Can BITCOINs Defeat IRS Tax Thieves?

[LPC]

There's an article about bitcoin and its mysterious inventor, Satoshi Nakamoto, in a recent New Yorker. (Subscription required.)

[notorial dissent]

I think a better question would be can Bitcoin manage to survive? It looks more like it is getting ready to implode than displace the FED at this point.

[LPC]

My understanding, based on what I've read, is that the computers that are "mining" bitcoin act as the servers that keep track of bitcoin transactions. What that means is that the bitcoin system is highly redundant, much like the Internet itself. If a miner/server is shut down, whether voluntarily or involuntarily, the load is simply shifted to other servers. The only way the system could ever be stopped would be to shut down every server in the world.

(One thing that might stop the software is an Internet-wide change in operating systems and the universal adoption of new OSes that are incompatible with the software.)

It's therefore possible for the system to fail financially, and be unused, but the system is not likely to implode from a software point of view.

[notorial dissent]

I was referring to the actual system itself. According to latest info, it is now costing more to mine bitcoin than they are worth, and they are now running about par with the dollar. I don't pretend to understand the system behind it, nor do I in fact care, but if it is costing more to "earn" them than they are worth, then they aren't going to be around much longer.

Which as I previously pointed out is going to make it rather difficult for it to displace the FED as our riotious rodent would like to believe.

[Burnaby49]

Maybe Bitcoin is gaining some traction. The guy seems to actually want them rather than just as a PR stunt. Not a tax dodge if this is his home instead of an investment property since the sale of your primary residence is not a taxable transaction in Canada:

http://www.cbc.ca/news/yourcommunity/20 ... l?cmp=fbtl

[LightinDarkness]

Maybe Bitcoin is gaining some traction. The guy seems to actually want them rather than just as a PR stunt. Not a tax dodge if this is his home instead of an investment property since the sale of your primary residence is not a taxable transaction in Canada:

http://www.cbc.ca/news/yourcommunity/20 ... l?cmp=fbtl

I would hardly consider 1 person accepting bit coins for their house as evidence of traction, with all due respect. Bit coins are basically a libertarian/geek niche thing. That doesn't mean you can't make money off it - anyone who speculated on this would have come out well over the past few years assuming you didn't sell in between exchanges getting hacked. But its always going to be a small thing. The only reason why bit coins gained any traction at all is because it arrived on the internet scene during the height of the financial panic when people were fear mongering about traditional currencies all the time. As the economy improves bit coin will only be further marginalized, its only real selling point is you can use it to buy illegal drugs on the silk road website. That won't help it become "main stream."

[Burnaby49]

Maybe Bitcoin is gaining some traction. The guy seems to actually want them rather than just as a PR stunt. Not a tax dodge if this is his home instead of an investment property since the sale of your primary residence is not a taxable transaction in Canada:

http://www.cbc.ca/news/yourcommunity/20 ... l?cmp=fbtl

I would hardly consider 1 person accepting bit coins for their house as evidence of traction, with all due respect. Bit coins are basically a libertarian/geek niche thing. That doesn't mean you can't make money off it - anyone who speculated on this would have come out well over the past few years assuming you didn't sell in between exchanges getting hacked. But its always going to be a small thing. The only reason why bit coins gained any traction at all is because it arrived on the internet scene during the height of the financial panic when people were fear mongering about traditional currencies all the time. As the economy improves bit coin will only be further marginalized, its only real selling point is you can use it to buy illegal drugs on the silk road website. That won't help it become "main stream."

Bitcoin seems to be expanding past "a libertarian/geek niche thing". Farhad Manjoo, the technical writer in slate (neither a libertarian or geek) seems to think that it has a fairly solid future. While I agree it will never be a "main stream" currency it seems to have at least established itself as more than a fad:

http://www.slate.com/articles/technolog ... ubble.html

[LPC]

The lame stream media speaks.

[LightinDarkness]

Bitcoin seems to be expanding past "a libertarian/geek niche thing". Farhad Manjoo, the technical writer in slate (neither a libertarian or geek) seems to think that it has a fairly solid future. While I agree it will never be a "main stream" currency it seems to have at least established itself as more than a fad:

http://www.slate.com/articles/technolog ... ubble.html

Umm...did you read the article?

I’m not very panicky about the world’s currencies, nor am I looking to buy drugs online. Indeed, I don’t care at all for Bitcoin as a currency. Instead, I wanted to buy Bitcoins as pure, shameless speculation.

Its a bubble. He knows it. Its shameless gambling. No different than currency speculation on forex, except bit coin carries even more risk. Even the true believers on bit coin know that the kind of rise it has seen recently is completely unsustainable. Investing in bit coins now is no different than investing at the height of the real estate market or gold. One may very well end up doing quite well with it - buts its not really an investment, more of a gamble.

