The Bitcoin Thread

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Clayton
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The Bitcoin Thread

Post by Clayton » Tue Apr 17, 2018 4:01 am

As this is my new favorite web forum, we simply have to have a Bitcoin thread. Posted in r/Bitcoin today:

Why the whole banking system is a scam - Godfrey Bloom MEP

Short and to the point. Cryptocurrencies are awakening a demon unlike anything that humanity has ever faced in its history. In the long run, money as the dishonest banksters have brainwashed us to think of it, is going away. But the path from here to there will be fraught with bitter hardship. The criminals that run the money system didn't get to the top by playing fair and they're not about to start playing fair now.

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Physiocrat
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Re: The Bitcoin Thread

Post by Physiocrat » Tue Apr 17, 2018 5:56 pm

Smiling Dave, Smiling Dave, wherefore art thou Smiling Dave?
The atoms tell the atoms so, for I never was or will but atoms forevermore be.

Yours sincerely,

Physiocrat

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Clayton
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Re: The Bitcoin Thread

Post by Clayton » Fri Apr 20, 2018 4:32 am

https://www.bloomberg.com/news/features ... -a-mystery

Unlike the technical analysis types, I prefer sentiment analysis. Based on a very shallow look at the prevailing sentiment, I would say that I'm seeing what look like buy signals to me. The true-HODLers have cult-like loyalty, so their sentiment is irrelevant. But I'm seeing a lot of general backlash after the 50+% drop since the beginning of the year, while Lightning Network continues to grow steadily and the Mempool is not getting clogged up anymore - fees are the lowest they've been in almost half a decade and 1-conf times are 10 minutes on average.

What are you buying when you buy Bitcoin? Everything that is now or ever will be built with Bitcoin as a backing. Basically, you're buying the entire cryptocurrency space. Would definitely like to see the LSE snobs put their money where their wine-swilling mouths are and buy $20 shorts on Bitcoin.

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z1235
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Re: The Bitcoin Thread

Post by z1235 » Fri Apr 20, 2018 2:02 pm

For anyone looking to enter or to add to BTC, add half above 9000 and the other half above 12000.


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Clayton
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Re: The Bitcoin Thread

Post by Clayton » Sat Apr 28, 2018 4:12 pm

TSB Train Wreck: Massive Bank IT Failure Going into Fifth Day; Customers Locked Out of Accounts, Getting Into Other People’s Accounts, Getting Bogus Data

People have been complaining that Lightning Network can't compare to VISA - and it can't. But VISA is the wrong comparison, anyway. Bitcoin allows you to be your own bank. So the correct comparison is to banks. A 1-conf transaction takes about 10 minutes from the comfort of your home - or wherever you happen to be on your mobile device - is virtually free, and it is processed by a network with far more redundancy than any national government's nuclear control systems. Short of getting hit with a solar CME event that wipes out the functionality of most computers on the planet, the Bitcoin network can't "go down". Also, we have learned from experience that peer networks like the Web tend towards an expected quality-of-service (QoS) where "average is the minimum bar." This is because people do not like to wait and the brain defines waiting in terms of the typical wait. No website loads instantaneously but a website that takes five seconds to load is pushing the boundary of "slow" because the typical website loads in less than five seconds.

In order to be viable, Bitcoin will need to be able to scale out to VISA scale and beyond. But with Lightning Network and XCATs (cross-chain atomic transfers), Bitcoin has effectively unlimited scalability - without the use of trusted 3rd-parties - as long as there is economic demand for it. Bitcoin is highly reliable, has low fees, is anonymity-compatible, and is reasonably secure out-of-the-box. That's a damn sight more than can be said for the Monopoly-money banksters.

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Re: The Bitcoin Thread

Post by Clayton » Sat Apr 28, 2018 9:35 pm

Wisdom shared on r/Bitcoin, "Remember, with banks, only deposit what you can afford to lose":

Image

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Re: The Bitcoin Thread

Post by Clayton » Mon Apr 30, 2018 4:34 am

Blockchain is not only crappy technology but a bad vision for the future

So, it's always somewhat irritating to read these hit pieces. However, articles like this show the sketch-outline of the arguments, "facts" and fallacies that the banksters are lining up for the coming currency war. [Side note: crypto isn't going away - the only thing that could make crypto go away is a totalistic, global, persistent suppression of the technology. So, this means that a war is surely coming.]

"There is no single person in existence who had a problem they wanted to solve, discovered that an available blockchain solution was the best way to solve it, and therefore became a blockchain enthusiast."

