I heard about this new virtual currency is done with the same technology as Bit Torrent, through P2P networks. I don't know if it's a ponzi scheme or a brilliant way for humanity to break from of the banking cartels, but it's worth looking into in my opinion. Many of the technology seems complex, but I've looked it over with my own technology specs and think its absolutely brilliant if something like this can successfully take off.
It was briefly mentioned on Max Keisers show:
http://www.youtube.com/watch?v=wwngKUVU85g
Here's the official breakdown:
http://www.youtube.com/watch?v=Um63OQz3bjo
XtraNormal breakdown:
http://www.youtube.com/watch?v=FTOhti7wxXk
BookOfNick interview:
http://www.youtube.com/watch?v=vJE9do_pUd4
http://www.youtube.com/watch?v=mdr8HY8ygmk
Potential Upsides:
- Decentralized
- Could destroy entire banking establishment
- People who get in early could multiply their wealth
- You cant shut it down without shutting down the entire Internet
- Potential business opportunities
Potential Downsides:
- Possible Ponzi scheme
- Could make identity theft worse
- People might not 'buy into the idea'
- Dangerous if the Internet goes out
I really don't have a firm position if it's a good or bad idea yet. I'm still new to the concept and trying to understand. I'm not trying to insult people here since I know this is a precious metals forum. Max Keiser himself thinks this is a great thing to invest with alongside Silver to destroy the banksters, and that's enough to interest me. Just sharing the info, since I think its something that should be looked into.
BitCoin website:
http://www.bitcoin.org/
Overview of the BitCoin market (Last updated May 13, 2011):