How To Use Bitcoin – The Most Important Creation In The History Of Man

[remirol]

You'd almost think that there's a small group of people *cough* developers *cough* holding the bulk of BTC out there.

I wonder if this situation has ever been reflected in the past somewhere? Consider that with BTC we have:

1. A finite supply of a commodity
2. $X tied up in the speculation market for that commodity at $Y per unit
3. A significant amount of that commodity that was created and/or purchased for Y=0 (mining time early on)
4. No real use for the commodity itself other than speculation

#3 is the one that occurs to me as the most likely place to put a thumb on the scale; when those miners decide to drop even part (100 BTC) of their hoards and cash in, what impact is that likely to have on the market? Right now people purchase BTC because they believe that demand will rise and they'll be able to sell it for more later, but the only way to make demand for BTC go up is through artificial scarcity creating a "reduction" in supply. Yet the amount of BTC is steadily increasing; mining isn't a major factor anymore, but the early Bitwhales sitting on huge stacks of BTC certainly are.

I would not personally make any sort of investment in a commodity where I knew a huge amount of that commodity was waiting quietly to be dumped onto the market; it's just too much of a gamble that you'll get out before the dump starts. That combined with the very real possibility of Bitcoin being regulated out of existence and the technology co-opted to work with existing currencies would be quite a large deterrent.

 

[mhaze]

coordinated bitcoin buying across all "exchanges". Either there is news or manipulation.

Wait, a NEW CONSPIRACY THEORY?

ROFL....

Oh, cool. When will it get to 15$ ?

What, not 0.15? Wait, isn't it going to $150? Or was that $1500?

It's all so confusing (NOT)...

 

[wrs]

Wait, a NEW CONSPIRACY THEORY?

ROFL....

What, not 0.15? Wait, isn't it going to $150? Or was that $1500?

It's all so confusing (NOT)...

It has room to go a little higher before it falls back down. Obviously it's manipulation or news. I still don't see what the news might have been. A bigger number next to bitcon doesn't make it able to buy anything of value.

 

[jhunter1163]

Somewhere way back in this thread someone posted a list of the largest Bitcoin holders (as best they could determine). One holder had something over 500,000 BTC, out of a total supply of 12 million-ish (or somewhat less, given that the FBI holds a couple hundred thousand and there have been various incidents and accidents that have reduced supply). It's naive to think that that one person couldn't, or doesn't, have any influence on the day-to-day fluctuations in BTC.

 

[ideogram]

Logic underlies all probability theory.

Logic is used to prove probability theory is valid. You mentioned Formal Logic in your post but then you try to make a probabilistic argument.

Yes, he did make that claim and has not retracted it.

Well, it's silly to argue about what he meant to say. He can explain himself if he wants to.

Obviously that requires a rebuttal. Otherwise we'd have wrong things on the Internet.

 

[ideogram]

Wait, a NEW CONSPIRACY THEORY?

Manipulation is not the same as a conspiracy theory.

 

[sam84]

you guys might find this article interesting
http://www.coindesk.com/researcher-tracks-bitcoin-movements-anonymity/

 

[pantsorama]

I have two predictions:

1) Bitcoins will never be used to purchase goods at the volume paypal does today. (Note arbitrage, bitcoin tumbling, currency exchanges, etc. are not using bicoins for purchasing goods.)

2) When the bottom falls out there will be a bunch of Bitcoiners either claiming this is the fault of the SEC, or looking for the SEC to recover / mitigate their losses.

 

[Belz...]

Wait, a NEW CONSPIRACY THEORY?

I'm not sure you're clear on the meaning of that term.

 

[jhunter1163]

Somewhere way back in this thread someone posted a list of the largest Bitcoin holders (as best they could determine). One holder had something over 500,000 BTC, out of a total supply of 12 million-ish (or somewhat less, given that the FBI holds a couple hundred thousand and there have been various incidents and accidents that have reduced supply). It's naive to think that that one person couldn't, or doesn't, have any influence on the day-to-day fluctuations in BTC.

Thanks, Sam84: that's just the article I was thinking of. Per that article, 64 percent of all mined BTC are not circulating. I wonder why that might be...

