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The Serious Disadvantages of Bitcoin
The Wall Street Pit ^ | 1/1/2014 | Anthony Alfidi

Posted on 01/04/2014 8:13:19 AM PST by narses

You’ve all heard about Bitcoin. No one knows who created it, although some writers have made very educated guesses about the identity of the pseudonymous creator. I have sometimes wondered whether Bitcoin is the product of some transnational criminal organization or rogue state that wants to undermine developed economies by casting their payment systems into doubt. I am less concerned with Bitcoin’s origin than with its flaws. I shall enumerate those flaws forthwith.

Bitcoin enables fraud and other criminal activities. This is absolutely the single most salient feature of Bitcoin’s anonymity. Conventional currencies are indeed subject to laundering and counterfeit. There is probably no way to eliminate those risks completely. Bitcoin magnifies those risks because it can only be exchanged anonymously. It dominates dark networks that have been known to traffic in narcotics. Law enforcement efforts to shut those networks down will terminate the ability of any financial actor to transact in Bitcoins even for legitimate reasons. When the network is down, your Bitcoins are gone. Conventional currency doesn’t work that way in real transactions. Banks and brokerages have offsite business continuity backups. Securities exchanges and central banks maintain counterparty records. These mechanisms lack Bitcoin’s anonymity but make up for that in resiliency and trustworthiness.

Digital QR codes make it vulnerable to theft. One Bloomberg TV anchor learned this the hard way. Transmuting digital Bitcoins into a paper medium means the QR code reveals their underlying location. Scanning that QR code means anyone can anonymously steal Bitcoins. That’s the bad part about anonymizing a currency. Masking ownership means no audit trail to recover a thief’s digital fingerprints.

Mining Bitcoins is a health hazard and energy sink. People run obsolete hardware just because the video cards can process random digits into raw Bitcoins. This is a kind of “mining” that’s unlike the real-world mining I’ve studied for years, because it transforms nothing into an encrypted version of nothing. Nerds who run multiple machines overnight to mine Bitcoin risk heat stroke from the machines. If you don’t believe me, do a Google search of “Bitcoin heat” and note all of the cooling problems Bitcoin miners discuss amongst themselves, with the real world watching them fry. Crypto-nerds advocate data furnaces as an economic solution to waste heat generation from Bitcoin mining. Gimme a break already. There is no way a distributed network of Bitcoin mining operations could ever be a backbone for currency transactions or an alternate energy grid. No cloud provider in its right mind will ever farm out data storage needs to distributed servers with zero physical security. Bitcoin’s so-called solutions just multiply its problems.

There is no central bank for Bitcoin. Indeed, there never will be one, because Bitcoin’s evasion of central control appeals to its users. The Federal Reserve, for all of its flaws, has enabled the US to withstand financial panics because it could manage a unified national currency. A central bank manages fractional reserve lending that allows a national economy to expand. The supply of crypto-currency is limited by algorithmic design, so an economy running on Bitcoin cannot expand to accommodate a larger population or natural resource base. A Bitcoin economy cannot grow because it cannot deploy excess capital for innovation.

Minting copycat currencies is easy. Run through the gamut of crypto-currencies like Litecoin, Dogecoin, Namecoin, Peercoin, and others to see how unserious most crypto-currency enthusiasts are about money. Dogecoin in particular is obviously a joke based on an Internet meme. Using a currency named after memes doesn’t impress me. Imagine someone in the early 20th Century printing a dollar with Mickey Mouse’s smiling visage and convincing others to take it seriously. The US economy tolerated decentralized currency minting for some of its history until the settlement of the frontier demanded a nationally integrated economy. Copycat currencies destroy the credibility of Bitcoin.

I am totally convinced that Bitcoin is at best a joke and at worst a fraud. Hi-tech startups should be be radical, disruptive, transformational, chaotic, revolutionary, and all that but those are not the characteristics of a currency. People who use currencies as a medium of exchange and store of value need them to have conservative characteristics, so that one unit today has pretty much the same value next year. Stability enables consumption and investment in reliable amounts at acceptable intervals among counterparties. Bitcoin does not accomplish these purposes.

