Bits and Bigotry

After several embarrassments, Krugman makes another rather sad attempt to cover Bitcoin which according to him “is a digital currency that has value because … well, it’s hard to say exactly why”.

Indeed, he wouldn’t be amongst my favorite economic idiots if his ignorance on the “why” and in fact on the entire protocol, process, and purpose behind mining, were to keep him from boldly declaring that with Bitcoin “we are for some reason digging our way back to the 17th century”.

And just by the by: If someone tries to lecture me on the supposed “barbarism of gold” without showing me that he has had the capacity, rigor, or curiosity to do even the most basic research into the unspeakable and unprecedented genocides, world wars, civil wars, and destruction brought about by fiat money central banking systems, then I cannot possibly take that person serious for even just a second.

What an embarrassment for mankind to still have mental garbage of this kind roaming the web and how beautiful to see Bitcoin slowly but surely push it into complete and total irrelevance.

Just keep diggin’ that pit, Paul.

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My Response to Peter Schiff’s Bitcoin Video

First and foremost, I applaud Peter for coming up with an educated attempt to challenge Bitcoin, since most criticisms are usually leveled by clueless and embarrassing amateurs who probably take their economic advice from Paul Krugman and other modern day priests.

His argument boils down to one point: He claims bitcoin doesn’t have “intrinsic value”.

This surprises me, since as a fellow Austrian he should know that there is no such thing.

Value is by definition contingent upon external factors, namely where someone places it on his preference scale against other goods.

I believe what he’s TRYING to say though is that gold can still be used as jewelry if all fails, while Bitcoin has no other utility than for it to be used as a medium of exchange.

This argument can be quickly dismissed because even if I couldn’t use it as a medium of exchange I could still use it as a proof of ownership certificate (just to name one example), as can already be witnessed with projects such as Colored Coins and MasterCoin.

It’s still too early to say what other purposes Blockchain can be utilized for, but I would submit that the opportunities are literally infinite.

I’d be curious what he’d say if someone filled that knowledge gap for him.

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[BitFunder] IPO – BIT.ASIC – Professional Miners offer low entry price of 0.0084

We have recently launched a new Bitfunder asset, so full disclosure: I am involved with this asset. Here it goes:

https://bitfunder.com/asset/BIT.ASIC

We are a team of dedicated Bitcoin mining professionals and long time supporters of the crypto-currency movement with a strong passion for the Bitcoin community and big ideas for the Bitcoin market place.

We are looking to expand existing mining operations. We have been mining for nearly 2 years and have a significantly large “Private / Dedicated” server room infrastructure, with controlled personnel only access, equipped with dedicated power generators capable of handling massive power loads, UPS power backups for maximum equipment uptime and protection from power surges, a 4 Ton cooling unit to support a large scale mining operation.

BIT.ASIC Equipment Purchased:

BIT.ASIC operates ASIC Bitcoin mining equipment which results in mining Bitcoins for income.

We have purchased the following Bitcoin ASIC Mining Equipment:

Order no. 16897, pay-dated 1/18/2013, for 1 Butterfly Labs (5 GH/s Bitcoin Miner) (Purchased and Confirmed)

Order no. 100049260, pay-dated 4/2/2013, for 1 Butterfly Labs (30 GH/s Bitcoin Miner) (Purchased and Confirmed)

Order no. 100031677, pay-dated 4/2/2013, for 1 Butterfly Labs (30 GH/s Bitcoin Miner) (Purchased and Confirmed)

BIT.ASIC’s Offering:

BIT.ASIC’s offering is comprised of 100,000 shares in total. 1 share of BIT.ASIC on BitFunder represents 1/100,000th of 100% of the monthly profits after all expenses.

BIT.ASIC shares offer no voting rights. Shares of BIT.ASIC on BitFunder do not represent real world shares of the company. The shares are solely a distribution mechanism for rights to profits.

The funds from the IPO will be used for purchasing additional ASIC Miners, market and mining research, licensing fees, and other necessary needs for developing a large scale ASIC Mining operation. The funds will be invested in G.AsicMiner-PT on Bitfunder.com or other Bitcoin mining shares that pay dividends until the funds are needed for the above usages. The funds may also be used to purchase Bitcoin mining machines
from Butterfly Labs or any other manufacturer of Bitcoin mining machines or any other source of Bitcoin mining machines which will increase the dividends for investors.

Should the asset be sold or closed, the full amount of the purchase price, liquidated income, and any mining revenue not distributed will be evenly distributed to the 100,000 shares.

As long as BIT.ASIC requires less than 3 employees, no salaries will be paid as expenses, and are only paid as dividend payments.

Mining Expenses:

Expenses will only be charged for the following direct mining equipment expenses: Utilities, equipment maintenance and repair, mining equipment space rental, internet access, mining equipment systems administration and maintenance, mining pool fees, and any other necessary direct miscellaneous mining equipment operational expenses. Total mining expense will not exceed 10% of the annual gross revenue.

Dividends:

Dividends will be paid once a week.

Buyback Rights:

The issuer reserves the right to buy back shares at a price equal to 105% of the highest price the asset was traded for over the prior 7 days.

About the Issuer:

We are a team of IT professionals & business owners with expertise in the fields of server hardware / infrastructure and web engineering.

Alongside our ongoing mining activities, we recently launched http://bit.co.in which offers the crypto-currency community a free address shortener. This is a launch pad for many ideas we have for the developing community.

We are actively involved in the forums.

Feel free to contact us at:

Forums: coinminers
Email: [email protected]

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Mish, Salinas & Others on Bitcoin

Mish finally wrote his first post on Bitcoin :)

I consider this another milestone since he’s arguably one of the most influential economics bloggers out there.

A few things I wanted to point out about what he said:

I am neither a convert nor a true believer. I will stick to gold thank-you. I see things similarly to Ron Paul who said in a Bloomberg Interview “If I can’t put it in my pocket, I have some reservations about that.”

It’s a common misconception that you can’t “put bitcoin in your pocket”. You absolutely can. You can put your wallet on a flash drive and literally put it in your pocket.

Furthermore you can get actual physical bitcoins by Casascius. Personally I don’t see why you would other than as a bit of a gimmick, but hey, if you like it old fashioned, by all means go for it.

In addition you can of course make it a paper wallet which you can, if you so desire, “put in your pocket”.

Mish also quoted Hugo Salinas who as far as I can tell from his article doesn’t seem to know much about Bitcoin yet:

Let’s get this straight: real money has to be the commodity that is generally accepted by society as payment in full for goods or services received. Throughout history, the commodity most generally accepted in payment has been gold. Silver has taken the second place after gold. Gold and silver were chosen by humanity thousands of years ago, as the commodities with which to make payments.

Don’t get me wrong, I love gold as much as the next guy. But the whole article literally tries to stuff a revolutionary, disruptive technology into the conceptual box of the old payment systems we’ve known to date.

That’s fine. If everyone was on the bandwaggon already it would be way too boring, wouldn’t it?

But one challenge I’d have for Mr. Salinas (and you tell me who you think will be faster):

Let’s each order a brand new flatscreen TV anywhere in the world, I use Bitcoins, you use gold or silver, and we’ll see which of us finds a merchant faster, in other words which medium is “more generally accepted in payment”.

Ready…? GO!

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Bitcoin Symposium @ NH Liberty Forum Feb 23 2013

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