The BitCoin Prophecy

[To0]

The BitCoin Prophecy posted by To0 @ WJunction.com on 6/18/2013

I started learning about the BitCoin a few months ago when my buddy Wau had spoken to me about it. He sent me a message one day and said "Hey To0, so what do you think about BitCoins". That initial question turned into an hour long conversation - of which we have had many more since then regarding this initial conversational point. From that day forward I lead myself down a path of mystery. Trying to figure out just exactly what being a BitCoin Miner meant, why the BitCoin had true value, and what the longevity and future of this currency looked like. What I discovered and ultimately determined has been proclaimed the BitCoin Prophecy. For those of you thinking of investing into this digital coin, just wait a second. Before you decide to spend your savings or child's college fund on this venture, I urge you to please read this article first. Everything that sounds to good to be true - usually is, especially something that isn't worth anything...

Common questions covered in the BitCoin Prophecy:

• What exactly is a BitCoin?
• Is a BitCoin real?
• What exactly is the BitCoins value based on?
• When will BitCoin Fail?
• How will BitCoin Fail?
• Why will BitCoin Fail?
• What is a BitCoin Miner?
• Who created BitCoin?
• When was BitCoin Created?

What is a BitCoin? A Bitcoin also known as "BTC". Is the newest digital currency taking the world over by storm. They are on a p2p (peer-to-peer) network which is not managed. Each coin is in eight decimal places, there are over 100 million units of a bitcoin, each of these smaller units are called "Satoshis". Coins can be transfered immediately via the computer, smartphone, tablet and any other device that posesses internet connectivity.

Who created BitCoin? Nobody knows this answer for certain. The creator(s) of BitCoin have been extremely secretive about releasing who they are. The owner goes by the alias (fake name) of Satoshi Nakamoto. This name is just a made up one. Some people believe that the actual creators name is Shinichi Mochizuki. Then again once can never be certain. Hidden in mystery is truly the creator of the BitCoin and for good reason.

What is BitCoin currently worth today? As of today 6/18/2013. The BitCoin is worth: 1 Bitcoin = $107.00.

What makes the BitCoin Valuable? The BitCoin is only worth what you think it's worth or what they are saying that it's worth. This commodity is based on absolutely nothing. Not on food, not on water, not on gold or silver or any other precious metal, not on a nations economy, it's based on nothing. The BitCoin is only worth what "they" tell you it's worth.

What is a BitCoin Miner? Many people wonder what exactly a BitCoin Miner is, how it works, and what it takes to become one. Little do they know is that in some cases being a Miner is highly illegal, or doing it the legit way could entail costing upwards of $30,000. Mining, or generating, is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to respend coins that have already been spent elsewhere.Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block.

Here is a BitCoin Miner available for purchase on eBay: http://www.ebay.com/itm/ButterflyLa...165?pt=LH_DefaultDomain_0&hash=item1e7eea96f5
Butterfly Labs Website: http://www.butterflylabs.com/

The BitCoin Illusion: The BitCoin is enjoying a great recent surge of success. The United States Government went on the record and acknowledged the BTC as a valid trading currency and that individuals used to wager against the USA would be exposed to any normal regulations such as "Money Laundering". The one thing that people fail to realize here is that a currency, just as anything else in this world, can be created - from nothing. In most cases, creating a currency from nothing, has to be backed by something, other than the sheer will of the people who want to see it succeed or who use the program. At the end of the day - people aren't going to trade you a loaf of bread for a digital BTC. They are going to take your silver, gold, or a bank note over anything that has to do with absolutely nothing. There are many experts and articles, professionals, economists who have gone on record that the BitCoin is the real deal and here to stay. They should be ashamed of themselves for saying such a thing. If history has taught us anything, it's that nothing is for certain, currencies rise and currencies fall. This is one currency that once it starts to drop, it's never going to recover. You have to understand that the reasoning behind the BTC's owner remaining a mystery is to protect himself. To protect himself from the fraud, from the scam, from the inflation that will ensue. There is absolutely nothing in place to stop this owner or his partners from flooding the market. No matter what you read as a "cap" level being set. It doesn't mean anything. This BitCoin is worth absolutely nothing in real terms. When times get tough, you can't possible trade a digital BTC for anything, let alone a piece of paper with George Washington's face.

