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Why Bitcoin Is Tangible – Digging Into The Guts Of Bitcoin

by Trace Mayer, J.D. on November 8, 2012 · 23 comments

Reading time: 17 – 28 minutes

Some supposed monetary theorists assert that Bitcoin is not tangible. This is no doubt a problem due to the prison house of language the human mind dwells in when trying to convey ideas. But this conclusion is either the result of confused definitions or incorrect being based on several faulty premises and flawed logical reasoning. Bitcoins are tangible assets.

Those who took my advice 11 months ago have returns of about 175% in FRN$ and 156% in gold.

MONEY, ILLUSIONS AND CURRENCY

In The Great Credit Contraction, which was written in 2008 before Bitcoin was invented, on page 12 I attempt to provide some definitions to lubricate the discussion for practical purposes and distinguish between money, money substitutes, illusions and currency.

Currency can be either money, money substitutes or an illusion and is the instrument or tool we use to perform ordinary daily transactions. “Money must have intrinsic value by being a tangible asset. … An illusion is a negotiable instrument that promises nothing and has no intrinsic value.”

The use of the adjective intrinsic is in the sense of belonging naturally or being essential and not that is has a particular value because value is subjective based on human action. This is used in contrast to an illusion which has extrinsic value.

To further clarify the characteristic, the market tends to place value on currency because of its scarcity and the issue is whether that scarcity is intrinsic or extrinsic. For example, gold is intrinsically scarce based on the laws of physics and chemistry whereas FRN$ or Euros are extrinsically scarce based on the laws of men with regards to counterfeiting, etc.

One common analogy I like to use when explaining Bitcoin is that Bitcoin is to gold what math is to physics or chemistry. Money fashioned from gold is composed of atoms while money (not just currency!) fashioned from math is composed of numbers.

TANGIBILITY AND CORPOREALNESS

A few years ago I was in Tampa Bay, Florida having dinner with Eric King of King World News and he said, “You are a philosopher.” Well, there is a long line of monetary scientists who were also philosophers so perhaps after reading this section you may agree that Mr. King was correct in his assertion.

Critical to this discussion is the issue whether corporealness is either an element or a factor for tangibility in the context of monetary theory. In other words, can something be tangible and incorporeal?

First, it is important to get the definitions correct. The Greek word tetagon means to touch lightly and is the root for tangible and tangent.

The word tangent was first used by the Danish mathematician Thomas Fincke in his 1583 work “Geomietria Rotundi” and meant “to touch”, obviously in an abstracted sense, and was used in the sphere of knowledge known as geometry with regards to tangent lines and tangent planes.

The etymology of tangibility shows that in the late 14th century it was used as a “tangible thing, something perceived or presented to the senses”.

Second, it was not until hundreds of years later that the word tangibility was also used to describe corporeal items which could likewise be physically touched. But even the distinguishment between the corporeal and non-corporeal gets fuzzy at the quantum mechanic level because of Planck’s constant. And this branch could lead down a very deep rabbit whole with: Dubito, ergo cogito, ergo sum.

Consequently, it appears from historical usage that corporealness is not an element for tangibility.

And I would argue, while begging the question what is real, that (1) anything real or definite is tangible and (2) that tangibility can operate on a sliding scale with some things being more tangible than others over the time continuum axis.

So, there are figments of the imagination like flying spaghetti monsters which are not tangible. Then there are extremely tangible things, or in other words having a long time decay period, like hydrogen or gold and concepts or processes like gravity, electricity, algebra, geometry and calculus. And finally there are tangible things which have a short time decay period like currency from Yugoslavia where the tangibility is much more limited in the space-time continuum.

And what would be supremely tangible truths of the universe? Numbers, if they can be perceived or presented to your senses. For example, a gold coin or fish food would be tangible to a goldfish but numbers would not because the goldfish is incapable of perceiving numbers. Mathematical law is based on purely logical proof where as even Newtonian physical law may be subject to revision based on additional theory or observation like with Einstein’s relativity.

There is a difference between gold and a legal claim to gold.

JAMES TURK IS CONFUSED ABOUT TANGIBILITY

In this exchange, Felix de la Cova, who is Spanish so his use of English words may be limited due to it not being his native language, cross-examines James Turk of GoldMoney in regards to Bitcoin, gold, GoldMoney’s payment system and Information Age transactions.

