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Underground currencies discussion

  • #1
  • First Post: Dec 4, 2011 9:00am Dec 4, 2011 9:00am
Hello,

Considering the increasing public unhappiness with the way our currencies are managed (e.g. the Fed's irresponsible behavior: http://www.bloomberg.com/news/2011-1...in-income.html), I imagine that there will be increasing interest in underground currencies.

I also see the transition to underground currencies as the only way to change the monetary system, as the people that have interests in maintaining the status quo have great political power. This implies that nothing will change, unless the public (i.e. the people that actually add value to the economy) reject the current currency.

The most notable underground currency that I know of is the BitCoin. I would like to ask your opinion on the viability of an underground currency; its pros and cons, etc.
The nail that sticks out gets hammered back in
  • #2
  • Dec 28, 2011 2:50pm Dec 28, 2011 2:50pm
With bitcoin I think people gained a new tool for voting for their monetary system :-)
They now have the ability to vote for an independent currency by adding value on it.


I think that the strength of bitcoin is the product of the following things: "the value people put on it" * "the strength of the encryption algorithms used" * "the quality of the software implementation used"
As of now, the encryption algorithms used are unbreakable (and it is mathematically proven that they are unbreakable), the software implementations build looks good and finally the people seams to add some value to it.


It is not just about bitcoin. The big change is that now it is known how a crypto-currency can be build. If for some reason bitcoin doesn't work, any group of people can start their own currency.
  • #3
  • Dec 28, 2011 4:39pm Dec 28, 2011 4:39pm
Quoting kostas
With bitcoin I think people gained a new tool for voting for their monetary system :-)
They now have the ability to vote for an independent currency by adding value on it.


I think that the strength of bitcoin is the product of the following things: "the value people put on it" * "the strength of the encryption algorithms used" * "the quality of the software implementation used"
As of now, the encryption algorithms used are unbreakable (and it is mathematically proven that they are unbreakable), the software implementations build...
Bit coin is biggest waste of the currency of all time,it takes like a year to create a single coin of processing power which includes hardware and elecricity,to make wastefull calculations.where someone with enough cash and hardware can generate almost hound reads of them money using computer farms.So any electronic currency is destined to fail faster then what we have now in paper,and somewhat controlled by government.
And speaking on topic yes there might be more interest in exotic currencies in coming years,but unless you lived in one of those countries i dont see how switching to them would make big difference as ,they are called exotic for a reason.
  • #4
  • Dec 28, 2011 7:09pm Dec 28, 2011 7:09pm
Quoting pinkiaiii
Bit coin is biggest waste of the currency of all time,it takes like a year to create a single coin of processing power which includes hardware and elecricity,to make wastefull calculations.where someone with enough cash and hardware can generate almost hound reads of them money using computer farms.So any electronic currency is destined to fail faster then what we have now in paper,and somewhat controlled by government.
And speaking on topic yes there might be more interest in exotic currencies in coming years,but unless you lived in one of those...
Please allow me to disagree with your statements.
Maybe you should read more carefully about this subject www.weusecoins.com


- You don't have to create coins by mining them, witch is a non very profitable activity, you can just go to an exchange and buy some.
- It is virtually impossible for someone to takeover the system by adding computational power because there is a protecting algorithm in the system where it increases the computational difficulty as the available cpu power increases.
- It is not destined to fail.
- It is the only currency that is designed to be deflationary. The number of coins that will come to existence is predetermined by design. As a trader you have to worry only about how many people are willing to put value on this, because this is the only thing that drives the price.
- This has nothing to do with countries. It is international thing without any borders or state taxes.


Excuse me, but I see a good opportunity in this.
  • #5
  • Last Post: Apr 26, 2012 2:02am Apr 26, 2012 2:02am
Just thought I'd share this interesting seminar talk about BitCoin.
One of the points of the talk is that BitCoin is destined to crumble at some point in the future. (at approx. 22 mins)

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