In a recent Bitcoin Magazine opinion piece, IT Writer Mark Rees slams college professor Mark Williams for dissing Bitcoin.
Bitcoin Magazine – Time Running Out for Mark Williams – Mark Rees
While Mark Rees makes some poignant points about how wrong anti-Bitcoin Mark Williams is, Rees is wasting his breath with such a lengthy article about a lowly finance teacher. Rees has a strong grasp of the big Bitcoin picture, while Williams embarrassingly does not understand the technology or economics of Bitcoin.
I understand Bitcoin thoroughly only because of my experience in computer programming, payment processing, economics and business. The real total cost of using credit cards and western union is a very high 5% to 10% or more. The cost of using Bitcoin can very easily stay under 1%. It does not take much brain power to figure out the value of Bitcoin. Bitcoin has already changed the lives of many thousands of individuals. When you begin add all of the other amazing international payment transmission, tracking, authentication and complex multi-layer programmable transaction capability of Bitcoin’s cryptographic ledger technology, the extreme value of Bitcoin becomes world-changing.
And by the way, with all this wonderfulness, given enough time, Bitcoin can and will eventually be worthless. But so will the U.S. dollar. The trick is to know when and what the signals will be.
Corey Chambers, The Bitcoin Blogs
Bitcoin Investment Wealth
Congratulations to everyone who bought Bitcoin when I first suggested it in April 2013. Your $83 has now become more than $400.
Many have told me, “I don’t care about Bitcoin because I don’t know what Bitcoin is.” Understandable because Bitcoin is about computer programs and economics, two mind-numbingly tedious and dull topics to most people. I see now that Bitcoin will inevitably result in even more revenge of the nerds as programmers and computer geeks were among the first to start mining and buying Bitcoin. Many of them have already made a million, which will soon turn into billions, then the first Bitcoin trillionaire will follow.
I’m absolutely ecstatic about Bitcoin because I’ve been an entrepreneur since I was a baby. It is always especially fun to be in the know about something that the general public does not know about, but it quickly becomes more fulfilling to share the information and eventually share the wealth.
Another interesting thing about Bitcoin is that it could cause the dollar and other currencies to crash and burn as more and more people catch on that they can use money that goes up in value instead of down because the government will find it difficult or impossible to devalue Bitcoin.
Bitcoin will hasten the decline of U.S. influence in the world, increase the economic power of individuals (especially those who mine or purchase Bitcoin before it becomes universally accepted), and will actually make it difficult for the U.S. and other countries to finance unnecessary wars.
Bitcoin will help change the political landscape of the U.S. and the world. The first supporters and early adopters of Bitcoin were disproportionally Libertarians like myself who want more independence from the government. In fact, so many Libertarians have mined and purchased Bitcoin that the Libertarian Party (already the fastest growing party) could gain the largest number of millionaires and billionaires, giving the Libertarian Party the edge in future elections and more power to rein in an overreaching government.
The best news is that the Bitcoin revolution has just begun. Bitcoin is not an old fashioned investment or a half-baked scheme. It is a limited digital currency with EXTREMELY HIGH INTRINSIC VALUE that is being used by thousands of new people per day. Bitcoin absolutely MUST go up to $10,000 per Bitcoin in a relatively short time in line with the liquidity that it will represent with increased use. We see nothing replacing Bitcoin soon, so load up on Bitcoin at localbitcoins.com or coinbase.com
Bitcoin’s Big Flaw
Everything in the universe has a design flaw, including Bitcoin. Other digital currencies exist and are welcomed, but Bitcoin is the first and currently only digital currency with widespread growing adoption. With the flexibility of open source, Bitcoin can be readily changed as needed. Bitcoin’s critics often mention Bitcoin’s flaw of future file size growth, but they neglect to mention that computing power increases continuously, and this routine increase in hardware and communications technology can by itself make up for Bitcoin’s most obvious future “flaw”. The flaw is already destined to be solved by at least two different solutions, Bitcoin’s adaptability and the world’s technological advancement.
