Bitcoin Exposed: Today's Complete Guide to Tomorrow's Currency (10 page)

Entrenched competitors that are not seeing the growth, but do have tangible assets - gold and silver - backing them include:

- Pecunix

- GoldMoney

- BullionVault

- PerfectMoney

- LibertyReserve

- Tecnocash

- C-gold

- Formerly available e-gold

- Global Digital Pay

These gold or silver backed currencies are not widely used, traded, or accepted. They do have the advantage of being backed and convertible into physical precious metals. Without wide market acceptance, however, their future is limited.

6. Most critically, there are efforts for backing Bitcoins with gold or silver. This is a critical step that will cement BTC's as a functional form of money. There are reasons for not taking this step, as it decentralizes the network if there must be storage for the gold. However, a de facto backing by gold would mean that the value of a BTC is respected enough that it can be tendered for gold.

Agents For And Against Bitcoins; Alternative Currencies

Governments, banks, the Federal Reserve (and all central banks), Visa, MasterCard, American Express, taxing agencies, some tech companies such as Apple, Microsoft, Google, Amazon, and the United Nations are all staunchly opposed to Bitcoin.

In time, Bitcoin can put many a bank under. No more credit card fees, bank accounts fees, or controlled interest rate schemes can flourish when we can provide our own banking services through choice.

On the plus side, the Internet software groups support Bitcoin strongly. The younger generation has adopted it as their own. Asia is betting on Bitcoin to preserve their hopes for increasing wealth while their central banks create massive inflation. Those wishing to keep funds from being confiscated will use Bitcoin (as the Cyprus event demonstrated).

Forces allied with Bitcoin are more widespread, determined, active, and clever than those opposed to Bitcoin. Bitcoin seems to be emerging victorious.

Predicting Prices For Bitcoins

Already, we’ve calculated a possible worth for $/BTC north of $80,000.00 based on the U.S. M2 value.

Including all the worlds’ currencies in that calculation will send that number up by 4 fold or more.

More important than the currency value of a BTC, is what the realizable value of one will be. We could, and probably will, have a currency regime change between now and 2139 when the last Bitcoins are mined. The question is what will we be able to buy with a Bitcoin, or a dollar for that matter?

The U.S. dollar will buy less of the critical goods over time, as has been the case ever since 1929. The value of a dollar has declined roughly 97% over that period. Bitcoins will move higher and lower, but will not experience a waterfall decline - unless attacked and stopped by governments or banks. Bitcoins will continue their market penetration, pushing aside inflated national currencies.

Expansion Markets For Bitcoins

There are many opportunities for Bitcoin entrepreneurs.

1. Bitcoin consulting for getting online and offline merchants integrated with Bitcoin appliances, pricing, out-conversion, marketing, and trading.

2. Developing and selling Bitcoin trading robots. This is a huge potential opportunity for those with the software skills for tackling the coding along with the trading chops for making the robot a profit winner.

3. Bitcoin financial transfer agents for converting from debit cards, credit cards, loans, gold, silver, local currencies, creating transfers, etc. The old guard institutions consider Bitcoin the enemy. This leaves an open window for those willing to get over the MSB hurdles.

4. Bitcoin network monitoring codes for alerting Bitcoin users of unusual activity across the network. This would be similar to the stock market where futures indicate the direction of the market before it opens. With this service, Bitcoin users could be alerted to when there is a market rocking event and make decisions accordingly.

5. Bitcoin advertising network. One of the biggest issues for Bitcoin is that businesses cannot easily use it for buying business services. An advertising network suited for Bitcoin clients will absorb the Bitcoin flow from online merchants. Google refuses to convert to Bitcoin, so another avenue is needed.

Bitcoin seems to be here to stay. Frequent updates for trading and Bitcoin events can be found at:

http://www.financialsurvivalcenter.com

Sign up for the newsletter and follow
@financialsurvvl
on Twitter for frequent trading tips, risk warning, and investment strategies about Bitcoin and alternative investments.