I know lots of people, who, for example, lucked up quite well by buying into fear mongering on the economy and plowing their money into gold 5 years ago. I also know someone who bought it at its peak 1 year ago whose money missed out on the 30%+ gains in the equity markets because all his money was in gold bullion buried in his back yard (seriously). It will be the same story with bit coin - and there will be FAR more people in the later group than the former group.

[Burnaby49]

Bitcoin seems to be expanding past "a libertarian/geek niche thing". Farhad Manjoo, the technical writer in slate (neither a libertarian or geek) seems to think that it has a fairly solid future. While I agree it will never be a "main stream" currency it seems to have at least established itself as more than a fad:

http://www.slate.com/articles/technolog ... ubble.html

Umm...did you read the article?

I’m not very panicky about the world’s currencies, nor am I looking to buy drugs online. Indeed, I don’t care at all for Bitcoin as a currency. Instead, I wanted to buy Bitcoins as pure, shameless speculation.

Its a bubble. He knows it. Its shameless gambling. No different than currency speculation on forex, except bit coin carries even more risk. Even the true believers on bit coin know that the kind of rise it has seen recently is completely unsustainable. Investing in bit coins now is no different than investing at the height of the real estate market or gold. One may very well end up doing quite well with it - buts its not really an investment, more of a gamble.

I know lots of people, who, for example, lucked up quite well by buying into fear mongering on the economy and plowing their money into gold 5 years ago. I also know someone who bought it at its peak 1 year ago whose money missed out on the 30%+ gains in the equity markets because all his money was in gold bullion buried in his back yard (seriously). It will be the same story with bit coin - and there will be FAR more people in the later group than the former group.

And if you'd read, and understood, my comments and the article you might have actually got the point I am making into your head rather than getting snotty about some other point you pretend I'm making so you can set up a strawman to refute. I am not saying Bitcoin is going to be a significant world currency. I am not a supporter and I agree it is in a bubble. Notwithstanding your apparent obsession with this blind alley I am not saying that Bitcoin isn't in a bubble and the current price is either reasonable or sustainable. Bitcoin might well be overpriced and heading for a fall, I have no idea, but that doesn't take away from my overall point. Now pay close attention, this is my point (my only point) I AM SAYING THAT BITCOIN IS NOT A FAD in the sense that say, the Hula-Hoop, Davey Crockett coonskin caps, and swallowing goldfish were fads. You mentioned gold. So is it your argument that gold is just a passing fad because it has gone through bubbles? Are you saying living in houses is a fad because you housing market went through a bubble and collapse?

My point is that, unlike the Liberty Dollar and some other pseudo-currencies, Bitcoin seems to have enough critical mass to find a semi-permanent place in at least a small corner of the financial world. Got it?

[LightinDarkness]

Burnaby: I'm sad that your not capable of having a rational, reasonable discussion without insults - but since you've decided to post that hysterical response, this is the last thing I'll say:

Maybe if you want to focus the discussion you shouldn't post articles that 100% disagree with what you claim and support exactly what I've been saying? You want to hyper focus on the idea that bit coin isn't a fad? OK, nothing you've posted supports that - and your spastic, foaming at the mouth response right above this post suggests that your becoming a bit unhinged over this.

Nothing about bit coin is "critical mass" - in fact the very reality that the currency has a hard limit and is well known to be primarily used by (1) people wanting their crack from Silk Road and (2) people looking to get rich quick from speculating just ensures it will remain a niche geek/libertarian obsession. Those are the facts. I know you don't like them...as your unhinged response shows...but the facts stand even when we don't like them.

Calm down. It will be OK. Breathe. Go ahead and response to this post so you can get your "last word" in and feel good about yourself, then please back away from the computer slowly.

[Gregg]

My entire base on Bitcoin is that I first learned of it when Harvester was saying it was going to be the next big thing. All I needed to know to figure out it was going to be irrelevant.

[Burnaby49]

"Burnaby: I'm sad that your not capable of having a rational, reasonable discussion without insults "

Look in the mirror. You responded to one of my prior posting with:

"Umm...did you read the article?"

Interpretation - Hey moron, are you too stupid to read and comprehend a simple article?

So I responded in kind and you went off in an offended hissy-fit. Well, tough.

As far as my main point goes re Bitcoin, we'll wait and see.

[Pottapaug1938]

Courtest of www.coinflation.com:

http://www.zerohedge.com/news/2013-04-1 ... s-25-hours

[Burnaby49]

So, like most bubble speculators, Farhad Manjoo stayed holding too long and got caught short. Well he got an article out of it and since he only put in $1,000 he had a limited downside.

[AndyK]

Borderline flame war

Chill the rehetoric or ...

[The Observer]

This is a perfect example why we do not allow discussions to go off-topic anymore. Somone gets the preception that they are being dissed or that they need to diss someone, and we immediately get into insult exchanges. And of course, the insults have nothing to do with discussing scams and frauds. I am locking the thread down and the respective parties can go to their corners and think about it.