Bitcoin's and the future of online banking - Page 6

have you ever asked how much are your "real" money really worth?

so this is roughly what i remember

bitcoins promoted on LP for a while

bitcoins turn out to be scam and genjix behind it

bitcoins now considered jopke

bitcoins now worth 90x original value


?????????

it's just economics tbh

I think bitcoins are really good for a number of reasons but now I am too lazy to argue.

I ll just put single words then :

Deflationnary, no central bank, limited monetary mass, anonymous, fast, scarse, divisible, unbreakable, unfalsifiable...

It is not a scam, in the same way that howard lederer being an asshole doesnt make poker a scam.

And genjix is NOT behind it, he is a just a guy from the community and a very bad representative for bitcoin.

Of course there is a bubble right now but I dont think anyone can predict where the price is going short term.

On March 30 2013 23:12 RaiNKhAN wrote: so this is roughly what i remember bitcoins promoted on LP for a while bitcoins turn out to be scam and genjix behind it bitcoins now considered jopke bitcoins now worth 90x original value ?????????

Bitcoins have not turned out to be a scam however there may be scammers in this community just like everywhere else.
Its just that when people/businesses involved in bitcoin get hacked some not tech savvy people automatically assume the whole system is flawed.
And also the original value increased by a factor of a couple of thousand.

Fml btc went to 100?

I knew it was going up a few months ago when I was about to buy some at 11 bucks to play on seals.

But I didn't ...

Fmmmmllll

The thing I dont like about bitcoins is how they are produced. What is it, they call it "farming" or something? Where you literally just let your pc run a program all day and poof, you get a bitcoin after some amount of time? Hence you have people building server farms in a garage with enough computational horsepower to map every living organisms DNA, just so that they can farm bitcoins faster?

I really see no problem with that. There exist a finite amount of gold and people mine for it and it has value. There are also finite amount of bitcoins and people mine for that as well and it becomes harder and harder to mine bitcoins. The mining crew, be it human or PC is an investment. I don't see how of all the reasons, that's the reason why you would dislike bitcoins.

Bitcoin panic selling halves its value

http://www.bbc.co.uk/news/technology-22105322

On March 30 2013 21:24 devon06atX wrote: For such a shady idea, I'm surprised this monopoly money is worth so much now. 90X investment, are you fucking kidding me? Wish I was wealthy enough to invest 10k or so back when genji and steal were promoting this crazy-ass idea. .... All that being said, it does still smell a bit rancid to me

As long is there is a 'Greater Fool' . . . .

But the volatility renders it pretty useless as a genuine currency. There is a disincentive to spend Bitcoin when the price is moving as rapidly as it is currently. And if people aren't spending it, it isn't really a currency.

On March 31 2013 12:10 Arirang wrote: I really see no problem with that. There exist a finite amount of gold and people mine for it and it has value. There are also finite amount of bitcoins and people mine for that as well and it becomes harder and harder to mine bitcoins. The mining crew, be it human or PC is an investment. I don't see how of all the reasons, that's the reason why you would dislike bitcoins.

But thats the problem, there isnt a "finite" amount of bitcoins. It's artificially limited. Gold has value because it is rare, and will always be rare. If gold lost its value you couldnt just go digging in your back yard one day and find it. And if you are lucky enough to stumble upon some huge natural gold reserve in the mountains one day, you'll be rich. Bitcoins are only rare because a computer algorithm made them rare, for now, to satisfy demand. It's manipulative, not speculative. Like China fucking with their currency to reduce our own.

http://www.butterflylabs.com/

I honestly don't know what to think of this lol.

On April 11 2013 13:58 NewbSaibot wrote: Show nested quote + On March 31 2013 12:10 Arirang wrote: I really see no problem with that. There exist a finite amount of gold and people mine for it and it has value. There are also finite amount of bitcoins and people mine for that as well and it becomes harder and harder to mine bitcoins. The mining crew, be it human or PC is an investment. I don't see how of all the reasons, that's the reason why you would dislike bitcoins. But thats the problem, there isnt a "finite" amount of bitcoins. It's artificially limited. Gold has value because it is rare, and will always be rare. If gold lost its value you couldnt just go digging in your back yard one day and find it. And if you are lucky enough to stumble upon some huge natural gold reserve in the mountains one day, you'll be rich. Bitcoins are only rare because a computer algorithm made them rare, for now, to satisfy demand. It's manipulative, not speculative. Like China fucking with their currency to reduce our own.

I don't see the difference between "finite amount of bit coins" and what you said "it's artificially limited". Whether it's artificial or not is irrelevant, Bitcoin is still finite - its limit is built into the code and this can never change.

You said, "Gold has value because it is rare, and will always be rare". Rare is a relative term, and something being rare doesn't inherently make it valuable. Gold is rare but it doesn't make it valuable. It's valuable because people have agreed that it's valuable for some reason, there's nothing inherently valuable about rarity in itself. This is also the case with Bitcoin, which isn't infinite in supply, and valuable by agreement.