One of the most active forums for Bitcoin:
https://bitcointalk.org

To a future of Bitcoins…and freedom.

Your Bitcoin Guides,

Mark D. Solomon & Daniel Forrester

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Appendix A - Major Bitcoin Developments & Timeline

1990 - David Chaum founds DigiCash Inc. Transactions were unique based on cryptographic properties, similar to Bitcoin.

1998 - DigiCash, Inc. files bankruptcy, and is sold to Ecash.

2002 - InfoSpace buys Ecash.

2008 - Satoshi Nakomoto makes hundreds of posts to cryptography forum metzdowd.com. He publishes a research paper detailing a Bitcoin concept.

8/15/2008 - Patent #20100042841  filed for a Distributed Encryption Key Invention

8/18/2008 - Bitcoin.org domain reserved out of Helsinki, Finland.

2009 - Bitcoin network forms with the open source client and first bitcoins issued.

2010 - Mt.Gox bitcoin exchange formed.

2011-2012 WikiLeaks, Wordpress, Reddit and small online merchants accept Bitcoin. Bitpay reports over 1000 merchants using their service.

Bitcoins have a major crash from $30 to $2 in late 2011.

Coinbase sells over $1 million BTC in a single month.

2013 - A split occurs in the Bitcoin transaction log or block chain. It is eventually resolved.

FinCEN - The financial crimes are of the U.S. Treasury puts Bitcoin exchanges on notice that they are considered under their rules.

Mt.Gox, the major Bitcoin exchange, shuts down during a crash from $266 to $105.00.

Appendix B - List Of Main Bitcoin Services And Websites

Bitpay is the leading merchant processing service and has the largest customer list for stores accepting Bitcoin.

This list was current as of April 2013 – Please note that many of these sites/stores may no longer be operating or accepting Bitcoin.

Source:
https://www.spendbitcoins.com/places/

• ModifiedController.com
  - Modified Xbox controllers.
  
• Alpaca Products for Bitcoins
  - Alpaca socks.
  
• Babbletees
  - Design Savvy Science/Academic Based T-Shirts. Bitcoin accepted at checkout.
  
• Heatslingers.com
  - 100% Authentic Nike Dunk SB, Air Force 1's, Air Jordans and Clothing. Accepts Bitcoin.
  
• R-Shirt
  - Accepts Bitcoins for geeky pirate R-Shirts.
  
• Pirates of Savannah
  - Website for historical adventure novel - ebooks and audio books for sale.
  
• Video Seconds
  - New DVD concerts, movies, select CD's and misc eclectic products. Ships International.
  
• Happy Tree Cosmetics
  - Natural hand made cosmetics. Bitcoins are accepted on the main business page for gifts.
  
• ottonormalo
  - we offer premium postcard, audio books and outstanding photography (German website).
  
• VPN Service by Private Internet Access
  - Private Internet Access is the leading VPN tunnel service provider.
  
• cryptoanarchy.com
  - We sell embroidered polo shirts, bumper stickers, magnets and some computer components.
  
• CRON-O-Meter
  - CRON-O-Meter is a premium web application for tracking your nutrition and health data.
  
• Bitmit
  - Biggest Bitcoin user to user shopping marketplace (auction house and buy now).
  
• FUSA
  - FUSA offers dedicated servers, virtual private servers and colocation services.
  
• BTCInstant.com
  - We provide instant Virtual Master Cards (purchased with Bitcoins) sent to your email.
  
• txt4coins.net
  - Worldwide SMS service. No registration, pay-per-use, bulk messages supported, full API.
  
• NESTORGAMES
  - NESTORGAMES manufactures and sells physical board games worldwide in a nice portable package.
  
• Shire Silver
  - Shire Silver makes physical precious metal easy to trade and handle.
  
• Stomp Romp Guitars
  - Stomp Romp is a pedal-centric guitar store in New Hampshire, USA. We ship worldwide.
  
• Anonymous Ads
  - Unusual and transparent advertising network that doesn't collect personal data about users.
  
