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The problem with crypto-currencies 
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Post The problem with crypto-currencies
I want to discuss what I've learned about crypto-currencies. I want to emphasize that I am still learning, and that the subject is convoluted and complex. A lot of it involves computer programming, but that's my background. I'm not going to address any programming issues, because it turns out they don't matter. The problems are fundamental in nature, and anyone can understand them, if their minds are open. And that's the biggest problem of all, it turns out.

I've been active on a couple of forums recently dealing with a crypto-currency called Quark. I've had to learn about how crypto-currencies work, and there are some incredibly obvious problems. You could say they are hidden in plain sight, and almost no one can see them (where have we seen that before). I'm not going to spend much time on positive aspects of crypto-currencies, because these currencies fail in so many ways, it's almost a moot point.

One supposed reason for the appearance of crypto-currencies (CCs hereafter) is that they address the digital transfer of funds but bypass the hefty fees the banks charge. Well, the problem here is exactly that -- that banks are often charging hefty fees. Would it be easier to address that problem directly rather than start a whole new currency?

There are 44 crypto-currencies listed here (oops, now 45), all knock-offs of one another. Why are there so many, and why does the number increase so quickly? Is it because it's a great scam, and the herd needs to be fleeced while the sheep are willing to line up for the shearing? I will argue that this is the case.

Another reason for CCs is to avoid the central banking system, which is a very noble goal. Yet every CC I've looked at has around half of its existing digital coins in the hands of a group of developers / insiders. Isn't that like birthing your own personal central banking system, at least for the lucky few? There's a graph of this "peculiar" phenomenon that I've seen somewhere, which I will post when I find it again.

It gets worse, but you don't need to take my word for it, because I'm going to lay it out in simple language (I hope).

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Sat Dec 14, 2013 4:29 am
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Post Re: The problem with crypto-currencies
After reviewing all of the damming evidence that you've presented here Chico, well technically you actually haven't presented a single shred of evidence about anything, but anyhoo, I've finally started to warm up to your point of view.

What could I possibly have been thinking!!! Cyrptocurreny won't work with fractional reserve banking, now we wouldn't want them to take that away from us now would we?

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Mon Dec 16, 2013 2:25 am
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andywight wrote:
After reviewing all of the damming evidence that you've presented here Chico, well technically you haven't presented a single shred of evidence about anything...

I'm just getting started. Be patient, young Padewan.

We've already seen that CCs aren't really anonymous. We've seen an audit of the Quark activity in Bill Still's digital wallet, with millions of Quarks passing through it right around the time he starts hyping Quarks. Can you say "conflict of interest"? OK, we'll make it simple -- "bribe".

The encrypted block chains that carry a list of all transactions ever made with each CC are a complete record that can be easily read (but not changed). Do you realize what a perfect setup that is for taxing authorities, like governments? Strange that we know so little about "Satoshi Nakamoto" and the origins of the Bitcoin design. Or is it? Sounds like the way sociopaths operate to me.

The block chains themselves are on a growth path that is unsustainable and could eventually knock out the Internet and the servers (miners) that manipulate them. Did you notice how your digital wallet took hours to "synch" up to the Quark network? It was downloading the current block chain, which is already a monster on a single wanabee CC that is only five months old. It will only get worse.

The transaction-centric design of the digital currencies is absurd. People only care about how much money they have in their wallets, not the details of all the transactions they've made. That suggests to me that the wallet-centric design would make more sense. The problem of double spending should be addressed at the wallet level, not at the transaction level, that being the transaction record of the entire world. I swear, the developers of this concept must be idiot savants, with emphasis on the "idiot", if you ask me. That also suggests sociopathic origins for the Bitcoin model.

The inherent problems in the Rube Goldberg design of CCs will probably be fixed with a series of Rube Goldberg kludges. It will be the mother of all Internet messes.

andywight wrote:
... but anyhoo I've finally started to warm up to your point of view.

Couldn't you take the opposing view for just a bit longer? This really needs to be widely exposed for the con-game that it is. It really is quite insidious of the ruling sociopaths, using the well-known "gold fever" effect to dupe tens of millions of people, maybe more, into a gambling game that could eventually set up the perfect vehicle for their long-desired one world digital currency that they control.

andywight wrote:
What could I possibly have been thinking, cyrptocurreny won't work with fractional reserve banking, now we would want them to take that away from us now , would we?

There are some real truths in the CC scam, but that is a necessary condition for effective propaganda. Yes, we need a fair and honest currency to unseat the existing money scam of privately owned, for-profit central banks that operate on the fractional reserve model. But the current plethora of Bitcoin copy-cats isn't it.

I've actually been working with a break-away group from the Quark forum who have started to awaken to what a scam the CCs are. I had hoped to convince them that a complete redesign is necessary, but they can't seem to fathom it, and they are intimidated by the challenge. They believe instead that they can tweak the Bitcoin model and solve all of its problems. Many of them seem to be in a hurry so as not to miss jumping on the bandwagon and making some riches! When you try to convince people that it is not about personal gain, but about raising all boats, their minds seem to switch off.

