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To: Dutchboy88

Your previous posts were not very helpful wrt Bitcoin as a barter system, as they simply asserted this as fact along with your concerns about barter systems. This last post was more helpful.

Notwithstanding 100 years of “barter systems” history, I would describe these systems as private markets with a private unit of account/exchange (eg private money). One would certainly be concerned with the honesty of the private group running such a system as they have complete control over the private money. Perhaps your insistence that Bitcoin is a barter system is that the IRS will want Bitcoin users to account for their activity as such. Fair enough, but IMHO calling these systems barter is misleading.

You say that Bitcoin is the same as these private markets. But Bitcoin is not controlled by some small private group. It is controlled, if you can call it that, by thousands of independent nodes, each enforcing the rules of the system on a publicly available ledger. One of these nodes, or even a large group of nodes cannot simply create and fill accounts to their benefit. This is substantially different than these private markets.


59 posted on 01/15/2014 2:35:56 PM PST by Database
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To: Database
"You say that Bitcoin is the same as these private markets. But Bitcoin is not controlled by some small private group. It is controlled, if you can call it that, by thousands of independent nodes, each enforcing the rules of the system on a publicly available ledger. One of these nodes, or even a large group of nodes cannot simply create and fill accounts to their benefit. This is substantially different than these private markets."

I am likely doing a poor job of describing the problem with bitcoin that is so similar to all the other "barter" systems. Barter, in general, is loosely understood as any mechanism for which value given and value received is conducted without the use of US currency. Thus, bitcoin is going to turn into a barter system whether the purists wish to designate it otherwise, or not.

Further, you say that there is essentially no way that any individual/group may create a bitcoin out of thin air, thereby "filling their account" (or issuing chits to themselves). Famous last words, my FRiend. Kids can hack NASA, and they can hack bitcoin. Watch for the next few months and ask, "any counterfeits in the system?" That is what barter does...it amplifies the opportunity for counterfeit because the foxes own the henhouse.

But, go ahead and buy into it. When the crash from volatility sets this thing to $ 50 per bitcoin, down from $ 970 (okay, I was admittedly wrong about $ 1700), then notice how many squeal because it won't translate into the US$ they gave up.

61 posted on 01/15/2014 3:01:44 PM PST by Dutchboy88
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