Bitcoins

padington

Bloody hell ....

http://bitcoincharts.com/charts/mtgoxUSD#rg180ztgMzm1g10zm2g25

Hermann

The world’s first bitcoin ATM — located in a coffee shop in downtown Vancouver — traded $100,000 CAD of the cybercurrency in its first week, said the man behind the machine.

Story here... http://www.vancouversun.com/100K+traded+through+Vancouver+Bitcoin+week+with+video/9145774/story.html#ixzz2kDTUnNga

paddyrg

So you can go and get a cup of coffee and turn your dollars into numbers at the same time. Like a backwards ATM.

Can you cash out through it I wonder?

innovate

Why does this somehow remind me of pyramid schemes? I.e. launch some scheme that requires loads of people to recruit loads of other people, making all of them pay a bit to you on the way. Get stinkingly rich before the masses, who only paid in and got nothing back, woke up and realised it.

Of course the bitcoin ATM scheme is a tad more sophisticated but nothing essentially different to a pyramid scheme. Potentially it is a lot more profitable than ramping up bitcoins on Internet forums.

EDIT: oh, and it appears you do not need a Gambling Licence for these ATMs, at least not in Canada, and at least not right now.

Hermann

paddyrg wrote: »

So you can go and get a cup of coffee and turn your dollars into numbers at the same time. Like a backwards ATM.

Can you cash out through it I wonder?

From the news item...

ATM users can also withdraw cash from the machine in exchange for bitcoins in their virtual wallet.

[Deleted User]

innovate wrote: »

Why does this somehow remind me of pyramid schemes? I.e. launch some scheme that requires loads of people to recruit loads of other people, making all of them pay a bit to you on the way. Get stinkingly rich before the masses, who only paid in and got nothing back, woke up and realised it.

A pyramid scheme (or ponzi scheme) relies on participants not knowing the true nature of the scheme and a constant stream of new participants. The Bitcoin protocol is completely open (here's the source code: https://github.com/bitcoin/bitcoin) and anyone can download a copy of the blockchain.

The value of the Bitcoin protocol extends far beyond the USD value of a bitcoin on an exchange. Although the current behaviour may be similar to that of a pyramid scheme, it's not a reflection on the value of the protocol.

Early adopters are indeed exposed to far more profit making opportunities than late adopters, but that isn't indicative of a pyramid/ponzi scheme, the same is true of stocks.

sabretoothtigger

It doesnt resemble a pyramid or triangle setup. That basic idea would be two contributors and one benefactor or four payers to make two profit and so on.
One person pays, another receives the coin. Its not trying to give a profit to either party but they do receive a service which is to convey value or cash between them.

The miners help make it a reliable process, the payer gives a very charge towards that and miners and others get that.
Theres exchange fees, but its not really a get rich scheme. The price rose recently because more people are holding the currency and not sending it to anyone. Nobody is telling anyone to do this, you can buy Dollars and profit in the same way or maybe nobody wants dollars tomorrow and they lose money.

If the BTC code gets cracked or something, it really will wash out. They could get hacked or various failures. Still not a pyramid, hackers can and do attack bank branches as that money is also held virtually and transmitted via secure codes electronically.

Its been a long time since Sterling of any form will get you a physical exchange for something, its all virtual now

paddyrg

Hermann wrote: »

From the news item...

Didn't see that bit Wonder what the spread is? I've seen gold vending machines but they were something like 20% premium on spot, probably to cover the insurance on the machines! Wouldn't need that with this system I guess?

The poster above who said something like it had characteristics in common with a ponzi or pyramid. Plenty of people join pyramids despite knowing what they are, and nothing inherently flawed with the pyramid algorithms either. I think it was more a comment on the nature of the behaviour of the speculators joining in hoping for something for nothing, as opposed to weighing up the whole scheme. The block chain may be there for all to see, seriously though I wonder how many speculators have even looked at it, let alone understand it. There's some complex maths involved, may as well be magic as far as they're concerned - they just are going for the numbers to keep on going up.

The pyramid comparison on many other levels doesn't work, but in terms of speculator behaviour it has something. If say it was more like the gold hype of last year, lots of post rationalisation but not that many speculators or rampers understood the whole picture, they just hoped the numbers would keep on going up.

dryhat

innovate wrote: »

Why does this somehow remind me of pyramid schemes? I.e. launch some scheme that requires loads of people to recruit loads of other people, making all of them pay a bit to you on the way. Get stinkingly rich before the masses, who only paid in and got nothing back, woke up and realised it.

Of course the bitcoin ATM scheme is a tad more sophisticated but nothing essentially different to a pyramid scheme. Potentially it is a lot more profitable than ramping up bitcoins on Internet forums.

EDIT: oh, and it appears you do not need a Gambling Licence for these ATMs, at least not in Canada, and at least not right now.

So, despite your username. you are not into innovation at all by the sounds of it.

JohnRo

paddyrg wrote: »

The pyramid comparison on many other levels doesn't work, but in terms of speculator behaviour it has something. If say it was more like the gold hype of last year, lots of post rationalisation but not that many speculators or rampers understood the whole picture, they just hoped the numbers would keep on going up.

The difference being there is no central control and price manipulation being attempted or even possible. All everyone is seeing is exactly what's happening in a free market price discovery mechanism, the market looking for a value.

Obviously that'll fluctuate but unless btc or whatever might follow is driven back underground or directly attacked by governments acting on instruction from the money printing masters of the universe to bar it from mainstream adoption, then that process will continue and btc will march on.