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 Post subject: ECB Publishes Report on Virtual Currencies
PostPosted: Sun Nov 04, 2012 11:24 am 
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Really interesting report from the ECB this week about virtual currencies.

http://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdf

They admit that virtual currencies could displace fiat currency and threaten the central banks control over society.
ECB wrote:
"virtual currencies could have a substitution effect on central bank money if they become widely accepted. The increase in the use of virtual money might lead to a decrease in the use of “real” money, thereby also reducing the cash needed to conduct the transactions generated by nominal income. In this regard, a widespread substitution of central bank money by privately issued virtual currency could significantly reduce the size of central banks’ balance sheets, and thus also their ability to influence the short-term interest rates."


Most of the report seems to be about Linden Dollars and Bitcoin, about which they say this:
ECB wrote:
"The theoretical roots of Bitcoin can be found in the Austrian school of economics and its criticism of the current fiat money system and interventions undertaken by governments and other agencies, which, in their view, result in exacerbated business cycles and massive inflation."

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"The theoretical roots of Bitcoin can be found in the Austrian school of economics" - ECB report on virtual currencies


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 Post subject: Re: ECB Publishes Report on Virtual Currencies
PostPosted: Thu Nov 08, 2012 8:25 pm 
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Homeless

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Looks like the ECB was watching The Good Wife on RTE



http://www.youtube.com/watch?v=SohEf5dF45g

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"The theoretical roots of Bitcoin can be found in the Austrian school of economics" - ECB report on virtual currencies


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 Post subject: Re: ECB Publishes Report on Virtual Currencies
PostPosted: Thu Nov 08, 2012 8:49 pm 
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Property Magnate

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http://www.theregister.co.uk/2011/06/08/bitcoin_under_attack/

Bitcoin has also been criticized as having the characteristics of a Ponzi scheme.

New users acquire the currency by running the software on their computers, and occasionally “striking it lucky” when they discover the number of the next Bitcoin to be issued.

Over time, the Bitcoin algorithm is designed to slow down the rate at which new Bitcoins are issued – which means early adopters were able to amass more coins more quickly than today’s user; and, if the network continues to grow, today’s user will amass more of the currency than someone who joins the network two years from now.

This gives all current users a vested interest in promoting the system to the next round of participants.


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 Post subject: Re: ECB Publishes Report on Virtual Currencies
PostPosted: Thu Nov 08, 2012 9:38 pm 
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estarmam wrote:
http://www.theregister.co.uk/2011/06/08/bitcoin_under_attack/

Bitcoin has also been criticized as having the characteristics of a Ponzi scheme.
Only by people who dont understand it.

The article you link to is 18 months old. If Bitcoin were a ponzi, it would have collapsed by now. Instead bitcoins are trading at €9.

Bitcoin is not a ponzi scheme because it is not an investment. Read the ECB report. The ECB clearly says its a virtual currency. If it were a ponzi scheme the ECB would have said that.

http://www.ecb.europa.eu/pub/pdf/other/ ... 1210en.pdf

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"The theoretical roots of Bitcoin can be found in the Austrian school of economics" - ECB report on virtual currencies


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 Post subject: Re: ECB Publishes Report on Virtual Currencies
PostPosted: Sat Nov 17, 2012 12:32 am 
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Posts: 87
estarmam wrote:
This gives all current users a vested interest in promoting the system to the next round of participants.


There is no "next round of participants". Once you've tried Bitcoin and seen how useful it is you won't want to swap them for euros.


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 Post subject: Re: ECB Publishes Report on Virtual Currencies
PostPosted: Sat Nov 17, 2012 8:02 am 
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InflationIsTheft wrote:
estarmam wrote:
http://www.theregister.co.uk/2011/06/08/bitcoin_under_attack/

Bitcoin has also been criticized as having the characteristics of a Ponzi scheme.
Only by people who dont understand it.

The article you link to is 18 months old. If Bitcoin were a ponzi, it would have collapsed by now. Instead bitcoins are trading at €9.


The duration to the collapse (, or the non occurrence of such collapse as yet) of a ponzi scheme does not imply that it is not a ponzi scheme.
:nin

Now, where's my doubloons and soverigns.

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 Post subject: Re: ECB Publishes Report on Virtual Currencies
PostPosted: Sat Nov 17, 2012 12:29 pm 
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Wordpress announced yesterday that they are accepting payment by bitcoin. They are the 22nd most popular website in the world. They host 58 million websites worldwide.

http://www.americanbanker.com/issues/17 ... 417-1.html

People on this forum who still claim bitcoin is a ponzi scheme are starting to look like fools. Bitcoin is the most significant invention since the google search engine.

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"The theoretical roots of Bitcoin can be found in the Austrian school of economics" - ECB report on virtual currencies


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 Post subject: Re: ECB Publishes Report on Virtual Currencies
PostPosted: Sat Nov 17, 2012 12:41 pm 
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I must admit I am getting very curious about bitcoin. Might give it try. I like anything that offers anonymity, an increasingly rare commodity.

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 Post subject: Re: ECB Publishes Report on Virtual Currencies
PostPosted: Sat Nov 17, 2012 12:48 pm 
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Joined: Sep 29, 2010
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Location: London, innit
InflationIsTheft wrote:
Wordpress announced yesterday that they are accepting payment by bitcoin. They are the 22nd most popular website in the world. They host 58 million websites worldwide.

http://www.americanbanker.com/issues/17 ... 417-1.html

People on this forum who still claim bitcoin is a ponzi scheme are starting to look like fools. Bitcoin is the most significant invention since the google search engine.

Stop changing your username. You're not fooling anyone with your spam. You're breaching the rules despite multiple warnings


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 Post subject: Re: ECB Publishes Report on Virtual Currencies
PostPosted: Sat Nov 17, 2012 12:54 pm 
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Old Time Landlord

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This doesn't sound good: http://allthingsvice.com/2012/11/16/wha ... silk-road/

Ulsterbank, all is forgiven.

Keeping what I have in cash under dogs basket instead.

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 Post subject: Re: ECB Publishes Report on Virtual Currencies
PostPosted: Sat Nov 17, 2012 1:13 pm 
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fireflynn wrote:
Online black markets are a very small part of the bitcoin ecosystem. Most drugs and contraband are bought and sold with euros and dollars, not with bitcoins.

There is a well funded propaganda campaign being funded by the credit card companies to smear bitcoin, because they fear that bitcoin is going to take market share away from them.

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"The theoretical roots of Bitcoin can be found in the Austrian school of economics" - ECB report on virtual currencies


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 Post subject: Re: ECB Publishes Report on Virtual Currencies
PostPosted: Sat Nov 17, 2012 7:09 pm 
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There is a thread on bitcoin. All comment on that and similar currencies are to be posted there, as previously advised to the OP.

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