bitcoin (BTC) is a crypto currency
some good money to be made here, but be careful, extreme volatility
the biggest exchange for USD/BTC is mtgox see chartbelow:
I have read some on bitcoin. I suggest people read the wiki article on it, ESPECIALLY the "Outcome" section, which lists possible failure modes. This is very important. This is basically a virtual currency similar to gold from WoW, or Linden dollars. If interest wanes, then the currency is likely to fail, or even hyperinflate, as a rush to the exits will create rapidly escalating monetary velocity.
What does everyone think of Adam Cohen's assessment of BitCoins?
One thing i like about the bitcoins is that they are mined using cryptography, and you can turd your computer into a rig, basicly turning your computers extra procesing power into real money. Of course you will have to exchange your bitcoins into say FRN's if you live in the US to get usable dollars but there money is there. It seems somewhat nefarious to me however, since you are basicly being bribed to do brute force password guessing for an unkown entity.
Some computer outfits are selling cutom bitcoin mining rigs that maximize your income this one I am thinking of buying:
at just under 2k frn's this usnit will pay for itself in just under two months.
Its all about how many milion hashes per scond you can generate, here is a calculator where you can see how much you would make:
Here is the currency exchange where you would change your bitcoins into USD or Yaun or whaever you might prefer:
If they return the money that fast, why are they selling them rather than using them themselves?
In my experience, automated money makers at that scale usually take two years or more to pay for themselves. Any less, and it doesn't pay to stock and sell them, unless you do so at a huge markup.
Bitcoin is very important, whether or not it is ultimately successful, the ideas behind it are game changing.
I recently started a precious metals blog, that may be morphing into a Bitcoin blog.
I have links to several good articles on Bitcoin, as well as occasional reports on my own experiences with the currency. https://stackin.blogspot.com/ At 1000% appreciation in the last year, it might just be the investment of a lifetime.
As an internationally available currency, it might just save your ass someday.
With low to no premiums, it might just kick Paypals' ass.
...mainly with security. Not sure if you heard, but yesterday some dude's computer got hacked and his stockpile of $500,000 in bitcoins vanished into thin air. A week earlier another dude's Mt.Gox account got hacked as well and his money was stolen and sent to the same address as the guy above. The way the protocol is designed there's basically no recourse if someone steals your bitcoins or you lose them. They just get laundered through new accounts that anyone can create and you get to watch them being spent in real time on a program called block explorer. The sad thing is there's no way to really prove or disprove this guy's story about losing his $500K, or if he's even telling the truth or not that he ever owned the 25,000 bitcoins. Before bitcoin can really take off, the developers will have to seriously revamp the client software to get the masses to feel confident in getting on board with it. So far it just has a small nurd following because it's too complicated for the average person to figure out.
I think before people rush into Bitcoin it my be worth taking a look at Cris's Weekly Telegram about the subject
The whole concept of crypto-currency is pretty interesting. Currencies are only worth what the masses perceive them to be worth. I think if someone can keep their bitcoins safe, there's a pretty good opportunity in bitcoin mining during the short term. The value of bitcoins is going to rise as the difficulty level rises in mining them. It's a catch 22 though. Currently the cost/time to mine bitcoins is pretty cheap, but what happens when all the bitcoins are created, or it's not cost effective to mine them anymore. What will determine how much a bitcoin is worth after that...if you can't spend them anywhere. I think the bitcoin chart will end up looking like a chart of the Nasdaq during the dot.com era of late 90's....straight up on a bunch of hype, and then straight off the edge of a cliff when everyone figures out they're worthless.
They're selling it on ebay.
At 1000% appreciation in the last year, it might just be the investment of a lifetime.
At 1000% appreciation in the last year, it might just be the investment of a lifetime.
That sort of runup is a symptom of a speculative blowoff. Be wary of it, as this virtual money (like any fiat money) does not have any intrinsic value.
I think first comers will make great money. Is it too late to join?
WoW gold is the first thing that came to my mind as well. It would be trivial to tank the currency.
The security of your computer is your responsibility. You probably also have some credit card numbers on there, and perhaps some personal information that could be used by thieves. And you probably don't leave piles of silver and gold on your front porch.
But yeah, that's a shame.
Worth noting that for bitcoin to work, the computer has to be online. And if you use someone else's online "wallet", then you are implicitly trusting that third party.
He seems to think it is just another ponzi scheme. I will be staying away from Bitcoins despite the fact they are a god idea in theory.
+1 for the link jlev. The author puts together a good argument. This bitcoin went as parabolic as anything you'll ever see. I'll watch from the sidelines on this one tyvm.
The only way I would imagine someone getting into this is if they want to ride the bubble higher and then bail before everyone else does - which certaintly isn't my investment style.
Currently mining at the moment. Takes some real GFX card grunt to do it with a good ROI (electricity, rig, time) especially with the exponentially increasing difficulty levels, but it's fun.
I personally believe this is the wave of the future (anonymous currency) ... in a "power to the people" kind of way ... sure there will be virtual, random instances of highway robbery, but I like those better than TPTB's regularly occurring staged instances ..
I cant believe what I am reading here. Bitcoin is a SCAM.
Just because it has a coin in name doesnt make it anything like precious metals.
First and foremost PMs are regarded as a store of value. While this bitcoin scam serves only speculating reasons. Thus the currency will never be stable. Only recently it lost 65% of its value. It is hard to believe that people backing precious metals got caught by this scam.
We dont need any other money than Gold and Silver (or paper money backed 100% by G&S). Period.
p.s Im literally rolling on the floor reading that people are upgrading their PC only to mine bits :rotfl:
Hey, it would be funny that people live their whole lives chasing after monopoly money if it weren't so sad.
Snap! Read FOFOA's blog from yesterday. Some dude had $500,000 USD in bitcoins robbed off of him because he didn't follow up a security path or something.
Can you imagine getting a half a Million stolen from you, being able to see who did it and when, but not being able to do a damn thing about it!?
I cannot say it's a scam cause I know little about it, but fuck me sideways! Yes, I saw Chris's (Weekly Telegram) video on it, but he's paranoid about everything...hehe...
I am not sure if I understand the bitcoin system correctly, but from what my sources tell me, bitcoin miners are in effect decentralized central bankers, pulling virtual money out of a magic hat. Not unlike Zynga's farmville dollars/tokens/coins or whatever they are called, trading in fantasies.
For those encrypted zeros and ones sitting as magnetic charges on a bitcoiner's hard drive in two years time to represent tangible value, enough to consider them a trusted medium of exchange for goods and services, and stable enough to hold savings in, the bitcoin currency concept has to address some important issues.
It has to be if not officially recognized at least tolerated by state authorities, a status it will only gain if the bitcoin exchanges provide transaction details to law enforcement agencies.
Quote: ST. LOUIS, June 15 (Thomson Reuters Accelus) - Exchanges that have facilitated trade in a fledgling digital currency known as Bitcoins are offering to help U.S. law enforcement track suspect transactions, after two senators charged that the operations aided drug traffickers and money launderers....
There goes the anonymity argument.
Then, one has to wonder how secure those bytes are, with stories of bitcoin fraud and theft popping up all over the place. Or having one's wealth literally deleted in some other unfortunate event. Imagine that, losing thousands of bitcoins thanks to a hard drive crash.
From where I am standing it seems that in its current format the bitcoin idea is more akin to a pyramid scheme designed to reward the early birds at the expense of the late comers. As they say in Germany, 'den letzten beissen die Hunde', the last one gets bitten by the dog. With its many flaws and no worthwhile benefit I can make out, I seriously doubt that bitcoin will ever be a genuine contender in the global currency arena.