BitCoin

Dariusz Kosiur, Husarz i Jasiek z Toronto zrobia wszystko aby przekonac swoich studentow,ze istniejacy system finansowy oparty jest na lichwie i przynosi krociowe zyski waskiej grupie a zniewolenie reszcie spoleczenstwa.

BitCoin

Postprzez Jerzy Ulicki-Rek » Pn cze 06, 2011 2:15 am

Bardzo ciekawa alternatywa.Glosy osob bioracych udzial w dyskusji za i przeciw bardzo rozsadne i swiadczace o znajomsci tematu.
Bede ciekaw co Jan ma do powiedzenia na ten temat.

Jerzy


New Decentralized Currency Stimulating Underground Barter Economy
New grassroots cyber currency, the Bitcoin, may provide the perfect vehicle to operate outside the establishment economy and snub the all-powerful banking cartels -- it's decentralized, quasi-anonymous, and its supply is regulated by an algorithm to actually create deflation over time.



Source: BitcoinMe.com
Eric Blair
Activist Post

Obrazek


The masses are beginning to understand that the greatest threat to human freedom is the international banking cartel and their debt-based monetary system. Together with governments, they squash any manifestation of a free marketplace and personal freedom. Between runaway money printing, corporate cartel control, subsidies and taxes, and regulations and fees; the free market is nothing more than an ideology -- for now.

As the "Too Big to Fail" private banks consolidate even further with the help of their central baking partners and government puppets, it would seem that they form an all-powerful cartel. They force us to use their monopoly money to pay for all necessary goods and services. They track every economic transaction to plunder as much manufactured taxes and fees as possible. Income taxes are extracted to prop up the debt-based system, the Wall Street casino, the domestic surveillance prison, and endless wars. And on top of that, the consumer is ravaged by increasing inflation. Indeed, the system smashes personal and economic freedom.


Incidentally, it seems the precise remedy to such a system would be decentralization of currency and banking, or functioning in an underground economy outside the system. There may be hope for accomplishing both with the new crypto-currency that is beginning to gain recognition, the Bitcoin. Can this decentralized barter currency free humanity from the grip of the slave masters and provide for a truly free-market economy?

First, what is a Bitcoin?

Bitcoin is a voluntary digital currency that can be transferred peer-to-peer over the Internet. The open-source cryptographic program secures the electronic transactions without the need for a third party, like a bank or PayPal. There are no transfer fees or centralized clearing house needed for peers to trade Bits. Bitcoins are held in a wallet that carries an anonymous address in the system. Watch the brief video below for a concise description:

http://www.youtube.com/watch?feature=pl ... m63OQz3bjo


MIT's Technology Review recently reported on the functionality of the Bitcoin and its "booming" rise to $40 million in circulation:
In 2008, a programmer known as Satoshi Nakamoto—a name believed to be an alias—posted a paper outlining Bitcoin's design to a cryptography e-mail list. Then, in early 2009, he (or she) released software that can be used to exchange bitcoins using the scheme. That software is now maintained by a volunteer open-source community coordinated by four core developers.
...Nakamoto wanted people to be able to exchange money electronically securely without the need for a third party, such as a bank or a company like PayPal. He based Bitcoin on cryptographic techniques that allow you to be sure the money you receive is genuine, even if you don't trust the sender.
The report explains what makes the peer-to-peer currency secure and anonymous:
Once you download and run the Bitcoin client software, it connects over the Internet to the decentralized network of all Bitcoin users and also generates a pair of unique, mathematically linked keys, which you'll need to exchange bitcoins with any other client. One key is private and kept hidden on your computer. The other is public and a version of it dubbed a Bitcoin address is given to other people so they can send you bitcoins. Crucially, it is practically impossible—even with the most powerful supercomputer—to work out someone's private key from their public key. This prevents anyone from impersonating you. Your public and private keys are stored in a file that can be transferred to another computer, for example if you upgrade.
Understandably, many readers of this will be leery of a "cashless" currency due to the stigma attached to the idea by the global banking cartel's stated agenda of creating a "cashless society" allowing for total economic dominance. However, the Bitcoin is the antithesis of centralized control. The nature of the peer-to-peer digital transfers of bits is uncontrollable, as we've seen with BitTorrents.

The shutting down of Napster back in the day and the DHS' endless efforts to seize "pirate" websites will never stop peer-to-peer sharing of information. With Bitcoins, the transaction takes place from your personal computer out into a vast network of servers that process the transaction into the recipient's anonymous wallet located in his computer. This realization that this currency is virtually impossible to consolidate or shutdown would seem to make Bitcoins one of the biggest threats the control system has ever faced.

