Topic: This is why bitcoins are dirt cheap right now (Read 2853 times)

Wow I have to admit I didn't see that coming and I kind of like the suggestion and reasoning.  Just another peace of info to consider though I'm not sure I agree I appreciate the opinion.

I'm not a big believer in the idea of mainstream users interfacing directly with the blockchain. It doesn't scale well to that extent as far as I can tell, plus for daily use dealing with private keys is risky and nerve-wracking. If Bitcoin goes mainstream, I see it performing the role of a settlement backbone over which a number of payment services are built. Sure, you can still hold Bitcoins directly, but I think most mainstream users would take counterparty risk in a more mature service environment over the risks involved in being their own bank. And who has a lot of experience with consumer-facing financial services? Banks.

For the United States to occupy the dominant currency, Bitcoin is a powerful threat, it is the only thing capable of challenging U.S. hegemony in the world. So on the cheap!

bitcoin is chip just because people are not buying ASIC. People have started mining litecoins!

Bitcoin price is slowly rising again. Right now $515.
The price drop is due to fear of china govt banning BTC.

Well this is an interesting discussion taking place and I'm on the fence for sure at the moment just gathering facts for the time being.  Seems like a lot of potential for good and bad form here.

You should read the Paypal Wars: http://www.amazon.com/The-PayPal-Wars-Battles-Planet/dp/1936488590

the idea that banks hate bitcoin is laughable too. ill give you a scenario

imagine a guy from africa moves to the US, sets up a bank account to receive his salary from a US bank. each week he withdraws a few hundred in bank notes and posts it to his family in africa.

Bam dollars no longer in US circulation.

now imagine this same guy buys bitcoin. he does a wire transfer to another american bank (the seller) to get the bitcoin. US dollars transfer from one US bank to another, keeping the Dollar in US circulation. and only bitcoins move abroad.

there are many other positive scenario's for banks. so remove the doom theories from your mind. bitcoin can easily work along side FIAT, it does not have to demolish the FIAT market, it does not have to replace or over power it.

have a nice and positive day

bitcoin = 0

We certainly hope for Bitcoin is getting better and better!

I've been avoiding having to use my bank for several of its features, such as wealth storage, for over a year already. Bitcoin does some of this stuff better, such as security.

Its not an argument, the OP implies the future value of bitcoin is high, thus at the current price , its cheap.

Serial entrepreneur Steve Kirsch’s latest venture, Cointrust, is creating technology he says can turn Bitcoin into a mass-market currency.

“We show how Bitcoin can be turned into something that is user-friendly and regulator-friendly,” Kirsch told IDG News Service in a recent interview. “Everybody I’ve talked to, every bank that I’ve explained what we are doing to, loves the idea.”

Kirsch wouldn’t reveal the precise technical details of Cointrust’s technology, as it remains in stealth mode before a launch later this year. But the company’s general goals are laid out in some detail on its website.

He particularly wants to woo the financial sector. “Getting involved in Bitcoin today, either directly or by providing banking services to Bitcoin startup companies, is a challenge because of the compliance and regulatory risks,” states a page on the Cointrust site aimed at banking customers. “We’ll show you how we make these transactions as safe and compliant as traditional fiat currency transactions.”

Cointrust’s technology won’t require any changes to banks’ existing software infrastructure, the page adds.

Bitcoin developers are another audience Cointrust wants to court, with APIs (application programming interfaces) for managing financial transactions. The APIs will be “irresistible” to developers because they’ll make their lives so much easier, Kirsch said.

Finally, Cointrust intends to calm the nerves of regulators regarding the virtual currency.

Its technology will make sure problems that have befallen exchanges such as Mt. Gox, which filed for bankruptcy protection, “cannot happen ever again,” the website states. “Regulators we’ve briefed love our innovative approach to solving the compliance problem because we give them control over every Bitcoin transaction.”


Does that say regulators will have control over every Bitcoin transaction?   
Maybe This IS why bitcoins are dirt cheap right now?

On the surface, this seems like an integrated exchange/escrow/broker service with an API. Will this lead to mass adoption of BTC? I doubt it. These services already exist, although somewhat fragmented.

The idea that banks will embrace Bitcoin is laughable. If Bitcoin could be bought out, it would have been by now and dumped in the trash bin!

Bitcoin is a direct threat to banks.... I imagine in 12 months or so, you may be able to avoid banks totally 

So people are selling their coins on the verge of a mass adoption of bitcoin?
This really doesn't make sense to me, could you please elaborate on your argumentation?

http://www.pcworld.com/article/2127920/cointrust-ceo-says-his-technology-can-take-bitcoin-mainstream.html