Response to a poster who believes Bitcoin is an ‘illusion’ – not real

Response to a poster who believes Bitcoin is an ‘illusion’  – not real

What idiot pays real money to someone they don’t know to buy something which exists only in someones imagination? Sounds like a sure fire winner to me.

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    “exist only in someones imagination” ? – really ? you think its just a simple as that ? not “real” ?

    I’m sorry to disturb the illusion, but I’m sure you have email ? … so lets look at Gmail, or Hotmail, or whatever service you use . Its on your screen when you type it – it disappears when you press ‘send’ .. is that an illusion ? No, but you need to accept and trust that somehow the internet knows what to do with your message when you click it away, and it does that by coding and protocols.

    Imagine If hotmail disappeared tomorrow – would that end your ability to send emails ? No of course not – because Hotmail is just a client service vehicle that sits on a Protocol transport mechanism. You’d just use another email service. All email ‘service clients’ like Hotmail use the basic protocol of SMTP ( and POP and IMAP ) to move your typed message around the internet – in the coding language that makes that possible ( because your typed words dont move from you to the receiver )

    So you need to treat “bitcoin” in a similar way ( not the ‘money value’ that people put on it) Bitcoin itself isnt the protocol ( the underlying coding ) it just happens to be what people call the ‘microbits’ that sit on the blockchain protocol and move around attached to transactions.

    The real unique property of a “bitcoin’ is that it can never be duplicated or counterfeited ( unlike a bank note – which can be copied and used without trace – the Bank of England removed over £13m of counterfeit notes in circulation in 2012 alone, and many many more remain undiscovered)

    At the moment, Bitcoin transactions are concerned with the movement of money value, but applications are being designed every day that will enable you to use bitcoins to verify things as diverse as contracts, ownership – of companies and their shares, insurances, voting, proof of ownership of artwork or anything that needs to be proved genuine and not a duplicate..

    So whatever ‘value’ people may put on bitcoins today, or tomorrow, or next year, it is not going away !! because it is actually the newest, and most revolutionary protocol that the internet has yet seen.

    I’d love to discuss this with you this time next year – I believe you might have a different view by then.

Countering the “Flaw” in Bitcoin FUD

Posted comment on the Article –   “Flaw in Bitcoin, exchange shutdowns, $2.7 million theft: Is the end coming?”   published here

Comment by

Your comment is propaganda. The Bitcoin protocol itself was exploited. Bitcoin is an experimental currency and has technical flaws. Unlike credit cards or banks, it is not insured so it is a risky investment.

answer by @Bitcoinrat

This is not correct – firstly , please ensure you get your descriptions accurate.

Bitcoin is not the protocol – the ‘protocol’ ( the mathematical basis that underlies bitcoins ) is the “Blockchain” – this was not exploited. The “exploit” came from bad coding within the software used to handle Bitcoins transactions in the Mt Gox exchange. ( not the blockchain )

This ‘flaw’ was known about for two years – and as this is an ‘open source’ system ( ie everyone can see the coding and transactions ) a patch was instigated by every other body  – EXCEPT Mt Gox.

This is exactly the same as ALL businesses that use the internet.  Some are more ‘up-to-date’ , some are not. Every month or so, “Patches’ are sent out to upgrade software packages ( such as anti-virus software – Norton, McAfee etc ) , and even operating systems themselves like Windows, – see this press release last week from Microsoft

Microsoft addresses critical IE vulnerabilities for Patch Tuesday – date feb 11th 2014
For this month’s Patch Tuesday,  Microsoft covers 24 vulnerabilities found in Internet Explorer

So please don’t confuse a software patch requirement ( common to all applications that operate on the internet ) with the platform protocol of the blockchain ( that is the mathematical protocol – just like other protocols that drive the internet – and is not software . You don’t doubt the protocol when you use the internet for your emails, message boards, secure payments by credit cards etc etc – you understand that for time to time the “software’ of these application is compromised , exploited by hackers etc … and a ‘patch’ is sent out – and secures the “software flaw” but the PROTOCOL isnt at fault.

I don’t currently disagree with your comments on not seeing Bitcoin as an “investment” vehicle. But this is not because of any “flaw” in Bitcoin itself but because we are still in the infancy of digital currency ( more aptly its “teenage” years ) and it will be another three or four years before it has the maturity to support solid investment decisions – but it is coming, and it is inevitable.

One last point – “insurance” is actually already here ( in the form of a company that offers secure off-line insured storage , backed by Lloyds of London )  This comes at a cost of course – but then you are paying a very high price for your ‘credit card’ security , because of all the thefts and frauds from stolen credit card information and hacking – the charges for using credit cards are far higher than they need to be. Bitcoin eliminates the need for those charges.