Bitcoin and Liberty Reserve - page 2.

CurbsideProphet

hero member

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Quote from: JackH on May 28, 2013, 04:48:06 AM

Look at this thread btw: http://www.talkgold.com/forum/r391464-.html

It is completely completely crazy people have 10k+ stored in a centralized, non-regulated system like that. Who in their right mind did not think this could happen? LR was the pit hole of all scam in the world and next to E-gold when it came to being seized next. Yet people did not give Bitcoin a second look, despite its properties.

Why is this crazy? I'm sure numerous people had or still have thousands of dollars w/ Gox. At this point and for the foreseeable future, the most reasonable way to obtain Bitcoins is by trusting some of your fiat balances to a centralized exchange. Even if you go through a company like Coinbase, there's still a period of a few business days where the money is ACH'd out of your bank account and your Bitcoin is not available. Counterparty risk is still one of the major issues that needs to be resolved.

stick_theman

sr. member

Activity: 372

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Quote from: escrow.ms on May 28, 2013, 05:12:01 PM

Quote from: stick_theman on May 28, 2013, 05:02:54 PM

Some body lost a lot of money? Embarrassed

Lots of peoples lost thousands including me. Some had more than 50k

Sorry to hear that, bud.

escrow.ms

legendary

Activity: 1274

Merit: 1004

Quote from: stick_theman on May 28, 2013, 05:02:54 PM

Some body lost a lot of money? Embarrassed

Lots of peoples lost thousands including me. Some had more than 50k

stick_theman

sr. member

Activity: 372

Merit: 250

Some body lost a lot of money? Embarrassed

escrow.ms

legendary

Activity: 1274

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http://www.bloomberg.com/video/liberty-reserve-laundered-6-billion-bharara-says-h7kwG_fSQIe~21Dsq~yVmQ.html

cdog

hero member

Activity: 1036

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Bitcoins are the last bastion of true financial freedom

herzmeister

legendary

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Quote from: talkgold.com forums

Bitcoin can never be instant exchange.

Who wants you to wait 2 days?

escrow.ms

legendary

Activity: 1274

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Quote from: JackH on May 28, 2013, 05:24:28 AM

I think stability can be argued now that the worth of LR money is a big ZERO. Just because there is no big swings in the dollar and gold compared to Bitcoin, still does not make these payment systems secure in terms of stable money. The proof is right here in front of us. Tomorrow HD Money could be gone. Bitcoin is volatile but beats any storage medium for stability. I think most people would rather loose 10% on price instability than 100% due to confiscation. Cyprus anyone?

According to them LR was backed by gold and they were not scam site, They were a secure payment system but US govt fucked them, because peoples were using it for money laundering,drugs,porn and other illegal things, like bitcoin is getting used now.

JackH

sr. member

Activity: 381

Merit: 255

Quote from: escrow.ms on May 28, 2013, 04:59:20 AM

Quote from: JackH on May 28, 2013, 04:48:06 AM

Look at this thread btw: http://www.talkgold.com/forum/r391464-.html

It is completely completely crazy people have 10k+ stored in a centralized, non-regulated system like that. Who in their right mind did not think this could happen? LR was the pit hole of all scam in the world and next to E-gold when it came to being seized next. Yet people did not give Bitcoin a second look, despite its properties.

They don't want to adopt bitcoin as their main currency because those peoples doesn't want to put their money in a non stable currency. Most of them are Forex/HYIP investors.

And about LR, it was a old currency, even big companies/exchangers started using LR, that build trust between users and thousands or probably millions of peoples started using it.

I think stability can be argued now that the worth of LR money is a big ZERO. Just because there is no big swings in the dollar and gold compared to Bitcoin, still does not make these payment systems secure in terms of stable money. The proof is right here in front of us. Tomorrow HD Money could be gone. Bitcoin is volatile but beats any storage medium for stability. I think most people would rather loose 10% on price instability than 100% due to confiscation. Cyprus anyone?

escrow.ms

legendary

Activity: 1274

Merit: 1004

Quote from: JackH on May 28, 2013, 04:48:06 AM

Look at this thread btw: http://www.talkgold.com/forum/r391464-.html

It is completely completely crazy people have 10k+ stored in a centralized, non-regulated system like that. Who in their right mind did not think this could happen? LR was the pit hole of all scam in the world and next to E-gold when it came to being seized next. Yet people did not give Bitcoin a second look, despite its properties.

They don't want to adopt bitcoin as their main currency because those peoples doesn't want to put their money in a non stable currency. Most of them are Forex/HYIP investors.

And about LR, it was a old currency, even big companies/exchangers started using LR, that build trust between users and thousands or probably millions of peoples started using it.

JackH

sr. member

Activity: 381

Merit: 255

Look at this thread btw: http://www.talkgold.com/forum/r391464-.html

It is completely completely crazy people have 10k+ stored in a centralized, non-regulated system like that. Who in their right mind did not think this could happen? LR was the pit hole of all scam in the world and next to E-gold when it came to being seized next. Yet people did not give Bitcoin a second look, despite its properties.

JackH

sr. member

Activity: 381

Merit: 255

Looking at the topics on Talkgold it seems those people have learned nothing from the shutdown of LR. They are all happily moving to other centralized systems such as HD Money and whatever god awful payment portals there are. Honestly, I dont think they understand how Bitcoin works and why it is different. Take a look for yourself: http://www.talkgold.com/forum/f472-.html

farfiman

legendary

Activity: 1449

Merit: 1001

On the other hand LR uses that have lost their money might be more wary of digital currencies and
think bitcoin is a big risk as well. Only question is if they have a better alternative.

BTCLuke

hero member

Activity: 526

Merit: 508

My other Avatar is also Scrooge McDuck

It's a very mixed blessing.

On one hand that money is locked away from bitcoin, and a good percentage of those users are going to be more shy about using anything at all but fiat now. Sad

On the other hand, a larger percentage of its' users are now forced over to bitcoin. Too bad these are most likely to be the shady folks mentioned above.

However I don't mind at all that my chosen currency can be used for buying drugs and other shady stuff, because fiat cash is always going to be #1 for those industries, as it is technically more anonymous than bitcoin ever could be.

Here's the Coindesk artice on the the LR takedown for those who haven't seen it:

http://www.coindesk.com/liberty-reserve-exchange-shuts-down-founder-arrested/

str4wm4n

legendary

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LR GOT SHUT DOWN?!?!?!?!?!?

this is huge

Stampbit

full member

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Quote from: bit777 on May 27, 2013, 09:26:59 PM

These are also all underground people, hackers, fraudsters and the like. They could draw a lot of unwanted attention and bad publicity to bitcoin.

lol

bit777

sr. member

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These are also all underground people, hackers, fraudsters and the like. They could draw a lot of unwanted attention and bad publicity to bitcoin.

TLS freedom

newbie

Activity: 39

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Very likely after they get their funds out of LR if thats even possible. Since its a US govt op I'm betting not.

It will take time for people to switch and learn bitcoin.

bit777

sr. member

Activity: 420

Merit: 250

Now that Liberty Reserve got shut down, and it was a huge anonymous business, if we follow logic and all users switch to bitcoin...that will be a lot of users and a new large rise in btc price? Thoughts?

Topic: Bitcoin and Liberty Reserve - page 2. (Read 2747 times)