Cryptocurrencies (Bitcoin, Ethereum, Ripple, etc)

[Fixed to Ruin]

It's more in the "Greater Fool Theory" but Ponzi scheme is easier to understand for everyone and they are similar except Bitcoins offers no promises of returns on investments therefore it isn't a Ponzi scheme in its true definition.

Most people aren't buying Bitcoin to buy stuff. They are buying it as a speculative investment to protect themselves from government monetary policies and inflation.

Think of it in practical terms as they sit right now. If i want to buy a chair on overstock.com (a website that accepts payment in bitcoin) I have to convert my dollars into Bitcoin. Then go buy the chair using Bitcoin. I could just as easily buy a chair with dollars on the same website. What's the point of that? I'll take it one step further. What happens if you bought a chair on overstock.com with Bitcoin. I would be almost 100% certain that overstock.com would then immediately trade in their Bitcoins they acquired in the transaction for dollars. Again whats the point?

So in the end I don't see the point in it in practical terms. If you think that one day you will be paid in Bitcoin you are sorely mistaken. IMO, when the government figures out how to deal with cryptocurrencies it will be very detrimental to its value.

Again, just because you can buy stuff with Bitcoins doesn't give it value. Same thing with dollars. The only difference between a Bitcoin and a dollar is that one is legal tender and the other isn't.

 

[Led Zappa]

Well normal government controlled currencies do this too but I know what you mean

I just read an article in the Washington Post I think that made some good points as to why a global electronic currency will have some advantages over current government controlled currencies.

One was that transferring money to people in other countries can take minutes with Bitcoin whereas it can take days with an normal currency transfer.

It just seems inevitable to me.

 

[Led Zappa]

This isn't the end all be all argument for a "bitcoin", but here is the article:

It was a Tweet from WP journalist, but not a WP article.

Ezra Klein ‏@ezraklein 11h

This is the best argument for Bitcoin I’ve read: http://timothyblee.com/2014/03/01/heres-why-bitcoin-the-network-needs-bitcoin-the-currency/ …

 

[leova]

One was that transferring money to people in other countries can take minutes with Bitcoin whereas it can take days with an normal currency transfer.

Well, time to setup a business in Nigeria...

 

[member 51464]

I just read an article in the Washington Post I think that made some good points as to why a global electronic currency will have some advantages over current government controlled currencies.

One was that transferring money to people in other countries can take minutes with Bitcoin whereas it can take days with an normal currency transfer.

It just seems inevitable to me.

I am confused by that. I've wired money internationally before. I've been on the sending and receiving end. It was never days.

 

[Fixed to Ruin]

I am confused by that. I've wired money internationally before. I've been on the sending and receiving end. It was never days.

The advantage of Bitcoin in this regard is that the fees to transfer money are much more expensive through traditional means than Bitcoin.

 

[Led Zappa]

I am confused by that. I've wired money internationally before. I've been on the sending and receiving end. It was never days.

What countries? I believe an African country was used as an example in one thing I read.

 

[member 51464]

The advantage of Bitcoin in this regard is that the fees to transfer money are much more expensive through traditional means than Bitcoin.

Ah, I see. But I imagine if bitcoin, or something like it, caught on, then transfer spots would just create a fee at the point of receiving?

What countries? I believe an African country was used as an example in one thing I read.

Hong Kong and Spain. Never Africa. Fair enough.

 

[Benny Lava]

Ah, I see. But I imagine if bitcoin, or something like it, caught on, then transfer spots would just create a fee at the point of receiving?

What do you mean by transfer spots?

 

[member 51464]

What do you mean by transfer spots?

I don't know. I think I don't have a good grasp on how bitcoin actually works I was imagining going to a Western Union type place to get your bits.

 

[Benny Lava]

I don't know. I think I don't have a good grasp on how bitcoin actually works I was imagining going to a Western Union type place to get your bits.

Yeah, there's no third party involved unless you're trading btc for another form of currency. One of the main benefits of things like btc is the fact that you don't need to deal with a bank or Western Union type service to send money to someone. You just send however many coins to their address and it's processed/confirmed/recorded by the people "mining" the coin.

 

[member 51464]

Yeah, there's no third party involved unless you're trading btc for another form of currency. One of the main benefits of things like btc is the fact that you don't need to deal with a bank or Western Union type service to send money to someone. You just send however many coins to their address and it's processed/confirmed/recorded by the people "mining" the coin.

