Let me see if I get this straight..... A "currency" was created out of thin air and now people are spending hundreds of dollars each for one reason: the belief that some other fool will pay more for it later.
Sounds like a perfect way to gamble a couple hundred dollars and see if this Ponzi Scheme takes off turning my couple hundred into a couple thousand (or more).
Could I lose it? Of course. But I am having a lot more fun than gambling a couple hundred on a casino boat. Still likely to lose my money but a whole lot better chance of walking away with more money. Play the game. Have fun. Plan on losing your money. But if I catch it just right, and get out JUST IN TIME, then I will benefit while the last ones in lose their money.
It's a Ponzi Scheme and just remember that - and have fun..............
BitCoins take advantage of this emerging digital market by selling this "opportunity" to be part of the next BIG THING by preying on the down economy and regular people who will willingly trust, for an amount they normally could afford to lose, that exchange will fulfill its role. Maybe it does for a little bit but meanwhile A LOT of newly entrants are losing money in unviable fluctuations while people in the know, or the technogeek-geniuses, are making a killing by "pretending" to get their digital blocks compromised = only 46% of the pending transactions get refunded, if you're lucky enough to get a refund. Try searching up about these communities' no email back response on your cancelled transaction with your money floating in the air.
Now, add drug lord money and corrupt gov't officials gambling their bribe money online for complete anonymity---do you see the bigger picture now? I'm sure there are bots tracking all our posts here in the digital cloud right now with the BIG 500 Companies doing analytics on the viability of this digital extension.
Would you contribute to this QUESTIONABLE underground "over the cloud" trade? I call this the new online gambling. I just hope your mode of payment wasn't digital or you'd have Big Brother all over you not long from now cryptocollecting your info for which 10 years for now could be used to: (fill in blanks here): ie. Take money from your online account incrementally over 40 years without you knowing or just plainly stealing your identity. Remember these underground economy grows exponentially.
If this free market model constantly attracts new people with ever increasing acceptance of low integrity transactions and the medium of exchange eventually runs out of memory to create new mediocre trading platforms (Bitcoins can only have about $21M digital currency and we now have about $11M floating), what happens next?
BUBBLE bursts. Creators win and the rest lose. SCAM much?
So what makes it better than any other real world currencies? Nothing really. So everyone runs around crazy waving their hands that USD is dying (it will eventually collapse at some point, or other huge implications will happen), but bitcoin is the same, it can be destroyed by the same problems a real world currency can be, its highly volatile and isn't backed by anything (alas usd is not either).
Besides, you can always hear how the first ppl that started with it very early had some real gains. Sounds pretty much like a pyramid scheme/scam.
And remember people - think for yourself - did the original creators really wanted to "make the world a better place" or "offer an alternative to fiat currencies to help people" or just to make money.
For me - well it might not be 100% scam, but it will probably fail anyway as a bad business project.
All this bitcoin is a big scam, you support the network with hardware, time and electricity to process the transactions but eventually you give way more than you get! The only people who benefit from this currency are the initiators and the people causing the inflation, its a smart scam, a digital one.
The difficulty with Bitcoin is the production of Bitcoins, which are unregulated and not transparent to the world. There is nothing to prevent a sudden surge in Bitcoins being dumped by a creator, a major cash-in, and anyone who pays in legal fiat will be left with nothing. Oh, Bitcoins.
First of all, let me say that a good scam is by definition "hard to notice". To actually know what bitcoin and similar currencies are, people should look for a good amount of information before they express their ideas on a place like this. Giving your opinion about this without a solid background is as if your sister who never used a computer tried to explain to a Software Developer why Windows is having blue screens. The idea is rather simple here: You "might" obtain a profit if you spend money "first" on it.
Obviously this is true in any investment, however this investment that is not in a real product or human need, but based on human greed (those are the scams that work best).
If you invest in food, services or transport as examples, you are covering real needs that humans have. However, bitcoin is "an idea". Its value is subjective... (and here comes the scam) but subjective to what or who?
Its easy to determine if a real product goes up or down based on its need, its quality, its offer and demand... But in the case of bitcoin?
People don't need it. You cant say if it has a quality. The offer is strictly controlled, while the demand is not.
Anyone who knows the 101 of how a market operates knows that demand and offer are strictly connected. If someone can control the offer, they might not exactly control the demand, but they have a huge influence in it.
The main problem is, anyone who is already into mining will say that it is great (very rarely people admit they made a mistake... And even less on the internet), so its expected that those that do mine, will support it. (And why would they support it and not actually be doing it is beyond me).
For anyone who really is interested into this, even just pure mining, not trading bitcoin and similar currencies, Id advice you to go and google prices of bitcoins over the years, the prices of the gear required over the years to mine coins, the effectiveness of the gear each year to mine, the cost in electricity (including the prices increase over time), and finally, calculate the actual profit generated by this. (I'm even excluding variables like getting DDoSed or blackouts loosing all your info/bitcoins and similar)
Once people do this, I believe their opinions would be much more valuable. For me, this profit was Negative.
