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a colleague of mine just quit his job to go and work for a bitcoin exchange :(
what a plum
If he'd cashed out when they were at their peak he'd have had about £15k.
Worth noting this isn't an indictment of bitcoin as a whole (though the whole market's taken a big hit as a result), but mind-blowingly negligent management at mtgox.
(apparently they bought the domain gox.com yesterday) and his investment's not totally lost, but he seems to be uniquely optimistic.
He purchased a number of bitcoins a while ago from Mt Gox for £2k. At the market's peak, they were worth about £15k. It now appears that Mt Gox's crappy code and poor accounting left it exploitable by hackers who've basically cleared out all of the bitcoins left in their storage (including those 'owned' by my friend).
Brief roundup here: http://www.wired.co.uk/news/archive/2014-02/25/largest-bitcoin-exchange-shuts-down
So the Bitcoin wallets of people who have traded on MtGox were exposed?
Though this wouldn't explain how the hackers accessed gox's 'cold storage'. Cold storage refers to un-hackable offline wallets that gox supposedly held 90%+ of their coins in. People are speculating that the gox 'hot wallets' (readily accessible online funds) were somehow automatically pulling from their cold storage when they reached a certain level, which would mean that gox's cold storage wasn't actually cold storage at all, indicating monumental levels of dumb-arsery.
Hence the rest of the major bitcoin exchanges basically getting together and issuing a statement calling Mt Gox an embarrassment and hailing the fact it's finally gone under completely. This isn't the first time they've made the whole bitcoin concept look very stupid. http://blog.blockchain.info/2014/02/25/joint-statement/
like something about how ridiculous and made up the concept of money is and like a satire on banking and/or wall street
it's been near impossible to offload any for actual money.
this makes me feel much, much better about not getting involved
You can cash out bitcoins at any of the other popular exchanges with no problem.
stands for Magic The Gathering Online eXchange, right?
For fucking reals.
to get involved in crypto-currency? It's not just a bubble, it's a bubble being inflated by mouth-breathing, Ayn Rand worshipping nerd-clowns. A crisis of this kind was always going to happen.
If someone `cracks` the online currency game then it'll be incredibly beneficial to consumers and businesses alike. Financial transactions on the internet are pretty inefficient. To have an online payment mechanism of the sort Bitcoin is envisaging seems incredibly beneficial.
However, I realise that Bitcoin as currently realised is a bubble. Key thing is, it's not actually a currency at the moment because fuck all people are using it to buy anything.
So - yeah. I won't have any sympathy for anyone who loses lots of money having invested in Bitcoin but the drive for `crypto-currency` won't go away. This is merely the first stage of the journey.
a movement towards a universal online currency is virtually inevitable. But bitcoin is a pyramid scheme masquerading as a libertarian ideal. You'd have to be mad to invest real savings in it.
Quite a few people have got pretty loaded off investing in it. Sensibly.
But yeah I agree if you're looking at Bitcoin as a long-term sustainable investment. But I don't know if anyone is are they? Pretty much everyone who has one is hoping to cash out before the crash happens right?
Welcome to the definition of a pyramid scheme.
A pyramid scheme is a deliberately fraudulent construction. Bitcoin is a functioning product which lots of people have invested in and driven the price up. It's an investment bubble, not a pyramid scheme.
Welcome to the definition of the economy
Argh I really need to train myself to not find doge jokes funny.
so I don't ever have to bother understanding what it is.
maybe THEY will create a user-friendly interface for you and you'll just have to use it
using the money I'd made from Amazon Mechanical Turk ($53). Thanks.
Magic The Gathering Exchange
after reading quite a bit about it. Will keep them in offline storage though to avoid shit like this obv. The potential ROI is so huge it probably makes up for the risk involved.
albeit at a slightly smaller scale and bitcoins are still around.
which is primarily used to buy drugs and guns
It was worth it. Titcoin.
Quantititatative easing or whatever it's called?
of the Bitcoin concept: http://www.theguardian.com/news/video/2014/apr/30/bitcoin-made-simple-video-animation
Best I've seen from a major publication.
Bitcoin and the concept behind it isn't a one time event that's going to go away. Vast swathes of people still have next to no understanding of how it works, but it's (talking about the concept here, rather than Bitcoin itself necessarily) going to fundamentally change the way currency and goods are traded and disseminated over the internet. It's commendable that the guardian are trying to educate people about it, otherwise the mainstream narrative remains that it's just something for drug dealers and terrorists to use 'anonymously'.
and we all did. Bitcoins become progressively harder and harder to 'mine' so if we all started using Bitcoins now there's like a layer of tech bastards at the top who got in first whose initial 1 Bitcoin is going to be worth billions.
This is really the only thing I wonder about as a currency. The finite nature of gold was the reason we stopped sticking to the gold standard, wasn't it?
if it's to be the major player it's suggested it could be. But most people who trade in gold don't mine the gold themselves, they either buy and hold it as a store of wealth, or trade it for other goods or services (or at least they used to).
I'm not an ardent pro-Bitcoiner, Bitcoin itself doesn't excite me hugely, but the architecture of the blockchain and the fact that it essentially enables one internet user to transfer (not copy) a unique piece of digital property to another without any intermediaries is pretty revolutionary.
as most of the advantages of it were also linked to the finite nature of gold.
But that isn't really relevant to this so I'll get back in my box now.
My knowledge of the gold standard is patchy at best. A layman's terms overview would be appreciated!
As I say, I was told we needed to leave it in order to enact inflation and grow our currency. I guess I don't really know but it sounds like you couldn't make any more pounds than you had gold to guarantee them with, meaning there was a finite amount of GBP in the world. This would mean you could only split it into smaller and smaller units, which I suppose would be weird for a population to deal with?
The GS links your paper currency to a set value of gold, so you could literally walk into the Bank of England and say, *here is a five pound note, can I have £5 worth of gold please* and they’d give you some gold. It means that your currency is hard backed, everyone knows that a £, $ or whatever is literally worth what it says it is. It means with other gold standard currencies you have fixed exchange rate.
The really big pro is that because your currency can’t expand quicker than the supply of gold, hyper inflation is impossible, that’s the good thig about it being finite. The big con is also that it is finite, so you can get stagflation and deflation – I can’t remember the details but this elongated the Great Deppression as you can’t easily increase the money supply – think about QE in the UK, that would be totally impossible under the GS.
Basically the Gold Standard really reduces the levers that policy makers have over monetary matters. If you’re a serious Austrian school economist (or a libertarian neck beard) you think that is great. If you’re not, you’re probably less comfortable with it.
but you get the jist. the other big con is that socks are much harder under the gold standard - devaluation of the currency doesn;t happen smoothly, just one day your pound is actually worth less. Which relinks to the GS affecting the tools policy makers have.
Definitely need to educate myself on economic principles such as this a bit better.
cashed out, and is using the money to make a film starring crispin glover
the dream of the internet is alive
what was he doing?
I think it's described as a 'thriller' on Amazon (by the publisher?) but it's not exactly. It's quite a slow, measured atmospheric piece.
And has been taken over by speculators, rather than those who want an easy way of making online transactions.
It is such a sensible idea, and the way it works isn’t too silly., but the first properly international, electronic currency was ALWAYS gonna to have massive, massive problems. Hopefully whatever comes along next will learn the lessons properly.
unfortunately bitcoiners have a total meltdown at any suggestion that another newer cryptocurrency could actually be superior, or at the idea of changing bitcoin in ANY WAY right down to which unicode character they should use for the B symbol, so good luck with that.