When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Tuesday, March 4, 2014

Bitcoin and its inevitable collapse

Mt. Gox is just the beginning:

" ... The Bitcoin economy is highly vulnerable to attack. If an agent were to decide to attack Bitcoin, he has several strategies available. One could operate a mining botnet and slowly lower the Bitcoin market price by regularly selling small amounts of bitcoins with a declining price. As the honest miners are squeezed out, further manipulations of the Bitcoin system are possible. A second strategy is to pump & dump to generate volatility. Both strategies result in the honest mass market decamping for other fields. Once the market takes on the taint of criminality, the Feds are encouraged to shut it down by targeting the exchange makers; fear of criminality and the appearance of the Feds work together to cause the collapse." read more at: http://iang.org/papers/BitcoinBreachesGreshamsLaw.pdf


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects