Board Member: Bitcoin Foundation Is “Effectively Bankrupt”

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Well, this sure doesn't look good at all. :eek:

Of its original five founders, one is now in prison (Charlie Shrem), another oversaw the collapse of the largest Bitcoin exchange (Mark Karpeles), and yet another has since left the United States for a Caribbean nation known for offshore banking (Roger Ver). Of the original board members, only Bitcoin lead developer Gavin Andresen has remained.
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Bitcoin is in the hands of the venture capitalists, and they don't show their hand until they know they gave the table beat.


Oh, tulips? Haven't ever heard that before ;)
 
That's ok, the "Bitcoin Foundation" has never had any official status at all. It just showed up and unilaterally declared itself an authority. It's never been anything but a pointless endeavor that does nothing but issue public statements.

Don't get me wrong, Bitcoin is doomed. But it has nothing to do with the "Bitcoin Foundation". I could just start my own foundation tomorrrow called "The US Dollar Foundation", doesn't mean it would have control over the US Dollar.
 
I never believed in virtual currency. I it's hard to feel bad for those who sunk in real money only to end up burned.
 
Saw that coming a mile away. I'm reminded of the trolling the bitcoin defenders were doing a few years ago any time someone mentioned it's future failure.
 
Bitcoin was never a currency, it was a collectible which was organized in such a way as to be damn near a ponzi scheme.
 
You know, a lot of bitcoin detractors in this thread have been around longer than 2011, and they seem to forget that bitcoin was declared dead at $2 at the time.

Two magnitudes of value appreciation later, it's the same hecklers yelling ponzi scheme while Microsoft, Dell, NewEgg, Buy.com, TigerDirect, and Overstock thinks otherwise.

I remember this fable by Aesop called "The Fox and the Grapes"...
 
BusyBeaverHP said:
You know, a lot of bitcoin detractors in this thread have been around longer than 2011, and they seem to forget that bitcoin was declared dead at $2 at the time.

Two magnitudes of value appreciation later, it's the same hecklers yelling ponzi scheme while Microsoft, Dell, NewEgg, Buy.com, TigerDirect, and Overstock thinks otherwise.

I remember this fable by Aesop called "The Fox and the Grapes"...
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I remember another Fable, "the Grasshopper and the Ant". applied to Bitcoin, winter is coming. why do I say that? because you have a commodity that has a inherent cap on the amount that can be produced before the point of diminishing returns kills speculation. Bitcoin is fueled now by the "Miner 49" type goldrush. it's easy to obtain (relative to it's value), but unlike gold, it's value depend on the ability of speculators to keep the supply up to meet an artificial demand.

Bitcoin is an awesome chance for a handful of speculators to retire early. at the current rate of mining, what is the expected date when the cost of power and capital investment in equipment makes Bitcoin to expensive to mine, supposing that bitcoin maintains it's current value? and what happens to the market after that point?
 
motomonkey said:
I remember another Fable, "the Grasshopper and the Ant". applied to Bitcoin, winter is coming. why do I say that? because you have a commodity that has a inherent cap on the amount that can be produced before the point of diminishing returns kills speculation. Bitcoin is fueled now by the "Miner 49" type goldrush. it's easy to obtain (relative to it's value), but unlike gold, it's value depend on the ability of speculators to keep the supply up to meet an artificial demand.
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Artificial demand? I don't understand, can you define that?

motomonkey said:
Bitcoin is an awesome chance for a handful of speculators to retire early. at the current rate of mining, what is the expected date when the cost of power and capital investment in equipment makes Bitcoin to expensive to mine, supposing that bitcoin maintains it's current value? and what happens to the market after that point?
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Too expensive is a relative term. As long as there are miners on the network, someone will get the algorithmically-bound reward whether it be an individual or a large corporate miner... in other words, the network generates 25 coins every 10 minutes (until the next halving period) regardless of $1 million invested or $1 trillion invested.
 
BusyBeaverHP said:
Artificial demand? I don't understand, can you define that?

Too expensive is a relative term. As long as there are miners on the network, someone will get the algorithmically-bound reward whether it be an individual or a large corporate miner... in other words, the network generates 25 coins every 10 minutes (until the next halving period) regardless of $1 million invested or $1 trillion invested.
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Right, the halving point, I am sure the ultimate point of reduced return on investment is years away, but that is what I was meant, how long till the cost of production exceeds a reasonable return?