"Bitcoins are only rare because a computer algorithm made them rare, for now, to satisfy demand. It's manipulative, not speculative." Again, there is no "for now" it's forever. Also, interesting that you use the word manipulation to describe a process of injecting money into the economy out of thin air, as you suggested it was possible to do with Bitcoin, which again isn't possible, since there's no Bitcoin Central Bank. It's interesting because in the U.S there is a central bank and that's called the Federal Reserve, which operates the fiat currency that is the U.S Dollar, and the ability to "create money out of thin air" isn't so much manipulation (although arguably it can be used such) as it is a measure to safeguard against things such as deflation, which you can't do with limited resources like Gold, or Bitcoin. Which is why they suck as currencies. One of the reasons Bitcoin and Gold upped in value is because some people started invested in them out of distrust for the central bank which added money into the economy to poor affect (see debt-ceiling crisis), which you can't do with Gold or Bitcoin.

Just for the record plz, people actually sold these "bitcoins" at these crazy rates ? As in, am I reading this wrong or is it really that crazy ?

Oh, I thought bitcoins were easier to mine in the beginning. So the algorithm has never changed, and it has always taken the same time more or less to farm?

On April 11 2013 18:28 NewbSaibot wrote: Oh, I thought bitcoins were easier to mine in the beginning. So the algorithm has never changed, and it has always taken the same time more or less to farm?

The algorithm has changed and it will change again making mining progressively harder.

As i know there are alot of smart people in here, is it a good investment to put a big or small amount of money in btc wallet and just let it sit there and (hopefully) grow? some people tell me it would be a very good investment, but i dont really trust em in these matters. One of my friends even said it will "100% go up to a huge amount of value in time"

WHAT YOU SAY

THIS IS MANY VALUE YES?

On April 11 2013 18:28 NewbSaibot wrote: Oh, I thought bitcoins were easier to mine in the beginning. So the algorithm has never changed, and it has always taken the same time more or less to farm?

Briefly,
0. Bitcoin has one central log ("block chain" that extends the entire history of bitcoins and every transaction ever made with them
1. Bitcoin mining algorithm becomes more and more difficult every certain milestone of bitcoins successfully mined
2. Bitcoin mining algorithm has a cap at a certain number of coins mined
3. Bitcoin mining algorithm and block chain mining as well as maintenance methodology are SUBJECT TO CHANGE because the code IS continually updated
4. Bitcoin has a KNOWN and VERY serious problem with the methodology employed in maintaining the blockchain after bitcoins can no longer be mined.
5. The problem with the current methodology of the blockchain is that there is almost NO reason for people to maintain the peer-to-peer blockchain after bitcoins can no longer be mined. With the way things are currently set up inside of the Bitcoin Blockchain Code, the central block chain's integrity WILL be compromised and the entire currency corrupted (ie. with the current set up, whoever corrupts the P2P network will be able to print and steal Bitcoins with little further effort)

BitCoins are expected to stop being able to be mined sometime before 2020, and the bitcoin developers are expected to roll out a change (totally unknown change.......) to try and fix this problem which will arise in the future.

On April 11 2013 21:52 inc wrote: As i know there are alot of smart people in here, is it a good investment to put a big or small amount of money in btc wallet and just let it sit there and (hopefully) grow? some people tell me it would be a very good investment, but i dont really trust em in these matters. One of my friends even said it will "100% go up to a huge amount of value in time" WHAT YOU SAY THIS IS MANY VALUE YES?

Read my above post for the risk that is 100% KNOWN in the community of people knowledgeable about BitCoins and realize that there are huge risks of your investment evaporating.

I delivered the same warning when BTC was at $7 per.

Therefore there may or may not be money to be made, fortunes to win or some money to lose.

On April 11 2013 21:52 inc wrote: As i know there are alot of smart people in here, is it a good investment to put a big or small amount of money in btc wallet and just let it sit there and (hopefully) grow? some people tell me it would be a very good investment, but i dont really trust em in these matters. One of my friends even said it will "100% go up to a huge amount of value in time" WHAT YOU SAY THIS IS MANY VALUE YES?

The problem is that in 99% of cases by the time the masses (you) start hearing about how great of an investment opportunity it is, the players who accumulated at cheaper prices are already unloading. So when you buy at escalated prices, you are at risk of having to hold through a painful corrective phase as the price discovery process attempts to locate price levels where the demand is strong enough to absorb the panic selling by everyone who chased on the way up.

If you think the bitcoin is a fundamentally good investment, wait for a period of time where public interest is fading or when everyone hates it because they bought it at 150-200 but now it's back down to 50 (just an example, i'm not making an attempt to predict future price). Then bid for it at price levels where you assess that you have favorable risk/reward and where you expect other "smart money" to step in.