The BitCoin Prophecy: This is where it takes understanding. There are thousands of articles proclaiming that the BTC is here to stay and how good of an investment it is. At any given time you can research the BitCoin and see that there are millions of dollars being invested (or as I like to call it, burned and thrown to the wind) into this currency. There are plenty of risk takers out there who want to be a part of something new - the movement if you will. However, all of these people who have jumped onto this bandwagon have gone crazy. First off. The BTC is the most insecure & unprotected investment that anyone could ever hope to make. I'm not talking about stealing coins out of wallets, I'm not talking about creating a new virii for the masses. What I am talking about is the simple fact that you as an investor of BitCoin don't even know 100% who the owner of the company is. The BitCoin will fail, and it will happen quickly and swiftly when it does. It's not backed by anything, no country claims it as it's currency, it's not part of any global economic power, it doesn't have an army, and doesn't use real funds. It's a made up fantasy land for get rich quick people who use fake names as owners of the company. Within 12 months or less, this operation will be fully exposed. Mark thy words.

The Truth about BitCoin: The truth about this commodity, this digital currency, is that it is just temporary. It's technically worth nothing. If your holding on to any of these, you need to get rid of them now before it's too late. The BitCoin was devised to excel above the rest. A plan was put in place to create a currency that operated free of charge, transparently and without any central monitoring. This is all a great and beautiful sounding plan. The the thing is - the BitCoin owner/developer and associates have been rewarded handsomely, just as intended. In the end, this is nothing more than your typical Get-Rich Quick Ponzi scheme. The only difference is that people are so motivated by this that they have forgotten the most important thing. The BitCoin doesn't link to your bank account, it isn't backed by Gold or Silver or even so much as a piece of tissue paper. The value of this coin is only what they say it's valued at. When times get tough, I'm not going to sell you a loaf of bread for a BitCoin, but I'll happily take some Silver or Gold. Why invest in nothing when you can invest in something?

What the rich & powerful don't want you to know about BitCoin: People all over the world are making a ton of money off of the BitCoin right now. The majority of the big bucks is being made by individuals who have falsely inflated this currency. One thing everyone needs to understand is that the BitCoin is very much like any Stock Market. If there are 200,000,000 shares purchased of a company instantaneously that stock price will increase dramatically. While there is a rush to purchase these, the prices are being driven up. There are automated machines, programs and corporate companies that have falsely inflated this beast and have been raking in the profits every single step of the way. And lastly, just like LibertyReserve, BitCoin is no different. It will have to adhere to the laws of the world and already we are seeing a trend with criminals and the underground resorting to the BitCoin to make transactions. The clock is ticking, it's only a matter of when.

Real true alternative investments to BitCoin: If your looking to invest into BitCoin, for the love of God please don't. You can make some much wiser, safer decisions. One of them being to establish a Roth IRA. Setting one up is simple and it's completely tax free - just like BC. If your looking to make some money, setup a 401k. Anyone can have a 401k and your money will go into markets that are almost guaranteed to see increases - such as food, and so on. Investing your money into nothing, an imaginary coin, that is weightless, is the worst thing possible. There are many true alternatives when it comes to investing - stay away from the BC. Put your money into something real, anything that is tangible.

The Prophecy: What is going to happen is one day you are going to go to sleep with a $107.00 BitCoin. Then your going to wake up and have something that is worth $0.01 (if your lucky). The BitCoin is a falsely inflated, self induced currency. It simply cannot and will not sustain. This imaginary bubble, this imaginary coin, your E-Wallet is going to wither into non-existence and with it will go your hard earned time and real money. Good luck to any of you who dare to stick around when this thing burns like chernobyl. It'll happen and sooner rather than later.


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For WJ Quiz Night:
Decode this to find your question : IFdoYXQgd2FzIGNvZGVuYW1lZCAiUHJvamVjdCBOYXRhbCIsIGJ5IE1pY3Jvc29mdD8g

 

[ACE]

Wow, I read the whole thing. It's interesting.

Long story short, the BitCoin is just a made up currency and can be inflated or deflated at any time. Just like Liberty Reserve, Bitcoin is already attracting underground transactions and will eventually lead to the fall just like Liberty Reserve. Also don't invest your money in BitCoin.

 

[cvrle77]

LR was centralized so it can 'fall'. Not sure how do you see bitcoin failing. Its not the problem with the currency, people use dollars to do same thing.

