Bitcoin Supporters Clash Over Idealogical, Practical Issues

Bitcoin Supporters Clash Over Idealogical, Practical Issues

Kristen Brown and SFGate report on a widening schism between Bitcoin enthusiasts calling for more regulation and those who want to protect the independent, libertarian spirit of the cryptocurrency.

Like U.S. dollars, Bitcoin works both inside and outside of a regulatory environment. Bitcoin enthusiasts need not choose one of the other, but they do have that option if desired. Bitcoin purchased with localbitcoins.com is private and out of the reach of governments. Bitcoin purchased with coinbase.com is regulated and presumably tracked by the U.S. government.

Bitcoin is inherently under less regulation than the U.S. dollar, and Bitcoin will always have that advantage. The U.S. government creates and destroys dollars at will. The U.S. government cannot do that with Bitcoin because, like the Internet, Bitcoin is decentralized, created by internet-based individuals across the globe. Currently, nobody has the technology to crack the cryptography of Bitcoin.

Corey Chambers, The Bitcoin Blogs

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Bitcoin: Both Buffett and Andreessen are Right

Bitcoin: Both Buffett and Andreessen are right

Christopher Matthews of CNN Money has written that Warren Buffet and Marc Andreessen are both right although they seem diametrically opposed.  Matthew and CNN have got it right as well.

Matthews explains that Buffett and Andreessen are both very wealthy and successful investors (Buffet much wealthier than Andreessen) yet they have very different investment plans.  With higher risk and higher reward, Bitcoin fits Andreessen’s plan.  Andreessen is also the technology venture capital guru.  Warren is truly old-fashioned in most ways, and does not invest in risky ventures.  Buffett also is admittedly not into technology.

It fits that Bitcoin is ideal for high-risk, high-return technology investors.  Buffet is correct that Bitcoin is not a match for low-risk traditional investors.

As a computer programmer, economist and payment processing professional who loves new technology, my heart is firmly with Andreessen in this matter.  In fact, my calculations says that it is risky to not buy a small amount of Bitcoin, even for old-fashioned investors.  Losing out on a financial opportunity is a real type of loss.  Bitcoin is certainly worth researching for most investors.  The safe and smart thing for most is so buy as much Bitcoin as one can afford to lose.

Corey Chambers, The  Bitcoin Blogs

Fast Company: THE MOST DANGEROUS MAN IN BITCOIN ISN’T A CRIMINAL

Fast Company: THE MOST DANGEROUS MAN IN BITCOIN ISN’T A CRIMINAL
http://www.fastcompany.com/3027123/bitcoin-sheriff-of-the-web-preet-bharara

Writer Mark Chafkin thinks that federal prosecutor Preet Bharara can clean up Bitcoin.

While Chafkin’s Fast Company article gets big points for quality and content, it fails to provide substantial criticism of Bharara. Chafkin does a disservice by worshipping the lawman. Bharara suffers from his own very obvious vice: political corruption that is evident in his lack of prosecution of the biggest criminals who are politically connected. Bharara will not chase the biggest fish, those who are part of big government, law enforcement or individual criminals who are connected to government through big business. Bharara has only been most aggressive with small fish. Bharara will not be fully respectable until he stops being a politico and when he begins to aggressively go after the real big guys, the politically connected Bernie Madoff-types and government officials who are still operating with impunity as Bharara is too afraid and too corrupt himself to tackle.

Corey Chambers, The Bitcoin Blogs

Dorian Satoshi Nakamoto – private individuals deserve to have their privacy respected

Dorian Satoshi Nakamoto of Temple City, California has lived in the U.S. for more than 50 years. He speaks and write English better than you and I. His entire career is about secretive technologies, and even if Newsweek is only half-right about his personal life, Dorian Satoshi matches precisely the expected persona of the inventor of Bitcoin. Regardless, Nakamoto wants privacy, and the law is clear that private individuals deserve to have their privacy respected.

Corey Chambers, The Bitcoin Blogs

Satoshi Nakamoto Identity

Satoshi Nakamoto Idenity

The creator of Bitcoin has been identified, found and interviewed.

