- Is Bitcoin dead?
There was an article kicking round about the legwork that went I to it. Basic flaw was he advertised for a developer using his own email address and it was linked to code I silk road, he also posted a question on stack overflow under his own name before changing it. What goes up once stays somewhere. Both of these were for bits of code that were integral to the site. He was then tracked but was using a vpn but they managed to get the hosts to spill the beans. Sounds like a lot of good detective work and fairly dull….Posted 4 years agowhatnobeerMember
When I heard about this I initially wondered if there had been a flaw in TOR that had been exploited, or some other technological/crypto issue. As Mike mentioned, turns out the biggest flaw, as is so often the case, was the human at the end of the chain. Simple mistakes like using his own email address when astroturfing or looking for advice.
As for bitcoin being dead? I wouldn’t think so just yet. There are plenty of other places (though none as large) that will still use them and I suspect that the price will recover some what.Posted 4 years agobrooessMember
Silk Road shutting has apparently also led to a big drop in value of Bitcoin.
I guess it’s still a fiat currency to some extent – only works if those using it have faith in it. And if it’s too strongly linked to organised crime it’ll never become a mass, legitimate currency.Posted 4 years ago
Be interesting to see what happens now… it’ll either collapse or become legitimate now it’s lost it’s main criminal linkIanMunroMember
I guess it’s still a fiat currency to some extent – only works if those using it have faith in it. And if it’s too strongly linked to organised crime it’ll never become a mass, legitimate currency.
I think the thing that has always doomed it as a currency is the bitcoin algorithm will only produce a finite amount of coins which appears to be add odds with how any other currency works.Posted 4 years agomrmoMember
I think the thing that has always doomed it as a currency is the bitcoin algorithm will only produce a finite amount of coins which appears to be add odds with how any other currency works.
but other currencies have inflation, so do you need more currency or just stable prices?
If you have for example a house that costs £10 in 1900 and is now £200000 is this actually a good thing? why shouldn’t a house cost 100k bitcoin now and in 200 years still cost 100k bitcoin?????Posted 4 years ago
I don’t understand the inflation thing.
Surely a finite currency is bound to deflate? As more people start to use it, as above each person can have less. So products and services have to be sold for smaller and smaller fractions of a coin. And those who simply hold onto their coins will become rich through not spending them.
Which, given that there are alternative currencies in which to transact, removes anyone’s incentive to spend them – they’ll just trade them. So it really is a ponzi scheme of sorts.. or a self defining bubble.Posted 4 years agoplyphonMember
There are already alternative sites to Silk Road that have been operating for as long, maybe longer, than Silk Road. SR was just the most publicized/best marketed of the bunch.
BitCoin isn’t finite. It is infinite. But “mining” the coins gets harder until advances in technology make it easier.
That is the complete opposite of the truth. There is a total limited number of BitCoins that will ever be mined. That number is 21 million. You are right about the difficulty increasing, but there will never, ever be more than 21 million BitCoins mined.
The dollar value of a BTC dropped slightly where a few panic sold, but really BTC buys so much these days that the argument “It’s only for drugs” isn’t true – the value will stabilize and rise again soon. In fact now is a good time to buy if you were looking to make a quick buck on a short sale.
Can’t you have parts of a bitcoin? Like we have pennies but because they’re not real you can have something that costs 0.03333 bitcoins?
The code in the blockchain can be modified by the community to allow a 1BTC to be divided up as many times as they like. Currently I think it’s around 8 times, or 0.00000001. Something like that.
Bit Coin wont be going anywhere. Like I said, the whole “It’s only to buy drugs” thing was a media spin to effect public opinion. (/tinfoil hat)
BitCoin isn’t like fiat currency as the supply is finite and predictable. Fiat can be printed off at any time, without warning.
because they’re not real
They’re only “not real” in the sense you can’t hold them physically. Other than that there is no different to pounds pence dollars etc. I buy plenty of stuff at work that costs 0.004p – I just have to buy a few thousand at a time to make a figure that exists in pounds and pence. With BTC you can pay exactly 0.004 if you needed.Posted 4 years ago
but there’s no reason why I might not be owed or owe 22 million
Hmm. So given that total debts would be more than the total amount of coins, you could trade these virtual coins. I could just write out notes saying ‘I promise to pay the bearer on demand the sum of 1 bitcoin’ and then these notes could be traded, on the assumption that no-one actually cashes them in….
What’s been created, therefore, isn’t a new currency, it’s a new virtual raw material, like gold. I could start my own currency called molcoins that are exchangeable for bitcoins and trade those instead on the back of their exchange rate. They could be unlimited. Then after a while we wouldn’t need bitcoins at all.Posted 4 years ago
Money is debt by proxy. It’s meaningless without any real backing apart from the value assigned to it by those who share the system.
I work for my company, it owes me my salary per month. So instead of giving me anything real it tells a bank that it owes me that much. So I can then take portions of that debt and give it to other people in lieu of anything real in return for services.
It’s not called debt, but it is no different, just debt with the polarity reversed.Posted 4 years ago
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