 

[wrs]

The more I read about Mt Gox, the more I am able to understand why no one can get their money out, they just don't have it and never will.

http://www.theverge.com/2013/8/23/4...seized-5-million-from-bitcoin-behemoth-mt-gox

US govt took $5m from them and CoinLab sued them for $75m.


http://blog.standardcrypto.com/2013/09/07/who-will-buy-mtgox/

https://bitcointalk.org/index.php?topic=86224.180

People still not able to do anything but take out BTC and get cash elsewhere. This tends to explain why Mt Gox prices are higher than the other exchanges. Currently they at $1030 while the highest is $986. So you pay a 4.5% penalty to convert your account to BTC and get it out. However, even getting BTC out isn't a sure thing according to the thread at bitcointalk.

This thread says it all.

 

[kevsta]

this could kill it, competition from the Fed JPMorgan to release their own crypto currency ?

Here’s what the nation’s largest bank, JPMorgan Chase, envisions for the next phase of e-commerce, according to a patent filing published just a few days ago which describes a “new paradigm” for online payments.

Imagine paying for some product in a transaction directly with the seller that doesn’t include a costly third-party fee or the revelation of a personal account number — the current components that comprise credit card and debit card purchases.

Imagine this system with a “real-time digital exchange of value.”

And imagine that you can archive all the transactions in a personal digital wallet, with its own “Internet Pay Anyone (IPA)” account and inherent safeguards built-in, something that you could call “Virtual Private Lockbox (VPL),” according to JPMorgan’s patent.

If this “web cash” system — as JPMorgan Chase calls it — seems familiar, it should. It smacks of the peer-to-peer transactions of bitcoins and other cryptocurrencies that increasingly are making the world’s biggest banks uneasy about the future of e-commerce.

The patent, first revealed by LetsTalkBitcoin.com, is a fascinating look into JPMorgan’s veiled outlook on the evolving but growing bitcoin universe, and other more widely-accepted payment systems.

JPMorgan’s proposed system offers another eerily familiar component, which seemingly mimics “blockchain,” a publicly available, permanent ledger of bitcoin transactions.

Here is JPMorgan’s version: “The method further includes freely publishing the payment address and making it available to users of an internet portal or search engine.”

Without naming the virtual currency or any competing payments system by name, the bank takes a swipe at the crytocurrency model.

“None of the emerging efforts to date have gotten more than a toehold in the market place and momentum continues to build in favor of credit cards,” according to Chase’s patent application published by The United States Patent and Trademark Office (USPTO). It was filed August 5th, 2013.

dissed - we squish your puny $12bn market cap like bug

 

[jhunter1163]

Barclays doesn't seem to like BTC much either:

http://www.reddit.com/r/Bitcoin/comments/1sgcm6/my_bank_has_frozen_my_account_because_i_sent/

 

[Tsukasa Buddha]

You guys are behind the times. Bow before DogeCoin!

 

[Anders Lindman]

You guys are behind the times. Bow before DogeCoin!

Why didn't they name it DoughCoin instead? Like, coin that's like plenty of dough. That's plentier imo.

 

[Beelzebuddy]

Why didn't they name it DoughCoin instead? Like, coin that's like plenty of dough. That's plentier imo.

No its name doge. some profits go to doge rescu.

 

[Anders Lindman]

No its name doge. some profits go to doge rescu.

In that case I think they should be called SnoopDoges since it's likely that that too like Bitcoin, is an NSA invention.

 

[babycondor]

This thread says it all.

Indeed. Did you catch this too, at the top of the page?

"News: If you used your password to login between 06:00 Dec 1 UTC and 20:00 Dec 2 UTC, then your password may have been captured in a man-in-the-middle attack, and you should change your password here and wherever else you used it. If you were only logged in via the "remember me" feature, then you're OK. "

 

[babycondor]

this could kill it, competition from the Fed JPMorgan to release their own crypto currency

Sounds like an e-check, without the payor's name or bank acct number on it. And you know it will have a transaction fee on one end or the other. If not both.

 

[wrs]

Looks like it's on the next leg down now

Another potential triangle failure here. The 50sma is kissing off the 200sma for the hourly chart so that isn't good. This could set up the move below 500.

Of course MtGox broke down, how convenient, when the market is about to roll over, just stop trading, maybe that will work...LOLOLOL