As evidence of Bitcoins being used to openly defy the system, an underground online drug trade has sprung up, as reported by Gawker. This so-called "Amazon" of illegal drugs accepts only Bitcoins as payment and is virtually untraceable unless the authorities assign massive resources to the endeavor; and even if they shut down the website, another will likely pop up to replace it. It's probably not the kind of press that the founders of Bitcoin would like, but it underscores the unconquerable nature of voluntary exchange between two individuals and the Bitcoin technology. When an authority tries to prohibit products that people demand, black markets will always pop up. And as we've seen with the war on drugs, it is impossible to stop no matter how much they throw at it.

As for how the long-term supply and value is controlled, MIT reported:
Nakamoto's rules specify that the amount of bitcoins in circulation will grow at an ever-decreasing rate toward a maximum of 21 million. Currently there are just over 6 million; in 2030, there will be over 20 million bitcoins.
Nakamoto's scheme includes one loophole, however: if more than half of the Bitcoin network's computing power comes under the control of one entity, then the rules can change. This would prevent, for example, a criminal cartel faking a transaction log in its own favor to dupe the rest of the community.
It is unlikely that anyone will ever obtain this kind of control. 'The combined power of the network is currently equal to one of the most powerful supercomputers in the world,' says Garzik. 'Satoshi's rules are probably set in stone.'
It is unlikely any major retailers will sign on to accept Bitcoins because they are deeply entrenched in the establishment economy and are likely saddled with debt to the banking cartel. The Bitcoin economy is more a grassroots opportunity for small businesses and individuals to sell used or self-produced products or services. Look for Ebay or Amazon knock-offs to pop up and allow individuals to sell items. Look for online casinos to spring up for Bitcoin players. Look for local organic cooperatives to implement them. Anything that a consumer desires that can be facilitated online can conceivably be done with an anonymous Bitcoin transaction in this emerging peer-to-peer barter market.

Nothing could be a more genuine example of a free market than two people voluntarily bartering for an item without a middleman or big brother snooping the transaction. The banks serve no purpose in online commerce except that most people pay for things from money in banks. Now, their role will seem to be diminished should the Bitcoin economy take off. Bitcoin seems like the ideal online currency to support if one wishes for freedom and anonymity, or to protest the centralized power of the banking cartel and their tax-thirsty puppet regimes.

Maybe I want to believe in it too much, so tell me where I'm wrong in the comment section. Activist Post may soon accept donations in Bitcoins and add a miner to support its growth. Tell us if your research says it passes the smell test or not.


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Posted by Activist at 9:37 PM Labels: competing currency, currencies, cyber infrastructure, internet, online transactions

25 comments:
Anonymous said...
How do you cash Bitcoins out?
June 3, 2011 3:07 PM
Activist said...
https://www.bitcoinmarket.com/
June 3, 2011 3:10 PM
Anonymous said...
The link you posted in your comment comes up as a 'security threat' on Firefox
June 3, 2011 4:11 PM
Anonymous said...
can you purchase bitcoins with dollars? If you can i feel like this is a sham
June 3, 2011 6:35 PM
Political Athiest said...
Sounds great today. And would be very useful. But it will eventually but undoubtedly sell the People out like Facebook, Google, et. al. Mark of the Beast, anyone? Just sayin'.
June 3, 2011 7:30 PM
Political Athiest said...
That said, it would generate some serious (bit)coin in its infancy. Get in on the bottom floor, get out when the fiat currency is in bubble. There will always be a market and it will always need a means of exchange. It's as good as what we've got in the near-term.

Slightly off topic:
"This so-called "Amazon" of illegal drugs accepts only Bitcoins as payment and is virtually untraceable unless the authorities assign massive resources to the endeavor; and even if they shut down the website, another will likely pop up to replace it."

As if we needed another argument for decriminalizing drugs and putting an end to the contrived War on Drugs.
June 3, 2011 7:37 PM
Anonymous said...
Check it out at cryptome.org too. There is an email posted recently that gives a decent explanation of how bitcoin is created (really just computing power known as CPU).

