Bitcoin - a decentralised digital currency

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So what was your buy-in price, something like 55.8 EUR?

 

Something like that. Bought outright rather than waiting for the buy option to complete.

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Ive been looking into this $100,000 story.

 

Gold price is currently $1600 per ounce or thereabouts.

 

current total market capitalization of gold holdings: $8,205,444,554,534

 

current total market capitalization of bitcoin holdings at todays BTC: $783,000,000

 

in other words, bitcoin deposits are equivalent to less than 0.1% of the value of gold holdings right now.

 

So if bitcoin can capture 10% of the gold market, then at today's valuation that would mean $820,000,000,000

 

with just under 11 million bitcoins in circulation at present and at today's bitcoin price that gives a BTC price value of $75,000.

 

Not bad.

 

Acc to Ralf Falkvinge value of total world currencies in circulation is approx. $60,000,000,000,000.

 

1% of that is $600,000,000,000. So if bitcoin captures that 1% then that would mean a BTC price of $55,000 at todays exchange rate.

 

So on that basis, $100,000 by 2015 doesn't look that unrealistic.

 

But to do it, bitcoin would have to become a major player. Infrastructure, access, confidence etc all has to improve.

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Here's the article in question that this forecast is based on: target value for bitcoin is not some $50 or $100 it is $100,000 to $1,000,000

 

That's the one.

 

I think the article is mostly correct except for the part where he says mainstream breakthrough will come in 2019.

 

He says that major technology breakthroughs take a decade to go from prototype to mainstream.

 

I think that was true a decade ago. Things are accelerating, however. What previously took a decade now takes five years.

 

Bitcoin was introduced in 2009, so that means mainstream will come in 2014.

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Will be interesting to see the aftermath of the Cyprus Euro crisis over the coming week or two and how that plays out on Bitcoin.

 

Just been reading some online sentiment on Bitcoin. General view seems to be last few weeks constitutes a bubble way above the upwards trend line. Some think it will fall to around $60 before deciding where to go next.

 

Im interested in buying more, but I'd prefer to see some profit-taking falls and consolidation in the market first before I jump in again.

 

To get prices rising upwards on a fast trajectory you need continually increasing transaction volume and value.

 

Also Bitcoin is like gold, people buy it as a safe haven, or because they think it will rise in value, not for many other reasons.

 

In other words, Angst fuels Bitcoin and Gold. The more Angst, the higher Bitcoin will go.

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What previously took a decade now takes five years.

 

Bitcoin was introduced in 2009, so that means mainstream will come in 2014.

 

Id venture to say even less than 5 years. More like 3 in a lot of cases.

 

Unless you're the GEZ, in which case it's more like 20.

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It's happened, the bubble has burst.

 

BTC now at $55.80. Profit taking in full swing this weekend. Maybe jitters as well.

 

How much lower is it going to go...

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I'm watching that too - mtgox currently at 41.13 EUR / 53.67 USD per BTC...seems to be climbing a bit again now but it's still very jittery! :rolleyes:

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BTC was falling faster than an express lift at one point right down from $58 to $52 in seconds.

 

It may be that $50 or thereabouts is the new floor, and around $60 the point for going forward.

 

It's one hell of a ride - and its only the weekend..

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It's not a burst. Just the predicted dip. Albeit a bit more extreme than expected. Is good though. Clears out the weak hands. Hold is the name of the game.

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Sometimes things just go my way. I bought a fairly substantial amount at the end of February after reading Bob's post and discovering the currency. I sold them all on Thursday :) I may re-buy after the weekend Thanks EB! - I owe you a beer...

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Nice job! Hopefully you manage to buy back in quickly before prices rise above what they were when you sold. Otherwise you'll have swapped a larger long-term gain for a smaller short-term one.

 

Which exchange did you use?

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It doesn't seem clear who is behind Bitcoin or who guarantees funds if it collapses. Why the anonymity/confusion if everything is above board?