3:31 – James Turk: I will bring up something a little bit more fundamental. First of all, I recognize the points that you are making and I do think that preventing the double spend is a brilliant advancement in the nature of currency. … Where I have issues is that Bitcoin is not a tangible asset. If I have a piece of silver or a piece of gold in my hand it is a tangible asset and if I use that to purchase from you an asset or good or service the exchange is extinguished at the moment that those assets are exchanged for one another because you are giving a tangible asset in exchange for a tangible asset. But what has happened in the last few hundred years is that currency has moved from being a tangible asset to being a financial asset. A financial asset has counter-party risk; there is someone’s promise that this currency will have value in the future.

4:38 – Felix de la Cova: Of course, but how can you use a tangible asset online?

4:42 – James Turk: Well, you use them online with GoldMoney where the tangible asset stays in the vault and the ownership of that tangible asset transfers instantaneously when you click it from your holding to someone else’s holding which is the nature of the patents that were eventually granted to me. Because what we have done with digital gold currency is create a new type of currency that enables gold to circulate without having the payment risk that is associated with a currency that is itself not a tangible asset. And that is the issue I have with Bitcoin.

This is a fairly interesting exchange from a monetary theory viewpoint but Mr. Turk is baited into the Information Age by Mr. Cova’s question and quickly sinks into a logical fallacy. The irony is that Mr. Turk’s error in logic because it is GoldMoney Goldgrams which are of limited tangibility, which can be arbitrarily changed like with removal of the payment system resulting in extremely reduced liquidity, and Bitcoins that are tangible. Bitcoins, like gold, are equity based monetary instruments and not financial assets with counter-party risk.

Yes, gold is a tangible asset which is intrinsically scarce by chemical law. But legal rights resulting in ownership, are they tangible? Yes, but only in a sliding scale through the time continuum and based on the time decay period dependent upon the particular costumed criminal gang being in power. This may be why in most legal systems legal tender is treated as tangible property. The delusion is palpable.

Goldgrams, the currency that circulated and is the subject of the patents Mr. Turk references, are merely legal claims to gold held in vaults and fashioned from numbers. Thus, Goldgrams are not money but money substitutes. There is a difference between gold and a legal claim to gold. The only substantive difference between a US gold certificate and a Goldgram, which are both money substitutes, is that one can still be redeemed for physical gold. But for how long?

Thus, one issue becomes how real or definite, or in other words, how tangible those legal claims are. This is directly related to the time decay period of the legal jurisdiction where the bullion is stored. Yes, I think they are much more tangible than other gold related instruments such as the GLD ETFsafety deposit boxes or Germany’s gold held at the NY Fed. After all, that is GoldMoney’s business model: to store your bullion in the safest geographic areas. Nevertheless, there are risks because a legal claim to gold is not as tangible as gold itself because it is based on the laws of men and not natural law.

Understanding the risks associated with any asset or investment is critically important for investors. Especially so when the legal underpinnings are increasingly being compromised and currency wars escalate.

For example, both the records and precious metals in the vault could be compromised through fraud, the vaults could be compromised by violence such as war, civil war, radioactive contamination (like in Goldfinger!), a sophisticated cyber attack or terrorism. Additionally, holdings can be frozen, seized or confiscated through legal channels. Worse GoldMoney has and will rollover like a submissive little poodle in obeisance to these laws of men.

Meanwhile Bitcoin has its risks but none of those. Consequently, I highly recommend all government bureaurats to get out the machine guns and shoot the math problem known as Bitcoin until it complies with subpoenas or other control freak demands. And while you are at it pass a law that stops massive damage from storms like Hurricane Sandy by causing them to dissipate. Most importantly Bitcoin allows for honey badger-like financial disintermediation.

DIGGING INTO THE GUTS OF BITCOIN

So, let’s start digging into the guts of Bitcoin. There is no reason to be afraid of the math; numbers do not bite. Let’s bring in Prof. David Evans who holds too many degrees from MIT.

How many times can Bob spend the coins? 0, 1, 2 or as many as he wants.

How the Bitcoin Network Provides Scarcity

Solution to how the Bitcoin network provides scarcity:

How the Double Hash provides scarcity:

Solution to how the double hash question:

The Longest Blockchain Rules

With gold bars it can be cumbersome and expensive to verify both the quantity and quality. There are service providers, like the GoldMoney Standard, which seek to make this process faster and cheaper.

