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Author Topic: Gold-backed bitcoin  (Read 11200 times)
JustSayNoToStatism
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« Reply #15 on: December 01, 2011, 07:27:50 PM »

I guess without savings theres not much to do but work hard when the system comes crashing down. I'm a programmer so I don't really need much to be productive. A pc and an internet connection go a long way. My only worry is that in a time of crises there may not be very much demand for such skills.
The most convenient thing to invest in for the crash is your body. Get in excellent shape. Not just because stamina and strength are valuable, but because healthcare won't be readily available.

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Do you suggest holding dollars/euros instead? I do agree that gold/silver is overrated, its just a storage means for wealth and isn't really an investment, although they are both used in electronics. I guess owning or holding shares in a business would be the best protection of wealth, as they can create more wealth. But even land and real estate would be better then dollars, but I don't really have any savings to speak of. Think 4 digits at most. Student debt will be almost non-existant if I complete my degree, I only borrowed a bit extra to buy a much needed laptop for my studies. My parents still mostly provide for me at the moment, I'm extremely lucky with that.

But isn't gold/silver by far preferable over having my euros in the bank? Would holding bitcoins be a valid protection against inflation? I don't think you can buy many services here yet with bitcoin.
If you don't have the common "prepping" supplies stocked up, then there's not much of a need for holding precious metals.

Again, it's hard for me to give you specific investing advice without more info. If you want to PM me, feel free. But based on what you've said so far, it seems like you should use your savings to pay off your debt. I say this because you're paying interest on it. It's true that holding cash makes you more flexible, but it sounds like you have parents still supporting you, so it's probably safe to assume you aren't going to starve if you pay off that computer loan. Finish school, just so that you don't have to pay for it. As far as things you should get if concerned about shtf, maybe we should start a thread on that? Maybe we have one already? I can't remember. I'm also not sure of how sold you are on the idea of shtf, or to what degree.
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« Reply #16 on: December 21, 2011, 06:07:17 AM »

Ok, there are about 10 bitcoin threads.  I didn't want to start a new one with my concerns about it, so I picked the one that seemed to be talking the most about valuation as that is what my concerns are about.


On many fronts I like bitcoin, but when I initially looked into it long ago something caught my attention.  The amount of bitcoins in circulation at the time were a tiny fraction of the potential bitcoin cap that they intend to use.  This carries with it the same valuation and costs associated with a central bank inflating the currency.  That means they are effectively counterfeiting until they reach the cap.  Yeah, it is capped, but that doesn't mean it won't adversely harm the users until the cap is reached, or advantage the creator.  If they do it perfectly, they can account for a single currency and not have a significant impact on them.  It will still have varying effects against other currencies. 

Bullion always was highly valued specifically because it was a PITA to get out of the ground.  As I have mentioned in another post, gold has the same issues right now as what I am bringing up about bitcoin.

I see this thread changed over to investment advice, and I could offer that, but that isn't why I wanted to make this post, so I will end it here. 
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Seth King
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« Reply #17 on: December 21, 2011, 10:45:05 PM »

The difference being that while bitcoin is inflated, it is going towards actual producers, the miners, who are the protectors of the currency. Unlike central bankers who counterfeit the currency at will and destroy the currency.
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« Reply #18 on: December 21, 2011, 10:55:44 PM »

Which is done by leaving a computer running, more or less like the folding programs.  I see no reason why the creator of the program can't just create a few of his own.  The system is just designed to inflate in a way to encourage early adoption, not actual value. 
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Seth King
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« Reply #19 on: December 21, 2011, 10:57:05 PM »

Bitcoins are a peer to peer currency, validated by all of the other users in the network. It is not counterfeitable.
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« Reply #20 on: December 21, 2011, 11:08:39 PM »

Even if it can't be counterfeited, the organization that created the program has probably been running servers doing the mining to more or less get a leg up.  Getting the money while it is easy.  Right now you can get them by running your computer.  Later on you would have to get them through actual items of value.  By gaining them now at no real cost except to the electric company, you/they on the good end of the inflation, much like banks are with USD.  It makes sense people will like being on the positive side of the inflation. 

I do like that there is a cap and it won't inflate forever.  I just find the thing to be dishonest in how it was marketed to the liberty movement as a non-inflating currency.   

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Seth King
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« Reply #21 on: December 21, 2011, 11:48:54 PM »

I'm not sure it was ever marketed as a non-inflating currency, but a non-counterfeitable currency. You have to understand, the people who got in on the ground floor essentially built a badass currency for the rest of us, much like those who got in on the ground floor of all of the great companies that ever existed.
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« Reply #22 on: December 22, 2011, 05:46:53 AM »

Maybe that's just how I heard about it then. 
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« Reply #23 on: December 23, 2011, 12:58:15 AM »

Even if it can't be counterfeited, the organization that created the program has probably been running servers doing the mining to more or less get a leg up.  Getting the money while it is easy.  Right now you can get them by running your computer.  Later on you would have to get them through actual items of value.  By gaining them now at no real cost except to the electric company, you/they on the good end of the inflation, much like banks are with USD.  It makes sense people will like being on the positive side of the inflation. 

Try mining a few bitcoins and then tell me if you had to sacrifice anything of value to get them.

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I do like that there is a cap and it won't inflate forever.  I just find the thing to be dishonest in how it was marketed to the liberty movement as a non-inflating currency.   

It's marketed as a decentralized non-counterfeit able crypto currency with known inflation rates.



It's
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JustSayNoToStatism
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« Reply #24 on: December 23, 2011, 02:47:18 AM »

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The system is just designed to inflate in a way to encourage early adoption, not actual value. 
As far as I know, the "mining" actually performs useful functions that keep the system going. But I've stopped researching bitcoin, and could be wrong.
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« Reply #25 on: December 28, 2011, 07:08:17 AM »

Try mining a few bitcoins and then tell me if you had to sacrifice anything of value to get them.

I've seen people with youtube videos claiming to have mined 1/2 a million USD worth of bitcoins. 
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Seth King
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« Reply #26 on: December 28, 2011, 02:12:11 PM »

Try mining a few bitcoins and then tell me if you had to sacrifice anything of value to get them.

I've seen people with youtube videos claiming to have mined 1/2 a million USD worth of bitcoins. 

I believe it. Back in the day when BTC were going for around $0.03 and there were few miners out there, if you racked up a few thousand bitcoins, and then held onto them as their price skyrocketed, you would easily be sitting on $500,000 worth of Bitcoins.
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« Reply #27 on: January 19, 2012, 10:13:21 PM »

I turned on free talk live today for a few minutes.  I heard the bitcoin ad.  It said that it will never inflate.  Mystery solved on where I heard about it. 
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