Comments on: An early obituary for bitcoin http://blogs.reuters.com/edward-hadas/2014/01/08/an-early-obituary-for-bitcoin/ Wed, 07 Oct 2015 17:23:32 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: LeC http://blogs.reuters.com/edward-hadas/2014/01/08/an-early-obituary-for-bitcoin/comment-page-1/#comment-2106 Fri, 14 Mar 2014 20:00:42 +0000 http://blogs.reuters.com/edward-hadas/?p=610#comment-2106 @Ian_Kemmish: The incentive will be keeping the network alive so that they can continue to reap its benefits. Mining hardware is already dirt cheap. Don’t you think that in 2040 (when the monetary incentive goes away) the cost of running the hardware to keep the network running will be extremely low? Wouldn’t it be worth retailers’ money (for example) to run hardware that supports the network to be able to accept payments via the network and not have to every pay another credit card fee? It’s a HUGE net gain for them.

Be a little more creative. There are selfish incentives beyond a direct monetary reward.

]]>
By: bradsdb http://blogs.reuters.com/edward-hadas/2014/01/08/an-early-obituary-for-bitcoin/comment-page-1/#comment-2004 Thu, 23 Jan 2014 07:25:46 +0000 http://blogs.reuters.com/edward-hadas/?p=610#comment-2004 The wonderful thing about the free market is that it does not ask for permission.

]]>
By: Stelios2000 http://blogs.reuters.com/edward-hadas/2014/01/08/an-early-obituary-for-bitcoin/comment-page-1/#comment-1980 Sun, 12 Jan 2014 12:16:31 +0000 http://blogs.reuters.com/edward-hadas/?p=610#comment-1980 Bitcoin is worthless as it is not accepted by wider society for monetary transactions. But it has raised an interesting point. Prior to 1971 the dollar was fixed at a price of $30 an ounce of gold and the US had to hold the equivalent amount of gold in its reserves to match the money in circulation.Nixon dropped this link in 1971 and since then we no longer have money that is actually worth anything (in theory you could have gone to the reserve with your dollars and asked to exchange them for gold). We now have worthless Fiat money which only works because we all accept it as legal tender which is how our govermnents are able to keep printing more of the stuff. the bubble will burst eventually when we are no longer able to keep up with our debt repayments. We are all participating in a giant Ponzi scheme run by our governments!

http://en.wikipedia.org/wiki/Fiat_money

http://www.imdb.com/title/tt2325908/

]]>
By: richardboase http://blogs.reuters.com/edward-hadas/2014/01/08/an-early-obituary-for-bitcoin/comment-page-1/#comment-1978 Fri, 10 Jan 2014 13:04:11 +0000 http://blogs.reuters.com/edward-hadas/?p=610#comment-1978 Hadas make a real error here with his propositions about legal and illegal economies and their participants.

The problem is that he ignores the fact that big business and government consistently collude in favour of their shareholders and voters to the detriment of everyone else, and by extension, anyone on the ‘outside’ of the money making machine is discriminated and marginalised for the purposes of profit.

Corporations are required by law to follow shareholders’ interests, which inevitably ends up creating massive imbalances between those with power and those without, as the corporations exercise they ‘legal’ rights.

BItcoin is then first example of what is now know as a ‘decentralised autonomous corporation’ with stakeholders and shareholders engaged in an ad-hoc economy in which they are directly rewarded for the amount of effort and investment they put in.

Hadas doesn’t understand Bitcoin or its acolytes, and he hasn’t grasped the implications of the technology and what it’s capable of because he hasn’t understood it’s social and technical architecture properly.

Projects exist within the bitcoin blockchain like Mastercoin, which has created a decentralised exchange model (useful if you never want to deal with banks, the SEC, CTFC and other analogue regulatory institutions), BitShares and Protoshares for issuing share interests in burgeoning technology and Crypto-Stocks which issue other kinds of securities and equity in companies in the arena.

He makes the classic mistake of believing that ‘Legal companies in the legal economy behave legally (demonstrably false) and that people outside of an established framework do not behave legally’ (also demonstrably false).

The truth is that the bottom billion, who do not and cannot pay taxes, who are excluded from financial Services and support (a small example is Paypal in Kenya, but the issue is systemic and much broader in fact) are discriminated against by a system which cannot and will not change it’s fundamental interests to support them, and one of the key reasons for this is that the fiat issued, regulated monetary system is entirely caught up arms manufacturing, oil production and the drugs trade, and the biggest ‘shareholders’ routinely use institutions like the IMF and the World Bank to hold the third world to ransom.

Sorry Hadas, you couldn’t be more wrong in your assessment of bitcoin and its’ acolytes. PLEASE DO MORE RESEARCH.

]]>
By: richardboase http://blogs.reuters.com/edward-hadas/2014/01/08/an-early-obituary-for-bitcoin/comment-page-1/#comment-1977 Fri, 10 Jan 2014 13:03:31 +0000 http://blogs.reuters.com/edward-hadas/?p=610#comment-1977 Hadas make a real error here with his propositions about legal and illegal economies and their participants.

The problem is that he ignores the fact that big business and government consistently collude in favour of their shareholders and voters to the detriment of everyone else, and by extension, anyone on the ‘outside’ of the money making machine is discriminated and marginalised for the purposes of profit.

Corporations are required by law to follow shareholders’ interests, which inevitably ends up creating massive imbalances between those with power and those without, as the corporations exercise they ‘legal’ rights.

