The more I read about and use bitcoin, the more I think it is a game changer – in a very fundamental way.
A professor at the London School of Economics made a good point:
“[The lecturer] was saying that the only reason that governments are governments is that they control the currency; they don’t actually do anything for us that we don’t pay for, other than expose us to the threat of foreign wars by their reckless actions. They don’t actually really even govern us; all they do is control the currency and rake off the proceeds.”
It’s been said that Newton’s inspiration for the theory of gravity came from watching an apple fall off a tree.
Do we have to sit around and wait for apples to fall off of trees in order to get a good idea? One might say that it would be wise to sit around trees in a windy environemnt in the hopes to get lucky. The
best way, though, is to actually be proactive and climb up and shake the tree whenever we need an idea. . . then see what happens. The process of lateral thinking does exactly that.
(basically stolen from debono)
I’m going to make a bold prediction on my blog today. I predict world governments will end soon, and it will be because of currency devaluation. The world’s banking ecosystem is doing a massive printing of money to pay for needless wars and corporate and national bailouts. This will lead to mega-inflation and a panic in the banking system. Also, the banking system has too many financial promises in too many places. You can’t unwind 50 trillion of deriviates without a major crash happening.
ha ha, this is going to be hands down the biggest crash the world’s economy ever seen, only most people don’t see it coming. My guess is that digital currencies (bitcoin maybe) will replace the current fiat money system. or perhaps gold or silver. I’m hedging my money across all three, just in case.
Bottom line is that the US government wields its power with dollars. If dollars become irrelevent, the government becomes irrelevent. That’s my theory.
Here’s a good video that describes the benefits of using bitcoin:
Been experimenting with this bitcoin thing lately. Here: http://www.bitcoin.org/ . Basically, bitcoin is a new peer-to-peer way to exchange money. It’s basically an anonymous paypal. It’s not owned by any one entity. Because the database is distributed, it can’t be taken down, like bittorrent.
There is no “bitcoin” account – only bitcoin addresses. You don’t “know” the person you are giving money to. If you want to pay someone, you assign his bitcoin address to your coin and you sign it with your private key. Then you submit the new document to the distributed database. The recipient checks the database if everything’s ok and if it does, he “owns” the coin. Money can be exchanged back to dollars using bitcoin exchanges.
Digital currencies are often used by drug dealers and hackers to transfer money, it’s completely anonymous. People are using it to avoid paying taxes too, although I obviously don’t advocate this. The scary thing is is that mainstream people are starting to use this thing now. Electronic Frontier Foundation and the Singularity Institute are two examples. Other vendors are here: https://en.bitcoin.it/wiki/Trade . ha ha, you can flat out by heroin using bitcoin. there’s no regulation, it’s basically the wild west.
The government will obviously try to shut this thing down, once it gets out of the underground, but I doubt they can do it. It’s like trying to shut off the internet or bittorrent or something – you’d have to kill every node.
Ok, here are some downfalls:
- the security of the system seems to be pretty good, but the system is subject to theoretical attacks such as cancerous nodes or collusion. Theoretically, if a botnet gets more than 50% of the nodes, some trickery can happen.
- if you give money to someone and he fucks you in some way, tough shit, it’s gone. There is no such thing is chargebacks with bitcoin. Once it’s gone, it’s gone. This is actually a feature built
into the system.
- Your private key can easily be stolen if your computer is insecure. considering the number of people who are 0wned through trojans and botnets these days, this is a significant risk factor. You
can basically lose your bank account in an evening. Much worse than credit cards in this regard.
The repurcussions of this technology is huge, this can be a game-changing platform.