Sterling to get abused even more?

IzzyFreedman

Dryhat how would you answer the question as to who started bitcoin? Do you think it was that Japanese guy?

I would prefer in the future some kind of backed digital currency. It would be far more trustworthy than any unbacked currency like bitcoin or Pounds or Dollars.

If a digital currency was backed by silver and gold bullion and it was able to be used in every country easily on cards or phones like that last video. Maybe 8 grams of silver worth 1 gram of gold the ratio they are mining the monetary metals.

It has to have some way of proving that more digital units are not being added to the supply than grams of bullion in the vaults, this is the hard bit. But if it was easily changable for actual grams of bullion, then if anyone suspected any funny business they could just take possession of real bullion. This is something that can not be done with bitcoin.

But some say there is not enough silver available in the world. My answer is there is enough its just got to go up in value a long way to meet the worlds supply of units of fiat or unbacked currency.

IzzyFreedman

My take on monetary PMs, as I think many on these forums are as well, is that gold/and silver are meant more for preservation of wealth than any get rich quick investment. If I buy 100 oz of silver @ $50 an ounce, then 6 months later I have the opportunity to buy 200 ounces at $25 an ounce, I do not think of it as losing money on my $50/oz investment as much as I think of it as a great opportunity to stack more bullion. Even if silver drops down to $0 in the paper market, I will still have my physical in my possession. Once the game is over, gold and silver will still command some type of value regardless of its price compared to fiat or unbacked currency like bitcoin. If a stock, or bank balance (due to confiscation) drops to $0, you have nothing, in fiat or otherwise.

dryhat

I don't know about the founder of bitcoin.
Some say he's real, some say he is just a character created by geeks to hide their tracks.

As for your suggestion. It has been tried.

Remember e-gold?

It was shut down by the American government when it threatened their power base.

IzzyFreedman

dryhat wrote: »

I don't know about the founder of bitcoin.
Some say he's real, some say he is just a character created by geeks to hide their tracks.

As for your suggestion. It has been tried.

Remember e-gold?

It was shut down by the American government when it threatened their power base.

Egold wasnt very good. How come bitcoin has not yet been shut down?

All we need is a digital way of transferring ownership of serial numbers of grams of silver in a vault.

IzzyFreedman

All the great things about bitcoin could be even greater if it was backed by something.

There is enough available silver in the world. If every atom of silver had a serial number then 1 ounce would be enough for the entire planet.

As it happens there is around a billion ounces of silver available in the world, if $26 billion wanted to move into physical silver it could buy every available ounce of silver on Earth. Then do what the Hunt brothers failed to do in the 70s.

dryhat

IzzyFreedman wrote: »

Egold wasnt very good. How come bitcoin has not yet been shut down?

All we need is a digital way of transferring ownership of serial numbers of grams of silver in a vault.

Bitcoin cannot be shut down because there is nothing to shut down.

How about this mob ..

http://www.goldmoney.com/online-payments.html


You still need to trust these people as custodians of your silver and not to sell more than they have.

IzzyFreedman

Yeah I know goldmoney, you can buy things with grams of gold and silver. But the charges are too much.

I prefer bullionvault but then you cant buy things you have to sell to fiat currency then buy it.

dryhat

IzzyFreedman wrote: »

Yeah I know goldmoney, you can buy things with grams of gold and silver. But the charges are too much.

I prefer bullionvault but then you cant buy things you have to sell to fiat currency then buy it.

So your original idea is not so good then is it?

Because you're always having to rely on a third party; which entails counter-party risk and possible manipulation.

andy.m_2

how are you trading Bitcoins at the moment?
As I understand Forex in the UK in bitcoins is being slowly and systematically shut down.

Bitcoin can be halted dead in it's tracks, if the internet were shut down, all records of ownership would disappear in a flash.

I have to admit to being tempted into BTCs, but on a purely speculative level and that goes against the ethos, sadly it's a bubble and who knows how inflated it will go before it bursts...?

I also dont like the silk road and peado associations.

andy.m_2

dryhat wrote: »

Yeah, the girls are cute.

As for your question, I don't think the computers doing the mining are providing the power and computing to run the transactions so the problem will not arise.
Something to do with it being a distributed ledger or whatever.

I must admit, though, I don't really know. (I'm not a techie).

I have spent the best part of 3 months researching and educating myself about bitcoin and I still haven't got a bl00dy clue how it works.

I just learnt enough to be able to buy and sell and have a speculative punt, but as far as the maths and encryption and other technical aspects are concerned I just can't quite understand it.

If you look around the net you should find answers to any questions you have.

Dryhat will you sell me 1 coin at £100 please?
A small profit for yourself and I cannot really be bothered with the MTGox etc
I'm happy to hold a wallet and would like a coin for a bit of fun and a possible speculative profit to pay for a night out or the like.