Quote from: Limetless on June 16, 2012, 02:26 amQuote from: vlad1m1r on June 16, 2012, 02:13 amQuote from: Limetless on June 16, 2012, 02:07 amIn very basic terms you are correct but there is a lot more to it than that, for example, banking in the Caymans is an absolute no-no when you want to avoid tax let alone launder money nowadays. When the world economy was truly globalised which IMO was marked by the .com bubble the restrictions and changes on ML techniques changes more rapidly than ever. This is all down to the fact that countries can communicate with each other quicker and quicker. Regarding whether or not I'd go ahead with it, I would like to one day but I would only do it if certain things happened in the future concerning BitCoin itself because unless specific events happen with BTC the BTC economy will become a bubble and collapse itself within a certain time. The things that will decide if this does/does not happen have yet to come but it will be interesting to see how it plays out. The actual start up wouldn't be an issue for me. It's the BTC's longevity that concerns me.Interesting! I believe that we have until 2019 when the 20, 000, 000th Bitcoin will be mined and that will be that. I had been wondering myself about the endgame for the currency. I imagine we could all agree on a Bitcoin fork but as you say a lot can happen between now and then. Off course I used the Caymans as an example, perhaps there's a better place to house such an exchange? For instance the banks are now descending upon the newly formed territory of South Sudan like a load of Harpies? :)V.Yes that is the issue I am referring to. Once there is no more BTC left to be mined I predict there will be a short lived but rapidly growing bubble that will put the BTC's value beyond practical for a liquid-movement which any stable economy needs to survive. Once this happens the sheer price of 1 individual BTC will be the exact cause of it's devaluation and eventual crash into no value at all which will leave those with high reserves with less than nothing because the BTC is intangible. It will be sort of like the 2008 bond market crash but in a much smaller scale but with a overly valued currency instead of a badly risk assessed debt lol. With this in mind the smart exchanges will build reserves and if possible stop building them probably around 6 months before the last coin is mined.The ONLY thing that can stop this from happening, and I really do mean ONLY, is the creation of more BTC that will allow a stable continuation of the currency. If this doesn't happen, the BitCoin is royally fucked I'm afraid. The economic E=MC2 (the law of supply and demand) will can't be denied and the economic E=MC2 will have it's way.Well said Lim, many people don't seem to say the inherent dangers of overvaluing a currency - I was trying to explain this to one of my colleagues the other day who couldn't understand why the Chinese were deliberately weakening the Yuan (although they seem to be letting up on this?).Anyway the only thing I would say about this, is given what we've said about the finite supply of BTC, I would say that's all the more reason to have an exchange which allows vendors to cash out large amounts quickly of the kind we're talking about!Also, I'm not convinced that the transition will be as open and shut as we think it will be. I imagine in the next three years another cryptocurrency will be formed to run in parallel with the Bitcoin although what kind of rate of exchange there'll be between it and the BTC remains to be seen. Of course there are "Freecoins" and "Strongcoins" already but am I right in thinking they never took off because they're too closely regulated?As you say the Bitcoin is as susceptible to the law of supply and demand as any other currency - there's certainly a demand for a currency that does the job of Bitcoin but we're not wedded to it any more than you or I are wedded to the Pound - all major currencies accepted :)V.