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Bitcoin: The Past, Present, And Future

searcher

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#1
Bitcoin: The Past, Present, and Future


Jeff Desjardins
on June 1, 2015 at 5:25 pm





Bitcoin: The Past, Present, and Future

Bitcoin and cryptocurrency are topics that we have covered to a good extent here, including our history of the first five years of Bitcoin.

Today’s infographic covers some of the same essentials, but then goes on to also cover regulation of the cryptocurrency, recent events such as the Mt. Gox bankruptcy, as well as some interesting commentary.

One interesting point brought up for the future is related to quantum computing, which was explained also in a recent infographic. Quantum computing uses subatomic particles that can store information as a “1”, “0” or both simultaneously. If computers had this capability, breaking codes will be much simpler. This means the cryptographic infrastructure behind bitcoins and other currencies would have to be updated.

Lastly, in light of Ross Ulbricht’s recent sentencing, it is interesting to consider the role of cryptocurrency in future e-commerce including the lucrative drug trade. Along with other events, many considered the demise of the original Silk Road to be a catalyst that helped bring the value of bitcoins down from their peak. The theory was that without the Silk Road marketplace, there would be less trade, and therefore bitcoins would be less valuable.

However, since then, a new Silk Road was created (and later seized), and many other attempts to build better mouse traps on the Dark Web are underway. Some people say the current markets such as Agora are bigger than Silk Road ever was. In other words, bitcoins remain just as important to this commerce aspect, but lost some of the narrative associated with it.


Original graphic by: Stetson


http://www.visualcapitalist.com/bit...ail&utm_term=0_31b4d09e8a-746cc448cb-43751333
 

Mujahideen

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#3
It's good for transferring money like pay pal, but I wouldn't use it as a savings account.

If I were to use it, I would just get in and get out.
 

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#4
It's good for transferring money like pay pal, but I wouldn't use it as a savings account.

If I were to use it, I would just get in and get out.
Exactly. It's fine for what it is, it's when people try to make bitcoin into something it isn't that the train comes off the tracks. As it becomes obvious to even the most addle minded of sheeple that fiat currencies are doomed and that the governments that have backed central bankster's scams are not to be trusted, cryptos will gain traction. Blockchain tech is the most viable system available to minimize counter-party risk while transferring wealth over vast distances whilst minimizing transaction fees. I suspect cryptos will see a huge growth in acceptance as the overreaching governments of the world continue and intensify their war on cash.
 

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#6
Why will bit coin succeed? Most professionals who are educated have no idea about it! Sorry, I think it's doomed to fail as the central banks have tentacles that reach everywhere. The story would be different if say a supranational banking cartel were behind this op.

Please educate, how will bit coin survive when the reserve currency fails? Who is going to loose with bit coin?
 
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#7
It's Bitcoin and not "bit coin" :)

Think of Bitcoin more as a commodity than currency. It's the coins that gives miners an incentive to secure the blockchain. The invention of the blockchain, a truth ledger, can not be uninvented. Ledgers have been used to record ownership of value/assets/stuff since before central banks existed.
 
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#8
It's all about the Blockchain

Half way through this video should be enough to scare anybody away from Bitcoin, if you are all for free market then why use currency that can be programmed like this video shows?
 
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#10
Trusting PMs > trusting computer algorithms > trusting people > trusting governments > trusting corporations

IMHO of course.
 
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#11
Trusting PMs > trusting computer algorithms > trusting people > trusting governments > trusting corporations

IMHO of course.
You can't lump monetary PMs in with the he others, not physical in hand anyhow.
 

madhu

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#13
What if the internet is taken down by emp? Will bit coin survive that?
What percentage of your wealth do you put into bit coin? Just for insurance sake?
 

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#14
No Internet means no bitcoin transactions would be processed until the network was restored, but it wouldn't destroy private keys or the blockchain.
 

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#16
Why will bit coin succeed? Most professionals who are educated have no idea about it! Sorry, I think it's doomed to fail as the central banks have tentacles that reach everywhere. The story would be different if say a supranational banking cartel were behind this op.

