Topic: "Failure to Understand Bitcoin Could Cost Investors Billions" (Bitcoin's flaws) - page 5. (Read 43189 times)

And now our friendly core Bitcoin developer stoops to ad hominem even as he has lost the argument. He isn't even man enough to show respect to someone who showed him his protocol is broken.

This is not the culture of open source. This man should not be entrusted with being a core developer of our world currency.

And he won't be! I guarantee you that.

https://bitcointalksearch.org/topic/m.5665741

Appears I was correct and Bitcoin core developer gmaxell was wrong. But he proposed a way to use Zerocoin offchain instead, which might be workable.

https://bitcointalksearch.org/topic/m.5663322

Upthread I criticized DarkCoin for not realizing that CoinJoin isn't scalable in decentralized setting because it can be subject to denial-of-service attack, now time to slay another incompetent altcoin HeavyCoin:

https://bitcointalksearch.org/topic/m.5659782

And they almost killed him in SuperMax prison which in solitary confinement punishment is essentially torture. Wasn't it 7 years?

Armstrong and I (although he didn't admit it was him) debated in email briefly on the subject of if there is a conspiracy at the level of Bilderbergs. He doesn't believe so. He believes the cycle is in control, not them, and they are just dumb. I have a more nuanced view, even though I agree the cycle is control, not us.

He hadn't thought a crypto-currency could overcome the government's power, and had been pushing for term-limits instead as a political solution, but maybe he is starting to realize after he thought it through (as I have)...

http://armstrongeconomics.com/2014/03/11/marxism-is-a-dead-idea-but-capitalism-freedom-has-never-truly-existed/

This Armstrong is probably the most intelligent person alive in the western world. For refusing to join the PTB, he was put to prison for 12 years in his advanced age.

Ah f8ck again, it is worse than $223 trillion, as China's huge shadow economy debt isn't included:

http://blogs.wsj.com/economics/2013/05/11/number-of-the-week-total-world-debt-load-at-313-of-gdp/

On this point of freedom-of-speech:

https://bitcointalksearch.org/topic/m.5656543

---

Example:

http://armstrongeconomics.com/2014/03/11/feinstein-get-what-she-has-dished-out-to-the-world/


True story: When I wrote the above quote, I was specifically thinking Feinstein would end up an example (with her N"s"A apparatus somehow destroying her as well). Then I went to Armstrong's blog and see it happened (but was C"i"A instead). Amazing. I anticipated the future in the blink of an eye. That is really true!

Important...

https://bitcointalksearch.org/topic/m.5655782

I revealed it because it expressed a veiled threat that I should be incarcerated for expressing my logic.

Also I did not PM him. I asked him in my public post to not do ad hominem, so he sent me a PM. So I had no agreement with him to have a private discussion. In any case, I wouldn't normally reveal a PM (especially if didn't remove the author's identifying information), but when someone equates debate in a forum with jail time, that is a pattern that needs to be exposed as early as possible. I hope he didn't really mean that.

He sent me another PM and I don't need to reveal it as it was more conciliatory, yet still made a demand of me but it wasn't so unreasonable so I complied in the interest of keeping the discussion on the technical issues.


Like here where I was correct.  

Or here where you were being a dick to me, you were logically incorrect and I was correct.  


He is a dick to me (sometimes, not sure yet if it is habitual). Let's see if he can learn to have a rational discussion with me instead of brow-beating me.

And it is not yet clear to me if he or I have won the technical argument. Let's see...I am reviewing his latest reply...

We have been in severe deflation since 2008, which is the main point of my post upthread (which quoted Shadowstats).

For the moment you are not yet seeing the severity of the deflation in your daily lives because most still trust that there are a $quadrillion of fractional reserves. By 2016ish (2018 at latest) all hell will break loose.


My entire point was the official CPI was understated to hide the fact they pumped up the fractional reserves, while they simultaneously hide the fact that actual circulation of currency, i.e. velocity of M0 and MB, have fallen off the cliff (especially since 2008).

And no there isn't any hyperinflation, the Shadowstats figures only show about 8-10% per annum inflation which seems to roughly correlate with the growth in my expenses.


Mathematically we can't have an average which applies to everyone. We can look at the geometric weighting of what the majority of the population spend on, and use that metric to compute a CPI which is representative of that group.

And without that hedonics bullshit of the official CPI where if a computer becomes 2X as fast, the official CPI counts that as a halving of the price of a computer! Bullshit.


1.08^13 = 2.71, thus 171% increase or 2.71 times. Thus $50k would be $18k. There is a calculator on their website for computing exactly. You can get the green bar value by comparing its height in pixels (to cheat so you don't have to pay a subscription).

http://www.shadowstats.com/inflation_calculator

It says $50k in 2014 would be $36k by BLS and $14k by SGS.

That BLS figure implies an average of 2.5% per year, which is complete bullshit. The SGS figure may be a bit too high though.

The following roughly agrees with my experience.

http://www.thepeoplehistory.com/70yearsofpricechange.html

So for meat:

1.075^23 = $4.89/$0.89

Thus 7.5% ≈ 8% is not far from the actual truth, at least for meat.

P.S. John Williams (proprietor of ShadowStats.com) thinks we will have hyperinflation. He is entirely mistaken. We will have severe deflation.

Agreed I've been making similar points as you did throughout the archive of my posts.


No I am actually trying to fix the currency use too (but pushing for an altcoin because Bitcoin can't be heavily modified), but it is more complex than the logic you expressed. Essentially there must be investment first to drive the currency uses, but the currency uses need to survive the investment phase. Bitcoin can't remain decentralized so if it survives as a currency it will only be with government blessing.


