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(Ars Technica)   A study finds that 45% of Bitcoin exchanges end up failing, taking their users' money with them. But, hey, at least Bitcoin isn't fiat currency, amirite?   (arstechnica.com) divider line 21
    More: Fail, Wired UK, bitcoins, empirical  
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3069 clicks; posted to Geek » on 27 Apr 2013 at 1:40 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-04-27 03:51:18 PM  
6 votes:
News Flash for investment-for-the-fall-of-the-economy morons:

When the economy collapses, it won't matter if you have gold, silver, platinum, or bitcoins. The moment money completely fails and government collapses, the only things of actual value will be skills, talents, food, water, clothing, and various means of protection. Who is going to want to trade food for gold? You can't eat gold. You can't drink gold. You can't do ANYTHING with it in a fallen civilization. It's just pretty metal with some handy non-corrosive qualities.

When I'm at relatives' homes and they have Fox News on, the ads are all about investing in gold or silver. Buying gold, filling a safe with gold, and awaiting the collapse of civilization? Seriously?

How about instead of investing in gold, you take that money and buy yourself some classes in how to sew your own clothes or preserve food? Because if civilization and the economy collapse, it won't be long before you'll be looking to trade for clothing or food that won't spoil in a few days because there's no electricity and no Walmart anymore.

Having a safe full of gold is only useful in a world where the economy IS working. If the economy fails completely, gold and all other "precious" metals will only be worth anything to people who need them for projects that require them as components.

Gold is only valuable because people assign value to it. After civilization collapses you'll find that a can of sardines is probably worth more than ten times its weight in gold.

And all this can be said about Bitcoins, too. It's just an "investment game" to keep people busy, but in the real world they have ZERO value- Even less than gold or other precious metals and gems. You can't build anything out of Bitcoins.
2013-04-27 02:04:17 PM  
4 votes:

Animatronik: Bitcoin is flawed, but the fact that anyone is using it at all is proof that a growing number of people realize how unstable U.S. currency could become are stupid.

2013-04-27 02:04:06 PM  
3 votes:

Animatronik: Bitcoin is flawed, but the fact that anyone is using it at all is proof that a growing number of people realize how unstable U.S. currency could become.


I thought it was just proof that people will do anything to get drugs and kiddie porn.
2013-04-28 12:20:32 AM  
2 votes:

A Terrible Human: Alonjar: 45% of bitcoin exchanges fail.

Exchanges are the companies who exchange bitcoins for cash.

95% of all new businesses fail.

Sounds to me like the industry is doing well, no?

Not when their failure ends up with their customers losing their monopoly money.


Most businesses go broke within ten years - not ten weeks.
But since Bitcoin customers are lolbertarians, dope addicts, and chomos - who gives a shiat?
People like that deserve to get ripped off anyway.
2013-04-28 12:12:39 AM  
2 votes:

Alonjar: 45% of bitcoin exchanges fail.

Exchanges are the companies who exchange bitcoins for cash.

95% of all new businesses fail.

Sounds to me like the industry is doing well, no?


Not when their failure ends up with their customers losing their monopoly money.
2013-04-27 03:21:56 PM  
2 votes:

Animatronik: Bitcoin is flawed, but the fact that anyone is using it at all is proof that a growing number of people realize how unstable U.S. currency could become.


So let's replace with a currency that's even more unstable!
2013-04-28 12:24:56 AM  
1 votes:

Ivo Shandor: Yankees Team Gynecologist: At least with silver vs. gold, the two metals have different chemical properties, but nobody cares about Style A of long unique bit string vs. Style B. Am I overlooking something here?

No, you have correctly identified one of Bitcoin's major flaws. For example there's Litecoin which is the same thing but different. Sort of. Nobody's really sure.


It's the monetary version of Esperanto. And will be as successful.
2013-04-27 08:43:39 PM  
1 votes:

Yankees Team Gynecologist: But what's to stop "clone" algorithms from popping up, thereby undermining the scarcity? No, they wouldn't be exactly bitcoins, but for all purposes they'd perform the same function. At least with silver vs. gold, the two metals have different chemical properties, but nobody cares about Style A of long unique bit string vs. Style B. Am I overlooking something here?


If you mean, what's to stop people from faking (or almost faking) Bitcoins, the math is actually really tight. At least, plenty of math and crypto types who DON'T own Bitcoins have said so. The problem has always been the infrastructure, or lack thereof.

