Bitcoin ?

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7998

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^^Sorry to break up your circle jerk guy^^

I thought Bitcoin was stupid when my pot cousin told me about it @$200 a coin. I still think it is stupid but I do feel dumb for not buying then.
 

SirShaun

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The high electricity bill, usually points to a grow operation, indicating grow lamps. I see bitcoin having significant value in countries with crap economies/governments. Keeping your money private, and mining a bitcoin in some countries I'd imagine would be like hitting the lottery. Imagine getting paid in bitcoins, no taxes.

Bitcoin is a digital currency that is not backed by any central authority such as the US Treasury. A person purchases bitcoins with traditional, nation-backed currencies through an online exchange and stores them in a private, virtual “wallet” that can only be accessed with the owner’s private key. She purchases goods or services from other parties by transferring bitcoins from her wallet to theirs. Every transaction is recorded on a publicly available master ledger called the block chain, which is too complicated to get into here. Suffice it to say that every Bitcoin transaction that has ever occurred can be looked up by anyone at any time through the block chain. Some of the benefits of Bitcoin are:

  • No Third-Party Seizures: multiple redundant copies of the block chain means no one can seize bitcoins without physical coercion as long as a user’s private key remains secure
  • No Transaction Costs (well, essentially none)
  • No Taxes: there is no way for a third party to intercept Bitcoin transactions, and therefore there is no viable way to implement a Bitcoin taxation system
  • No Risk of “Charge-backs”: once bitcoins are sent, the transaction cannot be reversed
  • No Tracking: unless users publicize their wallet addresses, no one can trace transactions back to them and no one, other than the wallet owner, will know how many bitcoins they have.
No tracking can be misleading. Single transactions are very much traceable. Transactions are recorded as addresses. You can trace from this address to this address. Some bitcoin services are even subpoenable and link your wallet to your identity.

Say I was using the silk road. My address to the silk road address would be visible. Where silk road actually sends my money and for what, is impossible to determine . Move your bitcoins around a lot and you really start to create an intricate web.

Other emerging cryptocurrencies are truly untraceable like darkcoin. Darkcoin has a feature called DarkSend, in which all transactions are automatically combined with two other transactions on the public ledger. The combined transaction is recorded as an anonymous transaction on the blockchain.
 
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black99lightnin

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The high electricity bill, usually points to a grow operation, indicating grow lamps. I see bitcoin having significant value in countries with crap economies/governments. Keeping your money private, and mining a bitcoin in some countries I'd imagine would be like hitting the lottery. Imagine getting paid in bitcoins, no taxes.

Bitcoin is a digital currency that is not backed by any central authority such as the US Treasury. A person purchases bitcoins with traditional, nation-backed currencies through an online exchange and stores them in a private, virtual “wallet” that can only be accessed with the owner’s private key. She purchases goods or services from other parties by transferring bitcoins from her wallet to theirs. Every transaction is recorded on a publicly available master ledger called the block chain, which is too complicated to get into here. Suffice it to say that every Bitcoin transaction that has ever occurred can be looked up by anyone at any time through the block chain. Some of the benefits of Bitcoin are:

  • No Third-Party Seizures: multiple redundant copies of the block chain means no one can seize bitcoins without physical coercion as long as a user’s private key remains secure
  • No Transaction Costs (well, essentially none)
  • No Taxes: there is no way for a third party to intercept Bitcoin transactions, and therefore there is no viable way to implement a Bitcoin taxation system
  • No Risk of “Charge-backs”: once bitcoins are sent, the transaction cannot be reversed
  • No Tracking: unless users publicize their wallet addresses, no one can trace transactions back to them and no one, other than the wallet owner, will know how many bitcoins they have.
No tracking can be misleading. Single transactions are very much traceable. Transactions are recorded as addresses. You can trace from this address to this address. Some bitcoin services are even subpoenable and link your wallet to your identity.

Say I was using the silk road. My address to the silk road address would be visible. Where silk road actually sends my money and for what, is impossible to determine . Move your bitcoins around a lot and you really start to create an intricate web.

Other emerging cryptocurrencies are truly untraceable like darkcoin. Darkcoin has a feature called DarkSend, in which all transactions are automatically combined with two other transactions on the public ledger. The combined transaction is recorded as an anonymous transaction on the blockchain.

Like I said earlier, sounds like something people doing illegal things would use.
 

SVTZX2

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My original investment of 1500 is now worth 24K.

There are also financial institutions backing the Blockchain that powers Bitcoin and financial advisers are getting into it.

It may be a bubble but it's not a pyramid scheme in any way. It functions exactly like any other currency. If people trust it and use it then it has value. It's based on the same thing the USD is. Pure faith, but it doesn't have the downside that more can be printed at any moment to devalue it. It has a hard cap on how many coins can exist.
 