Bitcoin is baloney. I’m waiting for some jokester to create Baloneycoin that will evaporate when minted and play some funny animation. Look up “Cosbycoin” for an early attempt at turning this idea into a joke. The parody site that features Cosbycoin is hilarious but the real joke is on anyone who takes Bitcoin seriously as an investment. I do not use Bitcoin, nor will I do business with anyone who wants to transact in Bitcoin. I may be a nerd but I’m far too intelligent to use something as stupid as Bitcoin.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: b1tc01n; bitcoin; currency; fiat; fiatcurrency; fiatmoney; fraud; joke; money; ponzi; ponzischeme; pyramid; scheme

1 posted on 01/04/2014 8:13:19 AM PST by narses
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To: narses; RichInOC; Prince of Space; JoeFromSidney; TNMountainMan; alphadog; infool7; Heart-Rest; ...

2 posted on 01/04/2014 8:13:55 AM PST by narses (... unless you eat the flesh of the Son of Man and drink his blood, you do not have life within you.)
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To: grania

Here you are, an explanation!


3 posted on 01/04/2014 8:14:53 AM PST by narses (... unless you eat the flesh of the Son of Man and drink his blood, you do not have life within you.)
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To: narses

Biotin and Obamanation care have a lot in common. Tell me that the government is not trying to destroy the middle class and create a dearth and I will laugh in your face if you mean it.


4 posted on 01/04/2014 8:16:00 AM PST by kindred (Let the God of Israel be true and every man a liar. The just shall live by faith.)
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To: narses

more fiat money. just what we need. /sarc


5 posted on 01/04/2014 8:23:57 AM PST by BuffaloJack (Democrats believe in a two-party system—the masters and the slaves.)
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To: narses

fiat currency bump for later.....


6 posted on 01/04/2014 8:31:23 AM PST by indthkr
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To: indthkr

fiat currency bump for later.....

Did Fiat buy Dodge?


7 posted on 01/04/2014 8:43:01 AM PST by mountainlion (Live well for those that did not make it back.)
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To: narses
Bitcoin is baloney.

As opposed to the USD which can printed in the trillions with nothing backing it.

And can be promised as future benefits in the 100's of trillions to buy votes.

8 posted on 01/04/2014 8:44:54 AM PST by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: Lurkina.n.Learnin; nascarnation; TsonicTsunami08; SgtHooper; Ghost of SVR4; Lee N. Field; DTA; ...
Thanks narses.


Click to be Added / Removed.

9 posted on 01/04/2014 8:51:52 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: narses

Btw, from some who wrote this reply in the comments section who makes way more sense than the author, IMHO:

I’m all for arguing the pros and cons of Bitcoin but you simply must do research before writing an article.

It is quite amazing how many mistakes you make:

“Bitcoin magnifies those risks because it can only be exchanged anonymously”. This is not true. It is in fact by far and wide the most accurately trackable system. Bitcoin is simply a public ledger including every single Bitcoin transaction ever. This ledger cannot be faked thanks in no small part to the NSA’s SHA-2 encryption. US agencies have been aware of the convenience of the “blockchain” for a long time. Learn about it.

“Digital QR codes make it vulnerable to theft. One Bloomberg TV anchor learned this the hard way. Transmuting digital Bitcoins into a paper medium means the QR code reveals their underlying location. Scanning that QR code means anyone can anonymously steal Bitcoins.” Not true. The QR code is for receiving transactions only. The Bloomberg anchor revealed his private key – a long code that you should not show anyone else, just like a password. Check the story properly.

“Mining Bitcoins is a health hazard and energy sink.” You typed your article on a computer didn’t you? Then you are risking your health as much as any Bitcoin miner. You interact with computers, period. Mining does take energy, and this is not only for producing Bitcoins – the primary purpose is to power the payment network. Any digital payment network today requires power. Ask VISA for example.

