|
Technology Computing, programming, science, electronics, telecommunications, etc. |
|
Thread Tools | Display Modes |
|
04-02-2019, 12:14 AM | #1 |
Read? I only know how to write.
Join Date: Jan 2001
Posts: 11,933
|
The first and obvious problem with Bitcoin is its block chain. It can only process seven transactions per second. Visa alone processes ten thousand transactions per second. Its structure does not have such limits. That alone makes Bitcoin too limited to become legal tender.
More problems. Money must measure value. A currency that fluctuates wildly does not measure value; cannot be trusted. If Bitcoin is to become money, then 1636 Dutch tulips were also a good currency. 2005 SIVs and CDOs (even backed by sub-prime loans) were also money. Finance people were using those financial instruments to print money - until the inevitable crash happened a few years later. Bitcoin is rarely used to buy things. Of maybe $2.4 billion transactions, estimates put $0.65 billion just for selling stolen credit cards, drugs, bogus medicines and other illegal transactions. Another $0.87 billion is estimated for gambling. And an unknown majority of that remaining money is believed to be speculation. That is not a healthy currency. Third, a currency must be able to expand or contract with economy changes. Currencies backed by a central bank, through history, tend to be the most stable. During severe recessions, less currency is required. Bitcoin has no ability to change with economic conditions. So it is more popular as gambling chips rather than money. And then fraud. For example, Quadrigacx, a Bitcoin exchange, suddenly went bankrupt when its founder (Gerard Cotton) died. Cotton had the only encryption keys. In trying to untangle the bankruptcy, it is now believed that all $165 million in deposits were missing eight months earlier. Bitcoin intentionally makes criminal investigations impossible; makes fraud easy, untraceable, and profitable. Block chains may have use in other functions. But not as a replacement for legal tender. It was a good try. But, currently, it does not work. |
04-03-2019, 03:24 AM | #2 | ||||||
St Petersburg, Florida
Join Date: Oct 2002
Posts: 3,423
|
Quote:
Quote:
On the flipside, a merchant may be less willing to sell their goods or services at a new Bitcoin high, aniticipating that the price would fall. The opposite might also be true. Merchants may be more willing to sell after a dip in market price of Bitcoin. Adjust their Bitcoin deomonated prices accordingly. Quote:
Quote:
See below for my additional comments. Quote:
They still end up with most of the free currency that they create and are able to spend or loan it before prices rise. Win win for the Fed. Sure, the American people benefit, but only as a by product. The American people ( or dollar holders ) can’t type on a keyboard to create another trillion dollars on a whim to pay their electric bill. It’s a BIG bill. I’m mining Bitcoins. You and your gambling chips man, you’re killing me. Quote:
The following quotations are in regard to cash but are relevant in my point as they show the corruption of the banking system as it is now. The War Against Cash: The Plot to Empty Your Wallet and Own Your Financial Future – And Why You Must Fight It.-Nov2017 – Ross Clark (Britain) $3.00 on Kindle. It's good. Buy and read it. “…Rogoff’s case would be stronger were it not for the astonishing amount of fraud which takes place online, involving electronic money. Where, in the argument that associates cash with crime, fits the shocking statistic that in 2015 British bank customers lost a total of 755 million [$1.3 Billion] pounds in fraud involving payment cards, online banking and (the last making up a very small proportion of the total )cheques.