So likewise there are tools which make it very easy to quickly verify the quantity and quality of bitcoins in a particular wallet address. For example, as of 7 Nov 2012 there were about 50,000 BTC leisurely relaxing in this wallet [tip: when viewing the wallet click the green box to see the current value in FRN$]. And since Bitcoin is a mere four years old, compared to four thousand years with gold, and cheaper, faster and more private than centralized currencies therefore it is reasonable to prognosticate that there will be more tools developed that will make Bitcoin easier to use which will make it more accessible to larger demographics.

BITCOIN PRICE PREDICTIONS

On 19 December 2011 in the Solid Bitcoin Consolidation Finally Bears A Breakout I wrote:

Taking the current price of $4.00, the 200 day moving average of about $8.50 and extrapolating this upleg with a 12x 200dma top we could see a price of around $80.00 per BitCoin. Is this speculative? Yes. Would I bet on seeing $80 per BitCoin by around June or July? Maybe if the odds are around 5%. But I would take a bet for BitCoins to hit $7.50 by June or July at around a 50-70% probability.

Once again, I was right with the $7.50 price call. Those who took my advice 11 months ago have had ginormous returns of about 175% return in FRN$ and 156% in gold. Not too shabby! Any donations would be greatly appreciated and you can send bitcoins here:

1RTGQXW6Vb6L9DUHhVJ3Rdriz2b21X9e1

So, where is the price of bitcoin going from here? Well, because of the wealth transfer and wealth generation effects therefore I think it is headed up in terms of both gold and FRN$.

First, there are a lot of uncertainties with the Federal Reserve and ECB. By analogy, once they pull the plug on the bathtub, you need to be able to calculate the difference between the water coming into the tub (QE) and the water going down the drain (balance sheet shrinkage from maturity) before you can know if the current water level (Adjusted Monetary Base) will be maintained, increase or decrease.

Second, due to this uncertainty I see reasonable arguments for the gold price to either decline or advance by around $500. Yes, we could see $1,200 gold within the next 12 months although I think there is a higher probability it will be around $2,100 by May. But this volatility does not impair the usefulness of gold as numeraire.

Third, The current price, which I keep updated with all the Key Ratios, is about 157 BTC per ounce of gold.

Fourth, let’s put some supply and demand numbers in comparison. There will eventually be at most 21 million bitcoins in 2010 with about 10.5 million currently and I estimate about 2 million destroyed where the private keys have been lost. With about five billion ounces of gold above ground that equates to about 230 ounces of gold per bitcoin and about 485 ounces of gold per bitcoin if you count those ounces still in the ground.

Fifth, there is huge demand for safe and liquid assets in The Great Credit Contraction as capital burrows down the Liquidity Pyramid. As already established Bitcoin is clearly a tangible asset because it is real and definite being fashioned from numbers.

Just a few of the potential sources of demand, besides just those holders of capital looking for safe and liquid assets, are (1) tens of trillions of dollars in offshore bank accounts looking for a safe haven from tax authorities with all the expanding Tax Information Exchange Agreements and nasty reporting requirements like the FBAR and FACTA [friendly reminder that you better report your GoldMoney holdings; meanwhile Bitcoin private keys would not be reportable], (2) the $10 Tillion System D economy, (3) tens of thousands of people who think Paypal Sucks and (4) Visa, MasterCard and Paypal have blocked Wikileaks from receiving donations and showed the world that even without a court order the major payment processors will greatly hinder political speech therefore posing a tremendous risk to civil rights.

If FRN$ or gold are the blood with Visa, Mastercard, banks, etc. being the veins then Bitcoin is both the blood and the veins. Despite its incorporeal nature it is already backed by the largest distributed computing network in the world with about 310 petaflops and therefore is one of the safest and most liquid ways for capital to be held. So, Bitcoin increases the monetary offering in terms of safety and liquidity while lowering the costs in terms of time, money and privacy. What a competitor!

Hopefully Mr. Turk was inadvertently confused about Bitcoin or still had not thoroughly thought it out despite knowing about it for at least a year and was not intentionally ‘talking his book’ by disparaging this great new and ultimate ‘last plane account‘ called Bitcoin to the detriment of those paying attention. But you should keep this potential bias and conflict of interest in mind when assessing advice from anyone else such as trust and estate attorneys, asset protection experts, offshore entity formers, etc. because Bitcoin eviscerates entire volumes of legal statutes rendering them inert. And whether a merchant accepts Bitcoin is a great litmus test of their sincerity in helping you take control of your freedom instead of just trying to charge you fees.