“An economy running on Bitcoin cannot expand to accommodate a larger population or natural resource base. A Bitcoin economy cannot grow because it cannot deploy excess capital for innovation.” Interesting visions of the future you have there. Everyone else is looking forward to a future with Bitcoin existing alongside unified national currencies.

“Minting copycat currencies is easy. Run through the gamut of crypto-currencies like Litecoin, Dogecoin, Namecoin, Peercoin, and others to see how unserious most crypto-currency enthusiasts are about money.” So what if some people like to get involved as a hobby? They are making models and Bitcoin is the professional version with the real-world network. What’s wrong with that?

“People who use currencies as a medium of exchange and store of value need them to have conservative characteristics, so that one unit today has pretty much the same value next year.” Bitcoin is becoming more stable as time goes by. Carefully study the charts at: http://bitcoincharts.com/. Also learn about the interesting applications of Bitcoin as an intermediary, offering low fee transactions of fiat currency.

“I may be a nerd but I’m far too intelligent to use something as stupid as Bitcoin.” You are no true nerd! ;)


10 posted on 01/04/2014 8:53:06 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: 2banana

I have to admit some ignorance in regards to currency and the relationships to other currencies and gold.

However, all I see are criticisms of the USD because nothing is backing it. This is true, but what is backing bitcoin? We don’t even know who created it?

No thanks. Bitcoin just seems like a giant scam. That is my ignorant, unprofessional, opinion. :)


11 posted on 01/04/2014 9:03:04 AM PST by TheGipperWasRight
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To: TheGipperWasRight

No power no money


12 posted on 01/04/2014 9:07:42 AM PST by Therapsid (i)
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To: narses

I kinda want to really get into this, but I’m not sure this is anything more than digital tulip bulbs.


13 posted on 01/04/2014 9:20:49 AM PST by VanDeKoik
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To: BartMan1

Ping


14 posted on 01/04/2014 9:23:38 AM PST by IncPen (When you start talking about what we 'should' have, you've made the case for the Second Amendment)
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To: narses
Bitcoin enables fraud and other criminal activities. This is absolutely the single most salient feature of Bitcoin’s anonymity

just like cash

Conventional currencies are indeed subject to laundering and counterfeit. There is probably no way to eliminate those risks completely. Bitcoin magnifies those risks because it can only be exchanged anonymously.

you can eliminate the counterfeiting by using a crypto currency... like bitcoin.

when you exchange bitcoins, you do it by confirming the validity of the coins you're receiving with the block chain. which means, you're online as you do the transaction. no one can give you fraudulent coins unless you disregard the block chain confirmation process. that would be just stupid.

It dominates dark networks that have been known to traffic in narcotics.

again, just like cash.

When the network is down, your Bitcoins are gone

your coins are in your possession all the time... unless you've uploaded them into an online wallet overseen by another organization

Conventional currency doesn’t work that way in real transactions. Banks and brokerages have offsite business continuity backups. Securities exchanges and central banks maintain counterparty records. These mechanisms lack Bitcoin’s anonymity but make up for that in resiliency and trustworthiness.

bs. if i place $100k into a safe deposit box and the bank gets robbed, i do not get my money back.

Digital QR codes make it vulnerable to theft. One Bloomberg TV anchor learned this the hard way. Transmuting digital Bitcoins into a paper medium means the QR code reveals their underlying location. Scanning that QR code means anyone can anonymously steal Bitcoins. That’s the bad part about anonymizing a currency. Masking ownership means no audit trail to recover a thief’s digital fingerprints.

leaving your cash on the table at a macdonalds will have the same result.

Mining Bitcoins is a health hazard and energy sink.

do we need to dig out the stats on making all the paper ever used printing US dollars? how about the resources spent shipping them around, securing them, and disposing of them? i'd ponder it's far more efficient to mine all these coins then continue to destroy the trees to create the fiat currencies

There is no central bank for Bitcoin. Indeed, there never will be one, because Bitcoin’s evasion of central control appeals to its users. The Federal Reserve, for all of its flaws, has enabled the US to withstand financial panics because it could manage a unified national currency. A central bank manages fractional reserve lending that allows a national economy to expand. The supply of crypto-currency is limited by algorithmic design, so an economy running on Bitcoin cannot expand to accommodate a larger population or natural resource base. A Bitcoin economy cannot grow because it cannot deploy excess capital for innovation.

bitcoins are not analogous to fiat currencies like the dollar. they are more aligned with gold. they cannot be diluted and cannot be faked. their value may increase or decrease, but they will remain intact. their purpose is to insure the parties of the transaction that they have received or given bitcoins, not some piece of paper with magic scribbles on it.

