Bitcoin - a decentralised digital currency

[Editor Bob 3,377]

The price of bitcoin is surging and recently crossed €20. Anyone here own any?

 

[sarabyrd 18,767]

I read about this currency yesterday, it seems that the darknet uses it a lot (and provides tips for laundering it).

[TheSwedishChef 654]

Doesn't seem to be the most stable currency around, given that 18 month snapshot.

[Editor Bob 3,377]

The world is going digital. So I think it makes sense that money should go digital too.

 

The bitcoin economy:

 

Quote

There are many misconceptions and misreporting in the press. It seems like every article is about drugs, money laundering, hacks, extortion, and anything else that seems like an enticing headline.

 

In 1994 when the first web browser was launched, there seemed to be an article every other day "the Internet is bad, the Internet is dangerous, the Internet is full of scams".

 

Fast-forward 20 years to the present day, replace "the Internet" with "Bitcoin", and read today's news. "Bitcoin is bad, Bitcoin is dangerous, Bitcoin is full of scams" are basically the headlines you will find today. It's the same articles from 20 years ago. They were wrong then, and they are wrong now.

[kludgie 3,099]

Can't see it working unless it stabilises in value or websites constantly adapt their costs to match established currencies.

 

A one Bitcoin service I might have bought a month ago for $14 would now cost over $30. What's to say in another month it's not half the cost or indeed double again?

 

I can see it makes sense to use this if you are a paid-for on-line service/ebay seller etc., but not if you actually have no means of generating Bitcoins without converting currency.

[punkinside 1,153]

I wanted to set up a dedicated machine to mine them a while ago, but that train has also left the station... too much power needed nowadays for very little reward. FX trading has always been incredibly risky, so what's a little volatility if you can stomach it.

 

It hasn't caught on in the clearweb yet, but get TOR and take a look around the hidden services in the darknet, everything is BTC (And most of it's illegal)

 

I couldn't tell you if it'll catch on. I think somebody has to find a way to make buckloads of (real, government backed) cash off of it before it's dumped on unsuspecting joe sixpacks, even though the concept seems to abhor it, we'll see if someone figures it out.

[SmittyBoy 494]

 

Can't see it working unless it stabilises in value or websites constantly adapt their costs to match established currencies.

 

Kind of like the Euro then, eh?

 

 

A one Bitcoin service I might have bought a month ago for $14 would now cost over $30. What's to say in another month it's not half the cost or indeed double again?

 

Absolutely nothing as long as the value of the Dollar continues to be eroded by the US Govt. spending policy. Hence the need for BitCoins

 

 

I can see it makes sense to use this if you are a paid-for on-line service/ebay seller etc., but not if you actually have no means of generating Bitcoins without converting currency.

 

Why? When you travel to the US, or England, or Japan, you convert your Euros to Dollars, Sterling, or Yen. When you visit the Internet, you will convert your Euros to BitCoin.

 

THE great thing about BC is that its value can't be manipulated - at least not yet - by any individual organization or government. So, in fact its value will, in time, become more stable.

[Editor Bob 3,377]

bitcoinity is a great site that shows the live bitcoin value, updated every few seconds.

 

Bitcoin is currently going up about a dollar a day.

 

[El Jeffo 42,118]

I'm not going to fall for any of this bitcoin hype. The real money is in tulip bulbs. Tulip bulbs, I tells ya!

[Elfenstar 1,676]

heh, heh. I saw The Good Wife episode "Bitcoin for Dummies" with the guy from the American Pie movies. I thought that was purely fiction.

 

 

[rick_de 826]

Everything that shoots up crashes sooner or later. Dot.com shares, tulip bulbs, bitcoins.

 

That may be ok as long as you manage to enter and exit the market at the right times.

 

I have a handful of bitcoins somewhere on my hard drive (I hope). maybe I'll check out what they're worth and sell them or buy some more, if I can remember how to do it.

