General Discussion

sendero

(28,552 posts)

34. Well...

Thu Oct 31, 2013, 06:40 PM

Oct 2013

..... "So, from the hardware or hacking perspective, there's pretty much no way to game this system. However, from the screwing with the exchange market, insider trading, and other such typical stock/currency market shenanigans, yes, it can be gamed."

I appreciate your honesty as that is my basic assessment also. Of course it would be fair to say that virtually no medium of exchange traded electronically is immune to these forces.

I'm somewhat amused at the folks who say it is "backed by nothing", as if the dollar was. All currencies are basically confidence games with the possible exception of those backed by metals or the like.

I'm sure in the minds of most people the dollar could never become seriously devalued. If it ever loses "reserve currency" status they will surely find out they are wrong.

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AMA: Long-time DU lurker and democratic supporter, know everything there is to know about bitcoin [View all] Rassah Oct 2013 OP

Have you made a profit holding bitcoins, and if so have you paid taxes on the profits? n/t PoliticAverse Oct 2013 #1

If anything that would be capital gains tax. dipsydoodle Oct 2013 #3

Capital gains would mean Rassah Oct 2013 #15

I have made a gain... Rassah Oct 2013 #14

Explain to me like I'm five, exactly how bitcoins are generated/created. StrictlyRockers Oct 2013 #2

*Holds up hand*. I want to be 5 too. Whisp Oct 2013 #4

Psht, no way, man! I already called five. StrictlyRockers Oct 2013 #6

okay, 5 and Three Quarters then! Whisp Oct 2013 #7

I'll take four - enlightenment Oct 2013 #9

+1 :) n/t OneGrassRoot Oct 2013 #8

This is a bit long... Rassah Oct 2013 #17

THAT Sissyk Oct 2013 #55

I'm baffled by bitcoin mining - what sort of math problems are done to create bitcoins, and WHY? kestrel91316 Oct 2013 #5

One wonders.. sendero Oct 2013 #10

Moore's law is kept in check... Rassah Oct 2013 #20

Well... sendero Oct 2013 #34

Moore's law IDemo Oct 2013 #44

The more fundamental problem seems to be the question of why a bitcoin should have any value at all? PoliticAverse Oct 2013 #30

Yep Rassah Oct 2013 #35

Mining is actually a method of securing accounting entrees... Rassah Oct 2013 #19

So all the calculations are a part of a massive program for making bitcoins theft-proof or kestrel91316 Oct 2013 #25

I'm too buys Larping Capt. Obvious Oct 2013 #11

I do Rassah Oct 2013 #48

You mean, other than it's a ponzi scheme backed by nothing? n/t pnwmom Oct 2013 #12

Bitcoin is not a Ponzi Rassah Oct 2013 #21

Wait - while obtaining your Finance degrees, Charles Ponzi never came up in any of your classes?? REP Oct 2013 #24

Of course he has Rassah Oct 2013 #42

Perhaps Finance degrees should require more writing classes REP Oct 2013 #49

This message was self-deleted by its author Rassah Oct 2013 #57

I'm not the one who asked REP Oct 2013 #65

This message was self-deleted by its author Rassah Nov 2013 #70

Bitcoin and computer viruses seem to go hand in hand. Rex Oct 2013 #13

Very true Rassah Oct 2013 #22

Wow that last bit was absolutely fascinating. Kurska Oct 2013 #23

Too early in development... Rassah Oct 2013 #36

'program "Do no evil" into the core of a corporation' JEdwards8th Oct 2013 #50

Aren't you worried that an unofficial currency such as this promotes market anarchism? KY5 Oct 2013 #16

I have had to rethink about what is important to focus on... Rassah Oct 2013 #28

Your IP classes did not serve you well. Ms. Toad Nov 2013 #82

Thank you for the info Rassah Nov 2013 #89

Not surprised you're not sure what to think about it - Ms. Toad Nov 2013 #93

My business degrees were mostly focused on finance, accounting, and econ- Rassah Nov 2013 #102

With patents, at least, Ms. Toad Nov 2013 #108

I meant impossible to defend, Rassah Nov 2013 #109

Actually, the patent trolls are thriving Ms. Toad Nov 2013 #110

Bitcoin's a scam dreamed up by Ron Paul disciples. Arkana Oct 2013 #18

It's a Libertarian dream -- freedom from the Federal reserve. pnwmom Oct 2013 #26

Let me know if this is libertarian or not Rassah Oct 2013 #47

Bitboin is just smoke and mirrors. n/t pnwmom Oct 2013 #51

Might be worth pointing out the storied history of bitcoin, as well. JEdwards8th Oct 2013 #56