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Mon Dec 16, 2013 3:25 am
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Post Re: The problem with crypto-currencies
I've actually been working with a break-away group from the Quark forum who have started to awaken to what a scam the CCs are. I had hoped to convince them that a complete redesign is necessary, but they can't seem to fathom it, and they are intimidated by the challenge. They believe instead that they can tweak the Bitcoin model and solve all of its problems. Many of them seem to be in a hurry so as not to miss jumping on the bandwagon and making some riches! When you try to convince people that it is not about personal gain, but about raising all boats, their minds seem to switch off.

And these are to people you've decided to aline yourself with???

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Mon Dec 16, 2013 3:36 am
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Post Re: The problem with crypto-currencies
andywight wrote:
And these are to people you've decided to aline yourself with???

Some of them are hiding their true colors. I didn't know any of them in the beginning. But as the differences between my philosophy and theirs becomes evident, there is talk that my presence may not be "in alignment with the purpose and energy of the forum". I'm sure you remember from Avalon what that means.

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Mon Dec 16, 2013 3:52 am
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Post Re: The problem with crypto-currencies
andywight wrote:
And these are to people you've decided to aline yourself with???

Some of them are hiding their true colors. I didn't know any of them in the beginning. But as the differences between my philosophy and theirs becomes evident, there is talk that my presence may not be "in alignment with the purpose and energy of the forum". I'm sure you remember from Avalon what that means.

Sounds more like a bunch of bitter IT nerds that feel they didn't get their fair share of the pie that wasn't designed for a quick profit!

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Mon Dec 16, 2013 3:57 am
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Post Re: The problem with crypto-currencies
Another bizarre component of the functioning of the transaction block chain of crypto-currencies is the "proof of work" concept. Computer programs that are set up to "mine" for the currency in exchange for constructing the block chain are given "puzzles" to solve. These computational puzzles are designed to be hard to solve but easy to verify. They are put in place to deter other "criminal miners" from gaming the system and stealing currency. The result is that massive amounts of computational power are spent on effectively worthless puzzles, a virtual "twiddling of thumbs".

This is a Rube Goldberg type solution to a problem introduced by the Rube Goldberg design of the Bitcoin family of crypto-currencies.

You can get a flavor for this costly and wasteful mechanism in this piece, How the Bitcoin Protocol Actually Works.

The Rube Goldberg aspects of Bitcoin bring up the issue of its super complex, convoluted design and its unknown, nefarious origins. Could Bitcoin be a controlled opposition type operation that the money masters have thrown into our cage in an effort to measure how well our operant conditioning (i.e. brainwashing) is working? Are we so confused about the real function of money that we will latch onto anything that feeds our selfish greed, and ultimately benefits the money masters?

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Thu Dec 19, 2013 6:47 pm
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Post Re: The problem with crypto-currencies
The whole plan is in Skinners work and the "behaviorist". But I suspect the social engineers knew this way before Skinner was born.

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Sat Dec 21, 2013 3:00 pm
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Post Re: The problem with crypto-currencies
The following quotes are from this Bitcoin article.

Quote:
Bitcoin is filling a gap self-interested central bankers are keen to suggest doesn’t need filling.

That is the usual theater of controlled opposition. If Bitcoin is indeed the Trojan Horse of the banksters, you know they will pretend to oppose it.

Quote:
Bitcoin is the breakthrough currency creating a widespread consciousness that there is an alternative to holding greenbacks, or lugging a trunk full of gold around.

Wait a minute! Lugging a trunk full of gold around is a problem I would like to have! In my entire life, I have never once possessed a gold coin of any kind. And if I did have a trunk full of gold to lug around, I bet I could use a tiny fraction of that treasure to hire people to haul it around for me, and never have to do any heavy lifting myself.

Quote:
Decentralized cryptocurrency is still in its infancy but the argument against central bankers’ follies is being won across the globe. After all, you can’t ‘clip’ bitcoin to degrade its value, nor can you inflate its value with QE or other flawed government policies.

First of all, Bitcoin is not decentralized. It is highly centralized in the form of a computer program. The people that control the program will control the currency. But it's open source, its defenders exclaim! No, it really isn't. Some group has control of the code. They wrote the whole thing in their own private club! Remember also that gold and silver coin in the USA were once "open source", supposedly controlled by the people through the U.S. Treasury. Look what happened to that "open source" system. All the gold and silver coin are gone, and what we have left are worthless paper bills and broken promises.

Secondly, the value of Bitcoin can indeed be degraded and inflated. Its value is clearly highly volatile. The mechanisms of manipulation are different, but the results are the same. A currency is supposed to be stable, with dependable value. Bitcoin fails completely in this regard.

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Thu Jan 02, 2014 8:11 am
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Post Re: The problem with crypto-currencies
NSA seeks to build quantum computer that could crack most types of encryption. :lol:

Source

And thats what there telling you...

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Fri Jan 03, 2014 1:03 am
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