[yourkeau 7,719]

AFAIK, emission is limited by algorithm, so it is not going to be cheaper, there will be no inflation. For this reason people will keep buying it and keeping as an investment rather than using as online payment means.

 

I see it as a modern equivalent of reserve for traditional currencies, but not as a replacement for centralized currency itself. Maybe, in future central bank will replace gold reserves by BitCoin reserves, who knows :)

[FunnyLookingForeigner 526]

As far as I am aware BitCoins are used solely to buy dope offa The Silk Road.

And to pay for other criminal services(hit men and the like). I made that last bit up. But it is probably true.

Untraceable electronic cash - it has "Criminal Element" written all over it. Albeit in ones and zeros. 11010011010110010100011100111000100101001...11010101

[yourkeau 7,719]

Given the origin of the term "money laundering" should we stop using laundries then?

[rick_de 826]

I just bought some bitcoins using bitcoin-24.com.

 

I also created an online wallet at blockchain.info.

 

Does anyone know how this works with the wallet and the broker service..

 

Do you have to (or should you) transfer the bitcoins from bitcoin-24.com to the wallet?

[Editor Bob 3,377]

Your bitcoin-24 account is a hosted wallet as well as an exchange.

 

You can either leave the coins there or transfer them to Blockchain. I think they're safer on Blockchain though.

 

Did you find your old coins, rick? Are they now worth a small fortune?

[Darkknight 2,305]

Bitcoins? Are you look to buy "Stuff" on the silk road website again? :-)

[rick_de 826]

nah, have some laundry to do :rolleyes:

[rick_de 826]

 

On 3/5/2013, 8:13:42, Editor Bob said:

Your bitcoin-24 account is a hosted wallet as well as an exchange.

 

Thanks for that.

 

I couldnt find my Bitcoins on my drive. I think they got flushed away during one of the infamous Windows reinstalls before I switched to Linux.

 

I may have a copy out in the cloud somewhere, but it was only a free giveaway cache of 1 or 2 euros worth. I'm going to use the online wallet this time round, its safer than relying on your own hard drive and risking reinstalls.

 

I think the Bitcoin is set to rise exponentially over the coming years. 3 main reasons:

 

1. the supply and increase in supply is strictly limited through the "mining" algorithm.

 

2. the existing physical currencies are under heavy pressure through the banking crisis and the quantitative easing that has resulted. Plus the pressures the USD and Euro are coming under from the trade imbalance with China.

 

3. increasing interest in online trading amongst the public. The average Joe Public doesnt know about Bitcoins yet and doesnt have a easily accessible way to deal in them, so this is yet to come.

 

When trading in Bitcoins is as simple as Google and everyone is doing it on their smartphones on the way to work, then the Bitcoin will really take off. I reckon sometime over the next 3-5 years, possibly earlier.

 

Plus if any of the national banks,or for that matter commercial banks starts diversifying part of their reserves into Bitcoins, then the Bitcoin value will increase BIG TIME.

[Editor Bob 3,377]

So yesterday the government of Cyprus decided to withdraw between 6% and 10% from all bank accounts in the country, see BBC News article.

 

This one-time tax is part of a bailout plan, as agreed with the EU, to prevent the country's entire banking system from collapsing completely.

 

As a result, people in Cyprus have been queueing at ATMs all weekend to try and withdraw their savings.

 

But the cash machines are now out of money, or they've simply been switched off. Online banking is also overloaded or switched off.

 

It's amazing really, that a country's government can decide to effectively "steal" money out of the private bank accounts of its citizens.

 

I wonder whether events like this are going to push more people towards using bitcoin as a value store.

 

The thing about bitcoin is that it's completely decentralised. It can't be controlled by any bank or government.

 

Accounts can't be frozen and funds can't be withdrawn without owner's permission. Plus, the bitcoin system works 24/7, all around the globe.

 

Transfers don't need to be made within business hours, there's no rest at weekend, all users are in complete control of their money at all times.