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Let’s spell out the more blatant shortcomings of Bitcoin


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2021 Mar 8, 8:35am   2,649 views  191 comments

by GNL   ➕follow (1)   💰tip   ignore  

It may be true that Bitcoin’s distributed “ledger” is difficult for governments to crack, but governments can just abolish Bitcoin in a few keystrokes by criminalizing the trade of it and confiscating any theoretical profits from it. They have probably refrained so far because the traffic in Bitcoin is still relatively tiny compared to the trade in stocks, bonds, and their derivatives, and because they prefer to keep the Bitcoin model running as a demonstration project in preparation for their own entry into national cryptocurrencies, with all its advantages for tracking individual transactions and targeting tax liabilities.

Let’s spell out the more blatant shortcomings of Bitcoin: The blockchain may be theoretically bomb-proof, but the exchanges that Bitcoin trades on can be fiddled, hijacked, and erased from the universe, and Bitcoins with them. Remember Mt. Gox? When it went tits-up in 2014, 850,000 Bitcoins vanished (out of the 21 million that can ever be “mined” under the system as designed). Bitcoins were worth under $1000 when that happened. Also, keep in mind is that Bitcoin is meaningless without reliable electric service and the Internet that runs on it. How many Bitcoins were bought-and-sold in Texas those dark days a couple of weeks ago when a blue norther rolled in and the lights went out. Of course, trading Bitcoin might be the least of your problems when the pipes freeze and all the sheetrock in your house gets prepped for a black mold experiment.

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1   Bitcoin   2021 Mar 8, 8:38am  

WineHorror1 says
but the exchanges that Bitcoin trades on can be fiddled, hijacked, and erased from the universe


Exactly! Thats why you store your precious Bitcoin on a hardware wallet. You become your own bank.

I use Ledger nano S and Trezor.

https://trezor.io/

https://shop.ledger.com/products/ledger-nano-s
2   Bitcoin   2021 Mar 8, 8:39am  

Bitcoin has sooo many advantages over gold and FIAT

3   Eric Holder   2021 Mar 8, 8:43am  

WineHorror1 says
....The blockchain may be theoretically bomb-proof,...


Well, Ethereum's blockchain was also theoretically bomb-proof until it wasn't.
4   Bitcoin   2021 Mar 8, 8:51am  

Eric Holder says
....The blockchain may be theoretically bomb-proof,...


yep, Bitcoin's network has been around for over a decade now. Has never been hacked. No wonder Tesla bought 1.5B USD worth of Bitcoin to HODL.
5   B.A.C.A.H.   2021 Mar 8, 9:03am  

The federal government already cracked down on an alternative to fiat money in 1934. There's already a precedent, - it already happened.

We had an eccentric old uncle who did not surrender his gold. He was not wealthy. He held on to what gold he had, - his alternative to fiat money.

He died before it became legal in the mid 1970's for Americans to use gold for a money substitute again. His gold hoard was a "sunk cost". It was there, but he couldn't spend it.

His widow (our aunt) gave some of them away as gifts to nephews and her one niece. I don't know what she did with the bulk of it, maybe spent it or gave it to her son.

Yeah, yeah, I know. I am a stupid podunk closed minded Baby Boomer who refuses to learn, refuses to get with the times, refuses to accept new things. It's different this time, and I don't get it. I don't understand and I am clueless. It's different this time. Just like all the derision I got for not "investing" in dot.com stocks in the mid 1990's, even though I worked in the trenches of bleeding edge tech at the time.

If you say so, Hipsters.
6   Bitcoin   2021 Mar 8, 9:08am  

elected officials in the US love Bitcoin. They even approved the first federal chartered crypto bank

https://www.financemagnates.com/cryptocurrency/news/us-treasurys-occ-approves-first-crypto-bank-bitcoin-jumps-above-38000/

Anchorage became the first crypto custodian to receive a federal charter from the US OCC.

OCC stands for The Office of the Comptroller of the Currency
7   B.A.C.A.H.   2021 Mar 8, 9:11am  

G36 says
elected officials in the US love Bitcoin.


Yep.

Just like they loved gold, and the US was on The Gold Standard, till 1934. They loved it till they didn't.

Party On, Hipster.
8   Bitcoin   2021 Mar 8, 9:15am  

I am not a hipster. Just a millennial making bank with crypto. Cardano went from 10 cents to $1.15 ! I have over 100K coins of Cardano. That def. allows for a nice pool party in the backyard.

the gold standard wouldn't let an economy expand rapidly IMO. The US doesn't stifle innovation. We are the #1 economy in the world. Digital money is the future. Not everyone keeps up....some people still like their landline. That's fine.
9   Bitcoin   2021 Mar 8, 11:30am  

Bitcoin is digital gold. In comparison its much better than physical gold.



its very profitable to hold....i bought 1.9BTC in November 2020. It made me a 3x in less than 6 months!
10   B.A.C.A.H.   2021 Mar 8, 3:13pm  

G36 says
Bitcoin is digital gold

Said economists in 1934.

Yeah, yeah, I know. I'm a Clueless Old Fart and It's Different This Time.

Just like they told me because I wasn't buying into the dot.com hype in the mid 90's. Even though I was technie in Silly Con Valley.
11   MisdemeanorRebel   2021 Mar 8, 6:34pm  

B.A.C.A.H. says
Yeah, yeah, I know. I am a stupid podunk closed minded Baby Boomer who refuses to learn, refuses to get with the times, refuses to accept new things. It's different this time, and I don't get it. I don't understand and I am clueless. It's different this time. Just like all the derision I got for not "investing" in dot.com stocks in the mid 1990's, even though I worked in the trenches of bleeding edge tech at the time.

OLSON JOHNSON IS RIGHT. Rabbat!!!

Seriously, right on.
12   WookieMan   2021 Mar 8, 6:47pm  

G36 says
The US doesn't stifle innovation.

Never thought I'd ever read a comment like this. I'm honestly astonished by this statement. I want to go personal but won't. Read some more. Study the US and market. The US does the exact opposite of what you state and Trump was kind of turning that around. Biden literally just shut down a pipeline project that employed thousands and now raises the price of oil.

He's making the rich richer while stifling innovation. All while not knowing where he's at and who/what he's talking about. You don't have to like my comments but I'd be afraid as fuck with Biden as POTUS. He's a puppet. Whoever is pulling the string could may crypto worthless overnight. People thought Trump was crazy. We're in a new realm if you've been paying attention.

If he can by himself wipe out thousands of jobs to be "green" there's nothing to stop him from regulating crypto through a bunch of 3 letter agencies. You've been warned. Crypto is already a bubble and I'd probably get out with this guy at the helm and take your supposed gains. It's worse than I thought it would be. He has dementia or some other cognitive issue and has been MIA so far.
13   theoakman   2021 Mar 8, 7:11pm  

Here's the thing. Our government, at this point is completely incompetent to stop it. Moreover, the academics that they hang on every word (Krugman, Stiglitz, Roubini) all insist that it will go to zero on its own. They are letting it ride out of arrogance and other countries would be happy to take the reigns.
14   Bitcoin   2021 Mar 8, 7:28pm  

theoakman says
Our government, at this point is completely incompetent to stop it.


Holy crap. To stop it? Innovation? Blockchain tech? Bitcoin? Holy crap....

This is the US....We are the tech hub of the world. The worlds best tech companies FB, Apple, Tesla are right here in California (well Tesla moved).

Tesla changed the world.....and Tesla bought 1.5B USD worth of Bitcoin. Guessing that doesnt tell you anything, mhm?

Elected officials in the US approved the first chartered crypto bank....again....no bell rings here, right?

Bitcoin is as big of an innovation as the internet.

You guys are sleeping wasting your time with tulips talk, watching on the sidelines whiles this revolution is happening (and some people, including me get rich on it)

Its amazing to watch this happening in front of my eyes and read these comments. Thank you!
15   theoakman   2021 Mar 8, 8:17pm  

Just put it this way, the FBI was tipped off to the Parkland shooter ahead of time. They claimed they couldn't figure out who posted it, despite the fact that it was under the name of Nicholas Cruz and it was off of a google account (like google didn't know who and where he was at the time). They were also tipped off about the Tennessee bomber. They couldn't even properly frame Trump but tried for 4 straight years. The entire infrastructure of America has morphed into one incompetent bureaucracy. They can't tell their heads from their foot and they have no interest in stopping everything. Bitcoin will continue to run wild and the central banking infrastructure has been setup so that they are all doomed by groupthink and conditioned to misreport, misidentify, or ignore inflation. They don't give a crap about bitcoin and are too stupid to stop it. Look who's at the wheel. Joe can't even get a sentence out without short circuiting.

I hold gold and silver as inflation hedges and they probably make up 20% of my net worth. I will make an additional 5 to 10% crypto. The rest is dividend paying stocks both domestic and abroad. If inflation doesn't happen and my gold/silver don't pay off, I still win, as I have a decent salary earning dollars.
16   Bitcoin   2021 Mar 8, 8:18pm  

B.A.C.A.H. says
G36 says
Bitcoin is digital gold

Said economists in 1934.

