License to print money... BitCoin?

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April 2nd, 2013 at 8:06:43 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 706
Posts: 8143
Bitcoins have reached $109.1

Bitcoins have now equaled the narrow money supply of Nicaragua and are approaching that of the Bahamas. Could it eventually approach a level of a decent size Latin American country?


Nicaragua
Aruba
Guyana
Belize
Cayman Islands
Saint Kitts and Nevis
Saint Lucia
Antigua and Barbuda
Grenada
Saint Vincent and the Grenadines
Dominica
Anguilla
Montserrat
April 2nd, 2013 at 11:13:46 PM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 49
Posts: 4580
Quote: Pacomartin
Could it eventually approach a level of a decent size Latin American country?
There are probably different metrics to consider than size of an economy. I think depth and breadth of an economy or the underlying diversity (and presumed immunity to economic fluctuations) might be more important.
April 3rd, 2013 at 7:14:41 AM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 49
Posts: 4580
Quote: Pacomartin
$122.2
So lets hurry up and get us a knockoff version!
April 3rd, 2013 at 7:24:19 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 706
Posts: 8143
Quote: Fleastiff
So lets hurry up and get us a knockoff version!


$128

At this point someone will certainly try and duplicate this effort. As I suggested, possibly even a country.

The bitcoin existed for about 1.5 years before there was even an exchange rate with the US dollar (initially less than a dime). It is possible that someone bought a thousand coins early in the process.

As an electronic currency, the bitcoin is infinitely divisible. So if it approaches a thousand dollars, it isn't a problem. There is no need to print new banknotes or mint new coins. The restriction on 21 million bitcoins, is not a limitation since they can be any value.

The big question is if this is a flash in a pan, or the birth of new major financial system.

Certainly someone will try and counterfeit the coin. As everyone knows the threat of counterfeits do more damage to a currency than the actual counterfeits. Britain had to destroy all of it's currency above the 5 pound note in WWII because of the threat of Nazi counterfeits. It took decades to build back up to the 50 pound note.Considering the European norm, they should have at least a 100 pound note, but the experience seems to have forever soured them to large banknotes.

So what about rumors of counterfeit bitcoins? Can they be controlled enough to protect the currency?
April 4th, 2013 at 6:38:28 AM permalink
JB
Administrator
Member since: Oct 23, 2012
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Posts: 96
Quote: Pacomartin
As an electronic currency, the bitcoin is infinitely divisible.

Bitcoin transactions are currently restricted to amounts with 8 decimal places. That doesn't mean it can't change in the future though.

About a week ago I downloaded software that mines bitcoins, and I now own 0.01070552 of them. Hooray.
April 4th, 2013 at 2:00:29 PM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 49
Posts: 4580
The value of Bitcoins surged to a new high this week with each one worth about $142 (£94). Barely a week ago, each virtual coin was worth only $90. But Bitcoins dropped sharply in value as the MTGox exchange came under a sustained DDoS attack. The vast majority of trade in Bitcoins takes place via the site.

The attacks, coupled with a spike in trading volumes, combined to cause delays in trades being confirmed and led the value of Bitcoins to drop sharply to about $120.

InstaWallet closed its doors due to a hacker penetrating its database.
April 4th, 2013 at 8:19:11 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 706
Posts: 8143
The largest hit to Bitcoin's value, however, currently continues to be a 23 percent drop last August, shortly after the Bitcoin Savings and Trust closed. Its head absconded with 500,000 BTC valued at over US$5.6 million at the time. Today, it would be worth about US$63.9 million. This lead many to accuse the entire operation as a ponzi scheme.

Source: http://www.zdnet.com/bitcoin-value-stumbles-amid-ddos-attacks-instawallet-breach-7000013488/
April 5th, 2013 at 8:38:46 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 706
Posts: 8143
$140.64

That ain't workin' that's the way you do it
Money for nothin' and chicks for free
Now that ain't workin' that's the way you do it
Lemme tell ya them guys ain't dumb
April 6th, 2013 at 4:45:17 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 706
Posts: 8143
Quote: JB
Bitcoin transactions are currently restricted to amounts with 8 decimal places. That doesn't mean it can't change in the future though.

About a week ago I downloaded software that mines bitcoins, and I now own 0.01070552 of them. Hooray.


Well 8 decimal places should be more than enough. The sum value of the bitcoins is now about US$1.5 billion. The fourth ranking national currency of the world, the British pound, has a cumulative value of roughly $100 billion in notes and coins. I would be shocked if bitcoins can challenge the great fiat currencies of the world, the dollar, the euro, and the Japanese yen.
April 6th, 2013 at 4:48:18 PM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 49
Posts: 4580
Bitcoin: In No One We Trust ... Bitcoin as the last refuge of a global economy:
Bloomberg.
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