[Article] Article: Bitcoins (or bitCON, if you prefer)

I've done a lot of research through my college years on currency. Mostly focused on west african currencies.

Bitcoin is interesting.
 
Bitcoin lacks many of the characteristics of currency. I think for right now, it's just a way of exchanging dollars and enjoying a fad. I like that fly is speculating. It seems very much unlike him to do so.
 
Casper said:
Bitcoin lacks many of the characteristics of currency. I think for right now, it's just a way of exchanging dollars and enjoying a fad. I like that fly is speculating. It seems very much unlike him to do so.
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:heart: What *doesn't* qualify it as a currency? And sure I'm gambling. But mostly I'm all for supporting a pseudo-commodity based currency.
 
fly said:
:heart: What *doesn't* qualify it as a currency? And sure I'm gambling. But mostly I'm all for supporting a pseudo-commodity based currency.
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It lacks price stability, enforcement, and intrinsic value, to start.
 
Mr. Asa said:
It's a little riskier than the stuff that he normally posts about doing, but I can easily see him cackling and rubbing his hands together gleefully after hitting the Purchase button.
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It does have nerd appeal.

Let's face it, it's cool as hell. And even half a century ago, Economists were predicting digital currency. I think bitcoin is going to be one of many experiments in that direction.
 
Floptical said:
Fly I will be more interested in your stories of receving tangible goods or services via any bitcoin gain you've received.
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There are already quite a few slightly grey area sites that are taking bitcoins as payment. NZB sites for example. While they themselves don't take part in any internet piracy, the MPAA/RIAA has generally gone after their payment providers to shut them down. Now that they can take bitcoins, the sites don't have to worry about it.
 
fly said:
There are plenty of 'physical' currencies that don't meet that bar. The USD for one...
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USD has all those things.

I have dollars in my wallet right now, as I'm sure you do too. When I wake up tomorrow, I have a pretty good idea what those dollars are going to be worth. I also know that when I go to an establishment to get breakfast that morning, they'll accept those dollars. Because I'm in the USA and that's our enforced currency. The dollar's intrinsic value is the faith of the United States Government, which is definitely worth something, even if it's no longer backed by a relatively useless (in my hands) mineral. That's why merchants exist in this country and why our economic lives are without chaos, relatively speaking.
 
Casper said:
USD has all those things.

I have dollars in my wallet right now, as I'm sure you do too. When I wake up tomorrow, I have a pretty good idea what those dollars are going to be worth. I also know that when I go to an establishment to get breakfast that morning, they'll accept those dollars. Because I'm in the USA and that's our enforced currency. The dollar's intrinsic value is the faith of the United States Government, which is definitely worth something, even if it's no longer backed by a relatively useless (in my hands) mineral. That's why merchants exist in this country and why our economic lives are without chaos, relatively speaking.
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I guess it's all how you define intrinsic. More to the point, I don't like that there is 'faith' involved in a currency. However, I'm one of those crazy, Ron Paul, End the FED kind of guys.
 
fly said:
Mostly my own. I did sign up for smackdownonyou tho.
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errr, i misworded that. What newsgroup provider.

Also, as much as i appreciate yours, its loaded with fakes because it doesnt have the userbase to filter out the BS via reporting :/
 
The near-term problem with bitcoin as a currency is the enforcement. There are places that accept bitcoin as payment, but there is no guarantee that they always will. The government doesn't enforce bitcoin. In fact, it's in a business' interest to not support bitcoin, since it's price is highly volatile. Constantly adjusting bitcoin to dollars is inefficient and ultimately unnecessary.

So what happens to the price of bitcoin when merchants decide to refuse payment? Yikes. It truly has no intrinsic value.
 
Domon said:
errr, i misworded that. What newsgroup provider.

Also, as much as i appreciate yours, its loaded with fakes because it doesnt have the userbase to filter out the BS via reporting :/
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Actually with SpotNab, it does. After the update last night, you should start to see comments filtering in.
 
Casper said:
The near-term problem with bitcoin as a currency is the enforcement. There are places that accept bitcoin as payment, but there is no guarantee that they always will. The government doesn't enforce bitcoin. In fact, it's in a business' interest to not support bitcoin, since it's price is highly volatile. Constantly adjusting bitcoin to dollars is inefficient and ultimately unnecessary.

So what happens to the price of bitcoin when merchants decide to refuse payment? Yikes. It truly has no intrinsic value.
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Right now, its edge merchants that accept it because traditional currencies aren't an option. It's totally in their best interest to accept it. Volatility is always a problem in small markets, you know that. Assuming that the flight to bitcoins in the name of safety continues, that volatility will certainly go down.
 
fly said:
Right now, its edge merchants that accept it because traditional currencies aren't an option. It's totally in their best interest to accept it. Volatility is always a problem in small markets, you know that. Assuming that the flight to bitcoins in the name of safety continues, that volatility will certainly go down.
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But there is an easier to use currency system already in place. And it's safer.
 
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