The news you're not supposed to know...

Austrian Economics: Understand Economics, Understand the World
The Century of the Self: The Untold History of Controlling the Masses Through the Manipulation of Unconscious Desires
The Disappearing Male: From Virility to Sterility

The Obama Deception: The Mask Comes Off
Operation Gladio: The Hidden History of U.S. Sponsored False Flag Terrorism in EuropeThe New American Century: The Untold History of The Project for the New American Century
Article posted Apr 11 2013, 2:38 AM Category: Economy Source: r/Bitcoin Print

Playing Devil's Advocate - "Why Bitcoin Will Crash To $0" By A Bitcoin Supporter

By Rcpinchey via r/Bitcoin

OK, let me start by saying that I think the general idea of a cryptographic currency is a brilliant one. I can definitely see Bitcoin establishing itself as a major world currency, and basically doing to fiat currencies what email did to the postal system.

However, whenever I mention Bitcoin to anyone, I strongly encourage them not to invest more than they are prepared to lose. I myself only own 10 BTC. Why? Because Bitcoin has flaws, and it has potential enemies, and I think there's a very good chance that the currency could be basically destroyed overnight.


  • The code. Bitcoin is not a magic black box. It's a complicated piece of open-source software, written by a community of volunteers and hobbyists with various degrees of ability. IT CONTAINS BUGS. What these bugs are and how serious their symptoms will be remains to be seen, but we have already had a few serious problems (such as the 0.7/0.8 fork) and it's likely there will be more to come.

  • The value of exploits. With the soaring value of Bitcoins, it is likely that it will increasingly become a target for attack. If someone can find and exploit a flaw, they can make a fortune. Due to the nature of Bitcoin, it would be almost impossible to discover the culprit or recover any losses. This was already happening when there was almost nothing to gain from it!

  • Government intervention. Currency manipulation is one of the core economic controls of government. Mass adoption of Bitcoin would render this tool ineffective, or even unusable. It's certainly conceivable that the US or EU could implement a blanket ban on Bitcoin trades, which would utterly cripple the currency's expansion. As we're now hitting the point where large-scale funds are buying into Bitcoin, such a move would cause a rapid exodus of significant funds, by a few small high-worth individuals over a very short timescale. This, combined with the effect of legislation, would almost inevitably trigger a large-scale panic sell-off, and there would be no market remaining to allow for the currency's revival.

  • Corporate sabotage. Moneygram, Western Union, Paypal. Just three examples of multi-billion dollar multinationals with business models which would be rendered obsolete should Bitcoin achieve widespread adoption. Bitcoin, despite its rapid expansion and long-term potential, is tiny compared to many large organisations which have a vested interest in seeing the currency fail. At its current size, the Bitcoin economy could be toppled for a handful of million dollars- enough to buy and sell large volumes specifically to cause huge price swings, to undermine confidence with smear campaigns, or to directly attack flaws in the software or the network that underpins it.

  • Fundamental flaws. The design of Bitcoin is not perfect. We're already seeing the blockchain becoming bloated by the micro-transactions of SatoshiDice. What if the volume of these were to rise a thousandfold, through deliberate flooding or simply through the natural expansion of the currency? We're already worried about mining guilds which have control of too much computing power. 51% is quoted as the minimum level required in order to subvert the Bitcoin transaction system successfully. This is not strictly true- 51% is simply the point at which an attack becomes more likely to succeed than to fail. It's perfectly possible that an entity with a significant non-majority of mining power could succeed in poisoning the blockchain with dishonest blocks. This can be attempted over and over again by a motivated group or individual, and it only needs to succeed once to cause irreparable damage to Bitcoin's credibility.

  • With the current public interest in the currency, the media spotlight focused on it, and the fledgling involvement of high-value investors likely to abandon Bitcoin forcefully if they foresee any potential losses, I believe that Bitcoin is extremely vulnerable at present. Any one of the problems listed could trigger a panic which would crash the currency overnight, and in a way that it wouldn't likely recover from.

    So, whilst I'm not concerned about the effects of speculative bubbles, and I do believe Bitcoin is destined for long-term success, I urge caution. Please, don't invest more than you can afford to lose.

    Comment thread here

    Latest Economy
    - VIDEO: Clueless Californians Have No Idea the Price of 100oz Silver Bar
    - Once More: The TPP Agreement Is Not a Free Trade Agreement, It's a Protectionist Anti-Free Trade Agreement
    - Truck Vendors Must Ask Permission From Competitors to Do Business
    - Uber's Peaceful Revolution
    - Failure to Launch
    - Federal Government Pay Exceeds Most Industries
    - Right Now There Are 102.6 Million Working Age Americans That Do Not Have a Job
    - Canada Wants To Cut Price Of 'World's Most Expensive Drug'; US Manufacturer Sues To Stop It

    Comments 1 - 2 of 2 Add Comment Page 1 of 1

    Posted: Apr 11 2013, 10:59 AM

    20934 So we shouldn't support Bitcoin because the code is open-source, governments hate it, corporations hate it, and it's not yet perfect.

    Got it.

    Posted: Apr 11 2013, 5:54 PM

    Question isn't one of support but of purchasing. Buying in at 266$ after a parabolic rise may not be the best idea.

    Add Comment

    * No HTML

    Verification *
    Please Enter the Verification Code Seen Below

    Please see our About Page, our Disclaimer, and our Comments Policy.

    This site contains copyrighted material the use of which in some cases has not been specifically authorized by the copyright owner. Such material is made available for the purposes of news reporting, education, research, comment, and criticism, which constitutes a 'fair use' of such copyrighted material in accordance with Title 17 U.S.C. Section 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. It is our policy to respond to notices of alleged infringement that comply with the DMCA and other applicable intellectual property laws. It is our policy to remove material from public view that we believe in good faith to be copyrighted material that has been illegally copied and distributed by any of our members or users.

    About Us - Disclaimer - Privacy Policy

    Advanced Search


    Remember Me
    Forgot Password?

    Daughter Calls 911 to Help Suicidal Mother, Cops Shoot Her by Mistake, Then Kill Her Mom - 10/12VIDEO: Roid Raging Cop Chokes and Body Slams Sports Fan For No Reason - 10/12VIDEO: Police Officers "Protect a Serve" a Computer Science Student -- to Death - 10/12Cop Shoots Family's Dog, Accidentally Hits 4-Year-Old Girl, Leaves Scene Without Helping - 10/1216-Yr-Old & His Mom Tazed & Arrested After Boy's Waving at Cop Deemed 'Suspicious' - 10/09Drone Operator Seen Schooling Cop In Viral Video Arrested For Crashing Drone Into Capitol - 10/12Mom Violently Attacked by Cop While Picking Daughter Up From School, For Parking On The Grass - 10/12The Mystery of ISIS' Toyota Army Solved - 10/09

    Man Follows Speeding Cop, Finds Out He Was Speeding To Buy PeanutsMission Creeps: Homeland Security Agents Confiscate Women's Panties For 'Copyright Infringement'Cop Shoots Couple's Dog, Threatens Jail For Trying To Save Dog's LifeSWAT Team Shoots Teen Girl & Her Dog During Pot Raid On Wrong HomeDurham, NC Cop Testifies Faking 911 Calls To Enter Homes Is "Official Policy"Indiana Sheriff Says US A "War Zone" To Justify New MRAP Military VehicleTampa Cops Surveil Pot Dealer, Catch Him Selling Pot, Raid His Home & Kill Him"You Just Shot An Unarmed Man!": Witness Says Police Shot His Friend With His Hands Up