[glesica]

Illicit plus grey market and a few special cases. Fine, you win the Pedant's Prize for nitpicking. The point is that they don't make a good general-purpose currency. Just because they're awesome for buying drugs and secret VPNs doesn't mean very much in the grand scheme of things (most transactions, at least in the developed world, do not take place in the grey market).

Also, just because some people do something doesn't mean that there aren't strong incentives against doing that thing, and doesn't make a statement such as "people don't do that" false. It just means that there are exceptions, but when the exceptions don't affect the point it is common to ignore the exceptions in general conversation.

[shredfvz]

Money is ultimately just a standardized indicator of wealth with no intrinsic value on its own, a definition shared by both USD and BTC. The downside of USD being that it can be counterfeited, illegally by unscrupulous individuals or legally by the Federal Reserve (see: QE Infinity).

Regrettably, it's still super common for people to turn up their noses in disgust, claiming "Bitcoin Boogey Man, oh noezzz"!

I'm sorry, does the USD somehow not come with a Boogey Man? Because last I checked HSBC was caught with their pants down directly funding terrorism through shady business practices, Bernie Madoff is still in prison for running a giant Ponzi, the illegal narcotics trade is done mostly in USD, plus you have money laundering, and just about every crime conceivable being carried out in USD.

But wait, the Bitcoin Boogeyman!!!

Everyone come to look!

The USD is dirtier than Bitcoin by several orders of magnitude. It's been taking a full out mudbath every day of its life for the past several decades. It's just that the USD is all people know, so they assume it's squeaky clean, because how could it not be squeaky clean??

[glesica]

I personally don't care what people use it for. My point is that it is primarily good for illicit and "grey market" transactions, and really nothing else. You entire argument demonstrates that you missed my point completely.

Why would I buy a cheeseburger with Bitcoins? Say the cheeseburger costs 0.1 Bitcoins (today). Tomorrow, who knows what those (fractional) Bitcoins will be worth!

Dollars (or whatever) on the other hand are generally pretty stable. Currency fluctuations, on a day-to-day basis, are very, very small. Sure, there's the occasional hyper-inflationary episode (several South American countries have experienced these somewhat regularly), but that's the exception.

The problem is that Bitcoin is, at least at this point, more of a commodity that people trade when they can't (or don't want to) use traditional money. It is not a "currency" in that sense.

[bayesianhorse]

For one thing, currency instability for BTC is bigger, and secondly the primary use of BTC right now is making illegal income look legal.

[shredfvz]

* citation needed

[lmm]

Even in the presence of QE, the value of the USD remains more-or-less stable. I can go to bed confident that it's not going to cost me $10 to get a loaf of bread tomorrow. Bitcoin isn't and won't be useful to me as a currency until its value is stable.

[pantaril]

Bitcoin is currently indeed very risky to use as store of value as the market grows quite rapidly and the exchange rate fluctuates greatly. I expect that it will improve in the future and ultimately bitcoin will be better store of value then official currencies, because the savings will not lose the value ove years due to inflation.

But fortunately bitcoin has great use even today in its current state. It is great for sending or accepting money internationaly, quickly and without ridiculous transaction fees. This is something you can't do with official curencies and is IMO big part of the success bitcoin is experiencing.

[neilxdsouza]

Bit Coins represent trade in an Economy independent of the Rot Schild banks.

There is no proof that the 2007 financial crises was not orchestrated on purpose. There is also no proof that that 2007 financial crises was orchestrated on purpose.

But we do know that Goldman Sachs sold financial instruments to their clients which they betted against. When the clients lost that money the profiteers was Goldman Sachs.

1. If you assume that the Rot Schild banks owned the entire English economy since June, 1815 and, If you assume that the Rot Schild bank had a value of USD 1,000,000 at that time, growing at 5% per annum for 200 years it's value would be USD 17.2 Trillion.

If you also consider that the Federal Reserve has been leaking money into the shareholders of the FED at 6% of interest on bonds raised since 1913, and if Rot Schild banks were all part share holders in the founding banks of the Federal reserve this profit has been going to them.

If the Rot Schild banks were the major investors in Goldman Sachs, it would make sense for Goldman to loose their investors money and transfer it to their biggest investors directly through dividend.

We know from 1. above that the Rot Schild holdings should easily be USD 17 trillion + and that the valuations of the banks that went under was about USD 800 billion. Hence it is highly possible that the biggest investor in Goldman is bigger than all the rest combined.

The bitcoins are there for a reason much much more important I think.

[netrus]

I cannot completely follow you, but your number of 17.2 Trillion is off by the factor 1.000, and the fortune of the Rothschild family spread and resolved from generation to generation, as large family fortunes always do.

[neilxdsouza]

You are right about my calculation mistake.