Minting copycat currencies is easy. Run through the gamut of crypto-currencies like Litecoin, Dogecoin, Namecoin, Peercoin, and others to see how unserious most crypto-currency enthusiasts are about money. Dogecoin in particular is obviously a joke based on an Internet meme. Using a currency named after memes doesn’t impress me. Imagine someone in the early 20th Century printing a dollar with Mickey Mouse’s smiling visage and convincing others to take it seriously. The US economy tolerated decentralized currency minting for some of its history until the settlement of the frontier demanded a nationally integrated economy. Copycat currencies destroy the credibility of Bitcoin.

monopoly money doesn't undermine the 'credibility' of the US dollar and other crypto currencies do not undermine the value of bitcoins.

the author is obviously ignorant of why crypto currencies exist and their true value. they are not meant as a store for wealth, but a secure transport of that wealth between parties in a transaction. once complete, it's up to the recipient whether or not they wish to remain in bitcoin or move into another currency (ie: dollars, euros, gold, real estate, etc)

15 posted on 01/04/2014 9:24:21 AM PST by sten (fighting tyranny never goes out of style)
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To: narses

I wouldn’t put all my money into it, but the small amount that my husband invested last year paid for our Christmas presents this year.


16 posted on 01/04/2014 9:27:31 AM PST by KosmicKitty (WARNING: Hormonally crazed woman ahead!!)
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To: VanDeKoik

Think frightened sailors on the Nina the Pinta and the Santa Maria. Most were scared out of their minds because they “ Knew” they were going to sail off the edge of the earth and die. They could not get their head around the “fact” that the earth is round.
It is called a paradigm shift.

Now fast forward . Your at LAX with 10lb. of gold in a suitcase. What do you suppose the TSA is going to do with it?

Same airport, this time $100.000.00 cash in a suitcase, what do you suppose the TSA is going to do with it? You will never see it again.

Same senerio but you have the password to your Bitcoin wallet containing $5.000.000.00 in your memory. What do you suppose the TSA can do about it, NOTHING, NOTHING, NOTHING!!!!!

This is power and freedom heretofore never know to man. Is the light bulb starting to come on? I hope so!


17 posted on 01/04/2014 11:55:48 AM PST by TsonicTsunami08
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To: narses

The Gekko Fund. Investment philosophy: “A fool and his money are lucky enough to get together in the first place.”


18 posted on 01/04/2014 12:49:04 PM PST by RichInOC (No! BAD Rich! (What'd I say?))
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To: TsonicTsunami08

I think the article was written, to scare people away from “money” the government can’t confiscate.


19 posted on 01/04/2014 1:07:55 PM PST by Dalberg-Acton
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To: narses

The number one problem with Bitcoin is that IT ISN’T REAL.
Even the US Dollar and other fiat currencies are better in
that regard as it is possible....at least for now....to gain
access and possession of a physical tangible representation of said currency in the form of a counterfeit resistant controlled representation commonly called a dollar bill.

If the interwebs get turned off for ANY reason....Bitcoin goes Bye Bye.


20 posted on 01/04/2014 8:40:39 PM PST by nvscanman
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To: TsonicTsunami08; VanDeKoik; narses; grania; TheGipperWasRight; RichInOC; SeekAndFind; ...

When you defend a concept and/or give examples, it's best not to sound like a ShamWOW and other "As Seen on TV" hucksters.

Let's try these, far more realistic everyday scenarios instead:

You're at LAX/LAS/MIA/ORD/JFK/LGA/SEA/etc. with a 3oz checkbook in your pocket that has $100,000.00 on account. What do you suppose the TSA is going to do with it?

