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Firetaz419
12-21-2013, 07:00 PM
So i was skimming around on the net... found this, has anyone heard anything about this? Tried this? Thoughts and opinions?

http://www.coindesk.com/information/what-is-bitcoin/

Kosher
12-21-2013, 11:35 PM
Virtual currency. Invest at your peril. Wild price swings.

Kosher
12-22-2013, 05:30 AM
http://dealbook.nytimes.com/2013/12/21/into-the-bitcoin-mines/?hp&_r=0

Gas Man
12-22-2013, 11:11 AM
WTF is it? I read a bunch but it just isn't making sense.

Kosher
12-22-2013, 12:34 PM
Its virtual currency. Its like the dollar, but not backed by any sovereign nation. Today you do most of your banking electronically - in dollars. But you rarely see cash - its all electronic. The company you work for puts electronic dollars in your bank account, you buy stuff on your credit card or paypal, or electronic payment and the money gets sent - electronically - to the various places you spend it. No cash changes hands is all just numbers on a web page!

Bitcoin is just another currency - virtual currency. Think of it like foreign currency - there's an exchange rate. So, X many Canadian dollars gets you X many American dollars. And that exchange rate fluctuates. Not very much, because both countries are very stable, but it does fluctuate. One big difference between the dollar and Bitcoin is that the Dollar is backed by the US Government, which, much as some may not think so, is a very very trustworthy institution, especially financially. We are the worlds 'reserve' currency. But Bitcoin has no sovereign backer.

Most business do not take Bitcoin to transact business because (among many reasons) of the extreme volatility of the value of Bitcoin, but more and more are accepting it. (http://finance.yahoo.com/news/online-retailer-overstock-com-plans-accept-bitcoin-payments-183244697.html;_ylt=A2KLOzKBJLdSXj0AwuiTmYlQ) Would you accept Bitcoin in your business if you knew that the value of Bitcoin could drop by 50% in a day? Doubtful. But fluctuations like that are not uncommon with Bitcoin.

Countries are very nervous about this for several reasons - you cant really regulate it, tons of speculation, and ultimately competition with sovereign currencies. Thats why you saw the value of Bitcoin (and I do believe that Bitcoin is the the plural of Bitcoin, so no 's' on the end) plummet when China does things like this (http://www.bloomberg.com/news/2013-12-05/china-s-pboc-bans-financial-companies-from-bitcoin-transactions.html) (and nobody should be surprised).

But right now its mostly just a digital commodity, not useful for doing much but trading on electronic exchanges for it. Do you remember the Alpaca fad? People used to breed them and sell them - to other breeders, there really wasnt a market for them outside of other breeeders because not many people were eating Alpaca meat, or knitting Alpaca sweaters (end products).

Now, since Bitcoin is not a hard currency (paper or coins), they have to be "printed" some how, and the article I pointed to discusses how its done.

Helpful?

Also see http://en.wikipedia.org/wiki/Bitcoin

Gas Man
12-22-2013, 03:31 PM
I guess, I just don't see the point. Why not just turn all your cash into gold, then sell it back to another currency to use electronic... It just seems un-needed.

Kosher
12-22-2013, 04:00 PM
I guess, I just don't see the point. Why not just turn all your cash into gold, then sell it back to another currency to use electronic... It just seems un-needed.

Because that's expensive, incurs trading costs, introduce a LOT of time delay, and is not 100% transparent. And by adding a second commodity, you also introduce an additional price fluxuation factor. You also introduce intermediaries, and avoiding those is a large part of the reason for Bitcoin

Its literally as if you had said "who needs MP3s when I have 8 track tapes."

RedneckMedic
12-22-2013, 04:42 PM
Bitcoins are used a lot with illegal on line trade. There was one online drug distributor that used Bitcoins for trade purposes. They got shut down last year but can remember the name of the company

Kosher
12-22-2013, 05:01 PM
Bitcoins are used a lot with illegal on line trade. There was one online drug distributor that used Bitcoins for trade purposes. They got shut down last year but can remember the name of the company

Well sure, credit cards and cash are never used in crimes. :)

Firetaz419
12-22-2013, 06:53 PM
also at this point there is no way to track how much Bitcoin you have... your name and your identity is not tied to it so because of this its not taxable... i do believe there is 32 cities in the US that accept Bitcoin over cash or credit. Ive even seen CL ads selling motorcycles for Bitcoin. it seems to kind of be like stocks... people have gained hundreds if not thousands.. but have also lost too.

Gas Man
12-23-2013, 09:09 AM
I have no interest in it... guess I'm not risky enough of a person. Probably also why I don't like gambling.

Mudpuppy
12-23-2013, 11:44 AM
Stay the fuck away from bitcoin. It is bad. Just like the brown acid at woodstock.

Seriously it is a currency made out of nothing - even worse than paper currency which is complete bullshit.

But to top it off China has rejected bitcoin and in case you are fucking clueless China owns the world economy so bitcoin is doomed. It was a novel idea for some crackdealers to make a few bitcoins and launder money but now the Feds are cracking down and it is a dead currency. It was the currency of pirates but even the pirates are bailing.

But if you are like Gasman and don't listen to a fucking word I say then you can get some free ones here:

http://www.gogivecoin.com/

Firetaz419
12-23-2013, 07:13 PM
Stay the fuck away from bitcoin. It is bad. Just like the brown acid at woodstock.

Seriously it is a currency made out of nothing - even worse than paper currency which is complete bullshit.

But to top it off China has rejected bitcoin and in case you are fucking clueless China owns the world economy so bitcoin is doomed. It was a novel idea for some crackdealers to make a few bitcoins and launder money but now the Feds are cracking down and it is a dead currency. It was the currency of pirates but even the pirates are bailing.

But if you are like Gasman and don't listen to a fucking word I say then you can get some free ones here:

http://www.gogivecoin.com/

ya i hear ya i was just trying to get opinions on this.. and im kinda of thinking about doing it, if i can get enough free ones there is a nice superbike on CL for sale for 6500 Bitcoin haha

Mudpuppy
01-02-2014, 01:49 PM
The day china announced they would block it the value of the bitcoin was cut in half.