There is a finite amount, hence deflation. It is also a transparent market with every transaction available to the public. Privacy is secured by keeping your identifier, which is shown in the transaction, private like a password.
June 3, 2011 7:42 PM
Political Athiest said...
Hey, I just saw this video. I think I've changed my mind. I would accept gold and silver instead.
June 3, 2011 7:44 PM
Howard T. Lewis III said...
If ebay purchases can be diverted and entire debit accounts successfully stolen repeatedly, as in my case, this is not worth mentioning. America's voting machines, according to Diebold and ESS officials, are impossible to rig. Bull. Anyone who studies vote fraud can hear the lies in the officials' sworn statements.
Bitcoin, shmitcoin.
June 3, 2011 7:55 PM
Anonymous said...
Bitcoins are exchangeable in any currency currently offered by BTC exchanges. Mt.Gox exchange has USD/EUR/GBP and is introducing JPY/RUB/AUD/CAD. (some already) https://mtgox.com/
(everything is SHA-2 secure)

The charts
http://bitcoincharts.com/charts/mtgoxUS ... 1g10zm2g25

Buying and selling BTC is just like any other currency, only the exchanges supporting them are few at the moment.

Few outlets to buy items with BTC, but that will grow exponentially if BTC takes off.

The biggest drawback I can see with Bitcoin and I've done quite a bit of digging is the possibility it turns to a Gold hoarding situation and there's little to no velocity. That will kill confidence as the rate of inflation is fixed and overall the currency is deflationary by nature. (deflation isn't bad if the currency isn't leveraged to death)
Also, you cannot loan BTC through fractional reserve methods. It is a HARD and RIGID currency.
So with that, there's a chance BTC could crash too hard and get a nasty stigma. Could rebound, but would have a lot of angry customers.

The parts I think are just fantastic:
Voluntary
Fixed quantity
Immensely divisible down to .00000001
Larger BTC economy = exponentially more secure
Larger BTC economy = exponentially more anonymity
Transaction fees a tiny fraction of current system
Indestructible unless the internet/modern infrastructure goes down. Not even governments can touch it.
BTC wallets are copyable, back-upable, transportable on flash drives or even email if you're dumb enough.

And the best thing of all. No bank.
The entire distributed economy keeps the ledger and the rules for updating it are very strict with error correction and redundancies built in.

Black or white IMO. If it lives on, the first adopters will be very well paid for their risk. If it fails, well, thems the breaks. Buck up and try again maybe.
June 3, 2011 8:00 PM
Anonymous said...
What happens if you have no power or internet. Don't think it can't happen. If something caused a major transformer in the U.S. power grid to not be repairable, it would take 18 months to 2 years to get a new one. Not to mention potential government control over the internet. I'm just saying.
June 3, 2011 8:01 PM
Anonymous said...
If you don't have the internet...then you still have whatever funny paper money you carry, gold and silver. Diversify bitches! Now we have Bitcoin too. Biggest potential is for online transactions since you won't need to use the banks and real roins are hard to get through routers.

For all of you worried about government contorl, keep looking the other way as they manipulate the FUCK out of the current system --> Prinintg money? Increasing the margin on commoditys? Decreasing the margin required for Treasurys?
June 3, 2011 8:30 PM
Anonymous said...
Can't lose your wallet with copies.
Theft is impossible from a compromised user:pass if you zip and encrypt your wallets.
June 3, 2011 9:52 PM
keyinfoblog said...
It's a good idea, I tried the bitcoins but it takes forever to create them since everyone ells who are creating them have stronger computers which is not so fair.


















.
June 4, 2011 5:06 AM
Anonymous said...
How does one get their FIRST bitcoin?
June 4, 2011 9:34 PM
Donald Pirl said...
How would Bitcoin determine if more than half the computing power of the Bitcoin network fell under the control of one entity? Surely conspirators would disguise such a takeover.
June 4, 2011 10:56 PM
Anonymous said...
I think this is a great concept. I'm going to study it further and pass it along people that might be interested...
June 5, 2011 3:27 AM
Anonymous said...
Bitcoin is just replacing one bad medium of exchange for another. A medium of exchange arises from something that had a material use/value in the market prior to becoming a medium of exchange. Over centuries, gold and silver won out, with gold being the biggest winner.

What was Bitcoin's prior market value? Zero. Just bits in a computer. And what's with the "fixed" amount of Bitcoins? Who determined the "proper" amount? A computer programmer? Only the free market can voluntary determine how much of a real medium of exchange is needed in the marketplace over time. While it's nice that this system is getting rid of the Bankster monopoly on creating money out of thin air, Bitcoin is still money created out of thin air.

May I suggest you read "What Has Government Done to Our Money: (http://mises.org/books/whathasgovernmentdone.pdf) and then "Money, Bank Credit, and Economic Cycles" (http://mises.org/books/desoto.pdf)in order to understand what a real medium of exchange (i.e., money) is.
June 5, 2011 3:57 AM
Anonymous said...
You're right about it being a medium of exchange that's not ideal. However, no one is suggesting that it replaces "hard" currency. Only that it can be used for anonymous ONLINE transactions -- which I think can be a very good thing in the cyber world.
June 5, 2011 6:29 AM
Anonymous said...
The BitCoin is a good start, at least this newly established way of buying and selling is an action positive to counter government fiat money.