Sounds like a scam to me. Skidmore Oct 2013 #27

I can try Rassah Oct 2013 #29

Who maintains this trustworthy, indestructible database. And who created it, and how do we know madinmaryland Oct 2013 #31

Everyone Rassah Oct 2013 #38

Nope. Still sounds like funny money to me. Skidmore Oct 2013 #32

Better try... Rassah Oct 2013 #39

Thank you for that explanation and this thread ...... oldhippie Oct 2013 #46

You're welcome! Rassah Oct 2013 #53

Oh, I like you. EOF JEdwards8th Oct 2013 #58

No computer, no money. And how do I use bitcoin to fill my gas tank or buy a donut? MADem Oct 2013 #59

You are right, it does depend on support Rassah Oct 2013 #63

I lived in Italy for seven or so years. Great place. MADem Oct 2013 #64

If bitcoins were just an alternative currency Rassah Oct 2013 #66

Like tulip mania....the tulips didn't hold their value, but they're still a cool flower... nt MADem Oct 2013 #67

It also depends on continued appreciation which seems pretty risky at this point Major Nikon Nov 2013 #84

Actually... Rassah Nov 2013 #91

Interesting that you express that value in dollars MattBaggins Nov 2013 #94

I am sorry, I have made an assumption... Rassah Nov 2013 #103

Except there's no equity in a bitcoin Major Nikon Nov 2013 #101

Bitcoin has value, an exchange rate, and will likely be treated as foreign currency Rassah Nov 2013 #104

It's not that one cant explain it clearly... TampaAnimusVortex Oct 2013 #33

this may be a stupid question grasswire Oct 2013 #37

Similar Rassah Oct 2013 #41

Is it true that there is a preset limit to the number of bitcoins that can be created? grantcart Oct 2013 #40

Yes, it's true Rassah Oct 2013 #43

What a great way to stifle growth MattBaggins Nov 2013 #95

You don't really want growth in money... Rassah Nov 2013 #105

Your explanation is overly complicated and lacking the broad overview...here I fixed it for you Drew Richards Oct 2013 #45

Saved me the trouble in finding the link. Ruby the Liberal Oct 2013 #52

there are a lot of different explanations... Rassah Oct 2013 #60

An interesting point. JEdwards8th Oct 2013 #61

This isn't about Haystack-style back door access and/or decryption? Ruby the Liberal Oct 2013 #54

Nah, the calculations are Rassah Oct 2013 #62

Thank you for this fascinating topic, and for your efforts in helping folks like me understand this 2banon Oct 2013 #68

Glad to explain Rassah Nov 2013 #72

thanks so much for clarifying... but one more question..:) 2banon Nov 2013 #73

It itself would grow in value Rassah Nov 2013 #74

omg.. should have gotten in when i first heard of bitcoin a few years ago 2banon Nov 2013 #75

If you really want to invest... Rassah Nov 2013 #76

that's good to know.. 2banon Nov 2013 #77

Easiest place I use is Rassah Nov 2013 #78

Bitcoin Primer for Dummies.. 2banon Nov 2013 #79

i don't know what kind of questions people might have Rassah Nov 2013 #80

That's important to know.. 2banon Nov 2013 #85

It's just a TOS thing, not a legal one Rassah Nov 2013 #87

thanks! 2banon Nov 2013 #92

Your best choice is to open a bitcoin wallet, create an anonymous account on websites MattBaggins Nov 2013 #96

I haven't received a PM from anyone yet.. 2banon Nov 2013 #98

No you would not have to MattBaggins Nov 2013 #99

I'll consider your perspective and suggestion. 2banon Nov 2013 #100

FYI... Rassah Nov 2013 #106

I have never heard of bitcoin before. LWolf Nov 2013 #69

Using correct terms,.. Rassah Nov 2013 #71

Are you worried at all about the possible advent of quantum computing? LAGC Nov 2013 #81

It's not a big problem, apparently Rassah Nov 2013 #88

Would it be correct to say that Bitcoin is the very definition of a Fiat Currency? solarhydrocan Nov 2013 #83

Fiat money lacks intrinsic value davidpdx Nov 2013 #86

I would say so... Rassah Nov 2013 #90

When other groups start the whole mining over again MattBaggins Nov 2013 #97

Other groups already have Rassah Nov 2013 #107

Let's kick this back up since Bitcoin is in the news... icymist Nov 2013 #111

He made a really stupid mistake Rassah Nov 2013 #112