 

[Rox]

BTC is virtually inflated/deflated without any real backing. Real world currencies are backed by gold reserves and hence BTC is not stable at all.

 

[cvrle77]

Not really. Dollar is backed up by Americans faith in their currency = thin air.

edit: wow, gov domains censored?

 

[Rox]

Not really. Dollar is backed up by Americans faith in their currency = thin air.

edit: wow, gov domains censored?

:facepalm: Real currencies are backed by gold reserves.

 

[DmC]

:facepalm: Real currencies are backed by gold reserves.

The US dollar is not backed by gold, it hasn't been backed by gold for years now. Nor is the euro backed by gold.

No currency in the world is completely backed by gold. One of the major reasons for this is that the price of gold fluctuates a lot which creates uncertainty about the true value of a currency. If something is 100% backed by gold then the value of that currency will fluctuate continuously causing problems in every scope of life.

 

[To0]

Not really. Dollar is backed up by Americans faith in their currency = thin air.

edit: wow, gov domains censored?

At least the US Dollar has the world's largest economy behind it...

The BitCoin has absolutely nothing. Do you remember a few years back when BitCoin had a crippling universal hack on their systems that reduced the overall value to less than $0.001? You can't hack a countries currency.

The hackings, disruptions etc, continue to happen, year after year. It's only a matter of time before it happens again on a more severe level. This currency is nothing more than another Liberty Reserve. The only difference is that it's not banking anything of true value, ie; Country Currencies, Gold, Silver, Copper, Paper, Soil, Water, Gas, Marbles, Marshmellows, Roses, etc.
http://www.guardian.co.uk/technology/2013/apr/10/bitcoin-new-high-losing-160

 

[blkhtr007]

Actually the U.S. economy is the 2nd largest economy,the EU is about 5.7% larger.

A currency doesn't need to be backed by gold, gold is worthless unless their is demand for it. If people have demand for a certain currency it makes it valuable which makes it pointless to have a gold backup.

 

[Harvick]

How exactly is a bitcoin worth $107USD? I get the inflation/deflation of it all and glad I found this, but that seems like a crazy amount for digital currency. I saw a craigslist ad for a guy wanting to sell his 3 bitcoins for $400, the post was later deleted so he may have gotten it. Anything digital can be hacked, so yeah, definitely not a good investment these are.

 

[serveric]

I am active in bitcoin/litecoin, generally cryptocurrencies for nearly one year, the movement of bitcoin price was like HUGE! you can check in in mtgox or campbx, bitcoin idea is a revolution, but it need a long time and more government support and as you can guess there is no government support and they can't regulate it, bitcoin backed by it users and bitcoin peer to peer network!
understanding cryptocurrency concept is a little bit tricky and new people need to do lots of reading before they can trust what is happening in the network but after that it seems very awesome and real even more real than $, believe me :D
after all bitcoin real purpose is making online payment easy and it can do this job but it need more time!

for the record i accept bitcoin if anybody here want to do business in bitcoin

Thanks
Dan

 

[tres]

No currency is backed by gold these days. The fed is pumping trillions of stimulus money. Why do they print so much money?. Because money's value is supported by faith nothing else. They don't need to have gold to back up that money.

 

[blkhtr007]

Gold's value is also supported by people's faith in it.

 

[To0]

No currency is backed by gold these days. The fed is pumping trillions of stimulus money. Why do they print so much money?. Because money's value is supported by faith nothing else. They don't need to have gold to back up that money.

At least our currency is backed by one of the worlds largest economical powers.

The BitCoin is backed on nothing other than faith in a system that people pray will work.

Another problem is there is a government (USA) that will strike swiftly the moment that BitCoin becomes an interference, or when they become bored in the Cyber Crimes field in Alexandria. There are also millions of other possibilities with this currency.

You have been warned.

 

[Smith]

Excellent, unique and well-written article To0! (someone give this guy a medal)

Ontopic: Over the past months I was also reading, researching and decided not to go for it.

From my point of view, it's some sort of a bait. It starter as low as 2-3 bucks, now it's above 100. Whoever got in whole BitCoin thing early and cashed in when BTC reached high value, high five to you. I think there is still a nice window to make some cash on BTC but it's a lot more risky now (10 BTC's will cost you over $1K).

