Have any of you ever heard of Bitcoin?

I have. It was covered in an article I recently read in a magazine, probably either Time or Harper’s. The whole idea gave me a very uneasy feeling.

I’ve been hearing about it for several years, but I still don’t understand how it is “mined” via computer networks linking more and more computing power to “mine” the coins via a shifting algorithm. (That is, the coins become more and more difficult to “mine” as more processing power is applied to extracting them from their randomized locations in the code they come from. This means, according to the nominal developer, that they will be produced more or less regularly, rather than glut the market and for that reason destroy whatever value they may be perceived to have.)

I love the idea, as much as I understand it. (I don’t quite understand the method by which the Fed produces money, either.) I do like the idea of “private currency”, because it seems inevitable to me that the dollar will collapse sooner or later, and it might soften the collapse somewhat to have other stores of value, including platinum, gold, silver and other precious metals, plus Bitcoin and whatever other competing currencies may be developed between now and then.

If you give me dollars I will be happy to exchange them for my own digital currency: “Gorillapesos” (minus a small transaction fee of course).

I’ve heard of it, but don’t understand it. My brother thinks it’s the answer to all our problems, and my dad is thinking about buying into it as an investment. I’m clueless.

It is doomed to fail because I think that it is just a gimmick scheme. The price fluctuates wildly for no apparent reason. And also if you were selling a large dollar item, how likely would you accept bitcoin as payment?

Forget about buying bitcoin and buy gold.

Ooh, chocolate money wrapped in gold foil…yummy.

Consider the amount of effort and computer processing time spent “mining” these coins. If you directed energy to actually accomplishing something the world and you would be further ahead
You know it is only a matter of time before the Chinese will be minting fake bitcoins, (If it has not happened already.) When that becomes public, bitcoin based portfolios will be wiped out – except for the traders who collect a percentage of the trade. They will always be the winners.
If you are going to use your computer’s idle time how about going to Mechanical Turk or SETI’s projects and do something worthwhile.

I feel sorry for the people who believe this will make them wealthy. The concept is an even more tenuous house of cards than our present monetary system. At least ours is supposedly backed by the government. If you are doing this as backup in case of a collapse of the financial market put your money into real coins: silver, gold. Their price seems to be dropping precipitously. (Those have been faked too but it takes more effort to do so.)

I heard the price of GorrillaPesos is booming. I wanted to buy one but there were none for sale at any price.

They are mostly used on the underbelly of the Internet for dodgy transactions because they are untraceable. I’ve heard recently though they are making more of an appearance on the main surface web.

I wouldn’t bother with them unless you wanted to buy a tigers dick.