BitcoinStore Launch - Cheaper In Bitcoin

So, selling prepaid cards online would be a particular niche, maybe, or other things which are cash-equivalent.

You can as well say that flat currencies and fractional reserve banking are modern day pyramid scheme, that disproportionally rewards those participants that have a banking license.

You'd be referring to BIS.org, the central banker's bank, which was setup in 1930 for reparation payments to Germany. The bank was almost dissolved in 1944 after allegations it facilitated Nazi Germany's looting of other countries assets. Two of its directors were convicted at the Nuremberg trials and one owned the bank used by the Gestapo. But the modern father of economics, John Maynard Keynes, was a prominent voice against its dissolution.

I believe the very existence of the bank was denied publicly for years. Today they have assets around $400 billion and are immune from any jurisdiction (based in Basel, Switzerland). There is nothing American about the Federal Reserve system nor its international counterpart, the BIS. It's an oligarchy and extremely corrupt. The reports of the BIS have numbers like "$147 trillion" referring to currency swaps etc. It's a fascinating look at how international banking works, all of which is public now.

As for the Liberty Dollar, it existed for around 8-years and had letters from the Treasury, Secret Service and others attesting to its legality. As soon as Liberty Dollar made millions of dollars in Ron Paul coins, they were indicted and their customer's property was seized. However, the Liberty Dollar's marketing plans for the promotion of their alternative currency were deceptive and likely illegal.

Only the miner who discovers new bitcoins gets "rewarded" by the system; every other person who receives the bitcoins later gets them in exactly the same ways that other people get currency -- by participating in economic transactions. So no, it doesn't rely on new entrants for anything; if people stopped joining tomorrow, or if people stopped mining tomorrow, current participants would still be able to trade with each other and get value out of it.

The system is designed so that coins are minted at a steady rate. There is some additional reward for early adopters in terms of less power required per coin for mining. But there is also risk for early adopters: If you're a miner you have to buy real equipment and electricity which costs real dollars today, without a guarantee that you'll be able to liquidate the Bitcoins it produces to recoup your investment (which may take years). A healthy market should have a reward premium built into the success payoff of a risky investment.

I take issue with "disproportionately", because I know you cannot substantiate that, as it does not disproportionately reward anyone. The rules for reward and the value of the currency is entirely transparent.

Besides this, that is how all securities work. You have people who invest in it first (Bitcoin wouldn't have even worked without someone mining to protect the blockchain) and others who buy shares of those investments later by assessing the risks similarly, or also contributing to the mining (which will continue for more than another decade).

Turns out (gasp) the technology is perfectly sound and secure. It's open-source so you can take a look, or you can ask me any questions and I'll be able to explain it to you. It's just a transferable credit system that has gradually earned value through commerce, you don't need to be so cynical.