Not to mention that the price of the bitcoin currency is not always going to grow, it might fall.
While the difficulty of mining always increases, the rewards always decrease, and the gear you have always looses its effectiveness (you have to "update" from time to time so stay in the game, effectively spending the money you earned).
But if you like it and are willing to spend, go for it.
What happens when the creator sells his 1.6 million bitcoins in the future? What will happen when any of the early adopters sell out their positions? Do you think they are going to be nice and just spend it on goods and services? Or just take a little bit out at a time? They could sell all 50% of the economy of bitcoin overnight, IF they found people to buy them.
How come no one has seen or has met this creator of the bitcoin software in public???... What's he hiding from? Is he hiding from the central bank thugs or from the people he's trying to scam? Wouldn't the community come to protect him?? Plus with all those bitcoins, money shouldn't be a problem for him now, so what gives.
How can you prevent a pool from taking over bitcoin? Currently there is holes in the timing of bitcoin transactions and how the blocks get solved. One of the biggest pools solved 6 blocks in a row. This could lead to someone or people in controlling the transactions and block chain in bitcoin.
Block chain size? Just look at how much the size has increased in the last year. How big is it going to get in the next year. If you think it is out of reach of the small miner, wait till it reaches terabyte size. Then just wait till they start more on the alt-chains, then check the sizing again. Right now someone could start ploughing alt-chain data into bitcoin to bloat it right up and knock off alot of miners.
You say it isn't control by a central bank. Well, you have a central set of developers working on it... It could turn to a central governing body, then who knows.
The system isn't designed for everyday retail like a debit/credit card is. There is a delay in timing of the block solving... It can take about an hour to verify that a transaction has been committed. This will take awhile before anything comes along to fix that or to make it easier to integrate instant transaction processing.
Just for people who say you can't shut off bitcoin. Yes you can, look at what China is doing. The other countries are just watching to see if it works. A government of their size can just simply flick a switch turn up the hashing power of the network and then start solving all the blocks and then crush the network. Probably all within a few hours. They don't have to take it down or shut it off, they just have to make people lose confidence in it.
From what I understand the hashing difficulty doesn't scale down with the hashing power of the network. So you just need to push it way out of reach of the smaller miner and only the top miners will be able to do anything, then you got control. You control what transactions get processed you control the network.
It seems that anyone can make bitcoin if they are good with a computer and then sell that for real money. Once we all figure out there is an unlimited supply of bitcoin its value will fall like a ton of bricks... Some will get rich and others just scammed
In the good old days, fiat currency was linked to commodities (invariably gold or silver).
When the governments/banks decided to break that link, fiat currency gradually became over-valued. This is mainly due to the 'printing ' of money (mainly by the banks and produced as loans/mortgages, etc.). This is quite bad and is the main reason why the world economy partially collapsed in 2008. However, exactly the same conditions have grown very quickly again and we're due for arguably a bigger fall soon.
Bitcoin at least has a finite number (2 million). Some see this as an advantage as no more will be 'printed'. However, the value is not finite and therefore each bitcoin value can jump around in value negating the finite number of them available. This just creates the same problem as with fiat currency not back by anything of intrinsic value.
Bitcoin now can only be mined by individuals or groups that possess very high computing power, far beyond your average PC. This means that the remaining c.12million bitcoins left to be mined (to date) will only be available to a select few. This seems to fly in the face of the libertarian view that everything should be available to everyone.
Bitcoin is very open to fraud, hacking and god-knows what else. Yes, fiat currency is open to counterfeit but at least you can't hack into a dollar bill or more pertinently a gold bar.
There are umpteen more reasons why bitcoin is a con but I'll leave that to others.
If you have bitcoins, change them to something of true value and make your money and then watch and laugh at the johnny-come-latelys joining the pyramid scheme to lose everything they have.
BTC is a high tech beanie baby fad which attracts druggies, pedophiles and tax cheats. Any btc message board reveals the criminal intents of most of the BTC true believers on it. The technology aspect lends a measure of respect to the scam just because most people don't understand how the btc technology works.
Bitcoin is a pure information system and 100% open source. Basically it is a simulation of gold, but without the all the baggage that gold comes with (not seizable, heavy or counterfeitable). Bitcoin sets the bar very high as a currency and due to no middle men the transaction costs are very low.
Ignore it at your peril.
Bitcoin is open sourced. All the details are in the paper and no one is out there to con you or anything. Even if the founder wants to generate more bitcoins now he can't without going through more than 50% consensus. You can choose not to buy in to it but that's different from a scam.
It's also designed to be used as a currency, not an investment. Right now it's at its infancy hence the value fluctuates a lot but it's not designed to help people make loads of money. If you are getting in hoping to get really rich (and didn't) then it's really your own fault.