“ “…But these assets weren’t bought with banknotes. No one can walk into a London estate agent and buy a property with bags full of cash; the estate agents are under legal obligation to report anyone who tries to do this. These properties were bought via large cash transfers from overseas banks: electronic money. Maybe criminals should not have been allowed to open these bank accounts; perhaps someone had not done their due diligence and check the provenance of the money in these account, or possibly there are criminals working inside the banking system who facilitate them. Yet the fact is that they did open them. So long as criminals are able to open bank accounts with impunity, eliminating cash [or Bitcoin] from circulation is going to make minimal difference to the amount of crime.” … “…The $200 million of banknotes found at El Chapo’s home is small beer compared with the vast quantities of money which are being laundered through bank accounts. In 2012 HSBC ( Hong Kong -Shanghai Banking Corporation ) was fined $1.9 billion after a US Senate Investigation concluded that the bank had been a “conduit for drug kingpins and rogue nations”. Among it’s failures were allowing Mexican and Columbian drug cartels to launder $881 million through accounts, and to allow a Russian gang posing as second-hand car dealers to transfer $290 million. According to the Organized Crime and Corruption Reports Project, 17 UK-based banks between them unwittingly processed $738 million worth of transactions on behalf of Russian criminal gangs. They didn’t need to move banknotes around in bags [or use Bitcoin]: they processed the money electronically through anonymous companies which they then dissolved. I guess El Chapo was really just the criminal world’s equivalent of your granny: he stuck with cash because that's what he knew. Meanwhile younger rivals have had little trouble mastering the banking system to their advantage.” So as I’ve said many times to many different audiences, when billions of dollars are accidently discovered in all sorts of criminal and corrupt activities, nobody knows anything. But when the system can’t reconcile a piece of chewing gum that I bought, it’s a problem they must solve by some additional dumb assed thing I must now do, attest to, sign or report. Hello Litecoin! And gold. And tulip bulbs. Last edited by slang; 04-03-2019 at 03:48 AM. |
||||||
04-03-2019, 03:40 AM | #3 |
St Petersburg, Florida
Join Date: Oct 2002
Posts: 3,423
|
Some possibilities may be;
• Identity management and digital identities • Digital voting – seems unlikely now but let’s see • Healthcare and medical records • Academic certificates • Music • Cloud storage • Car leasing rentals • Ride sharing • Property • Apartment rentals • Travel Industry • Loyalty reward programs • Prdictions and gambling • Smart contracts Not with Bitcoin but the blockchain as you noted in your quote. Those possible uses above are from the book Blockchain: Ultimate guide to understanding blockchain, bitcoin, cryptocurrencies, smart contracts and the future of money. $3.00 on Kindle. Buy it. It's good. Certainly worth $3. It’s a bit outdated now at a year and a third old but still very helpful in describing the technology and issues surrounding it’s use and possible uses. From page 10. “Billions of people in the world live in countries where they can’t trust intermediaries such as banks, governments, and legal systems for transactions or accurate record keeping. Blockchains are particularly useful in these cases to help provide trust and assurance to people when transacting with each other.” It’s not just the book “Blockchains” that also see an opportunity to do something legal and useful with this technology, aside from it's use for buying gambling chips. Kiva.org is hiring - See 1 Kiva.org jobs. Kiva.org Blockchain and Cryptocurrency company. Blockchain Protocol Architect/Director and more... Now, having a general understanding of cryptos and their potential uses, I’m pondering how rural people here in the Philippines might cut their middle men out completely or in part by using them. Maybe not “all in” today but it appears to be an opportunity for a grower to deal directly with a seller. The middle men here in the Philippines often get more than either the seller or the grower for products. Most of their utility is in the delivery and payment between the two parties. As legal tender, you’re right. But what about other legal useful possibilities? Maybe. |
04-03-2019, 08:00 AM | #4 | |
Read? I only know how to write.
