Federal regulators warn consumers about Bitcoin risks

Posted by richrobinson 11 years ago to The Gulch: General

For some reason I always get nervous when the government tries to protect me. The Fed has not exactly done a great job of preserving the value of the dollar.

SOURCE URL: http://www.newsday.com/business/technology/federal-regulators-warn-consumers-about-bitcoin-risks-1.9030058

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Posted by sstrohm 10 years, 11 months ago

I've seen that "Wild West" characterization used in an attempt to tarnish things new that threaten the status quo. Specifically I've also seen it used again and again to make concealed carry seem like a danger. Too bad for the Bloombergs, Bradys, other (falsely) tough-on-crime politicians... it's too bad that violent crime almost always goes down in states that facilitate concealed carry by citizens.

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  Posted by richrobinson 10 years, 11 months ago
  
  It doesn't matter to the progressives. Facts are irrelevant when you have an agenda.
  
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Posted by CircuitGuy 11 years ago

" the agency noted that the currencies are not backed by the government"
It's not backed by the gov't? Oh no!!

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  Posted by richrobinson 11 years ago
  
  If it's not backed by the government how will it lose all it's value?
  
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    Posted by CircuitGuy 11 years ago
    
    I'm very comfortable with a medium of exchange that depreciates predictably around 2% to 5% per year. I prefer it. The arithmetic and raising prices in Quickbooks and on letters of engagement isn't a problem for me. For people who don't want that, though, they are free (by birthright IMHO) to trade with whatever the heck they like.
    
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Posted by ObjectiveAnalyst 11 years ago

Meanwhile... Bitcoin warns of the falling value of the dollar...

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  Posted by richrobinson 11 years ago
  
  The dollar is falling, and it can't get up.
  http://youtu.be/bQlpDiXPZHQ
  
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    Posted by ObjectiveAnalyst 11 years ago
    
    And a remote won't help. Today my office manager received another solicitor call from a firm offering to "help us with our capital problems." I told her the next time they call ask them to "please fire everyone in D.C." :)
    
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      Posted by richrobinson 11 years ago
      
      Great advice OA.
      
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Posted by Solver 11 years ago

"The Fed has not exactly done a great job of preserving the value of the dollar."

Well some 45 years later I can still take my dollars and buy a Big Hunk candy bar. It just costs 20 times more.
Another thing, most of the coins I had back then were made of silver.

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  Posted by richrobinson 11 years ago
  
  Leave it to our government.
  
  For the fiscal year ending September 30, 2013, the unit cost for the Mint to produce and distribute the cent was 1.83 cents and the unit cost for the nickel was 9.41 cents.
  
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    Posted by Solver 11 years ago
    
    Good thing they "produce" in such volume.
    
    Of course, the American people eat this unnecessary lost. It would be interesting to audit the fed to figure out which officials and companies got away with the gains.
    
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      Posted by richrobinson 11 years ago
      
      I never understood the anger directed at Ron Paul for suggesting we audit the Fed. It's as if we should accept they have our best interests at heart.
      
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        Posted by jbrenner 11 years ago
        
        The only thing wrong with auditing the Fed is that we should destroy the Fed instead.
        
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        Posted by Solver 11 years ago
        
        Looters and moochers got angry about an audit? Say it isn't so. :O
        
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        Posted by richrobinson 11 years ago
        
        Okay maybe not angry. They were shocked that we would question their authority
        
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    Posted by CircuitGuy 11 years ago
    
    The penny will disappear soon. It's a huge waste.
    
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      Posted by richrobinson 11 years ago
      
      I turned 50 this year and heard the same thing when I was a teenager.
      
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    Posted by sstrohm 10 years, 12 months ago
    
    Don't quote me, but my memory is that paper dollars last on average about a year and a half, and that paper has no real value.
    
    Whereas coins last about 40 years. So 1.83 cents for a penny and 9.41 cents for a nickel. I wonder what those expenses are in 2054 money.
    
    Is there enough usable metal in coins for them to have value?
    
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      Posted by richrobinson 10 years, 12 months ago
      
      Good point. There is no real value in paper money. Interesting that I read one of the purposes of the Federal Reserve when it started in 1913 was to preserve the value of the dollar. A hundred years later and it's down 97%. Sounds like they failed.
      
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Posted by JonGahlt 11 years ago

I like the wild west.

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  Posted by richrobinson 11 years ago
  
  I guess that's how they see freedom.
  
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  Posted by CircuitGuy 11 years ago
  
  "I like the wild west."
  I do too. The Fed has done a great job during my adult lifetime, but I always like competition.
  
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  Posted by richrobinson 11 years ago
  
  I wonder how this group would deal with that? What if we took on a new territory?
  
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Posted by LetsShrug 11 years ago

You mean like when the SSI warned the country about the dangers of Rearden Metal? Coming up next, confiscation for the public good.

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  Posted by richrobinson 11 years ago
  
  They are protecting us. I feel safer already.
  
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Posted by freedomforall 11 years ago

Pay no attention to the man behind the curtain.

Uncle Socialist doesn't like competition.
Neither does Daddy Warbanks.

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Posted by flanap 11 years ago

Rich, I agree with your comment in terms of any time the gov't steps in with a warning...it is always to serve their own twisted purposes, regardless of the facade portrayed.

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  Posted by richrobinson 11 years ago
  
  Yes. That's what I meant.
  
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Posted by jbrenner 11 years ago

Has anyone actually invested in Bitcoin? I am seriously considering it, and I want to go in with eyes wide open. I like the idea, but I think the boat has left the port already. Is it still a good idea to invest in Bitcoin, or is too late now?

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  Posted by jlc 10 years, 11 months ago
  
  I have not seen $5Gold in a long time. I was hoping for his comment on this. Does anyone know what has become of him?
  
  Jan
  
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    Posted by richrobinson 10 years, 11 months ago
    
    Don't know. Hasn't posted for a couple weeks. Hope he is just on vacation.
    
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  Posted by richrobinson 11 years ago
  
  Check with Kh. We have talked about it before. I think she invested and knows a lot about it. I gave it some thought but I don't know enough to justify the risk.
  
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    Posted by jbrenner 11 years ago
    
    I looked at the chart recently, and it looks like it is near the "panic" stage of a classic bubble. Thanks, rich.
    
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Federal regulators warn consumers about Bitcoin risks

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