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| 1 Bitcoin @ $100 |
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Vanneto
Member #8,643
May 2007
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$233 It seems many people became millionaires thanks to Bitcoin. Now I'm sad I didn't mine in the early days. In capitalist America bank robs you. |
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type568
Member #8,381
March 2007
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$250 Arthur Kalliokoski said: Suppose they go down to $10 tomorrow? Or if somebody finds a way to "counterfeit" them? Or even if the latest trojan takes over enough computers to cause inflation? You must be talking about the very short term. You do not have to keep it in order to use it. The chances of it falling while you are performing you transaction are miserable, besides you ain't losing more than your transaction is worth. Matthew Leverton said: If these things [products.butterflylabs.com] are so great and bitcoins are here to stay, why doesn't the company keep them for themselves and mine all the bitcoins at a massive profit? Because it would hurt Bitcoins credibility, and then both Bitcoins AND the machines are going to become worthless. And in the long run the status quo will be supported by multiple companies producing these SLICS. Karadoc ~~ said: Another thing is that bitcoin is a deflationary currency. As the bitcoin economy grows, the purchasing power of each bitcoin increases. The people holding the most bitcoins are the ones who gain the most wealth when the bitcoin economy grows. ie. the rich get richer without even having to do anything. It's more or less self controlling. It's not a replacement for govt controlled $(not for now at least), but should it's deflation hurt it's price, it's price growth would slowdown pushing down the deflation as well.
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Arthur Kalliokoski
Second in Command
February 2005
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type568 said: The chances of it falling while you are performing you transaction are miserable How about the chances of it falling while you sleep? Unless you have some sort of web scraper that blasts an alarm out of your speakers if it falls below some threshold. Quote: it would hurt Bitcoins credibility, and then both Bitcoins AND the machines are going to become worthless. So people do have to trust bitcoins. They all watch too much MSNBC... they get ideas. |
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type568
Member #8,381
March 2007
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Arthur Kalliokoski said: How about the chances of it falling while you sleep? Unless you have some sort of web scraper that blasts an alarm out of your speakers if it falls below some threshold. No. You hold $ or RUB or EUR or whatever on your account on some exchange. Then the moment you decide to pay using bitcoins, u buy the exact sum you need for the transaction, make it and forget about it. And there are maaaany people on earth, for whom it already is easier than make a Paypal, trust me. (I'd be among them until some three years ago, eventually). Append: Quote: So people do have to trust bitcoins. People have to trust their medium if exchange if they are keeping it. If you store bitcoins, you should truth them and have some others who do. If you use them as in above example, you don't give a damn.
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Thomas Fjellstrom
Member #476
June 2000
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The exchanges also support some semi advanced trading features like limit trades. You can setup automatic trades to trade at certain levels. I had also written an automated trading bot. It's not good enough for me to give it several hundred dollars though. But long term I think it comes out ahead, depending on market reactions to things. Back when I wrote it, it did worse than I expected due to how insane the market was. I think it may be a bit saner now. might be time to experiment with it again. maybe. -- |
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type568
Member #8,381
March 2007
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Yeah it could be a nice speculation' investment exchange as well. But so far I prefer the idea of selling the Yen rather than buying bitcoins which MAY just collapse for some reason.
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Oscar Giner
Member #2,207
April 2002
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Matthew Leverton said: Because if you sell, then you decrease your ability to mine since everybody is chasing the same limited pot. That would be true if they were the only company doing that kind of hardware, but they're not alone, so if they don't sell those, people will just buy from any other company doing them. Also, bitcoins is a risky investment, I don't think any sane company puts all his money into a risky investment, so it's quite normal they do themselves some bitcoin mining, and at the same time sell the hardware for steady and low risk income. At 50 GH/s, you currently mine (at current difficulty and exchange rate) ~ $800/day [1], so you get your investment back in just a few days. What I can see is bitcoin price droping, at least a bit maybe not much, when people start mining with these, since these "professional" miners usually sell most/all their mined bitcoins ASAP. -- |
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Jonatan Hedborg
Member #4,886
July 2004
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Oscar Giner said: What I can see is bitcoin price droping, at least a bit maybe not much, when people start mining with these, since these "professional" miners usually sell most/all their mined bitcoins ASAP. You can speculate on that of course, but what is certain is that if a lot of people will start using high-performance miners, the current difficulty will quickly increase, giving you a lot less money/time. I would guess that after a month or two after they start shipping, it'll be very hard to make up the hardware cost. EDIT: The difficulty has already increased by 250% since january, and is estimated to incrase by another 18% by the next recalculation. IF that is a reliable trend, the bit-coin generating power of your hardware will decrease by 18% every 12 days.