With that said, I am afraid the assumption that "One Entity" will not control 50% of the BitCoin currency is grossly naive! The "Power" will not allow such a counter currency movement to go unchecked or uncontrolled.

Think about it for a moment, the Rockefellers and the Rothschilds have controlled the world currencies, manufacturing, industrials, and energy sources for at least since post World War II. Does any of you think for a moment that these guys are going just allow a "Rogue" monetary system interfere with their "Control?" I don't think so!!!

Forget the ideas of BitCoins, Gold/Silver Standards or Bartering. Why cut off the tail when the venomous head is the problem.

If the 82nd Airborne raided the U.S. Treasury Department and destroyed the printing presses and announced there will be no more printing of U.S. Dollars for next then years this fiat currency's intrinsic
value will would increase and go off the charts overnight! At least until the Power Guys counter attack with some crisis or government control.

And, while the 82nd is on a role and in the neighborhood they should pay a visit the Federal Reserve's, Timothy Geithner, and throw his skinny backside out into the street and burn this illegal and evil establishment to the ground!!! Thomas Jefferson warned that paper money was one of the three major threats to Liberty.

In all of this fantasy, but positive turmoil, the 101st Airborne should round up the likes of Rockefellers and publicly bullwhip all of them until they sign over all of their "Monopolies" which would then be placed in a lottery pool for public drawings!!! That'll teach the SOBs... (Big corporations are not the problem as long as there are genuine competing corporations.)

I am sorry to say, the BitCoin is a lame and cowardly attempt to stop the Big Guys... Ain't gonna happen, Dudes!!!

Its time to kick butt and if you noticed I didn't say some... Good day
June 5, 2011 7:47 AM
Anonymous said...
Fiat Money not only crushes people's efforts to accumulate wealth for retirement or otherwise; it creates a fragile and false prosperity. This false
economy creates a robust population. In America's case, 308,000,000 people, but what would happen if this house of cards suddenly crumbled?

Can you imagine the consequences?! How many people would survive such a collapse? We, the people, are in a very dangerous situation.

May I strongly suggest that every American Family store up at least a two year fool and water supply and enough to feed some welcomed friends. Adequately arm yourselves with close range weapons and standoff weapons, like the 50 caliber. Learn to be proficient with each. Move out of the city and beyond the suburbs. The further the better. Food will be the final bartering tool and currency.

Ban together with people who understand the possible threat, but don't allow yourself to jump to rash conclusions and false premises of danger. Keep a loving heart for your family, friends and mankind at large, but be on guard for those two legged menaces that are evil to the core. Always trust and verify someone's intent and statements. Compare their words with their actions. You'll smoke out the fakes soon enough, but in the meantime keep strangers at an arm's length.
June 5, 2011 8:02 AM
Anonymous said...
Go to a garage sale and buy an old PC, install ubuntu linux server on it, download the bitcoind for linux
and run it on a dedicated server. Ofcourse the bigger the PC the more coins youll create but not any faster than anyone with a faster computer. Check out the source, its continously conecting to and creating and modifying its progress according to how many others it connects to.
June 5, 2011 10:42 AM
Anonymous said...
We will burn out the fakes rapidly enough but in the interim keep foreigners at an arm's piece.
June 5, 2011 11:05 AM
Steven G. Berry said...
Bitcoins look like tulips to me.

And, what a waste of computing cycles -- as if they aren't wasted already.

Yes, spend your time piddling with your computer instead of asking why your government does not control the "real" money.

Limiting circulation of something doesn't automatically turn it into money. Money must represent more value than spent CPU cycles!

Sorry, this isn't money.
June 5, 2011 1:06 PM
Anonymous said...
Hi Eric,
Thanks for the post on Bitcoin. It is an interesting exercise but doomed to failure with its obscure origins and operations. It is ripe for ripoff. If you want to see what electronic money will look like in freedom, see my website civilizationengineering.com and download the paper Money: Executive Summary. If I convince you of the proper components of a true money system, you will see that Bitcoin is lacking some of the essentials to hold it in place and thus will fail. The electronic components of Bitcoin are impressive but the administrative components are totally lacking.
Beware, you are at risk with this system.
Sincerely,
Dennis Riness
June 5, 2011 1:24 PM
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