Satoshi Nakamoto Identity

Satoshi Nakamoto Identity

Newsweek’s Leah McGrath Goodman has written the most important Bitcoin article to date.  It is unfortunate that Newsweek decided to show a photograph of Nakamoto’s house, an disrespectful slap in the face to Nakamoto.  Why was the residence photo necessary for this article?  The only reason someone should be outed in this manner is if it is an openly public figure who is accused of some kind of

Newsweek and Goodman do appear to be right on the money regarding Prentice S. Nakamoto’s identity as the Bitcoin creator.  Everything that Nakamoto says seems to be a match to what Bitcoin creator Satoshi Nakamoto has communicated in his previous communications.  Also Dorian S.  Nakamoto’s entire persona seems to match exactly that of the Libertarian computer scientist who would create Bitcoin.  If he really said “I’m no longer involved.” then that would also be an exact match, and an admission that he is Bitcoin’s creator.

Corey Chambers, The Bitcoin Blogs

WARREN BUFFET REBUFFS BITCOIN

WARREN BUFFET REBUFFS BITCOIN
by Corey Chambers

Ben Eisen of MarketWatch recently wrote about how Buffett likes Pepsico, but he does not like Bitcoin.  Is that a shock to anyone?  Buffett said that Bitcoin is “not a currency”.   He said that it will not be around for a long time.

MarketWatch Buffet Bitcoin Report

MarketWatch Buffet Bitcoin Report

When it comes to Bitcoin, Buffet does not know what he is talking about.  Buffet is most credible when he sticks to what he knows. Buffet knows large cap companies.  He knows to buy quality at a low price and sell high over large market cycles.  While Buffet is correct about Bitcoin being more short term.  Buffet is correct that Bitcoin is probably not a super long term investment.  Bitcoin  has already proven itself for 4 years however, and Bitcoin is just getting started.  Bitcoin is opposite of what old-school Buffet all about.  Buffet does not invest in bleeding edge innovation technologies like Bitcoin, so his smartest move is to sell against Bitcoin.  Buffet played his smartest move like Billionaires can be counted on to do.

Bitcoin does likely have a shorter life span that Pepsico or Coca-Cola.   Bitcoin is more predictable than many are aware of.  There is one word that speculative investors need to keep an eye on in order to know when to stop buying and when to start selling off Bitcoin.  The Bitcoin Books will provide that secret word.

@Corey Chambers, The Bitcoin Books
http://www.thebitcoinbooks.com

The Inside Story of Mt. Gox, Bitcoin’s $460 Million Disaster by Robert McMillan, Wired Magazine

The Inside Story of Mt. Gox, Bitcoin’s $460 Million Disaster by Robert McMillan, Wired Magazine

Bitcoin Wired Article

Bitcoin Wired Article

Wired magazine points out in its new article that MtGox suffered from poor management, neglect, and inexperience.  MtGox filed or bancruptcy after losing hundreds of millions of dollars of its customers money.  Company insiders report that Karpeles was the reason.  MtGox was run by computer geeks with little business management experience. Hackers successfully took money several times, perhaps continuously, since June of 2011.  When MtGox was offline, Karpeles reportedly spent much time on tasks (such as building a cafe) rather than repairing the MtGox.com website.  Karpeles is said to have gained $50 million for himself, but lost it.

This is an awesome article about how I lost thousands of dollars due to Mark Karpeles’ major weaknesses.  McMillan and Wired Magazine did a great job of getting this valuable inside information on what caused the downfall of the largest Bitcoin exchange.  Karpeles must take full responsibility for his failures, and, at the same time, we must understand that much of the value of Bitcoin came from his brave work to provide such an aggressive, robust international exchange.  We can only hope and follow-up to ensure that the money is tracked down and recovered as much as possible.

One brights side, and one reason why Bitcoin owners like my self have been extraordinarily patient with Karpeles is because much of the money in MtGox was windfall money.  Bitcoin is so amazing, that, even if less than 1% is recovered, it can repay us more than we lost if everything is handled correctly by Karpeles and the government of Japan.

Corey Chambers, The Bitcoin Blogs
http://www.thebitcoinblogs.com