Please educate, how will bit coin survive when the reserve currency fails? Who is going to loose with bit coin?
Why would the reserve currency failing have an affect on bitcoin? If anything it would make bitcoin look that much more appealing to the public.
 

madhu

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#17
After a reserve currency crisis, in what future currency will the bit coin be settled?
Understanding
Bit coin seems elusive. This will handicap its general acceptance. I am sure the central bankers are happy about that.
 
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#18
What if the internet is taken down by emp? Will bit coin survive that?
What percentage of your wealth do you put into bit coin? Just for insurance sake?
No it won't survive, there are hundreds of situations that Bitcoin will not survive. There could be some super viruses created to mess with the block chain that can spread around the world.
 
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#19
What if the internet is taken down by emp? Will bit coin survive that?
What percentage of your wealth do you put into bit coin? Just for insurance sake?
If the whole internet over the whole world is nuked. Bitcoin is the last thing to worry about. If it's only the US that gets nuked, no problem.

I would ofc not put all my wealth into crypto, but 10 - 20% would be a nice hedge against system error in the finacial systems. IMHO.
 
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#20
After a reserve currency crisis, in what future currency will the bit coin be settled?
Understanding
Bit coin seems elusive. This will handicap its general acceptance. I am sure the central bankers are happy about that.
RMB :) 1 BTC = 1 BTC, so you dont need to convert to any fiat. I the whole supply chain takes bitcoin, trade would be much more effective.
 
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#22
RMB :) 1 BTC = 1 BTC, so you dont need to convert to any fiat. I the whole supply chain takes bitcoin, trade would be much more effective.
It will never happen, you may understand or think you understand how to value one bitcoin, but the average person around the world will never understand, this is why it will never work.

Take your average grandmother going to do her shopping. The only reason she understands fiat is because it used to be backed by gold before 1971. Some people are so uneducated they still think fiat is backed by gold.

She could work out how many grams of bullion her shopping is worth, but how can she work out how many bitcoins? There is no measuring stick??????????????
 
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#23
The argument that compared to world population now, there is not enough available silver left to be used as a monetary system is just as stupid as saying there is not enough bitcoin's to be used as a monetary system.
The bitcoin supply is capped at 21million bitcoins. Well say there was about 21million Kilos of silver left in the available supply. Then each kilo could be split up into grams and milligrams or even Micrograms 0.01mg of silver just like bitcoins are divided up.

How can you value 21 million bitcoins? They are not backed by anything, there is no measuring stick. They could be backed by turnips or anything, just have something there so that you have something to go on. Anything apart from the monetary precious metals will have a hard job gaining peoples confidence. Now, how can you value 21 million Kilos of silver or gold? Well you need to look at the supply demand fundamentals? How much many kilos of silver or gold are left in the worlds available supply?
Interestingly 21 Million Kilos of silver is about 675 Million troy ounces. Which some estimate to be about the real number of available ounces left on earth. There are millions of tons of gold building up and up around the world, the supply is going up every year. This number of around 21 million kilos of silver is going down every year as more silver is demanded than is supplied. But unlike bitcoins the amount of available silver can be flexible as the value goes up more silver can be reclaimed from landfill.
One of the most bullish arguments bitcoin proponents make is the limited supply, and the more people start using it the higher the value of each unit. This is more true for silver.
 
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#24
The argument that compared to world population now, there is not enough available silver left to be used as a monetary system is just as stupid as saying there is not enough bitcoin's to be used as a monetary system.
The bitcoin supply is capped at 21million bitcoins. Well say there was about 21million Kilos of silver left in the available supply. Then each kilo could be split up into grams and milligrams or even Micrograms 0.01mg of silver just like bitcoins are divided up.

How can you value 21 million bitcoins? They are not backed by anything, there is no measuring stick. They could be backed by turnips or anything, just have something there so that you have something to go on. Anything apart from the monetary precious metals will have a hard job gaining peoples confidence. Now, how can you value 21 million Kilos of silver or gold? Well you need to look at the supply demand fundamentals? How much many kilos of silver or gold are left in the worlds available supply?
Interestingly 21 Million Kilos of silver is about 675 Million troy ounces. Which some estimate to be about the real number of available ounces left on earth. There are millions of tons of gold building up and up around the world, the supply is going up every year. This number of around 21 million kilos of silver is going down every year as more silver is demanded than is supplied. But unlike bitcoins the amount of available silver can be flexible as the value goes up more silver can be reclaimed from landfill.
One of the most bullish arguments bitcoin proponents make is the limited supply, and the more people start using it the higher the value of each unit. This is more true for silver.
1 BTS = 100 000 000 Satoshis

You just count profit in satoshis.