 

 

Web domain registered in Finland to 02e87e389a273cab, whoever that is.

 

Who runs bitcoin.org?

 

...both bitcoin.org and bitcointalk.org is owned by Martti [Maalmi]. He is the administrator of the bitcointalk.org forums, still active there, and could most likely be contacted using the PM feature on the forums...

 

Martti Maalmi's uninformative LinkedIn profile

 

I think Sirius (Martti Maalmi) is Satoshi Nakamoto...

 

Wikipedia

 

Satoshi Nakamoto was the pseudonymous person or group of people who designed the original bitcoin protocol in 2008 ...

 

Although it is considered a digital currency, virtual currency, or "payment scheme", it is often traded as an investment and accused of being a form of investment fraud known as a Ponzi scheme. On this subject, a report by the European Central Bank, using the U.S. Securities and Exchange Commission's definition of a Ponzi scheme, found that the use of bitcoins shares some characteristics with Ponzi schemes, but also has characteristics of its own which contradict several common aspects of Ponzi schemes.

 

 

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I was under the impression that nobody is guaranteeing the funds for if/when it collapses? You might be being a little optimistic there!! :)

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If it's set up so that the founders are hard to trace, yes it would be optimistic to assume that the funds would be guaranteed ...

 

 

Bitcoin is an unregulated, uncontrolled online currency – worth more than £500m, it's the world's fastest growing. It can be used to buy drugs, move money across the world, or get rich quick. The people behind Bitcoin speak to the Guardian's James Ball at their home in a squat in central London

 

http://www.guardian.co.uk/technology/video/2013/mar/22/bitcoin-currency-video

 

 

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Which exchange did you use?

 

I used bitcoin-24.com (which I think was one that you recommended) as it seemed easy and straightforward to be up and trading quickly. Transaction costs seem high, but are more than compensated (in this case) by the profit made. I was quite surprised at the apparent lack of security and potential for easy money laundering, but I got my money back and more, so I'm not complaining.

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Bitcoin has been making good the falls of earlier today.

 

Now back up at $67.

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So, today I jumped on the Bitcoin bandwagon. I downloaded a wallet and a mining app. Should I just buy them or mine for them?

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I think you will spend more on electricity mining for them. Check out Butterfly Labs. They have a 4W device that can do 4.5 billion hashes/second. This might be the way to go, but they have not shipped any of these devices yet. Seems like they are taking orders to fund production. Plus the order can take up to two months to deliver once they finally start shipping. But if the price of a BTC goes up and up and up, then it might be cheaper to mine.

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Apparently it's a hard slog to mine Bitcoins.

 

My guess that Bitcoin mining might become more profitable in future if a) there are big innovations in chip technology, and/or B) Bitcoin price rises substantially, eg like 1000% or more.

 

If you're going to try Bitcoin mining at home then it's a better idea to join a mining pool. This means your computer becomes part of a network of miners and you all share in the proceeds according to the contribution of your computer.

 

Apparently trying to mine Bitcoins on your own with only one computer is nigh on impossible and risks just leaving you with a big electricity bill.

 

Im wondering if it's worth putting my own PC to work as part of a mining pool, since it's already on 24x7, might as well start contributing to it's upkeep.

 

If you join a mining pool, make sure it's a reputable one. Also some of them are commercial operations that charge fees.

 

I hear there's a free peer to peer one called P2Pool or something like that.

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Im wondering if it's worth putting my own PC to work as part of a mining pool, since it's already on 24x7, might as well start contributing to it's upkeep.

 

Sure it is on 24x7, but not at 100% CPU 24x7. There is the big difference. Also it it better to use a powerful graffix card, as GPU's are more efficient at this sort of thing than CPU's.

For example,

My I7-950 CPU can do 18.9 MHashes/sec

My NVIDIA GTX570 can do 165 MHashes/sec.

 

Doing some own research it appears that the miners favor AMD cards over NVIDIA.

 

https://en.bitcoin.it/wiki/Mining_hardware_comparison

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