I haven't missed that point. It is just difficult to read all my posts. There are too many.


I don't think that necessarily follows.

Part of your point is valid, but some people have gained a lot on this investment.

You fail to understand anarchy. Anarchy had never ever been something different than self-sufficiency. Whoever is (had been) self-sufficient, doesn't have a desire to trade with aliens and building (maintaining) complex structures. Anarcho capitalism is an oxymoron promoted by pseudo-anarchists. They are collectivists.

Yeah that is what I was trying to do. Go read the posts from others in that CoinJoin thread in response to my request for technical comments.


Let's wait to see if gmaxell can refute the technical argument. I am fairly sure he can't. Which would then mean that he is doing the trolling per your definition. If he can't then he fails his own test for banning "level of technical mastery to the nearly flawless state", so therefore he must logically ban himself from his own subforum. Hahaha.  

It is unfortunate that you see spirited discussion as trolling. You've just provided an example of totalitarianism.

(mathematically the end-game of totalitarian regimes is to ban, i.e. destroy, themselves)

The implication that I would be "incarcerated" for expressing (sharing!) a technical opinion is definitely the markers of the psychology of a totalitarian sociopath control freak. That is not the decentralized freedom of the hacker and internet world that I worked hard (back in the 80s and 90s) to hand to kiddie gmaxell.


The problem is that the NSA doesn't need to be that smart because they have the asymmetric power derived from political power.

However indeed we can outsmart them if the outcome purely depends on technology.

Hence one of the reasons I created this thread. And hence the reason AnonyMint won't be announcing any altcoin that implements the ideas in this thread.

The outcome will be a mix of the technological and the political. The NSA+G20 will win the political (i.e. the majority will follow Bitcoin + world government) until everything is burned to the stumps. I am hoping the technologists can win in the sense that we don't get burned to stumps. Then at some point we take over and the majority comes to our side.

Tortilla (that is what MPOE calls you, hehe I don't agree just a joke), perhaps you don't understand that we can't get from here to there without a severe lashing.


That is what my efforts are about surviving my friend. One day you might understand. Am I motivated by fear, greed, or helping? Or a mix? And you?

Be careful with applying the Biblical of the macro on the micro steps along the way. The Bible says God works in mysterious ways.

Anonymint, I have read the PM you posted (which is, itself, rude) and I have to say I agree with every word of it.  Your attitude gets in the way of any constructive intentions that you may have; and as has been pointed out many times by many people previously, you don't understand Bitcoin as well as you think that you do.  Alternative, invitation only, technical bitcoin forums have been founded specificly to avoid you.  Which, BTW, is quite an accompishment if your goal was to troll.  Ironicly, I can't believe that you're a talented troll; but instead passionately believe everything that you claim.  Therefore, I must admit that the highest form of trolling that I have ever seen on this forum (or anywhere else) is accidental.

At my age, my memory should always be suspect.


Well, I can accept the argument that Shadowstats can still be flawed.  I'm just of the opinion that their methods are a bit more open, and their biases a bit less suspect.


You do have a good point there, but also a great many things besides have changed during those same 14 years to mitigate the effects.  (I'm not really talking about price inflation, so much as using that as an example since that is what the CPI measures.)  I'm mostly talking about monetary base inflation, which has been counteracted, to a great extent, by the debt destruction during 2007-2009 (mostly felt in the crash of houseing prices) and other smaller effects, such as the average increase in gas mialage and the decrease in average miles driven per year by Americans.  The rise of ridesharing services like zipcar really are having an outsized impact on the economy, permmitting urban millinials to commute by public transit with a ready access to a personal vehicle whenever neccessry.

Well there was that jump when I upgraded to my McMansion in 2006.


So it seems that your memory is suspect afterall. Gas may have been in the low $2s in 2008, but it was above $4 in 2007. Perhaps you should look into the reasons why it was so cheap in 2008? Because it does not make your case at all.


There was no statement made about the official CPI, stop red herringing. Shadowstats is just as big of a pile of bs; pointing out the flaws of some other flawed metric does not make Shadowstats not flawed. Besides, all it is doing is obviously just adding 5% on to the CPI, there is no actual metric.

And I don't have the data points, but if we assume roughly 8% inflation since 2000 according to shadowstats, that means there has been ~150% inflation in 14 years. Someone making $50k today is the same as someone making $20k in 2000.

It shouldn't have.  I'd wager that if you actually sat down and assessed your real costs, you'll find that your expenses have likely doubled as well, since about 2000.  While gas prices have been fairly flat the past couple of years, the price of a gallon of petrol near where I live was right around $2.20 in 2008 and is $3.57 today; and has been as high as $4.09 in between.  Likewise, as recently as two years ago, a gallon of propane cost me about $1.60, delivered; today it's $3.40.  Granted, there are a lot of market forces going on there, including the quite un-global-warming-like winter we just had.  Yet, the cost of beef or chicken at the grocery store is much more than it was a decade ago as well.  The offical CPI suppresses the official inflation metric in a number of ways, one of which is to use 'substitution'.  I.E., they assume, as prices rise, someone who could no longer afford beef would buy chicken instead; so they swap the price of beef for the price of chicken in the formula.  There are other examples I can produce.   And the cost of consumer energy needs isn't even included in the modern calculations at all, only the commercial and/or wholesale prices of those energy sources; or more specificly, the effect of the rising energy that commercial businesses pass onto their consumer prices.