GameChakra and others correctly point out several reasons why Storm’s theory is not a crippling issue:
1. Pruning can be done (i.e. deleting unecessary data in the network).
2. Moore’s Law. Storage doubles every 2 years.
3. Market can self-regulate by imposing higher transaction if bitcoin adoption gets too fast therefore supress trading volume.
4. You don’t need to download the whole blockchain to transact with bitcoin (MultiBit wallet).
Critics are often correct that Bitcoin is not to be treated like a stable, long term investment, Indeed it offers higher risk and higher returns than a typical investment.
Corey Chambers, The Bitcoin Blogs
U.S. Congressman Supports Bitcoin, Calls For Ban of Dangerous Dollar
Today, U.S. Congressman Jared Polis (D-CO) sent a letter to federal regulators seeking a ban on United States dollar bills, a currency that is unregulated and unstable, and has been used in illicit activity, including drug trafficking and money laundering. The letter was sent in response to a letter from Senator Joe Manchin (D-WV) calling for the banning of BitCoins. Congressman Polis expressed similar concerns about the negative effect dollars have on America’s economy. The letter was sent to Treasury Secretary Jack Lew, Federal Reserve Chairwoman Janet Yellen, Comptroller of Currency Thomas Curry, Acting CFTC Chairman Mark Wetjen, FDIC Chairman Martin Gruenberg, and SEC Chairwoman Mary Jo White. The full text of Congressman Polis’ letter is at:
Yelp’s New Bitcoin Designation
There’s ben several really major announcements this week showing further tremendous adoption of Bitcoin. MIT student group announces a huge development research project with Bitcoin. The largest Wall Street computer system, Bloomberg Terminal begins to track Bitcoin. Seattle, Washington gets its first Bitcoin ATM machine. World’s largest review site Yelp added a designation showing which businesses accept Bitcoin.
Those who think that it is safer to own dollars than Bitcoin should keep their money in dollars and they can enjoy the safety of losing 5% per year. In the past 12 months, Bitcoin increased in value more than 400% while the dollar decreased in value 5%. The year before that, Bitcoin increased in value 600% while the dollar decreased in value by 5%. The year before that, Bitcoin went up in value 600% while the dollar decreased in value by 4%. How many years will it take for the average person to catch on? Most will wait to buy Bitcoin and wait and wait until the timing is all wrong. Most will think Bitcoin is safe after several more years. Most will buy Bitcoin at its peak, and then they will experience the greatest crash in history.
Corey Chambers – The Bitcoin Blogs
Nick Szabo Not the Creator of Bitcoin
A quick glance is enough to see that Erik Sherman and Jack Grieve are off on their thesis about Satoshi Nakamoto being Nick Szabo. Nakamoto does not share the quirky traits of Szabo. Nakamoto does not make lists with commas followed by “, and”. And Nakamoto does not use ” – – “. Furthermore, a full-time blogger on many topics would obviously not be the focused developer of Bitcoin.
Not only is the linguistic study wrong, there is no other corroborating evidence that Szabo could be the creator of Bitcoin. The Newsweek article, on the other hand, is more likely to be correct as it succinctly nails the background of Satoshi Nakamoto as the full-time computer programmer with not only the skills to create Bitcoin, but also the personal belief system and motivation.
Everything will eventually to to $0.00 given enough time. Bitcoin will go toward zero after the world starts adopting something better to replace it. So far, Bitcoin is growing in popularity every day. Increasing usage forces the price to rise in conjunction with the capitalization.
This week, the IRS announced that it will require Americans to use what could be a very complex method to track Bitcoin gains. That caused the price to drop more this week. Ultimately, however, a simple method will work just fine to calculate Bitcoin gains or losses for most American Bitcoin users.
The smart investors bought as many Bitcoins as could be afforded this week to take advantage of the price drop.
Corey Chambers, The Bitcoin Blogs