Bitcoin also doesn't magically help money launderers and drug dealers either. Guess what's better than bitcoin for that? Cash. Cash transactions are untraceable and private unlike bitcoin, so unless we want to ban cash not sure why bitcoin is blamed for that. The hard part of money laundering is usually not in tracing the money anyway, but rather justifying your source of income. For example if you have no job and suddenly bought an expensive house (with cash or bitcoin) you better have a compelling story to tell IRS...
Its a protocol people, and one of the best ones yet invented, the only people calling this a scam are the ones who don´t know anything about it. Is it risky to invest your money into? Yes. Does that make it a scam? No. This shouldn´t even be on the table for debate
With bitcoin people are actually in control on their own money. It allows for less dependency on third parties and middlemen who always take a slice of the profit for themselves. If you're looking for the scam, you need only look at the fiat currencies used by countries. The reason people are buying bitcoin is because they realize it's utility as a currency.
I'm surprised that so many people at the end of 2013 still seem to not understand what Bitcoin is. Oh well, at least I see things changing.
If Bitcoin is a scam, then the US dollar is a far greater scam. As long as there is internet access, bitcoin can do what gold does 10 times better.
Bitcoin has the potential to displace or even completely replace Western Union. It has the potential to greatly displace gold and other precious metals as a store of value.
It is controlled by no single party and is both decentralized and distributed. Who is the scammer, if there is no one in charge of it?
Bitcoin is a bubble, and so is every other form of money. A bubble is when people buy an asset, not to use it, but to trade it for some other asset at a later date. Like Las Vegas real estate in 2007, or Amazon.Com stock in 1999, or tulip bulbs in 1637. And also like US dollars and like gold. If an asset is held only to trade it away later, and it fails to become money, the bubble pops and it becomes worthless. If it becomes money... Well, the bubble can continue, weathering every adverse condition imaginable for 6000+ years, as with gold.
Sceptics can read the source code, and evaluate it. Everything in bitcoin is completely open, that's the beauty of it.
If it is a scam, why can I buy actual things with it right now?
There's going to be a bumpy road ahead, much like any new technology before it goes mainstream.
Its a decentralized (meaning nobody can scam you) digital currency that floats like a real currency, except no one country backs it, the people who own bitcoins back it, and add value to it at the same time. They can exist completely without any one central authority. Completely decentralized, yup.
Saying that Bitcoin in itself is a scam is just ignorant. Now saying that some people viewed as innovators of Bitcoin gone rogue are scammers is more appropriate. People as mark kerpeles (mt. Fox) and such. They used Bitcoin as their scam. Much like people used cash as their scam or gold as their scam.
I have made my own cryptocurrency(s**t coin if you will) for fun and to grasp a better understanding of the protocol and how it works. I haven't found anything malicious in that code or anything that would give somebody the upper hand.
Now if you are thinking, "well somebody can edit the code to steal your coins or make fake coins" that is not how it works. Yes they can make a "fork" of Bitcoin but it will be on a separate blockchain. Meaning you cannot transfer those "forked" coins to the original Bitcoin.
Well what is the blockchain? The blockchain stores all the wallet addresses, transactions, miner power and so on. It cannot be edited but only added onto with new wallets, transactions, miners etc. It is not a website, but stored inside of the application itself on each and every computer or miner with the application. The websites you can find the blockchain on only show a graphical representation of what the blockchain has stored in it. The blockchain can only be changed if 51% or more of the users(miners) decide they want this new blockchain as the main blockchain. Called a 51% attack. This means the more people who use Bitcoin, the more secure the protocol is. Which, at this time, it is very secure and Bitcoin itself has proved unbackable.
The only way people can "hack" Bitcoin is to hack the websites or wallets and use their data or stored coins for themselves. This happens in everyday life everywhere and should be null.
Now, onto the wallets. The wallets are NOT the Bitcoin protocol. They only use the Bitcoin protocol as a base of information. You could use command prompt for your wallet if you know how to code it. This is why you can find multiple wallet providers with different features and security. They are not changing the protocol itself, but telling the protocol where to send the coins and storing that info in the blockchain. It is possible that a rogue wallet provider can program something malicious into the wallet itself to steal your wallet data to steal your coins but if you stick with well known wallets, you will not need to worry. Online wallets can be dangerous so it is best to keep your wallet on a physical computer or USB.
If someone makes a fake wallet that doesn't actually store real Bitcoin in it, you would be able to tell just by viewing the blockchain on a website.
I have more to say, but not enough room on here. I will post about the human side of the ordeal I the comments.
It isnt a scam, Its a very smart idea.
No government back up, that means the government ends, youll still have your money. Think of it this way, the confederate states created their very own currency in the little bit of time they were around, once the US won the civil war, that currency was worthless. That can not happen with bitcoin, as it isnt designated to any government/country.
WWIII, youll still have your bitcoin acceptable in places.