Vending machines for suckers coming soon

[IDemo]

Bitcoin ATMs coming to the U.S.

Bitcoin, the emerging if still somewhat mysterious digital currency, may be coming soon to a high-tech ATM near you.

Kiosks that allow people to buy the virtual coins, or exchange them for cash, will be installed within the next month or so in Seattle and Austin, Texas, according to Robocoin, the Las Vegas-based company that makes the machines.

They will be the first such ATMs in the United States. Robocoin has installed machines in Vancouver, British Columbia, with more in Canada, Hong Kong, Europe and Asia in the works.

The emergence of public ATMs, the company says, is a step toward making Bitcoin, a currency that's not backed by a government or bank and has no physical assets to prop up its value, a more comfortable buy for mainstream users outside the Webcentric circles where it currently thrives.

http://www.cnn.com/2014/02/18/tech/innovation/bitcoin-atms/index.html?hpt=hp_t2

[Ticktock]

1. What led you to this opinion?

While you did a great job cutting and pasting, you failed to add any commentary, thoughts or opinion whatsoever to your post.

Why are they suckers? What is it about Bitcoin protocol or technology that you feel makes investors into "suckers?" Last I checked, people who invested in bitcoin a year ago are still a few hundred percent up over any standard investment on wallstreet.

Do you actually understand bitcoin technology? I assume so if you have an opinion on its longevity and future success so I'd be interested to hear what you know about Bitcoin that has led you to this opinion.

[MineralMan]

2. Nobody is required to add commentary to a post on DU.

Last edited Wed Feb 19, 2014, 12:21 PM - Edit history (1)

But, actually, the title of this original post is commentary, and I tend to agree with that commentary. Bitcoin is something of a black-market currency, unregulated and used by many for illegal reasons. That's cause enough to be concerned about getting involved in that economy. There's lots of interest in Bitcoin use from law enforcement. Its very nature is something that is being monitored carefully.

Encrypted transactions aren't foolproof, and they certainly attract lots of interest. I wouldn't be interested, myself, in getting involved with such a currency. Someone's always watching.

[IDemo]

3. A couple of reasons

There is the so-called "transaction malleability" issue:

Bitcoin's transaction malleability rattles system - No matter the currency, the idea of "transaction malleability" would put anyone on edge.

The exchange of money should be final unless both parties say otherwise, but the bitcoin community has been rattled by that exact ambiguity.

A weakness in the open-source computer code has plagued the most powerful legal and illegal entities that trade in the cryptocurrency.

http://www.sfgate.com/technology/article/Bitcoin-s-transaction-malleability-rattles-system-5236912.php

For whatever weaknesses the Dollar may be perceived to have, it is still the predominant currency in world trade and finance. No one is questioning whether an undiscovered computer bug or vulnerability may cause its collapse or threaten the integrity of their last or next transaction. Unless you believe that a catastrophe is looming that will leave the Dollar in the dust while Bitcoins remain above the fray, it's difficult to see this as anything but a gamble at best, and an easy vehicle for money laundering while it lasts.

[Ticktock]

4. hmm

Transaction malleability creates absolutely no risk to bitcoin. Its something that proper developers work around when working with the Bitcoin protocol. You are probably only mentioning it because its what MTGOX is currently blaming its issues on but they are one of the only exchanges that had poor enough code quality to be affected. The reason MTGOX has lost worldwide credibility is because they are mentioning transaction malleability in their current defense as if it hasnt been known and developed against for years.

Its interesting that you mention some catastrophe harming the dollar as unlikely. Really? One doesnt have to watch the news for more then 10 minutes to see many historical and current examples of economies crashing. Is a catastrophe looming? Who knows...predicting one is as impossible as predicting an undiscovered computer bug.

I still wonder how any of this makes a person a "sucker?" Investments are ALL gambling. Anyone who says otherwise is lying.

[Adrahil]

5. A limited circulation currency, Bitcoin is doomed to ultimate failure.

At best, it will follow a price-curve of any essentially valueless commodity. Ultimately, since it is a fixed quantity commodity, it will not be able to function as a currency, since people will hoard Bitcoins in the hopes it value will increase. Ultimately, people will abandon it, or it will be challenged by some other copycat "cryptocurrency." It is telling, for example, that the value of Btcoins are pretty much always indexed to other actual currencies.

Like any such commodity bubble, some people will make a killing. But many more will lose their "investment."

I mean, if you wanna use them, knock yourself out. Me? I have ZERO interest in this Monopoly Money.

[KurtNYC]

6. A non-government entity that issues currency? That sounds so familiar....

ALL currency can be used in drug deals, gambling and other illegal activities so that part of the argument against bitcoin is bogus.

I have trouble believing that that the attention bitcoin is getting now is about protecting consumers. It sounds like the fake arguments they made against buying legit prescription meds from Canada.

It isn't about protect consumers but rather about protecting profits and the status quo.

[Ticktock]

7. 100% agree

I totally agree. Quoting the lack of central regulation as a problem with Bitcoin is laughable as that fact is actually is most valuable trait. Its also its most threatening trait which is why companies with a vested interest in central banking seem to have the strongest opinion on Bitcoin.

People also tend to be very US-centric here. Is the dollar stable? Thats debatable but lets assume it is. Can the same be said for all currencies? Certainly not! Would you really deny that a deflationary currency free from centralized regulation/corruption is not an attractive model if you were living in a country where your own central and corrupt government controlled the banks?

Bitcoin is to money what the internet did with distributed information. There were as many naysayers about IP as a technology as the bitcoin protocol and everyone quotes them as morons today.

Maybe Bitcoin early adopters will be "suckers" but the same was probably said of the early adopters of every single revolutionary technology today.