 

[quain88]

i read the whole thing too thats why i see this

for the love of god

im sorry but for all kind of mistake i can consider, this one cant be of bear to me, it is suppose to be:

for the love of God

anyways, that was a good read, for me Risk is always part of the Life, just dont risk it all. Its the same as why do we use Paypal and online Cyber accounts if it went bankrupt, its nothing worth of even a piece of a rock, or if they prefer to run, you cant get what your suppose to get.

over all, if you love risking ,go for it but dont risk it all, there is no venture that doesnt have a risk

 

[To0]

Difference is that PayPal, ePassporte, and so on all are using Global Currencies of which is backed by the Economies of a Country.

BitCoin has no country, economy, no tangible, no nothing to back up it's value.

 

[blkhtr007]

But if people have faith in bitcoin than it doesn't need anything to back up its value.

 

[Loget]

Sorry for the bump. This is an interesting discussion and I really wanted to contribute to it.

What makes the BitCoin Valuable? The BitCoin is only worth what you think it's worth or what they are saying that it's worth. This commodity is based on absolutely nothing. Not on food, not on water, not on gold or silver or any other precious metal, not on a nations economy, it's based on nothing. The BitCoin is only worth what "they" tell you it's worth.

In answer to your question, it's valuable because other people agree it's valuable. You can question why people consider them to be valuable, the same as you could for why gold is considered valuable, but that's beyond the scope of this discussion.

At the end of the day - people aren't going to trade you a loaf of bread for a digital BTC. They are going to take your silver, gold, or a bank note over anything that has to do with absolutely nothing. There are many experts and articles, professionals, economists who have gone on record that the BitCoin is the real deal and here to stay. They should be ashamed of themselves for saying such a thing.

Some people aren't going to trade you a loaf of bread for Yuan either. Naturally you would only trade with other people who consider Bitcoin to be valuable. If you wanted to switch to the "other" money that some other bunch of people consider valuable, you'd exchange it.

If history has taught us anything, it's that nothing is for certain, currencies rise and currencies fall. This is one currency that once it starts to drop, it's never going to recover. You have to understand that the reasoning behind the BTC's owner remaining a mystery is to protect himself. To protect himself from the fraud, from the scam, from the inflation that will ensue. There is absolutely nothing in place to stop this owner or his partners from flooding the market. No matter what you read as a "cap" level being set. It doesn't mean anything. This BitCoin is worth absolutely nothing in real terms. When times get tough, you can't possible trade a digital BTC for anything, let alone a piece of paper with George Washington's face.

You throw out these predictions that aren't really based on anything other then raw emotion. People who got in early and hold $1M+ worth of Bitcoin aren't going to flood the market (thereby reducing the price) and undermine their own wealth, they'll cash out in small amounts, or not at all.

The BTC is the most insecure & unprotected investment that anyone could ever hope to make. I'm not talking about stealing coins out of wallets, I'm not talking about creating a new virii for the masses. What I am talking about is the simple fact that you as an investor of BitCoin don't even know 100% who the owner of the company is. The BitCoin will fail, and it will happen quickly and swiftly when it does. It's not backed by anything, no country claims it as it's currency, it's not part of any global economic power, it doesn't have an army, and doesn't use real funds. It's a made up fantasy land for get rich quick people who use fake names as owners of the company. Within 12 months or less, this operation will be fully exposed. Mark thy words.

Bitcoin isn't a company. There is no owner. It's an open source program that implements a peer to peer currency and as a result there is no centralized control. You should go and read the paper that describes its architecture.

This is all a great and beautiful sounding plan. The the thing is - the BitCoin owner/developer and associates have been rewarded handsomely, just as intended. In the end, this is nothing more than your typical Get-Rich Quick Ponzi scheme. The only difference is that people are so motivated by this that they have forgotten the most important thing. The BitCoin doesn't link to your bank account, it isn't backed by Gold or Silver or even so much as a piece of tissue paper. The value of this coin is only what they say it's valued at. When times get tough, I'm not going to sell you a loaf of bread for a BitCoin, but I'll happily take some Silver or Gold. Why invest in nothing when you can invest in something?

I disagree. Bitcoin has been shown to do well when "times are tough", people like the idea of money that can't be controlled by any government or central bank. Look into what happened in Cyprus when the government there decided to try and seize a percentage of money from the accounts of all depositors to fund their bailout. People turned to Bitcoin to protect their wealth (which contributed to Bitcoin prices increasing).