Even the European Central Bank has admitted on page 47 of a 55 page report focusing on Bitcoin that:

However, it can reasonably be expected that the growth of virtual currencies will most likely continue, triggered by several factors: a) the growing access to and use of the internet and the growing number of virtual community users, b) the increase of electronic commerce and in particular digital goods, which is the ideal platform for virtual currency schemes; c) the higher degree of anonymity compared to other electronic payment instruments that can be achieved by paying with virtual currencies; d) the lower transaction costs, compared with traditional payment systems; and e) the more direct and faster clearing and settlement of transactions, which is needed and desired in virtual communities.

For all of these reasons, I think that over the next 18 months we will see the price of bitcoins move to at least around 50 bitcoins per ounce of gold. Then over the next 5-10 years we will see an inversion in that price where it will take at least one ounce of gold to buy a bitcoin. And these targets are likely understated given Bitcoin’s potential to go viral.

CONCLUSION

Bitcoin is no longer an imaginary currency in some science fiction novel. Bitcoin is a real tangible non-corporeal functioning protocol based on industry standard cryptography. Bitcoin is a financial black hole where visible capital goes in and does not come out. Bitcoin has attracted the attention of the most powerful monetary interests in the world resulting in a very serious 55 page report. Bitcoin is very likely not going away anytime soon. Bitcoin is the opening of Pandora’s Box and it is going to change things, big time.

Competently driving a car or flying an airplane requires both book knowledge and practical skill. This is why there is a written test and then a performance test before being credentialed. So likewise, one major problem I see with so many of the people ignorantly pontificating about Bitcoin is that they have never used a bitcoin to buy anything. That is like someone who has never driven a car giving advice on how to drive a car. Why believe them? They do not have any practical experience or knowledge driving cars. They do not have a clue what they are talking about!

This is one reason I put together the Free Bitcoin Guide. It will drastically reduce your learning curve, help you get your first bitcoins and make your first purchase. You could get the Bank Privacy Report and Get Your Gold Out Of Dodge for about $30 in BTC instead of the $65 normal price thus experimenting with Bitcoin for a mere $40 or so. Sure, it could be easier but more developments will come with time. After all, I started recommending bitcoins when they were around $0.05 each and the learning curve and available tools were nascent. But that is part of the reason those who followed my advice then have reaped 200x rewards instead of a mere 1.75x which is still orders of magnitude higher than the 0.0025x you can expect from Treasuries, etc..

Plus, having an economy where the average IQ and tech savviness is two standard deviations above that of normal society is very helpful when it comes to relative productivity. Do not skate where the puck is; skate where the puck is going to be. Welcome to the new world, welcome to the Awakening!

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23 comments

ABOUT THE AUTHOR: Trace Mayer, J.D., author of The Great Credit Contraction holds a degree in Accounting, a law degree and studies the Austrian school of economics. He works as an entrepreneur, investor, journalist and monetary scientist. Follow him on Twitter. This is merely one article of 241 by .
Free Free Great Credit Contraction Sample

{ 18 comments… read them below or add one }

1 Ramon November 8, 2012 at 7:17 am

Fantastic piece! I’ve been discussing the apparent capacity for cryptographic constructs to create “solid” structures within mathematical realms, potentially to a point of providing foundations for a real existence or sorts.

What if we were to discover that our reality were founded in purely abstract patterns and rules – that the “real” things around us sprang into existence merely because we’re based in the same arena of perception? A Plato’s cave scenario.

2 MARK November 8, 2012 at 7:20 am

hi

You spelled whole for hole.

:)

hope u r well

and thank you

superb article :)

3 Trace Mayer, J.D. November 8, 2012 at 9:12 am

Mark, while I do occasionally have typos and sometimes they are the results of the software or when articles are saved, etc. In this case, the use was intended and subtle. Glad you caught it!

4 Chuckles November 8, 2012 at 8:38 pm

Excellent article.

The only part that I didn’t agree with was: “The average IQ is two standard deviations above that of normal society”

In theory this should be the case, but the BitcoinTalk forums are full of the most stupid people. They keep losing thousands of coins in the most obvious scams and unwise investment schemes which are administrated so ineptly that they may well be scams. In addition to being a scammers paradise, the forums also seem inhabited with people with a tenuous grasp on reality and a poor understanding of the english language.

Possibly a lot of Bitcoin users are very intelligent but they seem to lack common sense. Perhaps they are autistic.

I have met a great many Bitcoin users who are intelligent and never or almost never read or post on the forums, but it seems the bulk of Bitcoin users are on those forums fairly regularly, and the bulk of them come across as fairly dim witted. The wise ones usually know to stay away, but it’s a bad reflection for new users to see.

