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Cuchulainn
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Is bitcoin crashing?

June 3rd, 2014, 10:55 am

Quote

Originally posted by: APlus
"We probably need a clearing house?"

Definitely. If you can remove all the other intermediaries you do need a clearing house. And not any bank, but a proper central counterparty, to guarantee you that you have the settlement. It is exactly what is missing now. The selling-sites were sort of central clearing houses but they did an awful job.


Maybe there should be a Bitcoin "10 Commandments", e.g. 1. "build on (existing) (technical) infrastructure". To start all over again would be krazy.

In the 70s/80s you had (expensive!) proprietary XNS, DECNET. NEtbios, Ungermann-Bass networks that talked to each other with difficultty. Then came OSI (and TCP/IP) and Cisco and soon things became more interop.


DNS, (ATM??) etc. Bitcoin?

Maybe like the early Internet folk did it?
Last edited by Cuchulainn on June 2nd, 2014, 10:00 pm
 
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tagoma
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Re: Is bitcoin crashing?

June 10th, 2018, 6:35 pm

By curiosity, any particular reason why BTC is plunging (again) today?
 
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bearish
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Re: Is bitcoin crashing?

June 10th, 2018, 6:49 pm

A former boss of mine liked to quote a line from the WSJ, probably circa 1992, stating "The price of gold dropped because it was too high". Something like that going on here, perhaps?
 
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tagoma
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Re: Is bitcoin crashing?

June 10th, 2018, 7:05 pm

Thanks, bearish. Your reply makes me feel more secure in some way. I mean I ended up thinking I'm the only one not understanding how crypto currencies move.
 
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Alan
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Re: Is bitcoin crashing?

June 10th, 2018, 9:02 pm

Kim Jong-un is simply selling a few of his coins to meet his Singapore travel expenses
 
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ppauper
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Re: Is bitcoin crashing?

June 11th, 2018, 11:35 am

to answer tag's question, an exchange was hacked
Bitcoin price plunges after cryptocurrency exchange is hacked
 
PatoHush
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Joined: June 11th, 2018, 1:45 pm

Re: Is bitcoin crashing?

June 11th, 2018, 1:59 pm

I am new here and I am already enjoying reading. Hopefully I will be able to contribute something meaningful in the future
 
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tagoma
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Re: Is bitcoin crashing?

June 11th, 2018, 7:31 pm

@ppauper thanks. from an investor perspective, it looks like hacking is a too common reason for security setback.
@PatoHush. welcome. we are looking forward to your contributions!
 
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rmax
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Re: Is bitcoin crashing?

June 12th, 2018, 5:10 pm

Traden4Alpha wrote:
<snip>
I don't think you can do anything like an IR swap with bit coin yet because I don't think bit coin (or Hayek Money) has any intrinsic mechanisms for lending the currency.  <snip>

Can't you agree to transfer a bitcoin for a specified length of time? OK it might be better if the settlement was automated in the BlockChain, but I can't see why you could not write a (paper) contract on a Bitcoin.
 
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Traden4Alpha
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Re: Is bitcoin crashing?

June 12th, 2018, 9:27 pm

rmax wrote:
Traden4Alpha wrote:
<snip>
I don't think you can do anything like an IR swap with bit coin yet because I don't think bit coin (or Hayek Money) has any intrinsic mechanisms for lending the currency.  <snip>

Can't you agree to transfer a bitcoin for a specified length of time? OK it might be better if the settlement was automated in the BlockChain, but I can't see why you could not write a (paper) contract on a Bitcoin.
You are right that anyone can write a contract with lending and repayment terms denominated in bitcoins. But without some form of blockchain/cryptographic lock on the borrower's assets and automated settlement on the blockchain, that contract is only as good as the lender's trust in the borrower which seems to defeat the whole ethos of bitcoin. I'm sure Ethereum can handle these kinds of issues with multi-party locks on escrow or collateral accounts.

P.S. The story of the DAO is a cautionary tale about the reliance on smart contracts (https://www.coindesk.com/understanding- ... urnalists/)
 
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rmax
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Re: Is bitcoin crashing?

June 13th, 2018, 8:13 am

Traden4Alpha wrote:
rmax wrote:
Traden4Alpha wrote:
<snip>
I don't think you can do anything like an IR swap with bit coin yet because I don't think bit coin (or Hayek Money) has any intrinsic mechanisms for lending the currency.  <snip>

Can't you agree to transfer a bitcoin for a specified length of time? OK it might be better if the settlement was automated in the BlockChain, but I can't see why you could not write a (paper) contract on a Bitcoin.

You are right that anyone can write a contract with lending and repayment terms denominated in bitcoins.  But without some form of blockchain/cryptographic lock on the borrower's assets and automated settlement on the blockchain, that contract is only as good as the lender's trust in the borrower which seems to defeat the whole ethos of bitcoin.  I'm sure Ethereum can handle these kinds of issues with multi-party locks on escrow or collateral accounts.

P.S.  The story of the DAO is a cautionary tale about the reliance on smart contracts (https://www.coindesk.com/understanding- ... urnalists/)

Yep makes sense. And thanks for the DAO link. very edifying.
 
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ppauper
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Re: Is bitcoin crashing?

June 13th, 2018, 8:37 am

>> Can't you agree to transfer a bitcoin for a specified length of time?


there are futures contracts on the CME
 
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Traden4Alpha
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Re: Is bitcoin crashing?

June 13th, 2018, 12:00 pm

ppauper wrote:
>> Can't you agree to transfer a bitcoin for a specified length of time?


there are futures contracts on the CME
Indeed! But aren't those secured by US laws and the US court system rather than magic anonymized cryptoconstructs?
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