Bitcoin virtual currency sparks Bank of Thailand warning

[webfact]

BITCOIN
Bitcoin virtual currency sparks BOT warning
The Nation

BANGKOK: -- The Bank of Thailand has issued a warning over the digital currency Bitcoin, which cannot be used to repay debts legally in this country despite its popularity worldwide.

The central bank says people should study such virtual units and their volatility risks. They face high fluctuations and have no connection with the real economies. Bitcoin holders risk losing money from rapid drops in value.

Bitcoin was introduced in 2008 by programmers under the name of Satoshi Nakamoto and has since gained traction with merchants around the world. The digital currency has no central issuing authority, and uses a public ledger to verify transactions. Others similar to Bitcoin are Litecoin, Peercoin and Namecoin.

The digital currencies can be traded for dollars, euros and other currencies on online exchanges, established by individuals or groups with exchange rates set. But since Bitcoin and other crypto-currencies exist as bits of software, they can be stolen if unauthorised access is made to the computers or servers connected to the Internet that store those files.

There also remains a protection risk to users as virtual currencies are not a recognised medium for payment under Thai law. They can disappear through theft or mismanagement.

"Transfer data is difficult to find as evidence if a user files a lawsuit. It's different from a bank transfer or payment under public-sector supervision with a monitoring system," the central bank said.

"Bitcoin and other electronic data units are not counted as money for legal payment. They do not have their own values. Values move along with demand of groups trading them with fast movement. Their value can be [zero] when no one needs them," the central bank said.

Speculation

Such electronic data units are held on speculation, given their fast changes in value, traded on exchanges for real money, and used for purchase of products and services.

However, last month Mt Gox, once the world's largest Bitcoin exchange, filed for bankruptcy in Japan. The company believed there was a high possibility that Bitcoins had been stolen. The currency's value dropped sharply.

The turmoil left investors and Bitcoin holders facing catastrophic losses, while central banks in several countries issued warnings to people about the risks of electronic data units.


-- The Nation 2014-03-19

[chooka]

sounds like play money

[Arjay]

So the Thai baht is better

[DiamondKing]

sounds like play money

Yep play money that has made many of my friends Millionaires that didn't have a pot to piss in 2 years ago

many more Millionaires will be made with Bitcoin as it becomes the way to pay online and transfer money around the world. Western Union will be history as will Paypal (although paypal is working to integrate bitcoin)

Those that dismiss it as in the guy above will be the ones kicking themselves they missed yet another boat coming in.

I invested and have made a ton of money so far

[chooka]

sounds like play money

Yep play money that has made many of my friends Millionaires that didn't have a pot to piss in 2 years ago

many more Millionaires will be made with Bitcoin as it becomes the way to pay online and transfer money around the world. Western Union will be history as will Paypal (although paypal is working to integrate bitcoin)

Those that dismiss it as in the guy above will be the ones kicking themselves they missed yet another boat coming in.

I invested and have made a ton of money so far

I don't know anything about it

[jimky]

I own several bitcoin myself and read coindesk almost daily

[brianP]

sounds like play money

Yep play money that has made many of my friends Millionaires that didn't have a pot to piss in 2 years ago

many more Millionaires will be made with Bitcoin as it becomes the way to pay online and transfer money around the world. Western Union will be history as will Paypal (although paypal is working to integrate bitcoin)

Those that dismiss it as in the guy above will be the ones kicking themselves they missed yet another boat coming in.

I invested and have made a ton of money so far

Did good with them, until the wife found out and asked "where are all yours profits going"? Now that this article explains my profits demise, i should breath easier.

[commie Joe]

 

sounds like play money

Yep play money that has made many of my friends Millionaires that didn't have a pot to piss in 2 years ago

many more Millionaires will be made with Bitcoin as it becomes the way to pay online and transfer money around the world. Western Union will be history as will Paypal (although paypal is working to integrate bitcoin)

Those that dismiss it as in the guy above will be the ones kicking themselves they missed yet another boat coming in.

I invested and have made a ton of money so far

 

Prove it then .Come on don't be shy . We cant steal it as it isn't real . Can I see please nice rich man

[Bkungbank]

I only know the there are different between currency and money ?

[deepcell]

All right. Then FedoraCoin can be issued? It is not in the list.

[alfalfa19]

Wasn't the bitcoin system recently fleeced of 500 million dollars, and many holders lost their shirts?

[Rimbuman]

Very interesting these crypto coins, I think this is just the beginning. Lets see what the future holds

Edited March 19, 2014 by Rimbuman

[HooHaa]

sounds like 1997 in the first sentence

[TheGhostWithin]

This bitcoin really has banks globally running scared. There appears to be a lot hidden about bitcoin, but also a lot of scaremongering by banks because they cannot tax it for profit, and from governments because they cannot do the same, and because it globalises the world into a single and (apparently) uncontrolled currency.

