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This is pretty interesting. Do they ever convert BitCoins back to fiat money or precious metals at some point? Well I guess I can research this myself, I did co

by dualogy 16y ago

kiba 16y ago
This is pretty interesting. Do they ever convert BitCoins back to fiat money or precious metals at some point? Well I guess I can research this myself, I did come across BitCoins before. Fancy idea of backing currency by CPU power rather than a tangible, durable, universally accepted store-of-value but it's a step forward from fiat currency that is backed by the decree of Heli Ben and the gunned power of a state to tax future production... The notion of bitcoin being backed by CPU mining or even GPU mining is a fallacious notion. CPU and GPU are used to mine bitcoins and create bitcoin blocks, nothing more. Every currency will probably have an exchange market. Bitcoin is no different. People have brought pecious metals with bitcoins, as well USD. However, USD are usually prefixed with a service such as Paypal USD and MtGox USD, and so on because of additional monetary property that the service provider imbues to it. Thus, Paypal accounts are considered risky because of chargeback. Sounds like there is a market in there for mutually-trusted middlemen acting as, well, "trustees" or escrow services? Or is that built into BitCoin already. Of course if the scam only materializes after the transaction was already completed to mutual consent, that's a different matter. But what kinds of fraud are happening there? The trust network is mostly around the bitcoin forum. There has been talk of creating reputation systems of some kind but nothing of substance come out yet. Most frauds are usually the drive-by scams type of frauds. However, the other concerns is when escrow failed to do their job or simply disappear. There may be no intent of fraud involved, but people lose their money all the same.

by dualogy 16y ago

kiba 16y ago

This is pretty interesting. Do they ever convert BitCoins back to fiat money or precious metals at some point? Well I guess I can research this myself, I did come across BitCoins before. Fancy idea of backing currency by CPU power rather than a tangible, durable, universally accepted store-of-value but it's a step forward from fiat currency that is backed by the decree of Heli Ben and the gunned power of a state to tax future production... The notion of bitcoin being backed by CPU mining or even GPU mining is a fallacious notion. CPU and GPU are used to mine bitcoins and create bitcoin blocks, nothing more. Every currency will probably have an exchange market. Bitcoin is no different. People have brought pecious metals with bitcoins, as well USD. However, USD are usually prefixed with a service such as Paypal USD and MtGox USD, and so on because of additional monetary property that the service provider imbues to it. Thus, Paypal accounts are considered risky because of chargeback. Sounds like there is a market in there for mutually-trusted middlemen acting as, well, "trustees" or escrow services? Or is that built into BitCoin already. Of course if the scam only materializes after the transaction was already completed to mutual consent, that's a different matter. But what kinds of fraud are happening there? The trust network is mostly around the bitcoin forum. There has been talk of creating reputation systems of some kind but nothing of substance come out yet. Most frauds are usually the drive-by scams type of frauds. However, the other concerns is when escrow failed to do their job or simply disappear. There may be no intent of fraud involved, but people lose their money all the same.