If a person that are used to USD are in Europe. They need to convert to USD to figure out if an item/service is cheap/expencive comparted to USD prices. After a while, you start to remember prices in Euro and you can know by your self if the price is cheap or expencive compared to other prices for the same item in Euro.
 

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#25
All you need to know? That means silver and gold are also bad purchase because there prices are down significantly.
They dropped that much in the last year? Really?
 
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#26
Trusting computer algorithms > trusting people.
There would need to be constitutions and promises in place to make sure those printing the promises to pay do not print more than they hold actual silvergrams. Then as the cycle repeats they would go against the constitution just as the USA has done by printing more promises to pay than they hold monetary PM's.
The only way around the problem as far as I can see it, is to always have the threat of runs on the banks issuing the paper promises and holding the silvergrams. If there are doubts about more currency being created than actual money held by the currency creators then just go back to physical money. Only real silverGrams changing hands locally and repudiate paper or digital promises.
I imagined this would be seen as safer than unbacked crypto or fiat but still have all the advantages. Silvergram monetary systems would be easier to understand than crypto or fiat.
This is the biggest hurdle to get over, its people understanding crypto. Will little old ladies going to do their shopping understand units of crypto? I think the answer is no. I have tried explaining crypto to very intelligent adults but they don't get it, and I have to honestly say well I don't understand it completely myself even the people who made it do not completely understand it or what may happen to it in the future. Or how to measure the value of each unit of all the competing unbacked crypto currencies being added to the supply every year.

But when it comes to little old ladies going shopping working out how many grams of silver something costs, yes they will easily understand that because there is something real its actually something there in their mind, even if its a digital transaction. If all her shopping for the week comes to this many silvergrams, (either pay with physical or digital) and each item for example milk, eggs, bread costs this many milligrams of silver each, then nobody is afraid of it they can easily grasp it because its something real they can picture in their mind even if its a digital transaction like paying with a credit card today.
I say its very hard for average people to get their head around crypto, how much something is worth valued in units of crypto currency, how can you get your head around that? You can't, there is no historical measuring stick. Silver has several thousand years history being used as money and we know the historical average is 3 silvergrams or a tenth of an ounce valued at an average 12hr days wage.
The only reason little old ladies can understand fiat is because before 1971 it was backed by monetary precious metals. Most people do not understand that in 1971 all currencies became unbacked by money.
There is no way little old ladies will understand unbacked crypto unless its backed by something they can understand like grams of monetary precious metal.
Not just little old ladies, the majority of people on the street have lots of misguided faith in fiat. Many still think it relates to gold. They do not know the slight of hand trick in 1971 when all currencies were not backed by gold anymore.
Everyone will understand about grams of silver and the free market will find correct values of everything. For those who say there is not enough silver left in the world for world population today, I say in the future we could even go down to almost nanoparticles of silver! OK a little extreme these would be too small to transact physically but the point is tiny amounts of silver will hold extremely high values in the future. Realistically most things will be valued in milligrams and grams for larger items. Maybe large properties and large businesses would be valued in over a kilogram of silver. But you are talking about a lot of wealth right there. And because you are not talking about big weights., only a few milligrams of silver needs to be sent for most things you buy. So you could use a delivery service for long distance transactions not only face to face.
 