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bamccaig
Member #7,536
July 2006
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All I know is until you can turn it into goods or services it's nothing more than a dream. -- acc.js | al4anim - Allegro 4 Animation library | Allegro 5 VS/NuGet Guide | Allegro.cc Mockup | Allegro.cc <code> Tag | Allegro 4 Timer Example (w/ Semaphores) | Allegro 5 "Winpkg" (MSVC readme) | Bambot | Blog | C++ STL Container Flowchart | Castopulence Software | Check Return Values | Derail? | Is This A Discussion? Flow Chart | Filesystem Hierarchy Standard | Clean Code Talks - Global State and Singletons | How To Use Header Files | GNU/Linux (Debian, Fedora, Gentoo) | rot (rot13, rot47, rotN) | Streaming |
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Thomas Fjellstrom
Member #476
June 2000
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Sure. I sold my BTCs for $1100 a while back. Had I waited, I could have $13440. Some places actually take BTC. So its slowly becoming valid. The question is how long will that be the case. -- |
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Oscar Giner
Member #2,207
April 2002
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There are several exchange sites. It's pretty easy to sell your bitcoins for & or € or other currencies. How do you think the value of Bitcoins is established otherwise? -- |
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type568
Member #8,381
March 2007
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Well here we go.. Bitcoin back down to 200. -20% on day
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Matthew Leverton
Supreme Loser
January 1999
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Bitcoin, as used today, is more like stock than currency. |
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Arthur Kalliokoski
Second in Command
February 2005
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They all watch too much MSNBC... they get ideas. |
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gnolam
Member #2,030
March 2002
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http://bitcoin.clarkmoody.com/ *popcorn* -- |
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Thomas Fjellstrom
Member #476
June 2000
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Yeah, figured this would happen. Also mtgox seems to be broken. Can't make orders -- |
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Vanneto
Member #8,643
May 2007
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You guys see this as bad? Soon it will be time to buy big, then sell when it hits its new high (~$300 probably) and become a millionaire. In capitalist America bank robs you. |
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Thomas Fjellstrom
Member #476
June 2000
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LAWL. And it may take a few years to get back up to the levels it hit today. If people don't get bored with it before then. -- |
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Matthew Leverton
Supreme Loser
January 1999
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Who's buying when it's that high? Is it people taking advantage of online retailers who exchange products for bitcoin based on realtime market value? |
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Thomas Fjellstrom
Member #476
June 2000
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No idea. I imagine traders and stupid people that think stocks and investments can never go down when they are going up in leaps and bounds. -- |
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Oscar Giner
Member #2,207
April 2002
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If anyone wants to buy probably now it's the moment, it has stabilised and starts to go up, it seems. I'm not surprised by this, it's not the first time by far that these kind of downs and ups happen. I wouldn't be surprised if tomorrow it's back to $250. Too bad I got late to the party -- |
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Karadoc ~~
Member #2,749
September 2002
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Matthew Leverton said: Bitcoin, as used today, is more like stock than currency. Absolutely. I'd be interested to know what proportion of bitcoins are bought to be actually used as opposed to bought based on price speculation. My guess is 'very few'; and I'd guess that the total $ cost of all good & service that can currently be bought with bitcoins is a lot less than the total $ cost of all bitcoins. It seems to me that the main big driving reason for buying bitcoins at the moment is to be one of the 'wealthy people' I was talking about earlier who can realise big profits just by holding lots of bitcoins and letting someone else actually grow the economy. And of course, it is easier for people with lots of $ to buy/mine lots of BTC. If the bitcoin economy doesn't grow, then the price may actually drop - but again, the people with lots of money are the ones who have the power to actually make the bitcoin economy grow. Money is power in this game. (and it's not really a game I want to play) ----------- |
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type568
Member #8,381
March 2007
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Thomas Fjellstrom said: No idea. I imagine traders and stupid people that think stocks and investments can never go down when they are going up in leaps and bounds. Wrong, traders aren't the stupid ones here. The "folk" that "gets in" late is stupid, as always. Oscar Giner said: If anyone wants to buy probably now it's the moment, it has stabilised and starts to go up, it seems.
Yep.. But it's still too high for me. And I do realize it may never get to the value that isn't going to be "too high" for me.
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Karadoc ~~
Member #2,749
September 2002
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Is what way is litecoin technically superior? I know very little about it, but from what I've heard it's basically the same thing but with a different hash algorithm. ----------- |
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type568
Member #8,381
March 2007
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Indeed, the actual hash algorithm makes it kind of superior. First, it is programmed to work faster, and I doubt it's possible to easily adjust for bitcoin. (block every 2.5 min vs 10) But most importantly, is the complexity of the algorithm. Due to litecoin's algorithm complexity, GPUs give a lot smaller advantage over CPUs in mining, relatively to bitcoin. (mining litecoin with cpu is still effective, even relatively to GPU). So, essentially any user can be mining it and thus at least covering his transaction fees(in the very long run). Furthermore, wider network redistribution is just likely to support more users. Few are willing to pay 2.5k USD for a SLIC miner, and very soon it's going to be the only way to mine bitcoin.
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Acquiring Bitcoins is only half of the battle. Liquidating them is the part that matters. Has anybody here successfully made a real profit from it (meaning, turning BTC into either "real" world currency or products/services)?
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