Category Archives: General stuff

Bitcoin Reaches Critical Mass

Must... Not... spend... Rent Money... on Moar Bitcoins!

Must… Not… Spend… Rent money… On Moar Bitcoins!

I’m hearing so much good news about the growth & future of Bitcoin these last few weeks that I’m fully convinced that bitcoin has reached the critical mass it takes to ensure success. The mind boggles at how much good news is churning out each day in fact and how this news is going to effect the price of bitcoin… But then I start to wonder, why hasn’t the upward surge started yet?

The answer must be that only hardcore bitcoiners are hearing this stuff so far… The mainstream public is still trying to just wrap their heads around what bitcoin is, and frankly just isn’t ready to understand  the significance of all these investments, laws, new services, and new vendors. That, and I probably don’t speak the language where most of the bitcoin news is being reported. Continue reading

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The Futility of a 51 Percent Attack

Bitcoin is more invincible than most people would believe.

Bitcoin is more invincible than most people would first think.

Barring a worldwide lack of interest in either money or the internet, there are exactly three ways to kill Bitcoin, at least in theory. They are:

1.) To destroy all of humanity… Which I doubt needs any explanation.

2.) To use massive Electromagnetic Pulse (EMP) attacks against all civilized pockets of humanity, ensuring no line of communication survives. (A nuke detonated high above every city over 1,000 ppl in size worldwide should do the trick.)

3.) To employ a well timed 51% attack… But I’d like to bring up the argument here that this option really won’t work afterall. Continue reading

Alt Coins – What are they good for?

Bitcoin and Litecoin are the two major cryptocoins traded today

Bitcoin and Litecoin are the two largest cryptocoins traded today. If Bitcoin ever was fatally attacked, Litecoin could easily replace it.

Now that Bitcoin has stabilized above $100 for a while, and the world’s press is sending out a steady stream of info (or disinfo) on the subject of cryptocoins, I’m getting bombarded with questions about the alt-coins, such as Litecoin, PPCoin, Novacoin, Namecoin & even Ripple. “Alt coins” is a term used to describe all of the cryptocurrencies that aren’t the dominant cryptocurrency at the time. (e.g. Not bitcoin.)

Alt coins have all branched out from bitcoin, started in it’s wake, and each and every one of them excepting only Ripple are based on the same decentralized, peer-to-peer architecture that requires a miner crunching cryptography and user wallets to function. Yes, they are all worth dollars in trade on some exchange somewhere right now as I write this, and all have their own developer community and hopeful users like bitcoin does. (Only much smaller, with extremely little, if any, merchant adoption.)

Why are people putting time and money into alt coins? It is assumed by the developers that one day a major government or at least the Mexican drug cartels will have a reason to try to “take out” bitcoin. Although its peer-to-peer behavior should be adequate at stopping these threats, nobody knows what the future holds, and the fate of our very economy is at stake here… So litecoin (LTC) was the first created to be a sort of “understudy” or backup for bitcoin. It has it’s own wallet, mining software and blockchain. Although it was the 2nd alt coin created, it has almost always been the most traded of the group, worth about 2.5% what a bitcoin is worth.

For an updated listing of all cryptocurrencies, with descriptions, see here. Continue reading

First bitcoin ATM to be installed in Cyprus

A fake but pretty design for the upcoming Bitcoin ATMs.

A fake but likey design for the upcoming Bitcoin ATMs.

Jeff Berwick, a well known Anarcho-Capitalist who’s blog I often read, has announced today that he’ll be opening the first public ATM in Cyprus soon.

Even better, he has started offering these ATM’s as a franchise called BitcoinATM!

These ATMs will allow 2-way transactions; you can send cash money up to your wallet at one, or you can change bitcoins down into the local currency too! If you’re reading this blog, I’m sure I don’t have to tell you what these things getting out in the wild would do for bitcoin… It would make bitcoin nothing short of truly USABLE.

FreeStaters (of the New Hampshire variety) were actually the first to create a working bitcoin ATM which simply took USD and sent bitcoin to an address in return; but they don’t seem to have gotten any further along with the project that the proof-of-concept model. Jeff’s ATM, which admittedly we see no evidence of it getting even that far yet, has great backing and lots of money behind it. Jeff is well known for his libertarian-slanted investment success. Continue reading

Why Austrians are Wrong about Bitcoin

Austrian Economists unjust attack on Bitcoin.

Austrian Economists unjust attack on Bitcoin.

I have learned a lot from the Mises academy and Austrian Economics in general. There is in fact very little I’d disagree with that I’ve read from these sources, and I believe everything that came directly from Mises or Hayek themselves is the final word in economics. These great thinkers are rare gifts to humanity, and it’s a bitter injustice that ‘mainstream’ economists ignore them so often.

Sadly, the common opinion of Bitcoin expressed from the Mises Academy’s leaders today is a true exception to this otherwise pure fountain of wisdom. They have stated that Bitcoin can never be a commodity (since it isn’t useful for anything else) and therefore can never be actual money. Then some of them continue on to say that because it can’t actually be money, one should never invest in it, because they are sure the market won’t accept it. (My paraphrasing, but accurate sentiment.)

In short, the hardcore Austrians continue to say that the market won’t accept it, yet the market is valuing each bitcoin today at almost $50 USD, and growing.

Luckily, some others in the Mises crowd don’t go so far as saying that it cannot catch on; but still they don’t spend any time promoting it nor I’d imagine investing in Bitcoin. Here is the common response that most Austrians will point to on Youtube, and I believe it is the one such statement from Mises with the most reviews: Continue reading

Mission Statement

The main purpose of this blog is to catalog and store all of the overwhelming, but important, info I’m coming across as I learn more about the coin. I’ll also do a bit of commentary for my coining buddies but I have no plans of yet on promoting this blog, monetizing it, nor doing anything at all that will let my aggressive uncle (you know, Sam) know my identity. Make no mistake, one day Sam is going to to be very unhappy that I’ve been helping out the coin so much and want to punish me for it. So like Bitcoin itself, I’ll remain an anonymous character online.

So far to date, I’ve only been an investor in BTC. I’ve advocated for it a bit on the web, but my claim to fame here is that I bought some at $3 after the 2011 crash. (Of course I’m already kicking myself that I didn’t buy a whole lot more!)

Environment: 

Right now, March 4th, 2012, the Bitcoin is at $36.48 on MtGox. This is an all-time high and there are many good reasons why it’s pushing up and up ever more:

Continue reading