WSD Insider
RSS
Google Plus
Twitter
Facebook

Beware of This Insidious New Currency Scam





Comments (16)

  1. B2DF says:

    “China’s yuan entered as the next great contender. But let’s be real. We have a better chance of seeing Jesus tomorrow than we do of seeing the world embrace the currency of a communist government as the new reserve.”

    An opinion, my friend, just as valid as any other, or not. The truth of the matter is that the BRICS have the balls and the gold and the reserves to produce a new basket reserve currency to replace the existing basket-case. And they will.

    [Reply]

  2. B2DF says:

    And another point…the existing reserve currency is issued in the currency of a wannabe-communist country. Or had you not yet noticed?

    BTW : the existing reserve currency is issued by a Central Bank system which China just bought a 20% stake in. Chances are they will buy a whole lot more.

    [Reply]

  3. Carl says:

    “So this whole notion of an unregulated currency is really just a pipe dream.”…
    Not true, the currencies can be unregulated and flow wildly around the globe without any oversight, HOWEVER, the point at which any currency converts into dollars (or any other national government controlled currency) will always be regulated. If I create Bitcoin II tomorrow, everyone in the world can begin using it as a currency and one billion users could get away with it, however, when that currency breaks out of it’s network and is converted into dollars somewhere in that network… those points will be subject to attack and regulation. Reference e-gold.com Bitcoin COULD flow endlessly around the globe without issue, but anyone needing to “get their money out” would have to disclose and be regulated.
    Carl

    [Reply]

  4. Louis Basenese: Bitcoin Pitfall #3: No Inherent Value
    Jct: Right you are. Time your computer wasted mining for imaginary gold isn’t worth a whit compared to an Hour of neighbor’s labor owed in a timebank. And we can trade our Hours online too so there’s no reason to opt for a negative time value currency when there are already plenty of LETS positive-time value currencies in the world today.

    [Reply]

  5. - An anti-BitCoin article from – The Wall Street Daily. Note how the writer, a ‘Chief Investment Strategist’, picks apart BitCoin and crypto currency piece by piece while completely overlooking some key facts:

    1.) That the foundation of BitCoin was created on trust. Trust among peers, community and excluding regulation. Which, we all know…the distribution of enforcement of regulations related to money almost always sides with the ‘Banks and Bankers’. There’s no trust there that’s for sure.

    BitCoin and crypto-currency actually allows people to create it and even manage it. To become their own Bank and to deal with people at the person level. And not, the robotic teller level which fiat currencies exhibit.

    2.) What the moronic ‘Chief Investment Strategist’ in this section forgot to consider, is that crypto currencies are divisible to 8 decimal places. 1 BTC can be worth a Billion USD each, however, it can never ever be artificially inflated like today’s fiat paper currencies. And the 21 million BTC limit is something which can never ever be changed as it is coded in the overall BTC protocol to be limited. Further, sure…there’re are already better better versions of BTC, Ripple comes to mind. However…whatever has or will come along will follow the same decentralized p2p cryptography. LiteCoin does, Ripple as well…PPcoin, FeatherCoin, etc.

    3.) No inherent value? Billions of people use their computers/devices all day and night working, communicating and transferring 0s and 1s all over the World. This would be like saying web sites have no value.

    Once again…naysayers of BitCoin and p2p crypto currencies are either, anti-free markets, bought and paid for by the fiat currency establishment or just plain ignorant. Sometimes a combination of the aforementioned.

    [Reply]

  6. AaronH says:

    “there’s nothing to stop the creators from simply creating more Bitcoins.”

    Sorry, your technical understanding of bitcoin is lacking. The reason you cannot increase the number of bitcoins in circulation is because all the millions of miners, who verify the legitimacy of blocks of transactions, will refuse to accept any blocks that attempt to mint more coins past the 21 million limit. In other words, in order to increase the 21 million limit, the majority of the bitcoin mining power in the world would have to agree to increase that limit; so this would be a major consensus that would have to take place. No single entity could ever increase this limit. Bitcoin is not dependent on a “creator” or even on a single piece of software. Any miner on the internet can run any software they want to mine bitcoin. It is the consensus that is achieved between all these decentralized nodes that speak the same protocol that determine the outcome of bitcoin. The miners keep each other honest. If any miner tries to be dishonest, his blocks are rejected by the other miners, and his mining efforts are wasted.

    Another technical understanding which you are missing is that bitcoins are potentially infinitely divisible. Presently, miners do not accept transactions for bitcoins below an 8th of a decimal place, because such small transactions are not worth anybody’s effort, but if the value of bitcoins go up, that could quickly change. Practically speaking, transactions that are too small to contribute profitable amounts of transaction fees to the miner will not be worth anyone’s while.