BOT is just stating the obvious - please do not use this currency because we do not know where it comes from, how it works and cannot control it.

Just like buying baht, US dollars or the Yuan, buy at your own risk and at your own discretion. Don't let the wise cats in the bank fool you into thinking that bitcoin is not a currency. It is. It is a global currency being quickly adopted by those who want change. I am not one of those, but I understand the reality of what Bitcoin is.

[yankee99]

sounds like play money

Yep play money that has made many of my friends Millionaires that didn't have a pot to piss in 2 years ago

many more Millionaires will be made with Bitcoin as it becomes the way to pay online and transfer money around the world. Western Union will be history as will Paypal (although paypal is working to integrate bitcoin)

Those that dismiss it as in the guy above will be the ones kicking themselves they missed yet another boat coming in.

I invested and have made a ton of money so far

I know a guy that invested 2 million in December and now has around 1 million. Another friend lost it all when the Mt Gox scam happens.

I think the best startup would be to sell bitcoin insurance like the FDIC.

[laobali]

sounds like play money

Yep play money that has made many of my friends Millionaires that didn't have a pot to piss in 2 years ago

many more Millionaires will be made with Bitcoin as it becomes the way to pay online and transfer money around the world. Western Union will be history as will Paypal (although paypal is working to integrate bitcoin)

Those that dismiss it as in the guy above will be the ones kicking themselves they missed yet another boat coming in.

I invested and have made a ton of money so far

I don't know anything about it

So why not learn something about Bitcoin before dismissing it out of hand?

[laobali]

Wasn't the bitcoin system recently fleeced of 500 million dollars, and many holders lost their shirts?

Only one "bank" MtGox.

[Naam]

This bitcoin really has banks globally running scared. There appears to be a lot hidden about bitcoin, but also a lot of scaremongering by banks because they cannot tax it for profit, and from governments because they cannot do the same, and because it globalises the world into a single and (apparently) uncontrolled currency.

BOT is just stating the obvious - please do not use this currency because we do not know where it comes from, how it works and cannot control it.

Just like buying baht, US dollars or the Yuan, buy at your own risk and at your own discretion. Don't let the wise cats in the bank fool you into thinking that bitcoin is not a currency. It is. It is a global currency being quickly adopted by those who want change. I am not one of those, but I understand the reality of what Bitcoin is.

i can only confirm! last week i went to my bank where i found that all boys and girls looked and acted scared shytless. the one that handed me the bundle of cash i was withdrawing said

"please Sir. i beg of you! don't by Bitcoins. if you buy Bitcoins we can't tax you."

[Benmart]

 

sounds like play money

Yep play money that has made many of my friends Millionaires that didn't have a pot to piss in 2 years ago

many more Millionaires will be made with Bitcoin as it becomes the way to pay online and transfer money around the world. Western Union will be history as will Paypal (although paypal is working to integrate bitcoin)

Those that dismiss it as in the guy above will be the ones kicking themselves they missed yet another boat coming in.

I invested and have made a ton of money so far

 

Prove it then .Come on don't be shy . We cant steal it as it isn't real . Can I see please nice rich man

I don't believe he needs to prove his financial status to anyone, except the tax department from his homeland.

[Showbags]

So can someone that knows and uses post a basic 'for idiots' guide how it works ?

How do these wallet things work as I read you can have and control your own...which is different from the MtGox thingy...

If you buy 1 BC for whatever it is now, say $500....and you want to buy something for $50...how do you do it...do you get change ?...how do you cash in that change ?

And why not cash it in regularly to save the risk of the loss...apart from value fluctuations of course.

[chooka]

sounds like play money

Yep play money that has made many of my friends Millionaires that didn't have a pot to piss in 2 years ago

many more Millionaires will be made with Bitcoin as it becomes the way to pay online and transfer money around the world. Western Union will be history as will Paypal (although paypal is working to integrate bitcoin)

Those that dismiss it as in the guy above will be the ones kicking themselves they missed yet another boat coming in.

I invested and have made a ton of money so far

I don't know anything about it

So why not learn something about Bitcoin before dismissing it out of hand?

I had a look at it and see it costs $681.70AUD for one of these coins. Seems very expensive and risky

[chooka]

 

sounds like play money

Yep play money that has made many of my friends Millionaires that didn't have a pot to piss in 2 years ago

many more Millionaires will be made with Bitcoin as it becomes the way to pay online and transfer money around the world. Western Union will be history as will Paypal (although paypal is working to integrate bitcoin)

Those that dismiss it as in the guy above will be the ones kicking themselves they missed yet another boat coming in.

I invested and have made a ton of money so far

 

Prove it then .Come on don't be shy . We cant steal it as it isn't real . Can I see please nice rich man

I don't believe he needs to prove his financial status to anyone, except the tax department from his homeland.

would there be taxes on this virtual currency? Sounds like an excellent way to launder and hide money from your governments.

