The Bitcoin (BTC) thread

pants

 
A month ago, a bitcoin was traded for around 28USD, todays high was 45USD. That's extreme compared to about anything.

Any Coinholders on the forum?

By all means, its a risky investment, it may fall to zero in less than a month or go 200% up.

To people not knowing what bitcoins are.

A short explanation would be an internet currency, not backed up by a government. Instead its backed up by a p2p network of computers. The way its limited in access its like an online gold.



To people wanting to know how to use bitcoins:

A Beginner's Guide to Bitcoins by Trace Mayers J. D.



I also found this interview with Trace Mayers very interesting:

 

storm

Pelican
Gold Member
RE: Bitcoins up 60% in less than a month

I wonder how much of this is due to the new mining hardware entering the market.
 

pants

 
RE: Bitcoins up 60% in less than a month

yes, me to.

The fact that a serious firm is investing money in technology makes it a more hard valuta.

Its also a good thing for the p2p network as a whole, the more processing power in the network, the harder it will become for hacker to take over.

Stability increases the value of the currency.
 

mikeymike

Kingfisher
Gold Member
RE: Bitcoins up 60% in less than a month

I just assumed it was the preferred payment method of silk road and the like, I didn't think it had any value outside that circle. Interesting.
 

pants

 
RE: Bitcoins up 60% in less than a month

not money in illegal weapons, drugs and terror?

Not to forget prostitution.

These markets may keep the Bitcoins value strong alone.
If it become illegal, it may affect the value of the coins, but kokain is still very valuable even though its illegal.

Also a p2p network is impossible to shut down without stopping the internet itself.

Good way to stash away cash also.
 

j r

Ostrich
RE: Bitcoins up 60% in less than a month

The problem with bitcoin is that it is inherently deflationary. There's a constant rate of increase in the money supply until it gets to a certain point a then no more; there will be a finite supply of bitcoins. This means that the incentive is for people to hoard them, because you'll always be able to buy more in the future with your bitcoins than what you can buy now.

Don't get me wrong. There may be cases where there's value to having an anonymous unit of transaction. As an investment, however, it's a bit of a ponzi scheme.
 

pants

 
RE: Bitcoins up 60% in less than a month

Limit in supply, like gold.

Gold bad investment?

Risks I see are alternative bitcoins.

The fact that people are sitting on coins instead of usd makes it a better of investment in my opinion
 

Hooligan Harry

Kingfisher
Gold Member
RE: Bitcoins up 60% in less than a month

j r said:
The problem with bitcoin is that it is inherently deflationary. There's a constant rate of increase in the money supply until it gets to a certain point a then no more; there will be a finite supply of bitcoins. This means that the incentive is for people to hoard them, because you'll always be able to buy more in the future with your bitcoins than what you can buy now.

Don't get me wrong. There may be cases where there's value to having an anonymous unit of transaction. As an investment, however, it's a bit of a ponzi scheme.
They have been using the same argument against Gold to justify the ponzi scheme that is fiat money. Its a false premise and its always implodes
 

pants

 
RE: Bitcoins up 60% in less than a month

I'm not sure how much international playboys are taxed. But if I were someone like roosh writing. Accepting coins for books might be a good way to dodge some tax.
 
RE: Bitcoins up 60% in less than a month

I was following this last year but never got moving. I'm still trying to understand how bitcoin is created. What do you mean "backed" by p2p computers? Also, where is the risk generated?
 

dulst

Woodpecker
RE: Bitcoins up 60% in less than a month

I use bitcoin regularly to buy some "hobby supplies". I was astounded at how quickly the price went up (and continued steadily to rise for several weeks). I tend to buy my BTC as I spend it but the small amounts left over each time increased in value so quickly that I ended up saving 10 - 20% on what I bought over the last month.
 

bojangles

Crow
Gold Member
RE: Bitcoins up 60% in less than a month

i bought some bitcoins to pay for my VIP usenet accounts, as all those sites have had Paypal remove their shit, bollocks if I'd known I would have made some serious bitcoin money.
 
RE: Bitcoins up 60% in less than a month

do prices on silk road, for example, adjust to reflect the same USD even as bitcoins go up?
 
RE: Bitcoins up 60% in less than a month

I think alternative currency is the future. From what I've researched so far, the potential reward seems to outweigh the risk. I think there's a lot of untapped potential though I don't foresee mass adoption of crypto currency taking place anytime soon if ever. Nonetheless the returns here should be pretty good.
 

pants

 
RE: Bitcoins up 60% in less than a month

Hencredible

Bitcoin created:

You know brute force hacking? It's when you're just guessing a lot of combination until you eventually hit the correct one. Coins are generated the same way, and when you hit a jackpot(finding a key) you will announce the p2p network, and they will verify that it's in fact true. Then 50BTC is transferred into your wallet.

Bitcoins are created at a specific rate. It follow the same pattern as a geometrical sequence



in image you can add infinite sequences, without ever going outside the square. The total area will therefor never exceed the area of the square. Bitcoins are being created the same way. With some modifications. Every 4 years, the rate of bitcoins being mined its cut to half.



Risk of bitcoin?

There are a few:

-Alternative krypto valuta. There are already many, lightcoin etc..
-Bug in the code, that makes everyone lose their money
-Politics, becoming illegal
-The core itself of the code itself have so far been proven safe. But a lot of the surrounding services, like mtgox, have had problems. Anolology; Gold is gold. Can't be created or destroyed. (at least not without your personal supernova), but people may sell you fake gold, you can loose your gold or people may steel it. Same goes for coins.
- What will happen when the "gold rush" is over? Will people stop backing it up, and it will become an easy target for attacks? This is something i might worry. The whole limit in supply might not be so great after all. I think it might be better with a 3% inflation every year. Enough that people would leave their hardware running.
 

pants

 
RE: Bitcoins up 60% in less than a month

Heigh, almost 48USD !

btw: This is not me telling everyone, "Buy bitcoins!".. The value of the coin might be zero tomorrow, and i will not be the guy to blame for it.
 

Cyclone

Kingfisher
Gold Member
RE: Bitcoins up 60% in less than a month

I invested $500 in BTC back in December, back when it was =12 USD.
I bought molly in January, when it was at =14 USD.

Now, it is at =45USD. That far eclipses the profit I made from the molly. Kicking myself!!!

Still waiting for it to crash before investing again.
 
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