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Don't panic, but your Bitcoins may just vanish into the ether next month

Re: Bitcoin is bound to collapse in value prior to this date

And that happens to currencies every day. None of them are backed by Gold any more.

And why would a currency backed by gold be any more valuable and stable? Gold itself has little intrinsic value as you can't eat it, wear it or make many useful things with it such as car or plane parts. It's value is only linked to it's shinyness and like all currencys it's only value is that which is collectivly assigned to it. In this sense BitCoins value is based on the same collective imagination as all other fiat currencies with the exception that the collective is currently much smaller. The future of BitCoin and other virtual currencies is in the size of the collective that believes in them.

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Headmaster

Re: Bitcoin is bound to collapse in value prior to this date

>Gold itself has little intrinsic value as you can't ... wear it

I think you mean to say can't really protect yourself from the elements with it (weight a big issue for any use). Not usually pedantic but that one is pretty obvious. Still your point stands.

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Anonymous Coward

Re: Bitcoin is bound to collapse in value prior to this date

Take another look. There is far more liquidity and trading activity in the various exchanges than you appear to be aware of.

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Devil

Re: Bitcoin is bound to collapse in value prior to this date

"And that happens to currencies every day. None of them are backed by Gold any more."

When I was in the Navy, the Phillipine currency (Piso) exchange rate varied based on whether or not there was an aircraft carrier group in port. Presence of an aircraft carrior group meant fewer Pisos to the dollar, by at least 10% [at least when I noticed it, back in the mid 80's].

Currency speculators could've made a killing by simply paying attention to where the ships were headed. And probably DID.

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Re: Bitcoin is bound to collapse in value prior to this date

That makes sense - you have a bunch of sailors coming ashore who have a month or two worth of paychecks ready to spend. First thing they will do is exchange some dollars. If I owned a currency exchange within a mile of the port I'd damn sure adjust my exchange rates before they came in.

I imagine the local 'entertainment' adjusted their rates when the sailors came in, too. Supply and demand!

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Sounds like they've been taking notes from Microsoft on how to roll out an upgrade.

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Does anyone actually use Bitcoin for anything legitimate?

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I've had it offered to me for software development and know that some people in some countries prefer it because they worry more about access to their bank accounts being frozen than about the exchange rate risks.

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That leads me to wonder why they're worried their bank account might be frozen?

Bitcoin's value once collapsed from $1,500 to $100 in two days. That's quite a high risk. Plus it's so volatile that the price can fluctuate by a few dollars each time a coin is sold for cash - which is a similar (or higher) cost than you pay for changing currencies. And $100 in a day shifts happen quite often.

Obviously if you're getting paid in Bitcoin, then it makes sense to use them for what you want. But that huge volatility is very expensive compared to the stability of almost any currency you care to name.

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Anonymous Coward

Venezuelan bolívar?

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This post has been deleted by its author

Anonymous Coward

See the mess that happened in Cyprus a few years ago, with bank accounts frozen for a couple of weeks & money effectively stolen from them by the government.

(Ok, the government called it a "tax" on all accounts with the two main banks, which were both on the verge of going bust before the government stepped in. But no-one had ever imposed such a "tax" before or even discussed such a thing. And the government had guaranteed that bank balances below a certain amount (100,000 Euros) would be 95% guaranteed even if the bank went bust, and the "tax" broke that guarantee. The government eventually partly backed down because of that, and only "taxed" people with more than the guaranteed amount. But it's still a scary precedent).

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nk

That's like asking does any one use the internet for anything other than porn?

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Obviously if you're getting paid in Bitcoin, then it makes sense to use them for what you want.

The currency risk explains why Bitcoin is better considered a means of payment than a currency but there are plenty of places where people will prefer the currency risk over currency controls, retrospective taxes, bribes, etc.

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Misleading Title

Title makes it sounds like all BitCoins would disappear from everyone's wallets, a little misleading to be fair :-/

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Re: Misleading Title

So a typical El Reg headline then?

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All cryptocurriences are a huge fraud made by bankers!

All cryptocurriences are just a huge fraud created by bankers to steal money and help criminals.

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Anonymous Coward

Re: All cryptocurriences are a huge fraud made by bankers!

<Citation please>

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Wow, this fills me with confidence about the future of Bitcoin! I love holding currencies that might be unreliable for an indeterminate amount of time.

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You may lack the experience of "real money" melting away from your wallet in value month after month, year after year, slowly or rapidly. If so, count yourself lucky. DO NOT take it for granted.

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Inflation, as long as it's predictable and not outrageously high, can be planned for. Crashes in value are a much tougher problem to deal with. How do you set the interest rate for a loan in a currency as volatile as Bitcoin? You don't know in a year if it'll be up 20% or down 50%. Similarly, you can't quote prices that are good for any length of time, unless you quote them in a more stable currency and do the exchange rate math each day.

Whether this matters depends on whether we're talking about a commodity to be used as an investment, or a currency to be spent. People won't spend something that's increasing in value; they'll hoard it instead. This is fine in an investment but not great if you're creating a currency you want to circulate.

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WTF?

continuing demand for bitcoin

As managed by the number of marks who get infected by ransomware, a proportion of whom will choose to pay the ransom and so have to buy in. Bitcoin is a managed currency, where 3 factors: mining, anonymisation and demand management are all likely to be in the hands of those controlling the biggest botnets for various technical and cost reasons. So this impending fork probably won't change the game much, though might leave cybercriminals 2 different payment options. Governments blocking the $conventional for Bitcoin exchanges as money laundering accessories would do that, by making it impossible for marks to pay ransoms, making Bitcoins worthless overnight.

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Re: continuing demand for bitcoin

It's essentially a fiat currency that geeks trust because it's controlled by a cartel of other geeks, when you get down to it.

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Joke

"... warned that any Bitcoins received after Monday, July 31, 2017 at GMT-0700 may vanish into thin air ..."

Bit like those very, very shiny gold coins some wizards (or indeed wizzards) would give you in payment

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Coat

It's not unique to Bitcoin

Why every month a see a reasonable sum of money in my bank appear, but by the next day, most of it has mysteriously vanished..

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Bah!

It's one way of dealing with Wannacry I guess ...

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I didn't understand most of the content of that article. What I also don't understand is why bitcoins are worth anything at all. It sounds unreliable, and it fluctuates too much. And the one time I tried to buy bitcoin I found it to be the most fiendishly complicated thing to do. And time consuming.

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Congraulations

You made me actually check it was not April 1.

The acronyms are almost unbelievable...

UASF = U Are Simply Fucked

SEGWIT = Dimwit

BIP= Bloody Impossible (to) Prove (anything)

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Check out furcoins, there you can buy or sell bitcoins without stress!

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