM PST by sharkhawk (Mr Gorbachev, tear down this wall.)
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To: Vermont Lt

The Chinese are also buying empty apartments in ghost cities. Not someone I would take investing advice from.


22 posted on 11/17/2013 2:43:18 PM PST by sharkhawk (Mr Gorbachev, tear down this wall.)
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To: nascarnation
I found this interesting:

Me too... ;-)

23 posted on 11/17/2013 2:47:40 PM PST by Errant
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To: BCW

I didn’t know about them in ‘09, but I knew about them long enough ago that if I had jumped when I thought about it, it would have may uncle Sam a heck of a lot of tax money, if I sold today. :-)


24 posted on 11/17/2013 2:50:27 PM PST by Errant
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To: sharkhawk

To each his own. I am playing with their money now anyway. It could drop to $1 and I will still have money in my pocket. It’s returning better than Madoff and the lottery. And it’s more fun.


25 posted on 11/17/2013 2:55:49 PM PST by Vermont Lt ( 1-800-318-2596, Mr President.)
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To: ToastedHead

There will be more stories this week as the Senate is holding hearings on Silk Road. The MSM will be talking about money laundering and drug deals and hit men.

The government will do whatever they can to make this seem dirty, seedy, and illegal.

They will fail.


26 posted on 11/17/2013 2:58:31 PM PST by Vermont Lt ( 1-800-318-2596, Mr President.)
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To: Paladin2

The Fed does it every day to the tune of a billion and a half dollars.


27 posted on 11/17/2013 2:59:35 PM PST by Vermont Lt ( 1-800-318-2596, Mr President.)
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To: Vermont Lt
But it’s a scam, a ponzu, what happens if the lights go out, what about a EMP, it can be hacked, only drug dealers use it, the government will stop it, tax it, outlaw it.

"Internet Kill Switch".

28 posted on 11/17/2013 3:00:45 PM PST by Stentor
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To: sharkhawk
I’ll buy Tulips instead.

By all means, do so then. Meh, I like owning something that doesn't require the maintenance that tulips do, and is easier shipped to anywhere in the world. ;)

29 posted on 11/17/2013 3:03:15 PM PST by Errant
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To: Stentor
"Internet Kill Switch"

And what will that do to everything else that relies on the internet (e.g., banking, ordering, ...)?!

30 posted on 11/17/2013 3:04:50 PM PST by Errant
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To: Stentor

Ah yes... I will add that to the list.


31 posted on 11/17/2013 3:05:31 PM PST by Vermont Lt ( 1-800-318-2596, Mr President.)
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To: SVTCobra03

“Bitcoin is a Scam”

No moreso than Federal Reserve Notes.


32 posted on 11/17/2013 3:15:42 PM PST by RKBA Democrat ( There is no worst president but owebama, and valerie jarrett is his prophet.)
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To: Errant
And what will that do to everything else that relies on the internet (e.g., banking, ordering, ...)?!

Ask DHS.

33 posted on 11/17/2013 3:17:22 PM PST by Stentor
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To: Stentor
Ask DHS.

Good point! What's DHS gonna do if the internet goes down? For that matter, what's all the other alphabet agencies going to do as well? lol

34 posted on 11/17/2013 3:20:10 PM PST by Errant
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To: Errant

What they probably WILL do is shut down the wire transfers into US bank accounts from banks dealing with bitcoin. For example, due to federal banking rules, Mt Gox really hinders the movement of dollars through their exchange.

If Bitcoin grows, you will see the Treasury jump ugly over it.


35 posted on 11/17/2013 3:23:38 PM PST by Vermont Lt ( 1-800-318-2596, Mr President.)
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To: Vermont Lt
I would expect that. And if we were better respected in the world, probably a try to for a coordinate effort with other governments. Since our government seems to be beholding to the bankers and their owners and no longer to the people, and as the largest country with still the world's currency standard, I'd expect we will spearhead an attempted destruction of crypto-money.

But then that leaves the rest of the world and only 12 million Bitcoins at present. Doesn't take many owning only 1 to suck up that miniscule inventory - only about two thirds of the people living in Hong Kong.

We shall see... Watch who in the senate comes out against it - then you'll know more of what to expect. It might actually be better for our "leaders" to ignore the owners of the Fed, embrace it and tax it to death instead... lol

36 posted on 11/17/2013 3:45:06 PM PST by Errant
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To: Vermont Lt
only about two thirds of the people living in Hong Kong.

Oops, I got that wong. I was thinking about the population of Mexico city. lol There are only about 7 million living in HK. ;)

37 posted on 11/17/2013 4:01:51 PM PST by Errant
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To: Errant
Interesting.