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#27
There would need to be constitutions and promises in place to make sure those printing the promises to pay do not print more than they hold actual silvergrams. Then as the cycle repeats they would go against the constitution just as the USA has done by printing more promises to pay than they hold monetary PM's.
The only way around the problem as far as I can see it, is to always have the threat of runs on the banks issuing the paper promises and holding the silvergrams. If there are doubts about more currency being created than actual money held by the currency creators then just go back to physical money. Only real silverGrams changing hands locally and repudiate paper or digital promises.
I imagined this would be seen as safer than unbacked crypto or fiat but still have all the advantages. Silvergram monetary systems would be easier to understand than crypto or fiat.
This is the biggest hurdle to get over, its people understanding crypto. Will little old ladies going to do their shopping understand units of crypto? I think the answer is no. I have tried explaining crypto to very intelligent adults but they don't get it, and I have to honestly say well I don't understand it completely myself even the people who made it do not completely understand it or what may happen to it in the future. Or how to measure the value of each unit of all the competing unbacked crypto currencies being added to the supply every year.

But when it comes to little old ladies going shopping working out how many grams of silver something costs, yes they will easily understand that because there is something real its actually something there in their mind, even if its a digital transaction. If all her shopping for the week comes to this many silvergrams, (either pay with physical or digital) and each item for example milk, eggs, bread costs this many milligrams of silver each, then nobody is afraid of it they can easily grasp it because its something real they can picture in their mind even if its a digital transaction like paying with a credit card today.
I say its very hard for average people to get their head around crypto, how much something is worth valued in units of crypto currency, how can you get your head around that? You can't, there is no historical measuring stick. Silver has several thousand years history being used as money and we know the historical average is 3 silvergrams or a tenth of an ounce valued at an average 12hr days wage.
The only reason little old ladies can understand fiat is because before 1971 it was backed by monetary precious metals. Most people do not understand that in 1971 all currencies became unbacked by money.
There is no way little old ladies will understand unbacked crypto unless its backed by something they can understand like grams of monetary precious metal.
Not just little old ladies, the majority of people on the street have lots of misguided faith in fiat. Many still think it relates to gold. They do not know the slight of hand trick in 1971 when all currencies were not backed by gold anymore.
Everyone will understand about grams of silver and the free market will find correct values of everything. For those who say there is not enough silver left in the world for world population today, I say in the future we could even go down to almost nanoparticles of silver! OK a little extreme these would be too small to transact physically but the point is tiny amounts of silver will hold extremely high values in the future. Realistically most things will be valued in milligrams and grams for larger items. Maybe large properties and large businesses would be valued in over a kilogram of silver. But you are talking about a lot of wealth right there. And because you are not talking about big weights., only a few milligrams of silver needs to be sent for most things you buy. So you could use a delivery service for long distance transactions not only face to face.
Egads. I don't even know what I can say to help you at this point, particularly as you don't respond to much of anything said between creepy rants. Without a portable Star Trek teleporter grandma can not and will not be paying for bread(or anything else) with "digital" silver or "bitgold". Your notion of "digitized" PMs is using bank credit while someone else holds onto your precious metals(dumb). Grandma can already buy bread with funny bankster munny, she doesn't need PMs to do that. If grandma is wise enough to invest in PMs she should leave them at home in a hidden safe where they belong.
 
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#28
Egads. I don't even know what I can say to help you at this point, particularly as you don't respond to much of anything said between creepy rants. Without a portable Star Trek teleporter grandma can not and will not be paying for bread(or anything else) with "digital" silver or "bitgold". Your notion of "digitized" PMs is using bank credit while someone else holds onto your precious metals(dumb). Grandma can already buy bread with funny bankster munny, she doesn't need PMs to do that. If grandma is wise enough to invest in PMs she should leave them at home in a hidden safe where they belong.
Look again at the last line of my previous post. Im talking about after the present fiat monetary system ends what will be used as money? Real grams of monetary precious metal, either hand to hand local transactions, or sent by delivery after all the things you are buying need to be physically delivered. Or some kind of digital transfer of ownership of physical bullion in a vault.

I dont know what you are on about the notion of "digitized" PMs is using bank credit?
 
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#29
Look again at the last line of my previous post. Im talking about after the present fiat monetary system ends what will be used as money? Real grams of monetary precious metal, either hand to hand local transactions, or sent by delivery after all the things you are buying need to be physically delivered. Or some kind of digital transfer of ownership of physical bullion in a vault.