If you mean, what's to stop people from inventing "ByteDollars," nothing. And if they build in some souped-up math, or some system of verification that works better than P2P, or whatever, then nothing's stopping everyone from deciding their Bitcoins are crap and selling them off like they were stale Beenz. Since there are a finite number of possible Bitcoins, they probably would have to be replaced way down the line regardless.

Personally, I think Bitcoins are interesting but not quite Financial Electro-Jesus, and if you want to speculate, there are more interesting things to do it with. (Hell, at least the people who lost zillions of guilders in the tulip bubble got some cool flowers.) Wake me when Amazon.com, Visa, and the Federal Reserve are using them.
2013-04-27 06:57:36 PM  
1 votes:

machoprogrammer: If you mean another kind of bitcoin with a different algorithm, I doubt that would take off due to the fact one already exists.


There are issues with this one, however. First off, the total number of bitcoins is capped- not simply throttled, but absolutely capped.  And they're throttled, in such a way that each mining makes future mining harder. And the validity of a bitcoin is proven by the entire chain of ownership the bitcoin has ever had.

Everything about that is built to make exchanging bitcoins less worthwhile than hoarding them.

There will be a meaningful digital currency algorithm in the future, but this one isn't it.
2013-04-27 06:43:16 PM  
1 votes:

Animatronik: Bitcoin is flawed, but the fact that anyone is using it at all is proof that a growing number of people realize how unstable U.S. currency could become.


Yeah, not so much. The fact that anyone is using it at all is only proof that people will resort to any kind of shady work-around to buy drugs anonymously.
2013-04-27 06:18:22 PM  
1 votes:
I much prefer my currencies to be easily bugged and mysteriously managed by unknown individuals in unknown counties as opposed to being universally accepted and managed by economic professionals in the public eye who are appointed by elected officials.
2013-04-27 06:10:39 PM  
1 votes:

NeoCortex42: Gold is actually pretty damn useful in electronics.


If you're in Asia where you've got a chance of having access to an electronics factory after the apocalypse it will serve you well. For the rest of us it's just for dental work and convincing libertarian prostitutes to sleep with us in Bartertown.
2013-04-27 05:02:38 PM  
1 votes:
All I know is, because of the Bitcoin bubble that little bit of coin I had left over in my Silk Road account bought me some sweet, sweet hash.
2013-04-27 03:49:27 PM  
1 votes:

Animatronik: Bitcoin is flawed, but the fact that anyone is using it at all is proof that a growing number of people realize how unstable U.S. currency could become.


So some internet currency used by a fringe minority of internet users backed by nothing controlled by no one is now experimentally equivalent to the legal tender of a nation state with the highest GDP in the world. ...  That's the dumbest shiat I've ever read.

Almost forgot:RON PAUL
2013-04-27 03:31:46 PM  
1 votes:
Libertarians get a chance to relearn the lessons of Wildcat Banking
2013-04-27 03:21:41 PM  
1 votes:

Animatronik: Bitcoin is flawed, but the fact that anyone is using it at all is proof that a growing number of people realize how unstable U.S. currency could become.



Far more people invested in Beanie Babies than are currently in Bitcoins. It's not a sign people understand how the US currency works and are making an informed decision, it's a sign of idiots investing in an unproven commodity, but treating it like a sure investment.
2013-04-27 03:19:26 PM  
1 votes:
alphavilleherald.com
/hot
2013-04-27 02:13:56 PM  
1 votes:

Mad_Radhu: Wouldn't the exchange have to fail mid-transaction for you to lose your money? If your wealth is stored in BTC, won't it just be sitting in your wallet.dat? It's not like a bank where you have to have them hold your money in an account.

Which does bring up a problem for Bitcoin. Can you do fractional lending with it? If you can't, that limits your ability to create a real banking system that can generate wealth.


The problem is people need to withdraw their BTC from the exchange once they purchase it. If they fail to do that, or the exchange fails to allow it, they keep the BTC and the USD/EUR/whatever.
You could probably make a bank sort of thing with it, and bypass all the sending fees by only changing numbers in tables of who has what, but those points of failure are for another discussion.
From a technical standpoint, Bitcoin is fascinating to read about. From a usability and other standpoints, it's a nightmare.
2013-04-27 01:59:35 PM  
1 votes:
upload.wikimedia.org

/Buy me!
//I always go up, look at my trend!
2013-04-27 01:50:50 PM  
1 votes:
Can't wait to see how all my libertardian friends who invested in bitcoins find a way to blame this on the gub'ment...
vpb [TotalFark]
2013-04-27 01:48:28 PM  
1 votes:

Kuroshin: "But, hey, at least Bitcoin isn't fiat currency, amirite?"

WAT


You know, made out of old Italian cars.
 
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