[Chugalug] Chugalug Digest, Vol 14, Issue 36

John Aldrich jmaldrich at yahoo.com
Fri Sep 6 13:46:39 UTC 2013

Quoting Mike Robinson <miker at sundialservices.com>:
> The "scam" issue arises from, not any technical fault of bitcoin   
> per-se, but rather of human nature:  "money for nothing."  People   
> can be and are persuaded to pay $5,000 USD for, literally, "a   
> money-making machine."  The system is based on "trust," basically in  
>  the complexity of a computer algorithm and on "one another" (most  
> of  whom are people you have never met and never will), yet it lacks  
>  recourse.  Thus, the perception that "this IS a nugget of gold" can  
>  be fostered, and, having thus been fostered, it can and therefore   
> will be abused.  The one sure-fire way to turn a bitcoin into a   
> fungible unit of currency is to build and to sell a money-machine   
> for $5,000.  (I don't see them saying that you can pay for 'em in   
> bitcoin.)
Technically, you are correct. You cannot **DIRECTLY** pay for a  
Monarch or other Bitcoin mining device in Bitcoins. However they have  
a 3rd-party who will exchange your Bitcoins for $USD and allow you to  
purchase from Butterfly Labs using your Bitcoins. Likely for a small  
exchange fee.

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