The Prophecy: What is going to happen is one day you are going to go to sleep with a $107.00 BitCoin. Then your going to wake up and have something that is worth $0.01 (if your lucky). The BitCoin is a falsely inflated, self induced currency. It simply cannot and will not sustain. This imaginary bubble, this imaginary coin, your E-Wallet is going to wither into non-existence and with it will go your hard earned time and real money. Good luck to any of you who dare to stick around when this thing burns like chernobyl. It'll happen and sooner rather than later.

Not saying your "prophecy" can't happen, I just think it's unlikely. Will Bitcoin's price fall to something more sensible? Probably. Will it crash and burn like you say? I doubt it.

 

[To0]

In answer to your question, it's valuable because other people agree it's valuable. You can question why people consider them to be valuable, the same as you could for why gold is considered valuable, but that's beyond the scope of this discussion.

Why is it beyond the scope of discussion? Just because people want or think the BitCoin to be worth something, doesn't mean that it actually is. The want and the will of the people (minority) will not sustain the BC.

Some people aren't going to trade you a loaf of bread for Yuan either. Naturally you would only trade with other people who consider Bitcoin to be valuable. If you wanted to switch to the "other" money that some other bunch of people consider valuable, you'd exchange it.

I agree with you on this 100%.

You throw out these predictions that aren't really based on anything other then raw emotion. People who got in early and hold $1M+ worth of Bitcoin aren't going to flood the market (thereby reducing the price) and undermine their own wealth, they'll cash out in small amounts, or not at all.

Well last part of this "Not at all" is absolutely wrong. How you can think that people are just going to sit back and not get their money is incredible to me. If I bought 1,000 BC's for $1,000 and could cash them in for a Million today, I would cash them in, maybe slowly and surely or maybe all at one time, that's to be determined, I'm certainly not going to sit on my hands and wait for the value to go up or down anymore, I've made a killing. So thinking that someone might not sell them at all, isn't even a reality. My predictions do have emotion to them, but they are at least backed up by facts and the nature of this currency and way that it operates.

Bitcoin isn't a company. There is no owner. It's an open source program that implements a peer to peer currency and as a result there is no centralized control. You should go and read the paper that describes its architecture.

I know it's not a company, but it does have a creator, an individual responsible for it's creation. That person - or persons - who created this have never gone to the public announcing that they were the ones that created it. I mean, just think about it Loget. If you created something worldly known on the scale such as BitCoin wouldn't you claim your creation? That there in itself is an immediate red flag.

I disagree. Bitcoin has been shown to do well when "times are tough", people like the idea of money that can't be controlled by any government or central bank. Look into what happened in Cyprus when the government there decided to try and seize a percentage of money from the accounts of all depositors to fund their bailout. People turned to Bitcoin to protect their wealth (which contributed to Bitcoin prices increasing).

BitCoin has done surprisingly well since it's launch. There's been some hiccups and set backs, but over all the BC is doing much better than anyone expected. However, it's a currency that was there, that not many people knew about, that just started steam rolling. The majority of the value of the BitCoin is in balloon form at the moment. That value will not and cannot sustain and it will pop momentarily. Once it does, you will remember this paragraph I have typed.

Not saying your "prophecy" can't happen, I just think it's unlikely. Will Bitcoin's price fall to something more sensible? Probably. Will it crash and burn like you say? I doubt it.

Price will fall alright. Here's exactly what's going to happen Loget. Price is going to start to decline on the BitCoin, first it will be a modest double digit decline, investors or people holding on to large sums of BitCoins will get nervous at the steep decline and you will see people start to shell out the BitCoins in a last effort attempt to make the money that they knew they should have made 20 points ago. What happens as a result of this is it drives the price down even further. See the way that this system is designed is a very shallow and fragile one. In one split second the BitCoin could literally be worth less than $1 again. I don't see how people can't see what's going to happen. All it will take is a major hack on the network, Government threats of shutdown or intervention, or a world-wide Economic crises. At which point the BC cannot and will not stand, it will be the very first thing in the world that people try to get rid of. There are less than 0.03% of Businesses world wide that accept BitCoin and not a single Government is using it as their standard currency. Once the rush happens, BC goes down in flames as I have said. It'll start off as gradual, then speeds up until it becomes an irreversible spiral downwards, a complete collapse of the system. Could it come back from that? Absolutely not.