What if the people "mining" decide to charge a fee? Or is that not a thing that can happen?

 

[Benny Lava]

What if the people "mining" decide to charge a fee? Or is that not a thing that can happen?

This post sorta mentions it

I realized BC was junk back when it first came out, when people were "mining for Bitcoins" - apparently you could, like, CREATE Bitcoins on your own PC by having your PC run constantly doing weird junk(like the SETI@Home thing)

If you can CREATE currency on a freaking Dell PC, it ain't a real currency.
I can't wait till all these idiots go broke with this crap... oh wait!

But basically the miners get paid a set amount of btc (these are brand new coins being created, not ones already in circulation) for recording transactions on the public ledger, plus any transaction fees (which aren't required but give a transaction priority over transaction that pay less or no fees, these coins are already in circulation).

 

[member 51464]

Hmm, interesting. Thanks for trying to explain it. I suppose I will just take a wait and see approach

 

[beowulf]

Another blow.

http://www.cbc.ca/news/technology/bitcoin-exchange-first-meta-ceo-autumn-radtke-found-dead-1.2562077

The CEO of a virtual currency exchange was found dead near her home in Singapore.

A police spokesman said Thursday that initial investigations indicated there was no suspicion of "foul play" in the Feb. 26 death, meaning officers do not suspect murder.

The spokesman said police found 28-year-old Autumn Radtke, an American, lying motionless near the apartment tower where she lived.

Police have so far classified the death as "unnatural," which can mean an accident, misadventure, or suicide.

 

[Lost Horizons]

Man called Bitcoin's father denies ties, leads LA car chase

 

[FLYLine27*]

Invest in Ether if you wanna make some real money!!!

Going to overtake Bitcoin eventually. Bought in at a couple thousand when it was at $12. Kicking myself that I didn't put a TON more in. At $52 now...and it's just the start.

 

[Fixed to Ruin]

Invest in Ether if you wanna make some real money!!!

Going to overtake Bitcoin eventually. Bought in at a couple thousand when it was at $12. Kicking myself that I didn't put a TON more in. At $52 now...and it's just the start.

What makes Ether so special anyways? Seriously, i'm curious.

 

[FLYLine27*]

What makes Ether so special anyways? Seriously, i'm curious.

Heres a quick article on it that explains it a bit.

http://www.huffingtonpost.com/ameer-rosic-/ethereum-vs-bitcoin-whats_b_13735404.html

 

[Carolinas Identity*]

I have two, but have not used them for anything as yet

Been thinking of getting more tho

 

[chicagoskycam]

Saw that 1 bitcoin passed an ounce of gold for a little while. I have some questions about this,

Is there now a finite amount of bitcoin and how do they track it, does each have an unique serial number.

I know there are some bitcoin banks and some in the past were shady. Who is regulating it..

With 1 bitcoin so high, how could you spend portions of it. Let' say I wanted to buy something in $100 worth of bitcoin.

 

[Kestrel]

I'd love to take advantage of cryptocurrency to make some money... but unfortunately, I don't know much about it - I'm sure I'd just lose my shirt

 

[Carolinas Identity*]

maybe it is time that i exchange my grey hat for a black one

i kid i kid

or do i?

 

[Do Make Say Think]

Saw that 1 bitcoin passed an ounce of gold for a little while. I have some questions about this,

Is there now a finite amount of bitcoin and how do they track it, does each have an unique serial number.

I know there are some bitcoin banks and some in the past were shady. Who is regulating it..

With 1 bitcoin so high, how could you spend portions of it. Let' say I wanted to buy something in $100 worth of bitcoin.

Odds are decent you'll get a better answer on the political board honestly.

 

[Fixed to Ruin]

Saw that 1 bitcoin passed an ounce of gold for a little while. I have some questions about this,

Is there now a finite amount of bitcoin and how do they track it, does each have an unique serial number.

Yes and No.

I know there are some bitcoin banks and some in the past were shady. Who is regulating it..

No, the whole point of bitcoin is its decentralized nature.

With 1 bitcoin so high, how could you spend portions of it. Let' say I wanted to buy something in $100 worth of bitcoin.

Yes. You can spend a decimal amount of bitcoin. The current system allows for 8 decimal places or 0.00000001.

Answers in bold. It should also be noted that now you can do this with gold now. Combining gold, the block chain technology and the existing payment system you can spend gold for any transaction.