I'm dealing with the estate of a family member, who was into bitcoins. I can see where he bought a bunch at $20. When I first started watching, they were at about $100 each. Now? Mt Gox "Weighted Avg:$499.60693"

38 posted on 11/17/2013 4:13:26 PM PST by Lee N. Field ("You keep using that verse, but I do not think it means what you think it means.")
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To: Vermont Lt

bttt

Remember the States can COIN, not PAPER, money.


39 posted on 11/17/2013 4:20:53 PM PST by txhurl
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To: JRandomFreeper
All fiat currencies are a scam.

Though it's fun [and educational, too!] to watch the BitCoin phenomenon unfold, in the end, you're absolutely correct.

Just as wealth is created only by the production of tangible goods, a dependable medium of exchange must be tangible, itself.

BitCoin is nothing more than a fancy debit card. It's only worth something so long as it can be exchanged for existing currencies.

40 posted on 11/17/2013 4:21:13 PM PST by BfloGuy (The final outcome of the credit expansion is general impoverishment. [Ludwig Von Mises])
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To: BfloGuy

That’s economic nonsense. Services create wealth just as well.


41 posted on 11/17/2013 4:24:45 PM PST by Monty22002
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To: BfloGuy
Federal Reserve Notes are fiat currency. Bits in the Feds computer.

/johnny

42 posted on 11/17/2013 4:26:14 PM PST by JRandomFreeper (Gone Galt)
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To: RKBA Democrat
People REALLY don't like to hear that Federal Reserve Notes are fiat currency. They like to think they are different, somehow.

/johnny

43 posted on 11/17/2013 4:29:01 PM PST by JRandomFreeper (Gone Galt)
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To: Lee N. Field

I just $522 on Gox.


44 posted on 11/17/2013 4:33:48 PM PST by Errant
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To: Monty22002
That’s economic nonsense. Services create wealth just as well.

Services certainly do contribute to productivity -- that's why they exist. But with no underlying production of a tangible good, there would be no reason for them nor, indeed, a means to pay them for said services.

That is not economic "nonsense".

They do not, in and of themselves, create wealth.

45 posted on 11/17/2013 4:37:30 PM PST by BfloGuy (The final outcome of the credit expansion is general impoverishment. [Ludwig Von Mises])
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To: BfloGuy
Just as wealth is created only by the production of tangible goods

The wealthiest man currently in the world rode to that position on the back of exactly the same thing that bitcoin is made of: computer code consisting of 0's and 1's. And if you think a bitcoin is easy to come by, please go get yourself a copy of CGminer and start mining them. :-)

Ping me in about 20 years when you've mined a whole bitcoin on your Intel 7 processor based computer.

46 posted on 11/17/2013 4:42:02 PM PST by Errant
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To: Errant

I get a kick out of people who trash the dollar (and the Fed) while defending bitcoin. The dollar has a native constituency of 300 million and the largest military the world has ever seen. Bitcoin is the Ponzi hobby of people who can’t find a way to earn dollars.


47 posted on 11/17/2013 5:28:49 PM PST by Mr. Bird
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To: JRandomFreeper

“People REALLY don’t like to hear that Federal Reserve Notes are fiat currency. They like to think they are different, somehow.”

Well, they are different. They’re printed green. And they’re the global reserve currency. For now.

Interesting that this new fiat currency is trading for so much. Sounds a bit like tulip-mania to me, but it does have some aspects that make it unique.


48 posted on 11/17/2013 5:37:11 PM PST by RKBA Democrat ( There is no worst president but owebama, and valerie jarrett is his prophet.)
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To: BfloGuy
underlying production of a tangible good

You are so right. Though I would perhaps even go farther, saying there is no value without an underlying extractive or raw good, such as oil, metals, and including crops and forests and beasts and fish, wild and domestic. And probably even wind and sun, among other natural materials and elements that I can't think of here.

Without the raw good there is no product. Without the product there is no exchange. Without exchange, there is no profit, no added value, no refinement, no advancement.

Of course we all live so far from those facts now...but facts, like the laws of nature, will assert primacy at some point.

Am I wrong in this?

49 posted on 11/17/2013 5:40:29 PM PST by Fightin Whitey
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To: Mr. Bird

And I get a kick out of those who would rather bury their head in the sand, Mr. Bird (no pun intended), than face reality. How are you going to pay for the largest military in the world after China stops loaning you money? No offense, but I suspect your observations of Bitcoin are little better than what you know about the state of the dollar. Even our military Chiefs have called our massive debt a threat to national security. It’s not rocket science, and history is filled with examples of nations who’ve all followed the same chute to the dust bin thereof. Our only hope, if we have one, is to face the facts and make the necessary corrections - as painful as they may seem at the time, not hide our heads.


50 posted on 11/17/2013 5:45:33 PM PST by Errant
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