This is obviously wrong but more interesting is the way that it is wrong. From the outset, the author has ruled out "store of value" from the list of problems which a person might want to solve. This is very interesting because it also happens to coincide with the Keynesian view of money as a circulating good rather than a capital good. Keynesian theory implicitly denies the time-structure of production by reducing the monetary good to a mere signaling variable between consumers, business, government and employees (see here, skip to 5:00).

The article is putting forward a cross-disciplinary argument - it is a blended technological-economic argument. Since no one needs to use money as a store of value- because we do not live in the medieval era - blockchain does not solve any real problem.

The article imposes the colloquial definition of trust onto its jargon definition - Bitcoin is a security technology and the meaning of "trust" in security engineering is different than the colloquial meaning. In ordinary language, when I say, "I trust you", it means, "I do not believe you're going to injure me." But in security engineering, when I say, "I trust you", it means, "You could stab me in the back, if you so chose." Trust is a variable that is being minimized in security engineering. Banks use the very same jargon -- in fact, banks are some of the primary drivers of security engineering, along with military, police, money transport, security agencies, insurers, and so on.

So, while the idea of "a society built on trust" might sound like a good cue for a group hug and a candle-light vigil for world peace, the fact is that no system that is relied upon for security purposes can afford to have any more than minimal trust in the system. Suppose, for a moment, that the Chinese build a super-computer that is 1,000x more powerful than the best supercomputers in the US. Given the power of their new machine, they can process simulations with higher accuracy, lower cost and faster turn-around time. Will US national laboratories start outsourcing their super-compute jobs to China? Of course not. Even at the cost of a 1,000x performance/cost/energy disadvantage, the national laboratories would continue to perform their computations in-house because some of the systems that these laboratories work on are secure (nuclear weapons, nuclear power plants, satellite technology, military research projects, etc.) and outsourcing computations to China involves trust.

Bitcoin's emphasis on minimizing trust is no "Somalia on purpose." It is not a resurrection of medieval norms. Rather, it is driven by the massive misplacement of trust in the central banking system that has resulted in untold economic destruction. The author of the article has coined several terms - allow me to coin one of my own: "exploitable trust". The central banking system - like any con job - thrives by nurturing exploitable trust. You can think of the trust of the public in the financial system as a kind of invisible, distributed capital stock. In order to draw on this stock, all you have to do is violate that trust (by devaluing the currency). But violating trust is not easy to do because people don't like to be betrayed. So, it requires a very elaborate ruse to keep the victims from noticing what is really going on. And that's precisely what the global central banking system is, an elaborate ruse whose purpose is to conceal the reality of what the central bank really does: print money without backing, thus siphoning away the labor, inheritance and new capital created by honest market participants into the hands of the cleverati.

tl;dr: The exploding popularity of cryptocurrency is a referendum on the trustworthiness of the central banking system. Bitcoin is not a solution looking for a problem, Bitcoin's existence is the very evidence of the problem.


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Tom Rogers
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Re: The Bitcoin Thread

Post by Tom Rogers » Wed May 02, 2018 11:27 pm

Bitcoin seems like fiscal Gnosticism: the technological complexity makes it a little obscure, and I am wary of things that involve money but are difficult to understand. I think currencies should be simple and non-elitist, and I'm not sure Bitcoin truly is. I instinctively dislike the idea of electronic money anyway. It encourages an economic dependency on technology and the infrastructure of the worldwide web (including real estate and other aspects of the conventional money system), and it occurs to me that this might not be a very clever idea. It also has privacy implications, potentially. It also can't be separated politically-economically from 'the system' it is claimed to devolve.

I'm divided in my thoughts about the money system. On the one hand, fiat money and high interest lending looks like a scam. On the other hand, the very flaws in the system can also be its greatest strength: for instance, if a 'national-socialist' group were to take control of a Western government, they could turn the system on itself by simply fiating away the public debt and starting again. Indeed, that's exactly what the NSDAP did in Germany in the 1930s: they simply abolished the public debt legislatively and then established a new currency based on national productivity. A great deal of fuss is made about the creditworthiness of governments on the bond markets as a factor in the ability to invest, as if a poor history of repaying public bonds inhibits fiscal freedom-of-action, but I see no evidence of any such caution in reality. Britain, for instance, has massive social programmes and is very far from adopting any sort of austerity in the true sense. It seems to me that it's just Monopoly money that they're playing with and the fiscal rules are invented as they go along, the ultimate purpose being to control the greater mass of people. The United States, a different example, maintains massive welfare payments that are propped up by oil-producing countries artificially inflating demand for its currency through the petrodollar system.

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