Same airport(s), this time with an AmEx Centurion/"Black" Card, and BoA/Merrill Lynch Accolades card, and Citi's Chairman (Private Bank) card, and Stratus Rewards Visa/"White" Card (by recommendation and invitation only), and Coutts World card (QE II is a client). What do you suppose the TSA is going to do with it?

Same scenario, but you have a smartphone/tablet/computer which can access your business and/or brokerage accounts containing in excess of $5,000,000.00 in funds and/or credit lines, as well as Paypal, Square and free wire services, which are biometrically and multi-layer password-protected and can transfer funds immediately converted on deposit into A$, BP£, C$, €, S$, ¥ etc., at no additional cost. What do you suppose the TSA can do about it, NOTHING, NOTHING, NOTHING!!!!!

since well before Western Union, actually right around Renaissance (read about Banco de' Medici [1397-1494], for example).

Seriously? What paradigm shift? Bitcoin didn't invent electronic transfers and e-payment, nor was it first in encrypting financial transactions, nor did it make your unit of account and store of value more convenient or secure than accepted fiat currencies - quite the opposite, in fact (see Bitcoin is Gold 2.0: But how can it be regulated? - FR, post #22, 2013 December 28

Plus, you very likely be getting something in return for using your credit card and banking services, like the 'rewards'/'points' and the interest on deposits... Oh, do you earn any interest on your b1tc01ns in the decentralized Bitcoin "bank"? Could you ensure or hedge your bitcoins, if need be?

And if people think that they are getting the bitcoin transfers "for free" (i.e., cheaper than credit cards) then they have been seriously misled. As it turns out, Bitcoin e-payment fee structure** is generally more expensive than major credit cards (which typically charge about 2%-3% of transaction amount).

Which means it's much more beneficial for bitcoin miners - who are getting these transaction... er, "mining" fees - to have the BTC valued at USD$1000.00 than at USD$10.00 - in other words, have the BTC economy 100 times larger in generally accepted fiat currencies would likely get about 100 times larger "commission" fee.

So claiming that there is no interest on anyone's part in manipulating the value/price of bitcoin "currency" is quite false. Bitcoin's finite structure alone is, in itself, a manipulation of bitcoin value. Oh, and what happens where there are no more bitcoins to "mine"? The finite limit on the total amount of bitcoins issued makes it, by its very own definition, a FIFO (First-In-First-Out) pyramid scheme - where generally, the first one in wins the most and the last one out loses the most.

** Bitcoin Is an Expensive Way to Pay for Stuff - BL, by Matt Levine, 2014 January 02

Yes, I hope so, too, for the sake of those who might be taken in by the slick bitcoin "counter-culture freedom" selling campaign. Educating about potential and risks of the speculative investment in a digital commodity (sans Ponzi/pyramid element) is one thing, promotion of expensive e-payment mechanism as a "freedom" "currency" as an alternative to the "fiat currency" by miners who benefit from increase in transaction volume and/or transaction value is quite another.

If there is strength in numbers, then the next cryptocurrency should make it really big, I suppose:
Kanye West-inspired currency 'to launch soon' - BBC, by , 2014 January 03

Hurry up, there is still time to get in on the freebie Coinyes:


21 posted on 01/05/2014 3:13:44 AM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: CutePuppy
wow....thanks for that analysis of bitcoin and other digital currencies. Maybe others like something that has no substance; I'm not a fan.

I do some very minor stock trading, basically now just occassionally selling some small company stocks I bought before the recession. I took out the money I put in long ago so anything I accrue is like free money. Two of those stocks matured nicely and pay dividends. A handful of others are companies still hanging on, but not worth selling.

That seems to be a more rational kind of money from online transactions. The stocks are based on something real. I can write a check on the dollar balance in the stock account and the bank will hand me cash. Nobody's going to stop me from carrying the checks. I pay capital gains taxes when I sell, but as I said, all of the money I originally put in I've taken out.

