This is like the issue with gold and silver. If Bitcoin is capped at 21 million, There will only be a finite number of people able to get their hands on Bitcoin which isn't great in times of economic crisis and recession. People hoard gold and silver when they're uncertain of the economy. Same can be said for bitcoins. It's not stable in terms of supply and demand. We got off the gold standard because there was a finite supply of gold. The hoarding mentality impacted businesses that rely on customers spending and led to an economic recession. The Federal Reserve and other european countries switch to fiat currency to keep the balance of supply and demand stable. Bitcoin is decentralized. There is no one keeping check of bitcoins.
In good news however, I believe that there has been alternative cryptocurrencies created due to the limitations of Bitcoin, But what places accept these new cryptocurrency depends on the business.
Bitrise. Club you invest then when you want to withdraw they say you must first deposit 60% of your original investment, Then when you deposit 60% they say it is $0. 40 too much you must make a new deposit because they do not give a refund. Beware they are scammes
The world-wide bitcoin network supports less than 10 transactions per second (or 300M transactions per year). So, If 1B people would use it, Each would be able to perform 1 transaction every 3 years. So, The only way to practically use it, Is with central ledgers and proof of ownership, Which negates the idea of blockchain and distributed ledger. Hence it is impossible to use this with large groups of people.
The BoE, The FED, Et al guarantee to honour the face value. Phoney money entrepreneurs cannot possibly do this. Thus, When there is a panic run on the coinage, You can be left with a trunkful of worthless metal disks with nowhere to turn. I cannot believe the Lord Sugar has endorsed this lunacy.
First, we should agree, what´s the difference between scam and just speculative, hypervolatile asset. For me the main difference is the core of product or service. If product, that may be risky and just has not gone mainstream yet, is viable, its rather an asset. If product is reasonably viable, its a scheme or scam, either originally purposeful or not.
BTC sure does CLAIM to have product behind it, but then again, all scams do. Kairosplanet claimed to have hard disk rental product behind it, which is theoretically possible... But ineffective to ridiculous degrees.
It may be the same with BTC. Scheme archidects know, that this method is not scalable into mainstream transfer asset. It´s only value is speculative and because it bases on non-viable product, it is a scam.
Millions are being swindled by this scam. The method is the same with all of these scams. A conman starts up the scheme and sells the original stock, in this case, Bitcoin. The clever traders then come in and sell on to celebrities, the ones endorsing the con. At the end, the mugs come in in their millions. The celebrities have all sold out and made a fortune. Who loses? Why the mugs, of course, the suckers. It will come crashing down. Not too late to cash in - do it right now!
Seriously has no one ever watched the British classic Only Fools and Horses comedy here? Imagine Del Boy being the Bitcoin inventor! It makes you wonder who is making who rich? The creators or yourselfs?
If you believe all the hype then fool you once, fool you twice and then the third time is simply egg on your face.
I just love how people out there say "I've never fallen for an online scame as I am not stupid!"...Need I say more?
A lot of people will say that bitcoin has value just like any currency because we give it value. While this is true in a very basic, I know nothing about economies kind of way, it ignores why currency has value. Government backed currency has value because governments back the currency using universally accepted monetary standards. If you print more money than your economy is worth your currency loses value and if your economy is booming and you don't print currency the monetary value increases.
There is a movement of people that lack economic knowledge that believe that the gold standard was a good way of backing currency. What this idea neglects is that the value of a dollar would be astronomical today based on the current scale of the US economy / population. We would literally be splitting pennies in order to pay for basic goods. This is the real reason the gold standard was abandoned, it wasn't a giant conspiracy made by evil bankers, despite what Alex Jones and company might suggest. Today our money is based on an index of values, three big indexes exist. One is the amount of money vs demand for it, or essentially supply and demand. As mentioned before if there isn't enough money to go around, as was the case under the gold standard, money becomes rare and just like a rare mineral it becomes more valuable. One way to increase its value is to sell bonds, we call these treasury notes, this is essentially removing money from circulation that doesn't yet exist and is paid for by the federal interest rate, or the rate the government charges financial firms for printing money. The third way is to physically buy currency, this removes the bills from the market and creates scarcity which makes the value of the dollar rise, this is typically done by foreign governments through a system called foreign exchange reserves.
All of these methods can be very confusing if you don't understand the underlying theories, which is how gold standard conspiracy theorists probably came into existence. Just like any conspiracy theory, if you don't understand the dynamics involved it's easier just to make up reasons why it's bad.
Nobody gets a free lunch in this world. I applied for it and I made a big mistake. Several calls from all over the world like New Zealand, Toronto, England Switzerland started calling me everyday. I was scared and I answered the call and I told them to cancel but they did not. They started emailing me and messaging me that I have been applied and told me not long ago that I can win 3k per day. To me personally,it’s obviously a scam. You can’t just make money out of thin air. And if you can, it’s definitely hacking or something and not legitimate money. If you thinking I’m dumb or anything, let me tell you, I’m a thirteen year old kid and I don’t have a freaking credit card!!! ( I told them that to btw when they called me 0) but that’s just me
Bitcoin is a ponzi scheme, but when like all ponzi schemes, it started to collapse, but then it was pumped back up again by the whales,& in to another ponzi scheme, & then again & again & so on until there are no more idiot hodlers left to fund the scheme. At any one time, the money put in to buy bitcoin will always be more that the money from the sale of bitcoin (mathematical fact) money in + broker charges & money made by miners & crooked deals etc + the whales are creaming off there profits. So what part of sucker don't bitcoin hodlers get, Contrary to what bitcoin fanatics (anarchists) claim, you only make a profit when you sell (fact). Not what they say, you only make a loss when you sell (nonsense),If you never sell you are a loser, obvious! You can't make a profit untill you sell (FACT) This is the problem with all ponzi, bigger fool schemes, some just don't get that simple fact.
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.