What are your thoughts on this?

5 Dookie November 9, 2012 at 6:07 am

Hi Trace, awesome text, great to see that you have expanded the idea of tangibility and how it applies to monetary theory. I’m proud to be a part of it, even through comments in previous post. :) Greets

6 Trace Mayer, J.D. November 9, 2012 at 12:01 pm

Chuckles, there is a difference between IQ and wisdom. IQ is like the raw computer hardware while wisdom is like the OS or applications that run on the hardware.

Good choices often result from exercising wisdom. Wisdom usually comes from experience. Experience is gained by making choices, both good and bad, and the resulting consequences.

The older and wiser generation is likely to increasingly ‘rest’ or ‘retire’. The last thing they seem to want to do is hard work of evolving and educating themselves learning a whole new branch of complicated science like cryptography or computers let alone actually building something in those fields. Just look at how so many of them fail the simplest things like installing apps on iPhones or programming the television remote (which is an obsolete tool anyway!). Meanwhile the younger and smarter generation is actively looking for an escape from the economic conditions and unsustainable safety nets like Social Security, Medicare, etc. Digital foreigners and digital natives have completely different paradigms about what is possible.

As is so often the case in periods of rapid change it is in the areas of creative destruction where the most money is to be made. The smartest and most entrepreneurial of the younger generations are fully exploiting these economic incentives and using new technologies to do so. The economics drive behavior and behavior guides culture. One of the reasons faith and trust in the established institutions has been rapidly declining over the last decade is because it has been so profitable for the smart and entrepreneurial younger generation to burn them to the ground.

Bitcoin is the last remaining piece needed for these entrepreneurs. As a result, the rate of creative destruction so far has been largely impeded because of the stranglehold of the ‘transfer of value’ industry. The Wikileaks financial blockade is a good example. The smartest and most entrepreneurial members of society are now able to route around this type of regulatory damage which impedes their ability to creatively destroy in the pursuit of profit.

This will result in the wealth generation and wealth transfer effects of Bitcoin to further hasten. And Bitcoin is setup in such a way that the more capital it sucks into the monetary black hole the larger the event horizon becomes resulting in it sucking in even more capital to this economy in the cipherspace dimension.

Thus, if you think the world changed a lot over the past 15 years with email, Google, Paypal, Amazon, YouTube, Twitter, WordPress Blogs, BitTorrent, etc. then the next 5 years are going to blow your mind. Strap yourself in because we are in for a wild ride. The Vertical Speed Indicator is about to go from 1,000 feet per minute to 2,500+.

7 Raize December 3, 2012 at 3:57 pm

Chuckles,
Many of us have had to stop using the Bitcointalk forums as much due to the high signal-to-noise ratio. That said, I’m a miner who started back in 2010 and my IQ is not two standard deviations above 100. I’m only at 126 (the last I seriously checked, anyway), two standard deviations would be 130+.

8 Trace Mayer, J.D. December 4, 2012 at 6:52 pm

Raize,

Looks like you may need to do about 30 minutes per day for 3 weeks of dual-n back training with a free iPhone app like IQ Boost. Don’t try to brute force memorize but instead just try to ‘see’ the answer intuitively. It should rewire your brain for an extra 8-10 general IQ points. The level you are on is not so much an indicator of increased IQ as the change in levels using the same technique of just trying to ‘see’ the answer as opposed to memorizing the sequences.

Another helpful breakfast concoction would be something like this:

4Tbsp of grassfed butter – I like Kerrygold brand
35ml of MCT oil – I like Dr. Friedlander’s brand but cannot find it right now
ginger & tumeric tea

Boil water, seep tea then blend it all together and drink. Also, tricks your body into thinking you are still fasting so you will stay in ketosis longer.

9 Todd December 31, 2012 at 10:32 pm

Forgiv my ignorence, but it looka like bitcoins is a Pyramid scheme, anyone?

10 Darlea January 2, 2013 at 11:21 am

Trace, I am interested in investing in bitcoin. I am also interested in how they write and learn to do the open source code that is based on. What is a good way to teach myself that kind of coding? Thanks

11 Trace Mayer, J.D. January 2, 2013 at 1:38 pm

Darlea, it really depends on where you are at. To start with investing in bitcoin I would recommend reading The Free Bitcoin Guide. To get started programming the Khan Academy has some great tutorials. Really, you just have to start and as you run across problems just figure out how to solve them (Google, trial and error, etc.).