• Stateless Sweets
  - Delectable homemade, all real ingredient candy, delivered to your home as a treat.
  
• BitLasers
  - We sell handheld lasers and accessories for Bitcoin.
  
• George's Famous Baklava
  - George's Famous Baklava has been baking and shipping baklava online since 2009.
  
• Coinabul
  - The first Gold to Bitcoin marketplace. We sell gold and silver for Bitcoin
  
• Bits For Coins
  - Quality Dedicated Servers, VPS, VPNs and seedboxes.  
  
• HowToTeachEnglishOnline.com
  - Discover how to teach English online and make money. The e-book will show you how to
  
• ClintonCharlie
  - Designer Jeans label - Now accepting BTC payment!
  
• MindTag Tecnical Support
  - MindTag is a web development company that is built to grow your business online.
  
• Escape To Life
  - Private Swiss detox clinic. Rapid, gentle and discreet 5-day escape from painkillers.
  
• BitcoinAg
  - Purchase silver from BitcoinAg and receive it straight to your door within 5 business days.
  
• Dashing Valet Dry Cleaning
  - Dry cleaning delivery service.
  
• Guerilla Packs
  - Versatile backpacks.
  
• Eastern Mountain Sports
  
• Private Internet Access™
  - Private Internet Access™ is the internet's leading VPN service provider.
  
• Minethings.com
  - Minethings.com is a fun online game that pits you against people around the world.
  
• Volternal Consulting
  - Volternal Consulting is an IT Consulting firm that specializes in using Free, Libre,
  
• Agorist Marketplace -- flags us as having malware when this link is active
  - Connecting the Free Market Community since 2012.
  
• Real G&G
  - Here you can convert Bitcoins to what ever you like.
  
• fiveminutecoin
  - Get free Bitcoins or advertise cheap with the instant advertising feature.
  
• Bitcoin Magazine
  - Bitcoin Magazine is an international distributed print publication covering all things Bitcoin.
  
• Vaper's Mark
  - Vaper's Mark is an electronic cigarette company that makes premium e-liquid and wooden cigarettes.
  
• BitJack21
  - Bitcoin blackjack
  
• BitcoinAdvertisers.com
  - Advertise for Bitcoins
  
• BitcoinNetworks.com
  - Bitcoin hosting and cloud
  
• Bitronic Technologies
  - Bitronic Technologies now accepts Bitcoins as a payment method.
  
• Bitronic Technologies Web Hosting
  - Bitronic Technologies accepts Bitcoins as a payment method.
  
• XSNL.NET Internet Services
  - Get your own webhosting for Bitcoins.
  
• honestbeef
  - Selling Australian grass feed beef direct from the farmer. Transparent pricing.
  
• MyDogtag.com
  - Design and order your own custom Dog Tags with the online Dogtag Generator! Pay with Bitcoins!
  
• Qiqqa
  - Qiqqa is free research management software. You can purchase Premium membership using Bitcoins.
  
• North Outboards
  - We mainly sell used boat parts. We will accept Bitcoins
  
• SuperSeedbox.co.uk
  - Seedbox and dedicated server provider.
  
• Mach 1 Web Design
  – Create your own website, or let us create one for you.
  
• CISTHENE
  - "Jewelry is personal.”
  
• DOTS Investment Strategy
  - This simple "Sell in May and Go Away" investment strategy outperformed the S&P500.
  
• BitcoinAdSmart
  - BitcoinAdSmart offers the most fully intuitive Bitcoin advertising service available.
  
• Schuhwelt.com
  - Sale of brand name shoes like Birkenstock, Meindl and other german top brands.
  
• Seals With Clubs
  - Seals With Clubs is Bitcoin poker. We have ring games and tournaments.
  
• FastCash4Bitcoins
  - We are a direct buyer of Bitcoins and offer fast payouts.
  
• Pacific Bliss Massage
  - Pacific Bliss Massage is Vancouver's most blissful massage and integrated healing center.
  
• Microtronix
  - Webhosting, Vserver, Domains, etc.
  