[laobali]

So can someone that knows and uses post a basic 'for idiots' guide how it works ?

How do these wallet things work as I read you can have and control your own...which is different from the MtGox thingy...

If you buy 1 BC for whatever it is now, say $500....and you want to buy something for $50...how do you do it...do you get change ?...how do you cash in that change ?

And why not cash it in regularly to save the risk of the loss...apart from value fluctuations of course.

You rely on learning everything here? Do some basic research and watch that video to understand the system we are living with now and its inevitable collapse. Bitcoin and other virtual currencies are probably not the solution on their own. Holding physical gold and silver may help. Time to start hedging your bets while you still can.

[laobali]

I don't know anything about it

So why not learn something about Bitcoin before dismissing it out of hand?

I had a look at it and see it costs $681.70AUD for one of these coins. Seems very expensive and risky

Okay mate, well done, you're in the loop now!

[Krataiboy]

The Bank of Thailand is quite right, of course. Much better to give your money to a bank, so they can lend nine times its value at a whopping profit, while giving you peanuts in interest which doesn't even keep up with inflation.

I mean your money couldn't be safer than in a Thai bank - could it? Or are all those stories we see about people having their accounts raided and being told by bank managers: "Nothing to do with us - see the police" just urban myths?

And it must be just a nasty rumour that the government bank deposit insurance cover is being phased out and that from August 2016 anybody with more than one million baht on deposit will lose the lot if the bank goes belly up.

Not that Thai banks ever collapse, of course. . . well, apart from the three that bit the dust when the Thai baht went through the floor in 1997 (and, chillingly, Forbes magazine is among the soothsayers predicting more of the same as Thailand's credit bubble inflates alarmingly).

Even more scary, looming on the horizon is the threat of Cyprus style "haircuts" on the savings of depositors in any bank which goes under - the so-called bail-in solution being rolled out across Europe and eventually the entire world.

Bitcoin began as an alternative to the current banking system, which, with nearly a quadrillion dollars of derivatives debt on its books, is only staying afloat by printing digital money like there is no tomorrow (which there probably isn't for institutions which use fiat currency).

As a saver tried of being robbed and ripped off by the current ponzi scheme we call banking - with its market manipulation, blatant money laundering for drugs gangs and terrorist groups, plus Libor and currency rigging - I heartily welcome the new kid on the block.

[NCFC]

The Bitcoin system is based on "last-fool standing". They only have value because some fool persuades a bigger fool they have value.

Early enters may make money if they get out. But why get out if they believe in bitcoin? Why post I'm now worth X million USD? Simples, because if you say I'm worth X million bitcoins people will rightly laugh at you - unless you can sell out the X million to the bigger fool.

The collapse of the biggest trading exchange because they can't account for where the money has gone should send the alarm bells ringing in your head.

[impulse]

I'm still recovering from my pets.com stock losses. Butt's still too sore to hop on another one of these interweb bandwagons.

[belg]

you can ask your local loanshark about paying your debts in bitcoins... one day you own him 1000 baht, the next 100.000 ?

[DiamondKing]

The Bitcoin system is based on "last-fool standing". They only have value because some fool persuades a bigger fool they have value.

Early enters may make money if they get out. But why get out if they believe in bitcoin? Why post I'm now worth X million USD? Simples, because if you say I'm worth X million bitcoins people will rightly laugh at you - unless you can sell out the X million to the bigger fool.

The collapse of the biggest trading exchange because they can't account for where the money has gone should send the alarm bells ringing in your head.

Typical post by someone that has NO CLUE and knows nothing about Bitcoin other than what they read in the mainstream press

Some of the biggest Billionaire Business's are using Bitcoin they are not Billionaires for nothing they see where there is opportunity so while some of the worlds biggest names start embracing Bitcoin you can continue to spout complete garbage .

Educate yourself first will make you look a lot smarter

[SS1]

So can someone that knows and uses post a basic 'for idiots' guide how it works ?

How do these wallet things work as I read you can have and control your own...which is different from the MtGox thingy...

If you buy 1 BC for whatever it is now, say $500....and you want to buy something for $50...how do you do it...do you get change ?...how do you cash in that change ?

And why not cash it in regularly to save the risk of the loss...apart from value fluctuations of course.

You store bitcoins on a wallet on your computer. MtGox was a currency exchange, where you can buy and sell bitcoins and they could be stored there too. However one would typically only store btc in an online wallet temporarily, as it is much more safe in your personal wallet (which can be offline too).

If you buy 1BTC for $500 and want to buy something for $50 - very simple - you will pay 0.1BTC You could also just buy 0.1BTC if that's all you needed.

To cash your BTC, you would do it typically on a currency exchange such as localbitcoins. You would send your bitcoins to a buyer who would transfer $ to your bank account (for example). Some people invest in bitcoins in the belief that the value might increase, which is the reason they don't cash out but rather keep the coins.