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Title: Extensive Bitcoin Use 'Could Disrupt Financial Stability' Unless Restricted
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URL Source: http://sputniknews.com/business/201 ... tcoin-financial-stability.html
Published: May 27, 2016
Author: Sputnik
Post Date: 2016-05-27 11:54:44 by Pinguinite
Keywords: None
Views: 707
Comments: 23
Extensive use of bitcoins and other virtual currencies could pose a threat to the state's financial stability unless restricted, Russia's Investigative Committee Chairman Alexander Bastrykin said Thursday. MOSCOW (Sputnik) — Bitcoin, a popular virtual web-based currency, has appreciated against the Russian ruble, rising in value from approximately 30,000 rubles ($392) to almost 33,000 rubles by mid-January, according to CoinDesk. Its value remains volatile against most currencies. 2016 to Become the Year of Bitcoin, Traders Predict With money surrogates increasingly popular and more competitive than conventional currencies, the market must be restricted in its initial stage, Bastrykin added. Launched in 2009, the bitcoin cryptocurrency reached its peak value in late 2013, trading at over $1,000 per bitcoin. Since 2014, its value has fluctuated between $200 and $500. Cryptocurrencies have no material form and global currency regulation does not apply. An unlimited number of anonymous sources could issue and use the currency. Russian law bans the issue of any currency not approved by the Central Bank of Russia. "According to analysts, the circulation volume of monetary surrogates in Russia has already reached one percent of GDP. If this figure grows by 10 percent or more, this tool could become a real danger to the financial stability of the state. Unchecked expansion of the money supply via surrogate growth will lead to the devaluation and a gradual elimination of the ruble from the currency market. As a result, the state could lose its monopoly on money emission, as well as the income it generates," Bastrykin told the Russian Rossiyskaya Gazeta newspaper in an interview.
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#1. To: All (#0)
How do you get some Bitcoin? The only way I've seen involves giving up tons of personal info, a hand scan etc. NN translation of headline: Extensive Bitcoin Use Could Liberate amerikans from the Federal Gulag, Make Lots of Them Millionaires, and Restore Financial Privacy (For such a gargantuan population, you never hear much about its ill effects. Is that a farming or mining scene?)
That I don't know, but a web search turned up localbitcoins.com/ which offers locations for buying bitcoins in person. There may well be KYC requirements to buy bitcoins from some places (That is , convert USD to bitcoins (BTC)). That would be if those outfits required it due to their still being part of the tightly watched finance system. I don't know about those. However, if you wanted to accept BTC from anyone who already had them then that would likely be a different story, depending on who you would be dealing with. There are no doubt on-line outfits that would sell you btc, and those places could well be located outside the USA so US laws wouldn't apply. However, one should be careful as an exchange of BTC is done instantly, and would certainly not be done before you pay. And whether it's done after you pay is up to the vendor, whether they are trustworthy or not. There could well be scammers out there, so doing it in person might be more secure. Alternatively, you could put your PC to work to mine bitcoins. You may end up paying more in electricity then you would mine, but if you are lucky, your PC could strike it rich to the tune of about $11k worth of BTC, at the current exchange rate. The process basically involves having your PC throw random numbers together hoping to create the exact sequence needed to qualify as a new & unique set of coins. Though computers are fast, that speed is balanced by the extremely slim chances that any single random number sequence will qualify as a new coin.
Thanks -- would that last bit be ripping them off?
heheh.... great question, but no, not at all. Not in the least. It's no more ripping off anyone than is taking a pick and shovel out to some old gold mine and digging for more gold. If you don't do it, the gold isn't discovered and life goes on. The supply of gold in the world is slightly less, and because of that it's more valuable, and economics is affected accordingly. But if you don't find it today, someone else might find it tomorrow, and then they'll have it to spend instead of you. Then again, you didn't have to work to find it and they did. You did something else which might be adding some other kind of value to society. If you find it, it's yours, and people want it. It's called mining when done with a pick and shovel, and it's also called mining when your PC does the work, and the concepts are the exact same. You will send more money on electricity to find the bitcoins, and once your PC stumbles upon a particular numeric sequence that is a bitcoin, no one else in the world can find that same sequence. Or they can, but since you already found it, it will be no good to them. They have to find another sequence that no one has ever found before. There are a limited number of sequences that can be found so just like a real gold mine, the more that's mined, the less that remains to be found and the harder it is to find. That provides a natural limit to the supply of bitcoins that can be created.
That's too wacky for my comprehension. I'll let you guys have all my mining interests.
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#3. To: NeoconsNailed (#1)
How do you get some Bitcoin? The only way I've seen involves giving up tons of personal info, a hand scan etc.
#4. To: Pinguinite (#3)
#5. To: NeoconsNailed (#4)
Thanks -- would that last bit be ripping them off?
#6. To: Pinguinite (#5)
Replies to Comment # 6.