CO Mack

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My advice, never invest in a non-tangible. Investing in ideas has the highest risk which is why it has the highest ROI, for a minute.

The reason for me.... shares are a promise to pay... a tangible item is payment. Promises are broken every day, but there will always be someone who needs what I have in my hand.

If you do choose to invest in shares of a company, be sure they have enough physical assets and working capital to cover their assessed value or you are buying a broken promise.

Just my humble opinion.

That’s what a fiat currency is.

Try to spend a German Mark for a loaf of bread.
 

VRYALT3R3D

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The unwavering support for Bitcoin have pressured the incumbent central banks to choose between being permissive or hostile to it. The government is ultimately the de facto controller of the supply of money in their country and can therefore issue money. As such, cryptocurrencies( such as Bitcoin) can pose a threat to a government as it aims to supersede the de facto currency by circumventing regulatory framework as many others do in the “sharing economy.” There are many risk factors involved with cryptocurrencies that pose a risk to its users.

Technological advances have helped propel cryptocurrencies as an appealing alternative to existing traditional currencies. Cryptocurrencies operate independent of a central bank because you do not need the central bank to validate the transaction and it can be done anonymously. It is often seen as a medium of exchange and also as near-money.

Cryptocurrencies' success depends on financial intermediaries. Not the other way around. In order for cryptocurrencies to succeed, it must have a stable purchasing power in place and it also requires the embracement of financial intermediaries whose cryptocurrencies are in circulation. As it currently stands, cryptocurrencies are dependent on other currencies (such as the USD.) Thus they cannot stand alone. Many retailers may accept Bitcoin for example, but they do not usually keep their holdings in Bitcoins, but rather exchange it for another, more stable currency.
 

MarcSpaz

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That’s what a fiat currency is.

Try to spend a German Mark for a loaf of bread.

That doesn't make sense. I'm not talking about currency spot rates or trying to spend foreign currency here in the US. I'm talking about investing in a tangible product (land, silver, gold, collectable coins, collectable teddy bears, precious and semiprecious stones, etc.) and the comparison of intrinsic vs. extrinsic value of an item I have. For example... GT350R MSRP prices compared to actual sales prices.

Bit coin may as well be Hasbro's Monopoly money. It only has value as long as everyone is playing the game. Homes, land, gold, etc. will always have a value because its based in reality and is a physical asset. It may be a challenge to buy bread with a Deutsche Mark, but I can easily trade grain for wool for clothes, led for bullets, or a pig to eat.
 

derklug

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Any currency not based on a gold standard is worth only what people believe it is worth. As long as people believe in Bitcoin (or Yen or USD or Euro's) the currency will have value. If the faith of the people in the currency falters, you own toilet paper. In the case of Bitcoin, you have virtual toilet paper.
 

MG0h3

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My original investment of 1500 is now worth 24K.

There are also financial institutions backing the Blockchain that powers Bitcoin and financial advisers are getting into it.

It may be a bubble but it's not a pyramid scheme in any way. It functions exactly like any other currency. If people trust it and use it then it has value. It's based on the same thing the USD is. Pure faith, but it doesn't have the downside that more can be printed at any moment to devalue it. It has a hard cap on how many coins can exist.
Well then I would GTFO tomorrow.
 

Kevins89notch

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My original investment of 1500 is now worth 24K.

There are also financial institutions backing the Blockchain that powers Bitcoin and financial advisers are getting into it.

It may be a bubble but it's not a pyramid scheme in any way. It functions exactly like any other currency. If people trust it and use it then it has value. It's based on the same thing the USD is. Pure faith, but it doesn't have the downside that more can be printed at any moment to devalue it. It has a hard cap on how many coins can exist.


NICE!

At another smaller forum I visit, someone posts screenshot proof they dropped 7K on bitcoins back in, I don't recall, but that bought just under 24. That's $192,000 now. Hahahaha, so awesome!

I sure wish I would have heard more about it back in the day.
 

CO Mack

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Any currency not based on a gold standard is worth only what people believe it is worth. As long as people believe in Bitcoin (or Yen or USD or Euro's) the currency will have value. If the faith of the people in the currency falters, you own toilet paper. In the case of Bitcoin, you have virtual toilet paper.

Gold bars are worth less than lumps of coal as a function of utility. Gold is merely another form of tokenized money. They key difference from any governmental fiat currency (whether Dollars, Marks, Yen etc) is that supply is limited, and market price is not government controlled. Bitcoin is a non-government controlled fiat currency they built to have intrinsic gold-like properties by making it more costly to “mine” (increase supply) as prices went up.
 
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11sec Guy

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It cost a lot of money to produce a bitcoin just like it cost money to mine gold. Only a finite amount of gold, only 21 million bitcoin.


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