>>> So, as for safety of money, it seems we are at the mercy of the
location where the money is stored. That is why the mattress is looking
better all the time.
Because Bitcoin is digital, you can also store your bitcoins on your
personal computer, or print out your private key and store it in a
filing cabinet. No need to keep it in an exchange.
Craig
On 02/26/2014 12:01 PM, Edmund Storms wrote:
I have been following this discussion with interest because I bought a
bitcoin. As best as I can tell, the personal wallet that contains my
coin is located at and is under the control of an exchange, such as
MtGov. This is no different from the money in my account at the bank.
If the exchange goes bust, as apparently is happening with MtGov, I
lose my coin. If the bank goes bust, I would lose my money unless the
government steps in to replace it.
In both cases, the money is in digital form and can be transferred
using the computer. The only difference is that transfer of bitcoins
is outside of the normal system. In addition, when I transfer a
dollar, a dollar gets moved. When I transfer a bitcoin, the dollar
amount is variable depend on which day I make the transfer.
As for a EMP event, that would wipe out the money in my bank because
all record of its existence would be lost, unless the paper record was
accepted. Of course, I have a paper record of my bitcoin as well,
which may or may not be accepted.
So, as for safety of money, it seems we are at the mercy of the
location where the money is stored. That is why the mattress is
looking better all the time.
Ed Storms
On Feb 26, 2014, at 9:41 AM, James Bowery wrote:
Alain, what you are talking about are what I previously called the
"exchange" layer of cryptocurrency infrastructure.
That layer of the infrastructure is not necessary.
Cryptocurrency differs from gold in that the safest place to keep it
is not in a central location but in your own electronic wallet which
is part of the highy vetted electronic-wire/public ledger
infrastructure. Yes there are, and always will be, a lot of people
offering "financial services" of all kinds -- what I'm subsuming
under my term "exchanges" -- and I expect as things progress much of
this infrastructure will be absorbed by the current financial
institutions that offer services of proven value. But the basis is
actually better than gold in the absence of an EMP event.
On Wed, Feb 26, 2014 at 6:28 AM, Alain Sepeda <alain.sep...@gmail.com
<mailto:alain.sep...@gmail.com>> wrote:
many interesting points.
Bitcoin interesrt beside being anonymous like coins and bills.
Some people like libertarians and gold lovers loke bitcoins
because they think the quantity of physicical bitcons, like gold
(but more predictably than gold) cannot be fudged by central banks.
In fact it is false, like for gold.
like there is tons of paper-gold, ther will be (or there is) ton
sof paper-bitcoind...
banks can invent bitcoins by makein loans (the basic of monetary
creation)..
in some US prisons, since cigarettes get banned, the currency is
fishcans...
using shells is no better than gold, bitcoins, or banknotes... as
soon at it is trusted, some actor may make loan, based on
deposits, or sell insurance contractes (derivated products)...
best way is to understand what is finance, and prevent
too-big-to-fail, and people with no flesh in the game...
2014-02-26 7:58 GMT+01:00 Giovanni Santostasi
<gsantost...@gmail.com <mailto:gsantost...@gmail.com>>:
It is not possible. Bitcoin network itself is not hackable as
credit cards are. The vulnerabilities are in centralized
places like exchanges that do not take precautions to protect
customers accounts (as cold wallets). A network is very
resistant to attacks like this. Look what is happening to
Bitcoin, even a disastrous event like what happened with
MtGox created some turmoil but not the end of Bitcoin. In
fact price is bouncing back.
Bitcoin is going to be the future of money.
On Tue, Feb 25, 2014 at 6:46 PM, Jed Rothwell
<jedrothw...@gmail.com <mailto:jedrothw...@gmail.com>> wrote:
Giovanni Santostasi <gsantost...@gmail.com
<mailto:gsantost...@gmail.com>> wrote:
Bitcoin will be 1 Million dollars by 2019.
Until a 16-year-old Russian Hacker gets into the bank,
the way one got into the Target credit files. A week
after that, the Bitcoin will be worth $14.38.
- Jed
