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Greenspan Baffled Over Bitcoin 'Bubble': "To Be Worth Something, It Must Be Backed By Something"
zero hedge ^ | 12/4/13 | Tyler Durden

Posted on 12/04/2013 8:43:19 PM PST by Nachum

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To: Nachum

Really?? Backed by something?? Did this jerk really say this? You mean backed by something like the US Dollar??

What a tool.


21 posted on 12/04/2013 9:12:33 PM PST by WKUHilltopper (And yet...we continue to tolerate this crap...)
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To: MV=PY
Bitcoin isn’t backed by anything,

BitCoin does have a base value,
the cost of the electrical power to generate the BitCoin

the cost of electricity to generate a block is $6.84 USD

https://en.bitcoin.it/wiki/Power_Calc

22 posted on 12/04/2013 9:12:38 PM PST by HangnJudge
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To: narses

Backing, not value. In a metallic system each dollar represented the promise to pay a certain amount of gold or silver. The US Dollar represents nothing except itself. It has lost over 95% of its value since we went off the Gold standard. The Dollar holds what value it has because of its rarity but there is nothing stopping the government from printing as many as they wish.

BTW, the claim that the U.S. has never defaulted is untrue. We defaulted when FDR reneged on the promised value of redemption in Gold by redefining the standard and again when we went off that standard completely.


23 posted on 12/04/2013 9:12:43 PM PST by Petrosius
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To: Nachum

Bitcoin ain’t worth a Continental.


24 posted on 12/04/2013 9:12:57 PM PST by DManA
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To: Nachum

Nowadays currency is anything that the people decide they want it to be.


25 posted on 12/04/2013 9:43:27 PM PST by Bogie
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To: Nachum

Can Greenspan please tell us what the US dollar is backed with?It’s sure not the faith and credit of the US government that borrows like a drunken sailor 24/7!


26 posted on 12/04/2013 10:35:49 PM PST by plainshame
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To: Slyfox

Well, what is gold backed by?

It’s a very nice material to look at, but it isn’t industrially all that useful, and other than being bling, it doesn’t materially make your life better...but, it’s just SCARCE AND DESIRABLE. IMO, platinum, much rarer and much more industrially useful, should be worth 10x what gold is worth, at least...but it doesn’t look as nice (not really much different that silver or titanium, much cheaper and more common) and it isn’t as “famous”.

I read several years ago that National Semiconductor, in it’s heyday of making billions of integrated circuits a year, used less than 12 troy ounces (<1 pound) of gold a in a year. MANY years ago when gold was $35/oz, the electronics industry was much freer with it. When it got expensive, they found substitutes/other methods of connectivity that were almost as good, and in some cases, better.


27 posted on 12/04/2013 10:38:36 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: PGR88

“The US Dollar is backed by a kick-@ss military.”

Very true. When there is trouble in the world, the dollar always goes up.


28 posted on 12/04/2013 10:40:15 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: HangnJudge

One thing I don’t understand about Bitcoin, is...what if a new mathematical algorithm or unexpected technology can suddenly make a lot of them cheap? The very nature of the math dictates that to be “not impossible”.


29 posted on 12/04/2013 10:42:44 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: Nachum

It would be great if the fed could cough up Germanys gold these days.


30 posted on 12/04/2013 10:48:19 PM PST by plainshame
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To: Nachum

So, Alan ole boy— WHAT is backing the Federal Reserve Note (private bank) US Dollar. Your answer: the full faith and credit of the United States. It certainly isn’t backed by gold or silver. Most likely is “dollarized” with petroleum crude oil.

Bitcoins may soon be the backdoor way China gets to put the yuan as the world reserve currency, since they are trading heavily in bitcoin from what is observed.


31 posted on 12/04/2013 10:53:26 PM PST by John S Mosby (Sic Semper Tyrannis)
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To: PGR88
The US Dollar is backed by a kick-@ss military.

The Red Coats were too. I can tell you all the way from Afghanistan, we do not know how to win anymore. This is a defeated Army. Technology only takes you so far. Poor leadership kills your kick-@ss military.

32 posted on 12/05/2013 2:29:30 AM PST by Salvavida (The restoration of the U.S.A. starts with filling the pews at every Bible-believing church.)
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To: PGR88

Given who leads said military, precarious and unbalanced may be understatements.


33 posted on 12/05/2013 2:47:12 AM PST by John W (Viva Cristo Rey!)
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To: HangnJudge

Can’t the entire bitcoin gold Knox just be deleted or maybe just turn off the main power switch? Its like “second life” or world of Warcraft money. Meaningless and valueless unless you can sucker someone into giving it value like selling fairy dust on Ebay.


34 posted on 12/05/2013 3:11:54 AM PST by epluribus_2 (he had the best mom - ever.)
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To: Nachum

bit ping


35 posted on 12/05/2013 4:23:33 AM PST by maine yankee (I got my Governor at 'Marden's')
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To: The Antiyuppie

Well, what is gold backed by?


It doesn’t rust and looks pretty. Which may be why throughout recorded history, men who had it an were willing to part with some could be assured of finding a pretty woman who would share her honor.

Sellers of real estate have always been willing to trade for gold too.

You may not understand why gold has value, but it always had, and always will.


36 posted on 12/05/2013 5:03:21 AM PST by Atlas Sneezed
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To: Nachum

Full faith and credit?


37 posted on 12/05/2013 6:32:38 AM PST by JimRed (Excise the cancer before it kills us; feed & water the Tree of Liberty! TERM LIMITS NOW & FOREVER!)
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To: PGR88
...the US military guards the world and the world economic and trade system...

Which is why the Obama administration is working overtime to diminish it. Can't go full commie if there's still someone capable of fighting back!

38 posted on 12/05/2013 6:35:58 AM PST by JimRed (Excise the cancer before it kills us; feed & water the Tree of Liberty! TERM LIMITS NOW & FOREVER!)
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To: DManA
Bitcoin ain’t worth a Continental.

A Continental in good condition would bring high bids from some collectors.

39 posted on 12/05/2013 6:37:44 AM PST by JimRed (Excise the cancer before it kills us; feed & water the Tree of Liberty! TERM LIMITS NOW & FOREVER!)
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To: epluribus_2

90% of Bitcoin transactions occur on one major gambling site.


40 posted on 12/05/2013 6:47:20 AM PST by antidisestablishment (Islam delenda est)
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