Yeah, yeah, I know. I'm a Clueless Old Fart and It's Different This Time.


Nah, I am not saying that. You have good experience and reason to be cautious! Nothing wrong with that. In my early thirties here and putting some money into riskier stuff like Bitcoin and other cryptos. Also nothing wrong with that. If I fuck up I'll blame myself for a while. But if it works out, I will have life changing money. To the moon baby!
17   Bitcoin   2021 Mar 8, 8:24pm  

theoakman says
They don't give a crap about bitcoin and are too stupid to stop it. Look who's at the wheel. Joe can't even get a sentence out without short circuiting.


Agree on Joe.

"they are too stupid to stop it" First of all, you can regulate/ban exchanges but not a decentralized blockchain like bitcoin itself. No single government has the capability of doing that as long as the internet exists. If you dont believe me, google it.

The fortune 500 companies own America. Corporate America runs the country one way or the other. These large players are too powerful to be stopped.

And many of them see potential to make more money through crypto. Take a look at the media coverage of crypto. Take a look at google search trends. Take a look at which top tech companies invest in Bitcoin. How can one not see, that this isnt going anywhere but up?
18   Onvacation   2021 Mar 9, 6:08am  

G36 says
store your precious Bitcoin on a hardware wallet. You become your own bank.

He got bits on a stick.

What could be safer?
19   Onvacation   2021 Mar 9, 6:11am  

G36 says
Cardano went from 10 cents to $1.15 ! I have over 100K coins of Cardano. That def. allows for a nice pool party in the backyard.

You spent $10k on an altcoin? Really?
20   Onvacation   2021 Mar 9, 6:16am  

G36 says

Bitcoin is as big of an innovation as the internet.

Why?

Why do I bother?
21   Bitcoin   2021 Mar 9, 7:39am  

Onvacation says
G36 says
Cardano went from 10 cents to $1.15 ! I have over 100K coins of Cardano. That def. allows for a nice pool party in the backyard.

You spent $10k on an altcoin? Really?


@onvacation
By now I spent about 30-33k on investing in altcoins. ETH, ADA, DOT, Link, BinanceCoin (which i sold at a 10x profit).
I might have sold BinanceCoin at an 11x. I need to look. But whats 1x more among friends?
22   Bitcoin   2021 Mar 9, 7:39am  

Onvacation says
G36 says
store your precious Bitcoin on a hardware wallet. You become your own bank.

He got bits on a stick.

What could be safer?

@onvacation, you are right. There is no safer solution than a hardware wallet for your precious digital gold coins (Bitcoin)
23   Bitcoin   2021 Mar 9, 7:40am  

Onvacation says
G36 says

Bitcoin is as big of an innovation as the internet.

Why?


Wow not why is the right response :)
24   CBOEtrader   2021 Mar 9, 7:52am  

G36 says
Bitcoin is digital gold. In comparison its much better than physical gold.


Bitcoin is only worth what the greater fool will pay for it. Gold has actual value. There is no getting around this problem.
25   Bitcoin   2021 Mar 9, 8:12am  

CBOEtrader says
G36 says
Bitcoin is digital gold. In comparison its much better than physical gold.


Bitcoin is only worth what the greater fool will pay for it. Gold has actual value. There is no getting around this problem.


@onvacation
no problem here. Bitcoin has the better traits. Tesla knows this. Bitcoin haters dont know this.



26   Onvacation   2021 Mar 9, 8:22am  

Get your kicks from bits on a stick.
27   Bitcoin   2021 Mar 9, 8:23am  

Thats right @onvacation,
I really like https://trezor.io/

great private, secure bank to store your precious digital gold coins (Bitcoin).
28   Bitcoin   2021 Mar 9, 8:24am  

to answer your question @onvacation

The fortune 500 companies own America. Corporate America runs the country one way or the other. These large players are too powerful to be stopped.

And many of them see potential to make more money through crypto. Take a look at the media coverage of crypto. Take a look at google search trends. Take a look at which top tech companies invest in Bitcoin. How can one not see, that this isnt going anywhere but up?
29   B.A.C.A.H.   2021 Mar 9, 8:49am  

WineHorror1 says
Let’s spell out the more blatant shortcomings of Bitcoin:


See what happens WineHorror1?

He spammed your post, turning it into a pro-Bitcoin thread.

Like he's really going to convince/convert skeptics here.