Join Date: Jan 2001
Posts: 11,933
|
Quote:
From that was spawned something different - a credit card. The credit card was not just a 'letter of credit'. It was also a bank loan. And then something different, called a debit card was created maybe twenty years later. None of this is replacement for currency. It simply expands and enhances a flexible currency. Unfortunately for Bitcoin, it has not really done much to enhance 'legal' activity. And its speculation does not address another important concept in productive economics - investment. Where as a stock, bond, or derivative is a speculation to create new products or provide financial stability, Bitcoin speculation is only gambling. Nothing productive is generated (financed) by Bitcoin speculation. Whereas Diner's Club was created to address a need - addressed a liquidity problem. Bitcoin has not really enhanced the currency. Other electronic payments systems (ie Apple Pay, Paypal) do enhance the liquidity of currency. We can expect those the be enhanced / innovate / expand into new forms of economic / financial activity. Too many foolishly see all government as evil. Some governments are. In productive societies, government is always part of a solution. Federal Reserve bank is a perfect example. Countries with the most stable currencies all over the world have Central Banks. When the Central Bank is run by people who know, well, we all recently learned the value of a Central Bank. In 2007, we were facing symptoms of a second Great Depression. And this time, the Central Bank addressed the problem. Unlike in 1929 when the Central Bank made the problem worse. We came that close to what would have been unemployment numbers of maybe 20%. Many today do not realize what was meant by the statement back then, "You have eight hours to save the economy." We know it was that bad. Disaster did not happen because our Central Bank, in coordination with others, properly addressed a major liquidity problem. What other 'currency' could address such problems? Even gold could not address that near disaster. BTW, another factor essential to a stable economy - open markets. Last edited by tw; 04-03-2019 at 08:05 AM. |
|
04-03-2019, 01:55 PM | #5 | |||
St Petersburg, Florida
Join Date: Oct 2002
Posts: 3,423
|
Yah, that's me. I'm that guy. Am I a fool? Maybe. A guy in Tampa called me a fool months ago. Actually he called me a foo.
Not evil but corrupt. Here are the rules. They are for YOU but not for the government. These rules are for the benefit of society. Except when they make government people rich. Then they're just rules you have to follow while I'm looting the country and smiling on TV. Talking about how much I'm doing for YOU? But I could do more if only you'd give me more money. Like Russia. Quote:
Quote:
Quote:
When I wright a book, I'll put that quote in it. It's a good quote. That's a good quote for China. Maybe it can be translated for my Chinese version of my book. There is an ATM in Manila that sells Bitcoin and Litecoin for peso notes. It's the only one in the country so far. It doesn't buy coins, just sells. 500000P limit per day. No ID required either. Do you think Trump's an asshole for wanting to dismantle the Fed? Do you think Trump has some Bitcoin? That Putin gave him. With no traces to it? So he can pay for some TitBounce? I wonder what you might pay for in Bitcoin in Manila. Legal stuff, I mean. I wonder if you can pay a woman for an NDA in Bitcoin? Would it be enforceable? How much Viagra could you buy with a whole Bitcoin? Not that I need that stuff, just wondering. I wonder if you jammed a Bitcoin up a horses ass what the process time would be? Would it get faster or slower than normal? What would the blockchain do differently? Could you buy some gambling chips with it? Does wifi even work from inside a horse's ass? Now there's a good question. That might be a good place to hide your Bitcoin. You might call it Horasscoin or maybe just asscoin. But what problem would it solve? Maybe someone is working that out now. I'll look on the exchange for it. |
|||
04-03-2019, 04:43 PM | #6 |
Read? I only know how to write.
Join Date: Jan 2001
Posts: 11,933
|
An honest answer will never be discovered when one concludes using wacko extremist concepts of 'good vs evil'. When one does not first learn the so many details that separate the few corrupt from far more numerous responsible parties.