By artificial demand, Bitcoin prices seem to be partially fueled by fact that people are making money on them, by producing them. There is no inherent value to a bitcoin, an ounce of gold is valued for it's physical properties among other things. what happens to it's value when in the future, assuming it remains a viable commodity, no more can be economically produced?

When all the Diamonds are mined, people will still desire them, but what about bitcoin?
 
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Quix said:
That's ok, the "Bitcoin Foundation" has never had any official status at all. It just showed up and unilaterally declared itself an authority. It's never been anything but a pointless endeavor that does nothing but issue public statements.

Don't get me wrong, Bitcoin is doomed. But it has nothing to do with the "Bitcoin Foundation". I could just start my own foundation tomorrrow called "The US Dollar Foundation", doesn't mean it would have control over the US Dollar.
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How does one gain official status? You show up and claim it, if enough people pay attention you have it. Since no one else stepped up to dispute their status it was theirs to take, its the free range.
 
Draax said:
Bitcoin was never a currency, it was a collectible which was organized in such a way as to be damn near a ponzi scheme.
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You can't make value out of nothing. Bitcoin needs to go away.
 
also, payments are entries in databases between institutions.

93% of all U.S. dollars exist only as a database entry.

that paper you hold in your hand is just symbolic of the real dollars.
 
At least the bitcoin defence league is proving that there are some irrational believers yet while it attempts to work on damage control by posting charts that are as delusional as the lying the bitcoin foundation's leaders have been in the recent past. I guess someone needs to support it so that criminals can try to buy illegal stuff with it.
 
motomonkey said:
an ounce of gold is valued for it's physical properties among other things.
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Cmon now, gold's value lies in its rarity and the fact that you only want it because you know someone else wants it, hence value is born. If I gave you a gold brick what would you do with it? The same thing applies to bitcoin.

When all the Diamonds are mined, people will still desire them, but what about bitcoin?
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Why not? Thats the whole point of making them finite, so that they maintain value just like precious stones.
 
As long as you can still buy something with bitcoin it obviously has value. If I give you 1000 bitcoins out of charity and you know you can take those coins and buy a car with them, dont tell me you're not going to take bitcoin regardless of what you think of it. The moment you do, you have just asserted its value.
 
motomonkey said:
Right, the halving point, I am sure the ultimate point of reduced return on investment is years away, but that is what I was meant, how long till the cost of production exceeds a reasonable return?
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It wont, bitcoin's hashing scheme is meant to protect against this inevitability. If too few bitcoins are produced then the difficulty in the algorithm decreases so that more people can produce more bitcoins again. If too many bitcoins are produced then the difficulty increases so that the market cant be flooded.
 
rudy said:
How does one gain official status? You show up and claim it, if enough people pay attention you have it. Since no one else stepped up to dispute their status it was theirs to take, its the free range.
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And nobody really pays attention to the Bitcoin Foundation, so there you have it.
 
BusyBeaverHP said:
You know, a lot of bitcoin detractors in this thread have been around longer than 2011, and they seem to forget that bitcoin was declared dead at $2 at the time.

Two magnitudes of value appreciation later, it's the same hecklers yelling ponzi scheme while Microsoft, Dell, NewEgg, Buy.com, TigerDirect, and Overstock thinks otherwise.

I remember this fable by Aesop called "The Fox and the Grapes"...
Click to expand...

Holy crap... once again with "all the people who accept bitcoin". It is a load of shit.

Those companies DO NOT price and do business in bitcoin. They accept bitcoin as a method of payment and immediately convert to the local currency so they take NO risk.

Bitpay (or whatever) is another entity cashing in on the speculation and naivety of nerds.
 
bitpay allows them to convert a portion (or all) to a fiat currency.
 
XvMMvX said:
Holy crap... once again with "all the people who accept bitcoin". It is a load of shit.

Those companies DO NOT price and do business in bitcoin. They accept bitcoin as a method of payment and immediately convert to the local currency so they take NO risk.

Bitpay (or whatever) is another entity cashing in on the speculation and naivety of nerds.
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Do you have actual hard data on who cashes out their bitcoins and who keeps a portion of it? Or is it speculation on your end as well? I'm not saying you're wrong, but I've heard that before and it's not backed up by hard data as companies don't release that kind of information for competitive reasons.

A load of shit? That's a strong reaction to something you don't use but others do, why is that?

I mean, I don't like Apple products, but I don't go around and tell people they're naive and Apple is full of shit... think about it.
 
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