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“What the hell is a bitcoin?”

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Kate the Bionic Uterus:
Just 10 months ago, a bitcoin sold for a measly $13, a couple of weeks back the price of a bitcoin topped $900! Bitcoin is a digital currency, meaning it’s money controlled and stored entirely by computers spread across the internet. Bitcoin isn’t just a currency, like dollars or euros or yen. It’s a way of making payments, like PayPal or the Visa credit card network. It lets you hold money, but it also lets you spend it and trade it and move it from place to place, almost as cheaply and easily as you’d send an email.

In a nutshell bitcoin is a re-imagining of international finance, something that breaks down barriers between countries and frees currency from the control of federal governments. So what is the future of bitcoin?

In my city I can buy lunch and pay with it. If people accept it as currency then it has value. From the Wall Street Journal;

Bitcoin Couple Travels the World Using Virtual Cash
World-Wide Odyssey Spanned Three Continents and Proved One Can Live on Bitcoin Alone
http://online.wsj.com/news/articles/SB10001424052702303789604579196171277465460

Here's one of the most informative articles about Bitcoin and what it is worth. If you want to learn the basics then this is it.
http://simonwinder.com/2013/11/bitcoin-how-high-can-it-go/

Will Bitcoin be illegal in the USA? I will bet anyone one Bitcoin in the long run that it won't be. Here's why... 

Building Better Bitcoins
By Stephen L. Carter 2013-11-29T14:00:01Z
http://www.bloomberg.com/news/2013-11-29/building-better-bitcoins.html

As the author of the article above writes, "I hope that bitcoins make it. To be sure, they aren’t without flaw. They appeal nevertheless to my libertarian side, because they challenge the control of money by governments that too often see inflation and deflation as instruments of policy. The virtual currencies suggest the possibility of a future in which networks of individuals can make transactions for their own interests, not beyond the reach of government scrutiny but beyond the reach of government manipulation."

Taken directly from the article linked above...

On this note, let’s give the last word to the economist Pippa Malmgren, explaining in a recent online symposium why she believes that bitcoins are already money:

“Money becomes real when people have faith in it. Governments have no monopoly on that, which is why they spend a lot of time putting many symbols of faith and trust on the currency from pictures of sovereigns like the queen or the president to hidden symbols of power like pyramids and seals. They would not need to if it stood on its own. Faith can be earned and it can be lost. The problem with bitcoin is that people are afraid a power outage or a hacker or bad management could erode or destroy the value of a bitcoin. But, then again, governments are doing their best to erode confidence in fiat money, too.”

zeebo:
I was interested to learn you can actually "mine" for bitcoins:

https://en.bitcoin.it/wiki/Mining

Agent : Orange:
I suspect that within a year, maybe two, we will be talking about the next online currency. I don't see a future in bitcoin but then again maybe I have just made the equivalent of a vote against facebook. Time will tell I guess.

Gd5150:
The us govt won't even allow online poker because of lost tax revenues. No way in hell they're gonna let some online currency cut them off at the knees and take away all of their power. Without the ability to tax they have nothing. The thought is frightening...how would they continue to take care of us?  8)

Kate the Bionic Uterus:

--- Quote from: Gd5150 on December 23, 2013, 02:16:22 AM ---The us govt won't even allow online poker because of lost tax revenues. No way in hell they're gonna let some online currency cut them off at the knees and take away all of their power. Without the ability to tax they have nothing. The thought is frightening...how would they continue to take care of us?  8)

--- End quote ---

I have also been thinking about what the US did to on-line poker sites but what you have failed to realize is that the initial US response was just that... a reactionary response. The US federal government has caved in to consumer demand. Yes it has taken some time... well a lot of time but that was then and this is now. Individual states are rolling out new online wagering houses and in ten years it will be legal across your country. http://news.yahoo.com/online-gambling-gains-momentum-us-035535292.html The reason being is that they have realized the cash cow they missed out on. Most people who wanted to gamble just moved out of the US to Canada and other countries taking their money with them. I am betting (pun intended) that the government will not make those mistakes again.

The real proof is that major corporations are already accepting it; http://www.businessinsider.com/overstockcom-will-take-bitcoin-next-year-2013-12

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