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There are some startups that are betting EVERYTHING on the power of Bitcoin. If investors are right and Bitcoin is here to stay, some of these startups may one day be valued in the billions rather than millions.

Check out these startups: http://on.mash.to/157hi2s
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John O'Connor's profile photoAlex Biondo's profile photoMarc Lane's profile photoBrian Newman's profile photo
38 comments
 
I think in the years to come bitcoins may well and truly be the universal currency. (If not 'the' then one of the major ones)
 
Im sure there will be people who make a killing suckering libertarians out of their gold allowances. Bit-coin fails as a currency because its yield-less, credit-less, there are no debt instruments, the exchanges aren't actually exchanges but dealing desks, while it might be anti-inflationary by design, its also incredibly anti-growth. It offers nothing that a precious metals denominated savings/debit account can't aside from anonymity, and for me, small bills work just fine.

During the dot-com era, there were two or three competing digital currencies, none of them survived.

In the long run, bitcoin will always fall victim to true exchange markets with yields, and will ALWAYS be the other side to a carry trade, if futures and credit ever become available in bit-coin.

Additionally, there are Commitment of Trader reports for all major markets. This open information is critical to positioning. Bitcoin, by design, can't tell you who is cornering the market, what sort of price depth there is or available liquidity. by design.
 
It's a commodity. It may be an imaginary one, but look at the futures market: that's all about trading imaginary goods. 
 
All fiat currencies have ended up having use by dates and from the looks of things, our current ones' days are numbered. A lot of people are feeling that way. Hence Bitcoin's popularity. Personally, I like gold - as in real gold.
 
+Brian Newman Although speculative contracts are offset, about 30% of contracts end up in delivery.
+Rob Schneider Exactly, what good is gold if its just a paper issuance?
 
The futures market is most certainly NOT about trading imaginary goods.  It's likely the purest market there is (financial futures being the exception of course).  Stock and options on the other hand....
 
+juan alderete Fair enough, though all currency really is just an imaginary agreement, and bitcoins are no different there. They're just uninsured. 
 
Interesting timing for the article since bitcoin news yesterday was about how the pricing had crashed and they devalued drastically. 
 
+James May The difference between futures and options is the existence of a strike price, im not sure how you can say commodity and financial futures are pure, but commodity or financial options that clear through a clearinghouse are not?
 
+Brian Newman Its not so much imaginary as representative. Currency, in this day, refers to the ability of a country to service its bond obligations. Thus, currencies produce yield, based on some basic lending rate. 

Bitcoin has no yield, so there is no backward or forwardation, no yield curve.
 
Stock is a bullshit paper.  Commodities such as pork bellies, oil, gold etc are real.  That was my point.
 
folks dreamt of a WTC in NY... some fossil fuel commodity linked gangsters imagined heaven w virgins there... who's much diff than the other at end of each day...
 
The time of inflationary currency and debt based economy is over. Bitcoin fills the space between worthless state run currencies and impractical gold. Is it the right formula at the right time ? I do not know, but the time of state controlled money supply is coming to it's end, and just that creates value in bitcoin. With all the infrastructures being set up  it's value expands. A bust like the recent one will continue to happen, but it's extend will become lower and lower as the amount of speculators gets overtaken by the amount of investors. 
 
+Tomasz Rakowski Im curious how you answer the yield and debt criticism I discuss above? If bit-coin has to be eventually become asset backed, then it doesn't need its anti-inflationary mechanisms. If its not asset-backed, why would anyone use bitcoin based debt instruments? If there are illiquid and few debt instruments, then there is no yield curve. If theres no yield curve, the currency only holds useful as an anon exchange method, not a longterm store of value. If its not a long term store of value, then isn't just as bad as fiat money?
 
This was all started by a Japanese economist who believed that cuurency should be based on the old trade and barter systems of the ancient past. Would be interested to see how governments will tax this. If the currency system is not managed by a central bank the governments can't control it. What a Novel idea. 
 
Well, I think that the way forward is to let go of all that we may know -- or think we know -- about what makes a currency 'successful'.

"Problems cannot be solved by the same level of thinking that created them."

In otherwords, it's time to let the dead bury their dead and get on with reality in 2013.
 
+juan alderete, certainly I can't, but the market can. It's safe to say that it probalby won't, hence, the stale status quo perpetuates itself via tradition, familiarity, and fear.

It's one thing to know the path. It's another thing altogether to expect the masses to embrace what's known if it deflates their own aspirations of greed, profit, power, control, etc.

I know :)
 
+Radu-Alexandru Grigorescu, I'm intentionally vague because the simple truth is this: people who are ready for a change of perspecitve will organically realize it; those who aren't are, generally speaking (and, no offense to you) looking for something to fight about :)

If/when you're ready to get it, you will. Until then, nothing that I might say is likely to do anything but bristle what you already believe/think/know :)
 
+Richard Harlos the system is fucked, thats simple to see.
thing is we dont have anything better which would actually work IRL to replace it.
can i atleast have a link to get an idea what you are talking about(as long as it doesnt sound like marxism, im ok with anything). 
 
This is the first im hearing of this... what is it exactlly...I did a Google search and I feel like there baseball cards and people trade them lol
 
@wyatt Speciousness bores. Say something.
 
How can a currency that has no tangible backing be a currency?
The U.S. Dollar is backed by the worlds largest GDP.
What gives bitcoins value? What stabilizes them in bad economic times? NOTHING!
Its a scam. The boys at the top get rich. And the slobs who own a couple of bitcoins, will be wiping their butts with them!
 
+Christopher Helmstetter wrote, "Its a scam. The boys at the top get rich."

I think you're talking about the U.S. economy and class warfare as it exists today :)
 
Starting to sound just like the other currencies.... 
 
+Richard Harlos and what the people running Bitcoin are our saviors? What kind of crack are you smoking? What I know to be a FACT. Is that after the 1929 crash. Safeguards were put in place. And in 2000 it was quietly overturned. Allowing the greedy slobs who run the banks AND Bitcoin to do whatever they want unfettered by the big horrible awful government.
Spare me your bullshit. Deregulation is what has caused our economy and system to become unbalanced.
As greasy as the Federal Reserve Bank is. It is still worlds above Bitcoin who will not even admit to who writes the code behind them.
Go back in your conspiracy ridden Hobbit hole smeagol. 
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