BItcoin is then first example of what is now know as a ‘decentralised autonomous corporation’ with stakeholders and shareholders engaged in an ad-hoc economy in which they are directly rewarded for the amount of effort and investment they put in.

Hadas doesn’t understand Bitcoin or its acolytes, and he hasn’t grasped the implications of the technology and what it’s capable of because he hasn’t understood it’s social and technical architecture properly.

Projects exist within the bitcoin blockchain like Mastercoin, which has created a decentralised exchange model (useful if you never want to deal with banks, the SEC, CTFC and other analogue regulatory institutions), BitShares and Protoshares for issuing share interests in burgeoning technology and Crypto-Stocks which issue other kinds of securities and equity in companies in the arena.

He makes the classic mistake of believing that ‘Legal companies in the legal economy behave legally (demonstrably false) and that people outside of an established framework do not behave legally’ (also demonstrably false).

The truth is that the bottom billion, who do not and cannot pay taxes, who are excluded from financial Services and support (a small example is Paypal in Kenya, but the issue is systemic and much broader in fact) are discriminated against by a system which cannot and will not change it’s fundamental interests to support them, and one of the key reasons for this is that the fiat issued, regulated monetary system is entirely caught up arms manufacturing, oil production and the drugs trade, and the biggest ‘shareholders’ routinely use institutions like the IMF and the World Bank to hold the third world to ransom.

Sorry Hadas, you couldn’t be more wrong in your assessment of bitcoin and its’ acolytes. PLEASE DO MORE RESEARCH.

]]>
By: W.G. http://blogs.reuters.com/edward-hadas/2014/01/08/an-early-obituary-for-bitcoin/comment-page-1/#comment-1973 Fri, 10 Jan 2014 01:32:52 +0000 http://blogs.reuters.com/edward-hadas/?p=610#comment-1973 @Ian_Kemmish:

A transaction-fee bases system is already built into the protocols of most, if not all, of these crytpo-currencies. Much like credit card companies or ESCROW, the miners will take – and in some cases already do – a percentage of the transfers between two BTC (or whichever crypto-currency is being mined) wallets.

The fee amount is defined by the transacting parties. Miners secure the transaction and take their fee for doing so.

No, they haven’t thought of everything, but no one in history ever has. It’s an experiment, gentlemen. Someone saw what happened with the Financial institutions in 2008 and started an experiment. And it has evolved to address the issues that have come up.

BTC is a collection of nodes performing virtual work. These nodes are made up of mostly cluster farms (firms) participating in mining pools. For any entity to “own” BTC generation, they would need to be willing to invest $1,937,324,020.00 to do so, approximately. This is called the 51% Attack and it is monitored.

And there are plenty of places that accept my BTC (measured in mBTC’s now) as readily as cash that don’t involve drugs or illegal anything. The sales taxes were paid as well.

Before you stand up and argue so vehemently that there is nothing but failure and the end of days for BTC and crypto-currencies in general, consider that maybe… just maybe… the world is round.

]]>
By: ike820 http://blogs.reuters.com/edward-hadas/2014/01/08/an-early-obituary-for-bitcoin/comment-page-1/#comment-1972 Fri, 10 Jan 2014 01:23:29 +0000 http://blogs.reuters.com/edward-hadas/?p=610#comment-1972 Ok. I never used bitcoin but I’ve been reading about it for over a year now. The fact that the first subheading in this article is about legality obviously means the writer is just trying to tarnish its reputation and prevent it form becoming popular. Yes bitcoin is used to circumvent the government but the same is true for government sponsored real money. More illegal activity and secrecy is done with real money long before bitcoin ever got started. So the issue of legality is moot.

If the only real business dedicated to bitcoin was silk road then why is bitcoin still here when silk road is gone? This is an attempt to misinform the reader who doesn’t bother to do research. Anybody doing reading this comment should do some research on bitcoin and find out who else is using it for legal purposes.

]]>
By: NickGogerty http://blogs.reuters.com/edward-hadas/2014/01/08/an-early-obituary-for-bitcoin/comment-page-1/#comment-1971 Thu, 09 Jan 2014 14:06:26 +0000 http://blogs.reuters.com/edward-hadas/?p=610#comment-1971 money is a social protocol. The story is discussed in www.thenatureofvalue.com section on money and value.

]]>
By: NickGogerty http://blogs.reuters.com/edward-hadas/2014/01/08/an-early-obituary-for-bitcoin/comment-page-1/#comment-1970 Thu, 09 Jan 2014 14:05:40 +0000 http://blogs.reuters.com/edward-hadas/?p=610#comment-1970 Money is a social protocol. Government is a social protocol. They co-exist easily in many forms and relationships.

Many forms of private money are issued (stocks, bonds, coupons, debit cards etc.) The money supply M0 is small relative to M3-M4 which is mostly private forms of money.

]]>
By: BidnisMan http://blogs.reuters.com/edward-hadas/2014/01/08/an-early-obituary-for-bitcoin/comment-page-1/#comment-1968 Thu, 09 Jan 2014 08:36:26 +0000 http://blogs.reuters.com/edward-hadas/?p=610#comment-1968 The attraction with Bitcoin is that like Gold, the cost to mine additional units is substantial and approximates the market value after a short time. No money printing or devaluation by decree. That being said, sometimes devaluation is a good thing (for th economy, not pensioners) as it stimulates activity.

]]>