Bitcoin & Bitcoin Mining

[The_Reaper]

No it isn't. Inflation? What was one dollar 'worth' ten years ago?

But from week to week the value remains constant.
3% every year for 10 years has an effect but you don't really notice a 3% increase from Jan to December.

Nor does the bloke accepting your money in exchange for goods.

People do notice easy money made from buying in the morning and selling in the evening.

 

[ash_1050]

no. Because you made arbitrage cash which perfectly illustrates how volatile the price of bitcoins are.

Why would anyone accept bitcoins instead of a legitimate currency? One American dollar is still worth one American dollar from one week to the next. One Australia dollar (in australia) is still worth one Australian from one week to the next.

Prices are volatile at the moment because the market cap is still quite small. As such you're right, bitcoin is still closer to a commodity such as oil or gold than it is to a currency such as the US or AU dollar. However if Bitcoin acheives a more mainstream status and market cap increases then after the initial growth prices will level out and volatility will decrease. As for legitimate currency what about the hyperinflation we are currently seeing in Latin America, where the Argentine peso and the Venezuelan bolívar are not worth the same on a week to week basis?

I'm not suggesting Bitcoin is a replacement currency or that it will overthrow any other currency, that's a little too far fetched for my liking. I do, however, believe it will sucsessfully work alongside major currencies as it offers a wide range of benifits major currencies currently do not, namely near instant transfers to anywhere in the world for a nominal fee and the fact there is only a finite amount.

 

[The_Reaper]

Prices are volatile at the moment because the market cap is still quite small. As such you're right, bitcoin is still closer to a commodity such as oil or gold than it is to a currency such as the US or AU dollar. However if Bitcoin acheives a more mainstream status and market cap increases then after the initial growth prices will level out and volatility will decrease. As for legitimate currency what about the hyperinflation we are currently seeing in Latin America, where the Argentine peso and the Venezuelan bolívar are not worth the same on a week to week basis?

I'm not suggesting Bitcoin is a replacement currency or that it will overthrow any other currency, that's a little too far fetched for my liking. I do, however, believe it will sucsessfully work alongside major currencies as it offers a wide range of benifits major currencies currently do not, namely near instant transfers to anywhere in the world for a nominal fee and the fact there is only a finite amount.

Argentina and Venezuela have joke economies at the moment. A major symptom of that is how shitty their currencies are.

I'd expect that quite a few people in those countries are now conducting transactions in American dollars.

 

[Papa Juggs]

Bitcoin is $10b.

That's a lot of money but when compared to actual currencies is almost nothing.

Once the coins get scarce and people stop mining the processing power dies out and the whole network collapses to a 51% attack. It's as simple as that.

At some point there will be a switch to a new more innovative crypto. I don't believe it exists yet but I'm sure it is being worked on. You can't just clone Litecoin 400 times and claim it's something new each time.

Quark and Peercoin are slightly different but still not robust enough for my liking.

 

[Messenger]

I read this a few weeks ago but thought it was relevant here:

Singapore develop a tax treatment for crypto currency transactions.

 

[Jade's]

Prices are volatile at the moment because the market cap is still quite small. As such you're right, bitcoin is still closer to a commodity such as oil or gold than it is to a currency such as the US or AU dollar. However if Bitcoin acheives a more mainstream status and market cap increases then after the initial growth prices will level out and volatility will decrease. As for legitimate currency what about the hyperinflation we are currently seeing in Latin America, where the Argentine peso and the Venezuelan bolívar are not worth the same on a week to week basis?

I'm not suggesting Bitcoin is a replacement currency or that it will overthrow any other currency, that's a little too far fetched for my liking. I do, however, believe it will sucsessfully work alongside major currencies as it offers a wide range of benifits major currencies currently do not, namely near instant transfers to anywhere in the world for a nominal fee and the fact there is only a finite amount.

Has all the hallmarks of a classic bubble. I pity any fool who takes a long term approach to any online currency

 

[JD11]

Been a big week in Bitcoin, was expecting this thread to have been bumped.

http://spectrum.ieee.org/tech-talk/...ow-about-mt-gox-and-the-bitcoin-software-flaw

Here's what a terrible week looks like in the world of Bitcoin: Two of the most trafficked Bitcoin exchanges, Mt. Gox and Bitstamp, temporarily halt tradingand suspend bitcoin withdrawals in the midst of a distributed denial of service attack (DDoS). On exchanges that are still open for business, the value of the currency takes a brutal, sudden hit and then continues to tumble. Bitcoin users notice strange errors in their wallet balances after making routine transactions. Rumor spreads that the Bitcoin protocol is critically flawed. And where rumor is lacking, conspiracy theories abound.

Also there's this:

https://www.reddit.com/r/DarkNetMarkets/comments/1xtqty/sr_has_been_hacked/

Met with cynicism and allegations that the mods have absconded with the funds.

Bitcoin is going to make an amazing book one day.

 

[Papa Juggs]

ROFLMAO now just over $600 USD.

Safe and secure? Yeah right. Until the right formula is found it's just a nice idea.

 

[Ed_Gein]

So you think it's approaching the end of the line for Bitcoin then?

 

[Nothing]

So you think it's approaching the end of the line for Bitcoin then?

They are not worth $600 each.

If I had a bit of computer knowledge I would be starting my own CC. They are created from nothing (see DogeCoin)

 

[The Passenger]

So you think it's approaching the end of the line for Bitcoin then?