• Ferroh
  - Trade Bitcoins for Diablo 3 gold!
  
• BeeVPN
  - Privacy and Protection done right!
  
• Bithosting.info
  - Web hosting from 0.5 BTC/month or $5/BTC/year!
  
• Bam+Boo Baby
  - Bam+Boo Baby Products offers a range of reusable cloth diapers and other eco baby items.
  
• mumble4bitcoin
  - Exclusively for Bitcoin: mumble-server slots at an unbeatable low price.
  
• Morgan Digital Engineering Services
  - It's been said that everyone on earth has at least one "Million-Dollar" idea in their lifetime.
  
• YogiWay.eu
  - European yoga eShop - yoga mats and yoga tools
  
• SurvivalFood.com
  - SurvivalFood.com is a retailer and wholesaler / consultant of emergency and survival items.
  
• Straight Talk
  - MVNO of AT&T Mobility Prepaid cell phone service.
  
• Bitcoin Bundles
  - Bid on bundles of Bitcoins and occasional special auctions.
  
• OZBTC
  - australian Bitcoin classified
  
• anti-interception
  - anti interception stealth phones , privacy protection tools
  
• Pixel Punch Design
  - Pixel Punch is a web and graphic design company. Based in the UK; accept international payments.
  
• Quantum Kiwi
  - Quantum Kiwi - Web & I.T Solutions We provide Premium CLOUD Web Hosting services.
  
• Webvox
  - Web design and web programming.
  
• Copa Apartments
  - Short-term apartment rentals in Rio de Janeiro, Brazil!
  
• WASDhost
  - Extremely cheap Minecraft hosting, Try our one gigabyte of RAM server to test it out.
  
• GarageFarm.NET
  - GarageFarm.NET is a small but powerful internet farm.
  
• Bluetreehost
  - Bitcoin web hosting from an established web hosting company with a solid track record.
  
• All Things Luxury
  - Jewelry for less. Up to 75% off retail prices, plus free shipping. Vast selection of jewerly.
  
• Diplomat Limited
  - We supply software and hardware to the taxi and private hire market.
  
• YOKU Cloud Hosting And VPS Servers
  - Since 2001 Yoku's team has specialized in VPS Servers and Cloud Server Hosting.
  
• PhoneSomeone
  - Telephone wholesaler of second hand equipment.
  
• TSHIRT LAB
  - T-shirts and Blotter Art - designs inspired by all manner of coolness!
  
• Btcgriffin- Bitcoin Lottery
  - Play Lottery with Bitcoin
  
• Bitwein
  - Buy high quality wine from palatinate for Bitcoins.
  
• darkFunction Software
  - darkFunction Editor is a 2D sprite and animation studio for game developers.
  
• Fiber Back Up Canada Inc
  - IT company. We fix computers and stuff.
  
• Adamant Barbell
  - Home and commercial fitness equipment.
  
• Lighthound
  - Flashlights, batteries, chargers, outdoor gear, etc.
  
• Directbizware
  - Home and Business software for Bitcoins
  
• Bitwein.de.vu
  - Wine for Bitcoins
  
• VisualCity
  - SEO, Web Design, Adwords Management, Internet marketing.
  
• Cups and Cakes Bakery
  - The first business to sell cupcakes for Bitcoins.
  
• BTC-Trader a MtGox trading client for windows
  - BTC-Trader is a MtGox Bitcoin trading client for windows. Compared to MtGox ' web int
  
• Ico6
  - Do you have enthusiasm for Computers? Gaming? Science?
  
• CoinUploads
  - File storage and sharing for Bitcoin.
  
• Health Kismet
  - Health Kismet makes Incredible Greens, a green superfood supplement.
  
• Bitquestion
  - Get expert help with Bitcoins: ask away your hard questions!
  
• CleverPuffin.com
  - A UK based web host which exclusively accepts BitCoin for payment.
  
• Torfl
  - Torfl Bitcoin Raffles
  
• House of Smoke
  - Tobacco shop with glass pipes and waterpipes. Bulk bags of tobacco.