I dont know what you are on about the notion of "digitized" PMs is using bank credit?
In a post-TSHTF world, maybe there will be a BTC/Silver trading cross :) IOU will be used by governments, IMHO.
 

solarion

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#30
Look again at the last line of my previous post. Im talking about after the present fiat monetary system ends what will be used as money? Real grams of monetary precious metal, either hand to hand local transactions, or sent by delivery after all the things you are buying need to be physically delivered.
And because you are not talking about big weights., only a few milligrams of silver needs to be sent for most things you buy. So you could use a delivery service for long distance transactions not only face to face.
No problem at all with face to face barter using real money(gold & silver). It's a real possibility, at least for a time. Sending PMs via courier to purchase remotely located items sounds implausible, slow, tedious, expensive, and above all risky. I'll pass.

Or some kind of digital transfer of ownership of physical bullion in a vault.
Again...who's vault is this that has MY gold and silver in it?

I dont know what you are on about the notion of "digitized" PMs is using bank credit?
Oh I dunno, just some wacky idea I heard...

Redeeming gold via credit card and bank wire
Last Updated: May 31, 2015 04:07PM EDT

Redeeming gold via your credit card or bank wire is quick and easy using the BitGold platform. Follow the simple steps below to initiate this type of transaction.
http://support.bitgold.com/customer...-gold-via-credit-card-and-bank-wire?b_id=7977

fplfwaR.png
 
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#31
Hence my post here......
There would need to be constitutions and promises in place to make sure those printing the promises to pay do not print more than they hold actual silvergrams. Then as the cycle repeats they would go against the constitution just as the USA has done by printing more promises to pay than they hold monetary PM's.
The only way around the problem as far as I can see it, is to always have the threat of runs on the banks issuing the paper promises and holding the silvergrams. If there are doubts about more currency being created than actual money held by the currency creators then just go back to physical money. Only real silverGrams changing hands locally and repudiate paper or digital promises.
I imagined this would be seen as safer than unbacked crypto or fiat but still have all the advantages. Silvergram monetary systems would be easier to understand than crypto or fiat.
This is the biggest hurdle to get over, its people understanding crypto. Will little old ladies going to do their shopping understand units of crypto? I think the answer is no. I have tried explaining crypto to very intelligent adults but they don't get it, and I have to honestly say well I don't understand it completely myself even the people who made it do not completely understand it or what may happen to it in the future. Or how to measure the value of each unit of all the competing unbacked crypto currencies being added to the supply every year.

But when it comes to little old ladies going shopping working out how many grams of silver something costs, yes they will easily understand that because there is something real its actually something there in their mind, even if its a digital transaction. If all her shopping for the week comes to this many silvergrams, (either pay with physical or digital) and each item for example milk, eggs, bread costs this many milligrams of silver each, then nobody is afraid of it they can easily grasp it because its something real they can picture in their mind even if its a digital transaction like paying with a credit card today.
I say its very hard for average people to get their head around crypto, how much something is worth valued in units of crypto currency, how can you get your head around that? You can't, there is no historical measuring stick. Silver has several thousand years history being used as money and we know the historical average is 3 silvergrams or a tenth of an ounce valued at an average 12hr days wage.
The only reason little old ladies can understand fiat is because before 1971 it was backed by monetary precious metals. Most people do not understand that in 1971 all currencies became unbacked by money.
There is no way little old ladies will understand unbacked crypto unless its backed by something they can understand like grams of monetary precious metal.
Not just little old ladies, the majority of people on the street have lots of misguided faith in fiat. Many still think it relates to gold. They do not know the slight of hand trick in 1971 when all currencies were not backed by gold anymore.
Everyone will understand about grams of silver and the free market will find correct values of everything. For those who say there is not enough silver left in the world for world population today, I say in the future we could even go down to almost nanoparticles of silver! OK a little extreme these would be too small to transact physically but the point is tiny amounts of silver will hold extremely high values in the future. Realistically most things will be valued in milligrams and grams for larger items. Maybe large properties and large businesses would be valued in over a kilogram of silver. But you are talking about a lot of wealth right there. And because you are not talking about big weights., only a few milligrams of silver needs to be sent for most things you buy. So you could use a delivery service for long distance transactions not only face to face.
 

solarion

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#32
Hence my post here......
Yes, I've already commented on that compilation of poorly organized gibberish. Frankly, it damaged my faith in humanity.