What is your take on bitcoins?

[RandomGuy]

I've been following them for years and used to talk about them a lot with a good friend when we worked together-(david) dtmcnamara on here. He's an expert on the matter but for me it came down to how volatile it was to external forces at the time.
For example, that "theft" that happened a few years ago completely tanked the economy- someone reported their computer got hacked and lost $500k- people went crazy online. I saw them go from like 30 USD per BTC to like 11USD, that's when I lost faith in it. An isolated incident of an independent wallet being stolen because of failed safeguards outside the scope of the bitcoin. You'd figure someone with a wallet full of 500k in paper money would have at least spent money on protecting it- why wouldn't this apply to virtual currency? The news distributed the story as a weakness in the bitcoin system and trust fell. This caused panic/hysteria and the currency got weaker. In this day and age, where panic can be manufactured via the media, I don't know how viable the bitcoin can/will be. What's your take on it?

Those of you who have been watching the news lately may have seen what's going on. Any how it's pretty freaking insane. Good news is that it's pretty much too late to become a miner/farmer if you aren't already established given increasing difficulty levels.



For those of you who aren't familiar, this will get you up to speed: Bitcoin - Wikipedia, the free encyclopedia
Some reputable stats: Bitcoin Charts - Blockchain.info
Bitcoin Market Capitalization
transactions per day: Bitcoin Number Of transactions Per Day

Etc, etc.

One bitcoin is proof of computational work done- it's a real unit. It's not representative like the USD is, after the gold standard. A bitcoin can not exist if the computational work was not performed. There are a bunch of other details that you'll find after doing a quick google.

Do you think the bitcoin can make it? Why or why not? I think it's the ideal currency without the layer of politics that is usually associated. From a technology standpoint, this gives incentives to innovations in hardware, which will essentially improve our quality of life. It is also more free from external manipulation due to the decentralization (the currency itself vs common perception which can be manipulated unfortunately eg. The Fed)

[.blank cd]

I'm interested in learning more about bitcoin. I know absolutely nothing about it. Lol

[RandomGuy]

Yeah, definitely worth the read, as they just hit VTEC: http://upload.wikimedia.org/wikipedi...n_exchange.png

[.blank cd]

Yeah, definitely worth the read, as they just hit VTEC: http://upload.wikimedia.org/wikipedi...n_exchange.png

When I hear about bitcoin, I always imagine that episode of the Animatrix where the machines create their own sovereign territory and their currency is so efficient, it devalues every other world currency to the point of global economic collapse. Lol

[bu villain]

Do you think the bitcoin can make it? Why or why not? I think it's the ideal currency without the layer of politics that is usually associated. From a technology standpoint, this gives incentives to innovations in hardware, which will essentially improve our quality of life. It is also more free from external manipulation due to the decentralization (the currency itself vs common perception which can be manipulated unfortunately eg. The Fed)

It will exist at least for the foresable future but it will continue to be extremely volatile. I would consider it pure speculation at this point. The fact that it is decentralized is exactly why it will never come close to replacing the dollar. All the aspects about it that make it a good currency can be taken away with the stroke of a government pen and surely that would happen if it became more mainstream. You say it is unfortunate that the Fed can manipulate the currency but Greece and Cyprus certainly wish they had a Fed with those powers right now.

[Vteckidd]

Its a scam that isnt feasible.

[kenrtx]

Its a scam

True! But then so is all fictitious currency (USD, Euro, etc)

that isnt feasible.

It's no less feasible than a piece of paper that says "This note is legal tender" or stocks and bonds. Are you referring to something different such as the security or manipulation?

[Sinfix_15]

Value of cyber currency Bitcoin surges as national currencies struggle

[RandomGuy]

When i made this thread, BTC prices were hovering around 115 USD

now they're over 230...

Bitcoin Market Price (USD)

wow

From a currency standpoint, I think this growth/deflation is not a good thing. Imagine if you had gotten a loan for 10k when I made this thread... It would cost you over 20k to repay it... That would suck (assuming you bought something worth 10k at the time)

[bu villain]

When i made this thread, BTC prices were hovering around 115 USD

now they're over 230...

Bitcoin Market Price (USD)

wow

From a currency standpoint, I think this growth/deflation is not a good thing. Imagine if you had gotten a loan for 10k when I made this thread... It would cost you over 20k to repay it... That would suck (assuming you bought something worth 10k at the time)

And there in lies the problem with bitcoins as an investment. There is no way you can know whether they will be up %1000 or worthless in the future. There is no stabilizing force in the bitcoin market. Further, 3/4 of the bitcoins are hoarded, that is, not in circulation. That artificially raises their value until a significant portion of them try to sell which will quite possibly cause the bottom to fall out of the market. The bitcoin idea is very smart and interesting, but that doesn't make it a good investment.

[Vteckidd]

susceptible to cyber attacks, no regulation, no circulation, not tied to anything (the USD is still tied to the treasury and the govt of the USA), if you had $10000 IN play money , go for it, but Gold or Silver is much more secure.

I suspect if you got in a year or so ago, you made money, its going to crash and soon

[SHHHH]

Why would anyone want them?

I dont see the market for it but then again people pay thousands of U.S. Dollars for WoW gold ect...
Getting paid to do nothing ideas have been around for a very long time. This just seems to be the new trend of it.

[RandomGuy]

Bitcoin Crash Continues - Business Insider

[RandomGuy]

slung a rod:


and as predicted Panic Produced