    [Reply]

  7. AaronH says:

    It is ironic that you used the “In God we Trust” example in your argument. The government originally put this phrase on its currency in order to gain people’s trust in it. People did not trust the government as much as they trusted god, at least, at the time. The fact is, it is easier for people to trust the bitcoin network, than it is to trust some paper, that can be counterfeited, and for which, most people do not fully understand the source. The rigorous technical aspects of the bitcoin network have solved the problem of counterfeiting. The bitcoin network maintains its trust through the understanding of all its users, that it can be used as an honest and reliable ledger for wealth transference; which is the foundational purpose for which all currencies were created in the first place; bitcoin just does the most reliable job of it. Trying to argue that nobody can trust bitcoin is rather futile, since it has already been proven false by the number of people who already trust it.

    [Reply]

  8. AaronH says:

    “what’s going to stop a better Bitcoin from coming onto the scene?”

    One could argue that there are already better crypto-currencies than Bitcoin on the scene. That is not a big issue though. You can simply trade your Bitcoins for those other crypto-currencies, ripples, namecoins, novacoins, etc. Really, you can think of all these currencies as just one big network of currencies. You can literally calculate the value of any mined crypto-currency in dollars, by first finding out the going rate for Bitcoin, and then calculating the computing power that it would take to create the equivalent number of alternate currency… in other worlds, the market is valuing all these alternative crypto-currencies to be roughly equivalent to the value of Bitcoins… or roughly equivalent to value in computing power it takes to create them.

    [Reply]

  9. Peter Weldon says:

    Bitcoins are a desperate hope to get out from under crooked, thievish, oppressive Governments.

    If this currency is killed, then their is no legal way of hope. – Protecting yourself.

    Desperate people become ingenious. Remember the moonshiners. The drug Cartel, both on a small and large scale. Manufactures that employ Monopolies. etc, etc. Small manufactures that manufacture knock-offs, that now a-days are even found in Aircraft.

    The Economy is built for the bottom up not top down. The bottom is too poor to carry the Economy – bye bye

    [Reply]

  10. Carleen Lane says:

    People have to be getting insane to even consider Bitcoin. Year ago in the South American countries, when the government wanted to grabe your money, they just simply changed the currency completely and only gave you so much back in “funny money”. One country even issued plastic money coins. Then a few months later, they changed it again and gave everyone a fraction of what their true worth was. Is that next?

    [Reply]

  11. Constance says:

    The only one you can trust is thyself. Never knock an endeavor or idea until you try it or it’s proven not to work for you. Honestly, I have not completely grasped the whole currency thing and inflation etc, etc but I’m extremely drawn to it. When I read the comments to this article, I realize that even though I don’t completely understand the markets, my gut and instincts help lead me. World governments govern, they don’t think. Paypal backing Bitcoin says alot. Paypal has great credentials. Although I’m not ready to jump on the bandwagon just yet, I hope this new currency proves to be a success for the founders. I also pray that tyranny doesn’t prevail. There are many people in the world who need to be governed for their lack of knowledge, their lack of comprehending, their lack of prudence. But there are just as many people who have the ability to do business, create currencies, manage their lives without the interference of regulation, laws, and red tape. Even though I don’t agree with your view of the Bitcoin, I always look forward to your insight. Thanks for the time and preparation you put into this article.

    [Reply]

  12. Esperanzo says:

    That means that the new reserve currency from the IMF (Spedri) is coming sooner than we think. The are already issuing Spedri Bonds which is just the beginning.

    [Reply]

  13. Trista Winters says:

    Wrong side of history with that article.

    [Reply]

  14. Pete Blithe says:

    Shame on you. What a moronic uninformed article. There is clearly no hope for some people – but no surprise there. You really need to grasp the economic motivations of the miners as they are the ones that determine what happens. It they don’t like what the core developers change then it won’t happen.
    Noone is in a position to comment unless you have an understanding of the c++ (qt) version together with the boost/leveldb libs and such, an insight into the main java version(this is the multibit ext of bitcoinj) is of course essential as well. It is crucial to have studied the various python versions the miners are using – and perhaps also followed the draft phase extensions in the form of zerocoin and coloredcoins, you might then be able to grasp what HD wallets are and weather something like Trezor could indeed provide a secure storage solution. Do not forget to look into the recent minimalistic implementation in the new computer language go while you are at it.
    If you are not in a position to write an informed article. Don’t.

    [Reply]

  15. American Gerry says:

    The Bitcoin is fairy dust. Sounds nice but is not part of reality. The US dollar is here to stay and has been the rock of recovery. With the energy surge here in the US the dollar is turning from a rock into a mountain. The dollar will outlast the lifetime of anyone living today.

    [Reply]

  16. Jack says:

    Thanks! I have felt very uneasy about Bitcoin. There is nothing backing it but Trust. Trust but verify! How can I trust a money that multiplies so fast? That scares me. You helped me with your article.

    Jack

    [Reply]

Add Comment