One real good verbal exchange in The Wolf of Wall Street was about how the trick to ammassing wealth is to convince everyone not to cash out, just sell and buy again. Isn't the bitcoin a bit of that?....the bcs go back and forth and goods are transacted and those who thought it up collect transaction percentages, but nobody can actually have a bitcoin.

I just don't see that kind of attachment to reality with bitcoins. It seems that if people didn't trust current banking, going in the opposite direction would make more sense. That would be amassing goods that could be traded in barter, and make good deals to increase value.

22 posted on 01/05/2014 3:43:01 AM PST by grania
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To: nvscanman

If you have a dollar bill in your pocket, pull it out.

Now just try to imagine that you owned ALL dollar bills in existence!
Go a bit further and imagine that you owned ALL Fives and Tens and Twentys in existence. In fact you own ALL paper-denominated currency with a serial number printed by the Federal Reserve.

Congratulations!

You now own about TWO PERCENT of the worlds money that is denominated in dollars.

The rest of it? Mutual funds... 401(k), stock market accounts, various derivative and hedge fund entities, bonds, long term low percentage yield investments...

None of them, NONE!!, any more “real” than Bitcoin!


23 posted on 01/05/2014 3:53:31 AM PST by djf (Global warming is a bunch of hot air!!)
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To: CutePuppy

24 posted on 01/05/2014 6:59:53 AM PST by narses (... unless you eat the flesh of the Son of Man and drink his blood, you do not have life within you.)
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To: CutePuppy

Please keep your money in the bank. Dodd Frank is planning a holiday for you in the form of a haircut. Who do you think is going to pay for this massive debt. That checkbook you’re carrying will do nothing for you. You don’t get it but thats okay.

Western Union as a business model is dead and the official funeral will be very soon along with predatory credit cards ( even the one’s that are invitation only and super duper impressive).

Interesting that you bring up BOA/Merrill Lynch. Joe Weisenthal of Business Insider had a little talk with David Woo titled ( and this may sound like Vince of SHAM WOW) THIS IS, QUITE SIMPLY, THE BIGGEST ENDORSEMENT THAT BITCOIN HAS EVER RECEIVED.

Heres the link, read it, don’t read it, makes no difference to me.

http://www.businessinsider.com/david-woo-on-bitcoin-2013-12.

With all the impressive financial instruments you rattled off I wouldn’t be surprised if you were heavily leveraged in the record breaking, federally pumped market. Better get your money out of there, you’re about to get your head handed to you.

Don’t but Bitcoin, leave them for me,thank you.


25 posted on 01/05/2014 8:02:25 AM PST by TsonicTsunami08
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To: TsonicTsunami08; grania; narses

Yes, "churning" is the name of the game.

Non sequitur. Dodd-Frank is an abomination, as well as Sarbanes-Oxley and number of other laws, regulations and mandates, which should be repealed, but it has nothing to do with Bitcoin. Anyway, 80% or more activity in Bitcoin has been from China and other countries with capital controls. This is just a diversionary scare tactic, which ironically, Bitcoin promoters are usually accusing critics of.

Another non sequitur. What does this have to do with Bitcoin, unless you imply that USD$ will be confiscated, but if you put all your money in Bitcoin "wallet" you'll happily avoid that "fate" or be able to hide your income because transactions in bitcoin are somehow "anonymous"? So were numbered Swiss bank accounts at one time. Anyway, there are other, far less speculative investments than Bitcoin. Sure, you can use bitcoins to transfer the money and immediately convert it into [other] "fiat currency" on the other end, but there are much cheaper ways of doing it, and it does not do much for Bitcoin economy, except get some miner(s) transaction fees. But I guess that's the BTC economy in a nutshell.

