re: Is bitcoin gaining legitimacy?

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So who issues it? Is there some sort of agency controlling it? I love the idea of it.

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It was created out of thin air and nobody knows who created it. Sounds appealing doesn't it?

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that was like Swahili

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political and economic ramifications of this technology, which as I said earlier, is revolutionary....and I don't mean that lightly.

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Considering that the supply of bitcoins is not able to be regulated by government entities and therefore monetary policy would essentially cease to exist, the governments of the world are going to have an extremely hard to making this completely legitimate/replace currency anytime in the near future

I can understand that it is a revolutionary system and definitely is something that should be explored more if for nothing more than to learn about this stuff


Bitcoin prices are definitely a bubble. Considering the amount of bitcoins that are actually in use for transactions and the true value of the people that use them, the price of bitcoins is absurd. There may be value and that value may be increasing but in the past week there has been no information about bitcoins that changed the valuation. It is simply people trying to jump on the bitcoin wagon. Nothing different than the tulip bulb crisis.


Long term investing in bitcoins would be an interesting concept and my brother is doing it. His 3 bitcoins he purchased for it already would net him 2k$ on a 1k$ investment.

I'll answer your questions tomorrow. on tablet now and typing sucks

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I caught the very end where they want these "exchanges" to 1. Register with FinCen 2. Implement AML policies 3. Maintain Records including SARs. All of those completely arse fricks the premise of "anonymity"

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Fwiw FinCEN already stated back in March/April that all digital currency remitters would be held to the same AML standards as standard MSB's. So nothing new was stated.

You know Wiki, for a scourge of human existence evil central banker, Bernanke had some fairly positive things to say about bitcoin, don't you think?

I still stand by my original thoughts on bitcoin, which the only two you really disagreed with is that it will not get broad based acceptance (to the point that you think it will), and if it does it will not be vastly different from the current system due to what it would take to get broad based acceptance. I think most of the people I've heard from that understand the technology and don't have strong anti-monetarist views have fairly the same thoughts.

Regardless, I've always thought the coding aspect was beautiful in its simplicity. I spent most of this weekend creating a SQL/VBA based ~200MB template. Any coding that is short and simplistic has a warm spot in my heart right now.

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I want to know more about this statement. Since I'm not a tech guy it sounds kind of futuristic and shite.

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Think of how bitcoin itself is a protocol. There are no servers that run bitcoin. Essentially, all the users of bitcoin "run" it. It's distributed.

The same thing will apply to marketplaces. They'll operate like websites but the data will be hosted and served in/from a distributed network.

Recently the bitcoin securities market was thrown into turmoil because the SEC started threatening them and most of them decided to shut down. However, as a result, many different coders began work on the distributed networks I discussed above. The initial intention is for a distributed system to manage and trade securities, but I guarantee you that it will be adapted for SR-like enterprises as well.


ETA: Key point being, say you have 10000 people all over the world running the distributed SR-like software. If you take down 1 of them, or even 9999 of them, it would still be running.

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But can you keep the integrity of the system if essentially a thousand people act as "host"? And I use host because I don't know the correct term.

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yes. in the same way that bitcoin maintains integrity of the blockchain. everyone running a full node in the bitcoin network has a copy of the blockchain. it is only changed when new transactions are added to it. the mining process handles this, and all participants verify the transactions. and all participants therefore have the exact same copy of the blockchain, because if something didn't add up, it would get rejected by the network.

the same concept will apply.

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If we know there are going to be 21Billion bitcoins created eventually, how will the price be determined of the coins?

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Finance is the profession of taking a very simple concept, and making it complicated. No matter what, price is always dependent on supply and demand, bitcoin is no different.

How much of it is there and how many people want to buy it. Price will find its way from there, then you can calculate yield, then duration, then convexity, then greeks, and so on and so forth...