12 Trace Mayer, J.D. January 20, 2013 at 11:30 am

I came across the following comment by redwhitesnow on Reddit:

“In a recent interview James Turk stated that one of the reasons he prefers gold is because bitcoin is not a tangible asset. But I think this is incorrect. The key to a tangible asset is that its physical nature has inherent value and its supply is finite.

Well bitcoins physical nature is the physical Internet and it has inherent value in this form because of the properties of its protocol. Its supply is also finite. Just because its physical nature is distributed in a unique way over the globe doesn’t mean its not physical. Its as physical as the Internet.

If you call it a virtual currency this only makes sense from the perspective that it is only transferable via the virtual protocol. But all other virtual currencies can be destroyed by displacing a tiny farm of disk space which essentially means their physical nature is rather impermanent and so they are correctly labeled intangible. Whereas bitcoin’s protocol gives it physical permanence which is significant. It cannot be destroyed unless the internet is destroyed.
Bitcoin is a tangible asset. ;P”

redwhitesnow lays out some important facts, which I glossed over, and draws an important distinction and is technically correct although ordinary usage of the terms virtual and digital attempt to divorce from the inherently physical nature of the objects since all bits and bytes are ultimately physical. However, the conclusion drawn is overly broad and should be narrowed to ‘It [Bitcoin] cannot be destroyed unless the internet all copies of the Bitcoin source code and blockchain are is destroyed. In other words, Bitcoin can be destroyed without destroying the Internet just like the Internet existed before Bitcoin did.

However, this is highly improbable given the censorship resistant nature of Bitcoin and how the economic incentives are setup.

13 Todd January 20, 2013 at 11:54 am

I believe what James Turk was saying, was that you can give a coin (something you can hold, not a virtual electonic coin) to a seller of goods with no liabilities. By your definition, EVERYTHING in the world must be tangible as it can be placed into a computer database, is stored as electrons, therefore real. Webster says it best: capable of being perceived especially by the sense of touch. If you cant hold it in your hand, it is Virtual. Would you rather have a million Gold Coins or the equivelent in electrons? Silly even to ask. Let me offer you my electrons for your Tangible Gold.

14 Trace Mayer, J.D. January 20, 2013 at 6:15 pm

Todd, I am not sure you read the article but the argument is laid out in there.

As far as your offer for a million Gold Coins or the equivalent in electrons I think you should put your money where your mouth is. I would like to clarify the terms of the deal since you left a particular term ambiguous and I doubt you mean one million 1oz American Gold Eagles since that would be about $2 billion.

Apmex currently has random year 1oz American Gold Eagles in batches of 20+ for 1,766.09. The current price of bitcoins is 15.65.

I will trade you 566 random year 1oz American Gold Eagles ($1,766.09*566=$999,606) for 63,872.64792332 bitcoins ($999,606/$15.65). This offer is open to others besides just Tom. Please use the Contact Form or PGP Key so we can setup the specific terms, based on market price fluctuations, and escrow agent/place to close.

15 Todd January 20, 2013 at 6:58 pm

“As far as your offer for a million Gold Coins or the equivalent in electrons I think you should put your money where your mouth is.”
What makes you think I haven’t? :)
“I doubt you mean one million 1oz American Gold Eagles since that would be about $2 billion.”
I said 1 million and meant 1 million as an illustration. Feel hurt you doubted me :(

16 Trace Mayer, J.D. January 20, 2013 at 9:13 pm

Todd, does that mean you extended the legally binding offer at the terms as specified? I am serious about this and acquiring approximately $1m of bitcoins via American Gold Eagles.

17 Raize January 21, 2013 at 12:17 am

It’s weird. I thought about seeing if you’d be interested in trading one 1oz gold coin for the equivalent in Bitcoin, but now since it’s trading at about $16.33 and likely to simply increase because of the advent of a new Avalon ASIC miner that has shipped as of today (Sunday), I’m probably just going to hold onto the Bitcoin.

Trace, if you want a Bitcoin just for the sake of having written this article, I’d be willing to pitch one to ya. Give me your email or post me a Bitcoin address and I’ll send one your way.

18 Trace Mayer, J.D. January 21, 2013 at 6:02 am

Raize, the donation address is in the article: 1RTGQXW6Vb6L9DUHhVJ3Rdriz2b21X9e1

I am looking for a little more than 1 BTC though. As I mentioned to Todd, I am looking at picking up $1m worth.

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