Not even close.

Who knows where it will lead.

The track CC's take will largely depend whether one of the big traders start accepting bitcoin (or another CC). If not, they will probably just remain a niche commodity with a loyal following. If one of the big players starts accepting them then they'll go gangbusters.

If bitcoin was to just fade out it won't be for a few years yet I'd reckon.

I pity any fool who takes a long term approach to any online currency

It would take someone with serious balls to have any more than about 1/3rd of their overall financial value tied up in CC's. But plenty of people have made some pretty serious coin simply through buying some out of curiosity a few years back.

 

[Jade's]

It would take someone with serious balls to have any more than about 1/3rd of their overall financial value tied up in CC's. But plenty of people have made some pretty serious coin simply through buying some out of curiosity a few years back.

I don't know about you but losing a third of my wealth would be a serious hit to the wallet. By all means speculate with money you can / are willing to lose but tread very carefully. On every bubble throughout history people have "made money" (on paper anyway) until the bubble bursts and they are left with nothing. This is absolutely no different.

 

[Papa Juggs]

So you think it's approaching the end of the line for Bitcoin then?

The market has lost over $2 billion. That's a lot of shaken confidence. That money didn't go into Litcoin or Dogecoin either. It's gone.

 

[ash_1050]

At the moment the price fluctuations of Bitcoin are largely dependant on news. Because of the Mt Gox news and malleability issues during the past fortnight the price has dropped, as has short term confidence. Until there is some positive news the price will largely stay unchanged, and when Mt Gox inevitably crashes so will the price.
It's interesting to note the every other time the 'bubble' has popped the price has sat stagnant for a few months before rebounding to new heights. It remains to be seen if this will be the case again but I believe that by the end of the year the price of a Bitcoin will have surpassed the previous all time high of ~$1250.
Additionally as someone who has a long term belief in the success of Bitcoin for me the current market is a great time to buy and I have recently increased my holdings to 3.4 Bitcoin.

 

[Nothing]

Additionally as someone who has a long term belief in the success of Bitcoin for me the current market is a great time to buy and I have recently increased my holdings to 3.4 Bitcoin.

It's a bubble. Until prices (and market cap) return to early 2013 levels I don't think they are a good buy. Market cap up 6 fold (down from 10 fold!) in 4 months when fundamentally very little has changed in that time. Until market cap (and therefore prices) return to a reasonable level, it's tulips.

http://coinmarketcap.com/btc_180.html

 

[Armesy]

Can someone enlighten me as to why when i look on the website http://dc-charts.com/ it says the current price is around $250USD but on exchanges like BTC is has the price at over $600?

Im confused.

 

[Smiling Buddha]

The market has lost over $2 billion. That's a lot of shaken confidence. That money didn't go into Litcoin or Dogecoin either. It's gone.

That money hasn't 'gone', as it was never there to begin with.

Only a few thousand bitcoins have ever been purchased at these high prices. The same coins have been sold back and forth which makes volume traded seem higher than it really is.

Extrapolating from that across all bitcoins ever mined to find a 'market capitalisation' is misleading at best.

As for the suggestion that bitcoin is past its peak or on the way down permanently or whatever, I don't think so.

Too many people have invested way too much money for this thing to suddenly end any time soon.

It might be doomed to eventual failure (I personally think bitcoins are ultimately doomed, while cryptos in general will be with us so long as we have internet) but there is no more reason to think that failure is around the corner than there was when the price crashed from $100+ back to $10 back in the day.

If anything, there is less reason to think that right now.

And I say this as somebody who owns 0.0 bitcoins.

 

[kfc1]

Too many people have invested way too much money for this thing to suddenly end any time soon.

This encapsulates exactly what is so fascinating about currency to me.

The whole thing is essentially a gamble that you think everyone else will think it's worth something when you go to sell. There is no inherent value.

Anyone with a financial interest in Bitcoin has to talk it up to get a return on their investment.

 

[Smiling Buddha]

The whole thing is essentially a gamble that you think everyone else will think it's worth something when you go to sell. There is no inherent value.

Not 'everyone else'. Even one other party agreeing on its value will suffice.

 

[kfc1]

Not 'everyone else'. Even one other party agreeing on its value will suffice.

To make a transaction, yes, but for some level of reliability a currency requires a lot of people to think it is worth something. This is how fiat currency works too.

 

[Nothing]

It continues it's relentless march to normality. Down to around $450 for BTC. If/when it reaches the vicinity of double digits I think it becomes an interesting proposition.

 

[The Passenger]

mtgox has gone offline. massive.

 

[jerry springer]

lol

 

[Papa Juggs]

Bitcoin is $10b.

That's a lot of money but when compared to actual currencies is almost nothing.

Once the coins get scarce and people stop mining the processing power dies out and the whole network collapses to a 51% attack. It's as simple as that.

At some point there will be a switch to a new more innovative crypto. I don't believe it exists yet but I'm sure it is being worked on. You can't just clone Litecoin 400 times and claim it's something new each time.

Quark and Peercoin are slightly different but still not robust enough for my liking.

Where did the $5 billion go?

I hate to say it but I told you so.

When there are billions of dollars on the line you can bet the worlds best hackers are busy.

 

[Quivorir]

I hate to say it but I told you so.

Lol no you don't.