Were Central Banks evil when they created / enhanced the Great Depression in 1929? Of course not. Only fools see everything in 'good vs evil'. The Central Bank (and Hoover) made a major mistake. There was no evil. There was a serious mistake that took ten years to undo. And that we study so as to never make that mistake again. BTW, same mismanagement (including tax cuts) in / after 2000 created a massive economic calamity in 2007 that took most of the next eight years to resolve / recover from. Was that evil? Of course not. But the mistake we all made was listen to corrupt business school graduates. Since sub-prime loans and derivatives to create free cash (a ponzi scheme) were somehow good because it was unregulated. The naive, who see everything in 'good vs evil', were same people so easily targeted by my father. So many Americans then knew that smoking cigarettes increased health. Many people are not officer material. So they see everything in soundbytes. They know only because they were told what to think - also called brainwashing. An informed consumer learns underlying details long before making an extremist conclusion. We know Bitcoin will not accomplish what you want it to do. Strangely enough, Bitcoin is popular among those whose criminal activities are justified by hate of government, other religions, leaders who constantly lie, etc. Apparently that (and not improving economic activity) is related to your underlying agenda. First indication of the most corrupt are those who routinely accuse other groups of being evil. That is how Hitler, Milosevic, Kim, and even Nixon came to or maintained power. Government is not evil. It is necessary for a productive society. That does not mean people such as Cheney will not manipulate government for a self serving agenda. Obviously the existence of a Central Bank cannot prevent a Mugabe or Maduro. Your logic - blame a Central Bank for that corruption. Please don't mock me with that wacko extremist logic. A central bank cannot prevent corrupt leaders. But a Central Bank has been repeatedly proven essential for a stable currency. Throughout history, currencies that remain most stable are maintained by a Central Bank. We know government must be part of a solution. Which flies in the face of extremists who are told by Hitler, Mussolini, Alex Jones, Sean Hannity, or Rush Limbaugh what to believe. Extremists never bother to learn details or ask why. They only want to be told what to believe. Then just know something must be true because it agrees with their political biases. I heard same nonsense from so many Bernie Sanders supporters during the Democratic Convention. Details quickly identified them as extremist. Told what to believe rather than first learn how things work. Again, it is no accident that Bitcoin is popular among the anti-everyone else extremists. Bitcoin cannot even do what credit cards do to advance mankind. It is seriously flawed for so many reasons - many already identified. Only a wacko extremist sees all government as evil. Fails to learn that the most successful societies existed when government was doing its job. |
04-09-2019, 02:42 PM | #7 | |||||||||||
St Petersburg, Florida
Join Date: Oct 2002
Posts: 3,423
|
I’m sorry for being such a wise ass joker in the previous page, TW. You’re a smart guy with a sense of humor many times, but you are invested in your position as much as anyone else.
Your life experiences and education have led you to a completely different philosophical reality than mine. I can accept and even respect that. Maybe this post can out “tw” you in length if not clarity of position. Quote:
----------------------------------------------------------------------------- Quote:
We actually have learned the so many details But not from CNN and MSNBC. That is why so many people view the government as corrupt. Because despite overwhelming evidence there are no prosecutions. This opinion of corruption in the Federal gov’t was at 38% under Obama too. And let’s not forget the FBI ----------------------------------------------------------------------------- Quote:
See below. ----------------------------------------------------------------------------- Quote:
It was created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. Or you could get another opinion without vested interest. Or get the short version here. ----------------------------------------------------------------------------- Quote:
----------------------------------------------------------------------------- Quote:
Not sure how to read that. ----------------------------------------------------------------------------- Quote:
Sound bytes cannot give the appropriate detail required. If they could, my replies here on the cellar would be short. Brainwashing? Like CNN? Or MSNBC? ----------------------------------------------------------------------------- Quote:
----------------------------------------------------------------------------- We do? Normal people all over the US appear to be buying and using crypto. Seems like they’re installing crypto ATMs at a good clip. I’m guessing they don’t trust the online process but cash for crypto seems safer. By creating a market for ATMs it’s also supporting business and investment in the US. Quote:
Try DuckDuckGo.com Did you miss this? It’s not my preferred source but seems to be something more to your liking. Except maybe this time because it seems to counter your position on Bitcoin. Maybe you meant Monero? It’s not unanimous, it’s a mix. Seems like your opinion has been challenged by many for a few years now. Strangely enough, with a simple search, you could easily find information dis-proving your opinion. ----------------------------------------------------------------------------- Quote:
Money and currency that is in complete control of the population without counter party risk is appealing to me and many others. Cash, gold, silver, and to a lesser degree, crypto. Don’t forget the US mint too. They sell Sheets of uncirculated Federal Reserve Notes ( US currency ). They seem to be working against their own interests. ----------------------------------------------------------------------------- Quote:
----------------------------------------------------------------------------- Not in the beginning. In time it’s likely though. There are many unelected government bureaucrats that are corrupt. They are in the management of the most important and relied upon of American government agencies. They work together to achieve goals that may or may not be supporting the president’s agenda. The president is elected. A few specific names are Clapper, Brennan, Comey, McCabe, Strok and Page. How could that chain of command not include Obama? Time will tell. |
|||||||||||
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
|
|