Bitcoin crashes…

[Gordon WParticipant @gordonw]

1st law of finance – The more money you have , the less tax you pay. BTW I hear that tulips are the next big thing, don't tell anybody tho'.

[Ady1Participant @ady1]

How do you 'catch' someone who has bitcoins?

The same way you "catch" someone who has a numbered offshore account, they've got to acquire assets eventually with it to derive any benefit, this is not a new thing for an IRS auditor

Britain has an unusual ally in fighting Tax Evasion, the NHS

You can run away abroad but once that first $100,000 dollar medical bill for a bleeding nose rolls in lots of naughty people return for those health freebies and get nabbed, even Ronnie Biggs eventually surrendered

The Isle of Man recently lost it's NHS status and the rich were not happy bunnies

The IRS also has time on it's side, and as much legal power as the anti-terrorist chaps

[Andy CarruthersParticipant @andycarruthers33275]

At risk of repeating stuff already expressed here because I haven't got time to read everything…

Bitcoin is one implementation of Blockchain technology

Blockchain itself has immense value and will be disruptive to many industries. The value is the ability to guarantee transaction authenticity as copies of the data are decentralized, to change a stored value means hacking many nodes of the network at the same time which is practically impossible. How will blockchain be disruptive? in commerce when a deal is done, the deal information can be stored in the blockchain and as mentioned distributed, for example, recording royalty payment agreements, bank transactions, anything of commercial worth where the integrity of the data and guaranteed accurate point in time reconstruction is required

Companies will pay to have a guaranteed audit trail for their data – retention periods for bank transactions are typically 7 to 10 years for example, and implementing local audit of business data on IT systems is a real headache – I happen to be working on this for an Investment Bank right now…

Personally I am avoiding Bitcoins – and I am not offering this as advice – because it's relatively easy to set up your own Bitcoin and do an Initial Coin Offering (ICO) to float a company using your own crypto currency. There is no regulation for Bitcoin so in practice one could set up a company, issue an ICO, retire on the proceeds, day trade against your own Bitcoin and have no legal obligation or regulatory imperative to run the company so floated. IMHO dishonest and abusive, but perfectly legal, and I know of someone who has done just that…

[blowlampParticipant @blowlamp]

[Ady1Participant @ady1]

The whole ballgame is publicly confirmable

If you want a regular receipt from someone you send them your receipt address, like a bank account number it is unique to you

LaqZ5rFDYanpPXMj9fe5QfrkTgBPYxi2Ro

As each receipt rolls in it is publicly recorded, this is the Litecoin blockchain

[blowlampParticipant @blowlamp]

A 23 year old's view.

[Ian ParkinParticipant @ianparkin39383]

So just to get this straight if I wanted to set up a ICO I would mine a quantity of coins at a cost to me of £1000 dollers each.

I need a large quantity to be able to offer them to others so lets say I mine 1 million thats at a cost to me of 1 billion $

I then offer them to sale to new investers and as i'm an unknown CC they will be Pennies… $1 say each

I've then lost the best part of $1 billion

I then sit back and watch investers buy them amongst each other and see the price of each rise to the heady levels seen by bitcoin

Wheres my billion$ gone? I havent bought any. i just sold them for nothing to start my CC . i can mine some more but at a cost of $1000 each and when the price of them is only $30 say wheres the sense in that.

So my question is where do all the coins come from for a start up

surely no ones daft enough to mine say 5 million coins and basically give them away ?

If theres a limit of 21 million so thats 21 billion to mine them

[blowlampParticipant @blowlamp]

Posted by Ian Parkin on 08/11/2017 12:05:20:

So just to get this straight if I wanted to set up a ICO I would mine a quantity of coins at a cost to me of £1000 dollers each.

I need a large quantity to be able to offer them to others so lets say I mine 1 million thats at a cost to me of 1 billion $

I then offer them to sale to new investers and as i'm an unknown CC they will be Pennies… $1 say each

I've then lost the best part of $1 billion

I then sit back and watch investers buy them amongst each other and see the price of each rise to the heady levels seen by bitcoin

Wheres my billion$ gone? I havent bought any. i just sold them for nothing to start my CC . i can mine some more but at a cost of $1000 each and when the price of them is only $30 say wheres the sense in that.

So my question is where do all the coins come from for a start up

surely no ones daft enough to mine say 5 million coins and basically give them away ?

If theres a limit of 21 million so thats 21 billion to mine them

The reason it costs $1000 to mine a bitcoin is because of the sheer number (and computing power) of competing computers in the network as of now.

When Bitcoin first started the difficulty of computation was extremely low as only a handful of laptops/desktops were taking part and so just a small amount of electricity was consumed to mine a coin, hence a value of pennies at that time.

I haven't looked into ICOs, but I think the notion is that investors give you loads of £s and $s in return for crypto coins of unproven value (because no large network yet exists), based on a 'great idea' that you intend to bring to market at some time in the future – or something like that.

Martin.

[John McNamaraParticipant @johnmcnamara74883]

It appears we have the full gambit of opinion regarding Bitcoins.
I am in the "Negative" cohort
Think I will mosey down to the workshop and make some nice metal chips.

[Ady1Participant @ady1]

I haven't looked into ICOs

ICOs are a cash up front investment, with the expectation of some fabulous future promise

Anyone getting involved is mad, it's a scammers free for all

ICOs are the modern day equivalent of the south sea bubble

(For example; one South Sea company floated was to buy the Irish Bogs, another to manufacture a gun to fire square cannon balls and the most ludicrous of all “For carrying-on an undertaking of great advantage but no-one to know what it is!!” Unbelievably £2000 was invested in this one!)

Edited By Ady1 on 08/11/2017 14:52:01

[Gordon WParticipant @gordonw]

Let's combine two topics- Use all the spare power from wind generators at night and " mine" bitcoins. The country is saved !.

[not done it yetParticipant @notdoneityet]

Have they crashed yet? Sounds a bit like pyramid selling to me!

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