Bitcoin - some misconceptions cleared up

Hey guys and girls.

I recently wrote a blogpost about Bitcoin, since there are a lot of misconceptions about it.

For those who are interested in the basic idea and the answers to some FAQ, you can read about it here:
http://www.dearmedia.be/2014/02/03/bitcoin-some-misconceptions-cleared-up/

I hope that after reading the post you realize it may not be your thing, but there is a lot of potential.
What are your thoughts about Bitcoin?
Do you think it can play a role in RS/SM?

Dogecoin master race

Not to add to the drama, but how does this article affect bitcoin? Is this just a temporary drop or something that people should be worried about?

http://www.csmonitor.com/Business/Latest-News-Wires/2014/0210/Bitcoin-crash-Bitcoin-prices-fall-after-withdrawals-are-frozen

I don't think so, it dosen't have a steady price it can rise and fall anytime but money can't, but then again GP prices rise and fall too

I am also a believer in the cryptocurrency, not as much in Bitcoin though.

Great article, you've managed to make a good summary as of what is known about Bitcoin and what its common misconceptions are. I only hope that more people would start writing articles about the whole system on which Bitcoin is based, and not just the Bitcoin itself.

True, Bitcoin is the biggest and by far most known out there, but I sincerly feel like it's doomed to fail. Not only is there a lot of negative media attention on the currency (actually: property now, if you let the US goverment decide <- not good), but it's also the first of its kind and has many imperfections. I believe that if there was a good marketed new virtual currency, with its own unique design and features, it would rapidly start taking over the #1 spot on which Bitcoin currently stands.

Isen wrote:Not to add to the drama, but how does this article affect bitcoin?  Is this just a temporary drop or something that people should be worried about?

http://www.csmonitor.com/Business/Latest-News-Wires/2014/0210/Bitcoin-crash-Bitcoin-prices-fall-after-withdrawals-are-frozen

It's a bit of both. Before all of this happend, there were a lot of indications that Mt.Gox was going down quickly. For example: long before this happend, the only possiblity to get your money from the site was to go trough a process which could take up to 2-3 months. The management was very detached from the public, and didn't communicate much as of what was happening behind the scenes.

When everything went to sh*t, the Bitcoin was way less affected than some doomdayers had thought. The big blows were bans (Russia) or denouncing that it IS a currency (USA). This is what really affected the price.

What people have to realise, is that these aren't goverment guided stock exchanges. They are trustworthy middlemans at max, and like all of you people here will know, even they scam sometimes when things don't go the way they wanted to. This is though, not a reason to stop believing in cryptocurrency. Remember that the cryptocurrency is in a very young stage, and that at this stage the rotten apples will fall out. And even after this stage, it will still occur once in a while.

With traditional currency, banks sometimes fall and people lose millions of dollars, but basically no one will say ''F*ck it, I stop using the USD''. The ones who do though, will start looking for alternatives, which they will find in trading goods or... yes... cryptocurrency. Kind of ironic isn't it?

So in summary, traditional currencies and cryptocurrencies don't aren't so different. The one mayor advantage of cryptocurrency is the widespread avalibility of it (worldwide) and with the upcoming technology boom, this will only be easier and easier.

Kidde wrote:I don't think so, it dosen't have a steady price it can rise and fall anytime but money can't, but then again GP prices rise and fall too

Not true. Money rises and falls all the time (just like GP). The € to $ conversion ratio 2 years ago was like 1.22 USD / Euro, now it's 1.37 USD / Euro. Why? Because $ has deflated in comparison to €. You might not notice it so much (directly   ), but you are able to buy less with the same 1$ bill.