He could and should make his own website or blog and promote his Bitcoin ideas on it.
30   HeadSet   2021 Mar 9, 9:36am  

governments can just abolish Bitcoin in a few keystrokes by criminalizing the trade of it and confiscating any theoretical profits from it. They have probably refrained so far because the traffic in Bitcoin is still relatively tiny

Interesting, but it does not bother them that bitcoin makes possible the ransomware industry. Even so, I still find it hard to believe that the FBI/CIA cannot find who is collecting the bitcoin payments. Maybe they are "in" on the ransomware, or they do not want to tip their hand for when they want to go after bitcoin financed political enemies later.
31   B.A.C.A.H.   2021 Mar 9, 10:43am  

HunterTits says
I have him on ignore. Thread is much different


Good idea, HunterTits. I followed up and did the same. Thank you for the suggestion.

And thank you Patrick for the feature.
32   Bitcoin   2021 Mar 9, 10:47am  

HunterTits says
Yeh. I dunno why you all bother.


Bitcoin haters dont like the fact the Bitcoin investors can reply and correct them.

For Instance @onvacation thought that the last Bitcoin will be mined in 2040. I corrected him and posted links that show it will be 2140. He didnt like that and trolls that it will be 2030 without any link/rhyme or reason. You can bring a donkey to the water but if the donkey refuses to drink, what can you do?

I had a discussion with @B.A.C.A.H.
But its not really a discussion because these haters are not fine with: lets agree to disagree. In their mind, anything Bitcoin = "bad".
They have no interest in being educated or learn more. Some ignore me....perfectly fine. That's what the ignore button is for.
33   Onvacation   2021 Mar 9, 10:50am  

G36 says

For Instance @onvacation thought that the last Bitcoin will be mined in 2040. I corrected him and posted links that show it will be 2140. He didnt like that and trolls that it will be 2030 without any link/rhyme or reason.

Please stop spamming my inbox. I have asked you multiple times.

I am amazed that the Ponzi scheme called bitcoin has lasted this long. Never underestimate the foolishness of a rube.
34   Bitcoin   2021 Mar 9, 10:53am  

Onvacation says
I am amazed that the Ponzi scheme called bitcoin has lasted this long


@onvacation, I bet you are! The best thing is, you have seen nothing yet!
35   Tenpoundbass   2021 Mar 9, 11:17am  

G36 says
Bitcoin has sooo many advantages over gold and FIAT


Why in the FUCK would you WANT Smart Money?

And anyone that thinks going to bed with the value of your currency at an all time high one night, only to wake up the next morning with it at an all time low.
Is a viable currency, should have went long on Zenga games.
36   Bitcoin   2021 Mar 9, 11:21am  

@onvacation
Bitcoin is a store of value (aka digital gold)
not a currency like FIAT. There is no reason for me to spend my precious digital gold coins on coffee or a burger. I use FIAT for that. Bitcoin is a wealth generator....

for example, i bought 28k worth of Bitcoin less than 6 months ago. Guess how much it appreciated! You are right! My portfolio is indeed worth over 100k just in Bitcoin alone!

on top of that are my altcoin holdings which performed even better.....

Why do you hate making money so much?
37   theoakman   2021 Mar 9, 11:24am  

HeadSet says
governments can just abolish Bitcoin in a few keystrokes by criminalizing the trade of it and confiscating any theoretical profits from it. They have probably refrained so far because the traffic in Bitcoin is still relatively tiny

Interesting, but it does not bother them that bitcoin makes possible the ransomware industry. Even so, I still find it hard to believe that the FBI/CIA cannot find who is collecting the bitcoin payments. Maybe they are "in" on the ransomware, or they do not want to tip their hand for when they want to go after bitcoin financed political enemies later.


It's becoming increasingly apparent that the FBI and CIA are completely incompetent. That's why they want even more power to spy on you because they suck at their jobs.
38   Bitcoin   2021 Mar 9, 11:27am  

elected officials in the US hate to stifle innovation. We are the tech hub of the world. Bitcoin is adopted by fortune 500 companies daily. Latest example: Tesla buying 1.5B USD worth of Bitcoin. Thanks Tesla!
39   Onvacation   2021 Mar 9, 11:31am  

G36 says
I bet you are! The best thing is, you have seen nothing yet!

@G36 Please stop spamming my inbox with your bullshit.
40   Onvacation   2021 Mar 9, 11:32am  

G36 says
Bitcoin is a store of value (aka digital gold)

@G36 Please stop spamming my inbox with your bullshit.

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