Electronic money

Bitcoin’s Nefarious Cousin Darkcoin [Video]

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MaxKeiser  May 27 2014

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss bitcoin converts and the dual risk of deflation and inflation for holders of euros. Max asks “how is the euro a store of value when the ECB can just TAKE it from you during a ‘bail-in?’ In the second half, Max interviews Peter Todd, Chief Scientist & Architect of Dark Wallet and ZeroCash to discuss Dark Wallet, cryptocurrencies and a government sponsored 51% attack on the bitcoin community.

[youtube=http://youtu.be/-FXKXH7gvmw&w=500]

We discuss bitcoin converts and the dual risk of deflation and inflation for holders of euros. Max asks “how is the euro a store of value when the ECB can just TAKE it from you during a ‘bail-in?’ In the second half, Max interviews Peter Todd, Chief Scientist & Architect of Dark Wallet and ZeroCash to discuss Dark Wallet, cryptocurrencies and a government sponsored 51% attack on the bitcoin community.

The Risk And Reward Of Bitcoins

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BATR April 17, 2013

Money is supposed to be a store of value. After the recent collapse in the dollar convertible price of Bitcoins, the inevitable scrutiny in the viability of the monetary system is warranted.

The official description of Bitcoin states: Bitcoin is an experimental, decentralized digital currency that enables instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate with no central authority managing transactions and issuing money carried out collectively by the network. Purported myths and ground rules on how the alternative currency operates, provides calculated reading. Whether this accounting system can or would be accepted as an credible medium of exchange on any large scale is certainly an open question.

The need for an alternative currency to fiat debt created tender is apparent. However, establishing faith and acceptance in a competing and digital method of payment for transactions is almost inconceivable to the average consumer.

The Business Insider in Bitcoin Is Changing The World provides an analysis and a risk warning report.

“Bitcoin’s inventor, Satoshi Nakamoto, is a mysterious hacker (or a group of hackers) who created it in 2009 and disappeared from the internet some time in 2010.

Reddit, a social-media site, and WordPress, which provides web hosting and software for bloggers. The appeal for merchants is strong. Firms such as BitPay offer spot-price conversion into dollars. Fees are typically far less than those charged by credit-card companies or banks, particularly for orders from abroad. And Bitcoin transactions cannot be reversed, so frauds cannot leave retailers out of pocket.

Yet for Bitcoins to go mainstream much has to happen, says Fred Ehrsam, the co-developer of Coinbase, a Californian Bitcoin exchange and “wallet service”, where users can store their digital fortune. Several Bitcoin exchanges have suffered thefts and crashes over the past two years.

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Bitcoin: The World’s First Cryptographic Commodity

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theintelhub.com February 3 2013

One result has repeated itself without fail throughout history. Every fiat currency ever created has dropped to zero and ended in horrible failure for the majority of its users, while benefiting those that destroy it. The reins of this economic self destruct mechanism are carefully tended by the worlds power structure while they position their own assets in such a way to profit from the fire sale as the rest of the world struggles to survive.

This pattern has repeated itself ever since the first cuneiform tablet was forged, just after the abstract concept of money was created. Since that time society relied completely on evolving technology to verify and preserve the institution of money as it was originally intended, and others continually worked to break that system for personal gain. Because this has been an expensive and complicated task in the past, people have always relied on a centralized institution to control the common wealth. This has always left people vulnerable to this central point of control being hijacked and used against the common wealth, until now.

The creation of Bitcoin is a historical landmark in the evolution of money. For the first time in human history there is a system of trade that is not under the control of a centralized system, and is in fact designed to prevent such controls. It also includes a few never before seen features enabling people to use publicly known open source mathematical calculations to ensure that the Bitcoin can only be spent once. A finite number of Bitcoins will be created, and the probability of generating them decreases as new users join the system. These are the key tenets of the Bitcoin system.

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