However This site : http://www.ukpublicspending.co.uk has the UK GDP and national debt from at least 1750

In 1816, the GDP was 0.32 billion pounds. If you assume from 1816 the lending to UK govt bonds was the Rot Schild bank, the starting point of the Rot Schild base moeny that I took will be far more than USD 1 million. So I think you will arrive at a trillion any which ways.

The reason for this is that from that year going forward, the Rot Schild would have bought bonds from the govt (effectively lending them money) every year going ahead, giving them (the Rot Schilds) a passive income stream from then to now.

Each year a new income stream would have been added by loaning additional bonds, which was independent of the previous years income.

I don't know what numbers to plug in, perhaps that is left to someone more knowledgeable than me.

[Sayter]

Your thought exercise of $1 million turning into $17.2 trillion via 5% over 200 years only works if none of the money (including any of the interest) is ever touched or spent. It is an unrealistic assumption that ignores the complexities of reality.

Here are their recent financial reports if you're interested: http://www.rothschild.com/about_rothschild/financial_reports...

[mrb]

Bitcoins are an awesome general-purpose currency for electronically sending "money" to persons or businesses anywhere in the world, instantly. Say goodbye to: middle-men taking their high fees, currency conversion fees, bank holidays, wire transfers taking 3-5 days, wasting half an hour driving to a Western Union office, etc.

I think what you meant to say is that bitcoins don't make a good general-purpose day-to-day currency (yet). For example paying your hairdresser, paying at the supermarket, etc.

[guruz]

There is actually several bars in Berlin which are supposed to take Bitcoins.

https://en.bitcoin.it/wiki/Trade#Restaurants_and_cafes

I don't have an Android+Wallet App (I think you need that), so if anyone with such a phone wants to go with me there, I'm up for it :)

[casidiablo]

Google Wallet does not support Bitcoins, and I don't think they will support it anytime soon.

Google Wallet is just an easy way to manage your credit cards and, sometimes, pay using NFC.

[pyvpx]

I find your reply humorously telling -- wallet app means just that: a bitcoin wallet application. Google and it's associated services/applications are not the end-all be-all ;)

[ryanbrunner]

To be fair, capitalizing "Wallet" makes it pretty confusing. If someone said "You need a Mac + Mail app", I would assume they meant the OSX mail app and not just a general e-mail client.

[guruz]

Sorry, I'm German -> used to capitalize nouns.

Yes, I meant https://play.google.com/store/apps/details?id=de.schildbach....

[acchow]

Nobody is saying Bitcoin is currently awesome and better than standard currencies. However, what is clear is its long-term viability.

You should ask yourself from where currency originates. What is its predecessor and was its acceptance ubiquitous. And take note that there was a period not long ago where saffron was used as "currency".

Also, though you may be intelligent, it would good to take a note from Socrates and consider that perhaps you don't know everything about every field.

[AlexMax]

> Nobody is saying Bitcoin is currently awesome and better than standard currencies. However, what is clear is its long-term viability.

This isn't clear to me at all.

There are a finite number of possible bitcoins, and once the last one is mined no new ones can be created. While it might be true that putting more USD into circulation causes the value of each individual dollar to go down, that's actually an incentive to spend money and create economic activity, instead of hoarding it hoping the price goes up.

[oleganza]

Define "hoarding". Who exactly suffers from it? Especially in case of Bitcoin where nobody forces you to even care about it (unlike gov-issued legal tender).

[ragmondo]

I just put together an Android App to display physical merchants that accept bitcoin. Yes I agree the data is a bit sparse right now but I am populating it as I find lists of merchants (and you can also submit your own business if you want). The app is here : https://play.google.com/store/apps/details?id=com.ragmondo

[Houshalter]

Well it has a use even in normal transactions since you can avoid any kind of fees or hassles with a centralized service like Paypal. And in the end it doesn't matter if it becomes that mainstream or not. Exchanging between currencies is becoming more common for online shopping and presumably it wouldn't cost that much for the services that do it to support bitcoin too.

[mtgx]

What makes you think it won't become the defacto digital currency in the future, and thus a "general-purpose currency"?

You may say that's just a baseless speculation, but not any less than yours.

[kybernetikos]

Bitcoin would make a horrible official currency for a country (inability to control the money supply, enforced deflation which discourages investment, easy for capital to flee). However, as a 'second currency' it has a lot going for it, security, fast, cheap, easy transfers between people across the world. I could see it becoming the worlds international 'second' currency.

[mayneack]

Vpns are a gray market? Does not wanting my car searched imply that I have illegal things in it?

[laumars]

Bad analogy as bitcoins wouldn't stop your VPN host from being searched.

In fact, if we're completely honest, paying for a VPN with bitcoins doesn't mean your identity is hidden anyway. All it would take is one connection record in one log file and you're exposed.