Re BoA/Merrill Lynch's currency analyst John Woo's quote - it's not an "endorsement" as the heading and the article in BI states, it's actually a warning:

Obviously, these are requirements for any B2C (Business-to-Consumer) company, none of which Bitcoin currently meets or likely to meet in the near future, with the growing competition from Amazon, Paypal (eBay), Square, JP Morgan (patent on cryptocurrency and anonymous e-payment/e-transfer) and other better known and financially stable players as well as other cryptocurrencies that dilute the marketplace. Leave it to Business Insider / ZeroHedge hacks to take a quote or a fact and turn its meaning 180 degrees, as an "endorsement". No wonder the disgraced Internut pumper Henry Blodget - who has been barred from securities business - is invested in it and runs it:
Business Insider Turned Down $100M-Plus Buyout Offer: Source - FBN, by Katie Roof, 2014 January 03

Yep, I agree, you were right about ShamWOW moment. And in all caps, too.

OT: Considering marginal profitability and that the competitor TheStreet (TST) has nearly 3 times the revenues and only valued at 1.5 times sales currently, it's unlikely that $100M offer was made, but in the Internut world anything is possible.

Of course, Western Union itself is a dinosaur, and their BidPay e-payment business failed twice (even before Bitcoin scheme was a concept) but the business model is the predecessor of and the same as other transfer payments, only now the newer e-payments are cheaper and more convenient for most people, leaving Western Union with expensive infrastructure and less than stellar name in financial services.

Visa (V), MasterCard (MA) and American Express are doing extremely well and are expected to continue to do well, as more people are using reliable payment services, and they don't have a pyramid scheme built-in by design into their business/service model.

From The Case of the Disappearing Dollar Bill - B, by Alexander Eule, 2013 December 28

Probably no tears should be shed for Visa, MasterCard and AmEx. Bitcoin is not even considered a competitor, and by its flawed "hybrid" design it should not be.

Yet another non sequitur. First, you are making wild and unsubstantiated assumptions about my use of financial services.

Second, you again change the subject by insulting and denigrating the financial options that far more people would use instead of bitcoins (as per your own example) in an airport of your choice (or anywhere else) where presumably TSA or other federal agency is likely to rob you of your gold, cash, diamonds or just about anything that is "not a bitcoin." I think most sane people would not try to transport bullions of gold and bags of cash through the airport, but they don't have to use bitcoins to have "cash" available to them.

And what does the stock market have to do with Bitcoin? Are you saying that Bitcoin is better investment than stocks , or that it's the only investment, or that it's better investment at this time, or that it's not an investment at all, just a store of value that can be transferred at any airport without fear of TSA?

It was another ShamWoW scare tactic, as I clearly demonstrated in my response.

Unfortunately, while trying to defend the obvious flaws of Bitcoin as a "currency" / "money" / e-payment / e-transfer / speculative investment of by design limited "ever-appreciating" commodity/asset etc., instead of arguing the facts most Bitcoin promoters prefer to change the subject and point fingers at something else ("fiat currency", gold, credit cards, stock market etc.) or divert attention by personalizing the non sequitur response. Actually, they like the confusion, so the different aspects of the "hybrid" may appeal to different constituents. Doesn't speak well of the product or its ecosystem.

Only 5 years since unbelievable 20+ years Madoff's scam unraveled and people are ready to jump into a massive pyramid scheme disguised as a virtue for all kinds of "clients" - from gold bugs to boiler room operators to technogeeks - "inequality be damned, now it's "for the masses".

You are welcome.

26 posted on 01/05/2014 3:19:46 PM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: CutePuppy

Yep, you can’t see what you can’t see. I will take every last Satoshi I can get my hands on . Time and tides will be the final arbiter of Bitcoin so I will leave you with another non sequitur by William Shakespeare, seeing how you are so fond of quoting degenerate Hollywood.

Brutus:

There is a tide in the affairs of men, Which taken at the flood, leads on to fortune. Omitted, all the voyage of their life is bound in shallows and in miseries. On such a full sea are we now afloat. And we must take the current when it serves, or lose our ventures.

Julius Caesar Act 4, scene 3


27 posted on 01/05/2014 3:56:52 PM PST by TsonicTsunami08
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To: TsonicTsunami08

28 posted on 01/05/2014 4:17:18 PM PST by narses (... unless you eat the flesh of the Son of Man and drink his blood, you do not have life within you.)
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