Cryptocurrencies (Bitcoin, Ethereum, Ripple, etc)

[beowulf]

Do you partake? This started as an underground economy on the net, often used for more illicit purchases that has grown way beyond that now.

http://www.cbc.ca/news/technology/story/2013/04/11/technology-bitcoin-virtual-currency.html

It's transactions like these — up to 70,000 of them each day over the past month — that have propelled bitcoins from the world of internet oddities to the cusp of mainstream use, a remarkable breakthrough for a currency which made its online debut only four years ago.

When they first began pinging across the Internet, bitcoins could buy you almost nothing. Now, there's almost nothing bitcoins can't buy. From hard drugs to hard currency, songs to survival gear, cars to consumer goods, retailers are rushing to welcome the virtual currency whose unofficial symbol is a dollar-like, double-barred B.

Advocates describe Bitcoin as the foundation stone of a Utopian economy: no borders, no change fees, no closing hours, and no one to tell you what you can and can't do with your money.

Click to read more...

 

[MayDay]

Do you partake? This started as an underground economy on the net, often used for more illicit purchases that has grown way beyond that now.

http://www.cbc.ca/news/technology/story/2013/04/11/technology-bitcoin-virtual-currency.html

Not sure about this one, but whenever I hear about "alternative currencies" people created, I tend to suspect they are either a money-laundering scheme or an attempt at tax evasion.

Maybe I'm just a cynic.

 

[John Price]

nope

 

[Krishna]

Not sure about this one, but whenever I hear about "alternative currencies" people created, I tend to suspect they are either a money-laundering scheme or an attempt at tax evasion.

Maybe I'm just a cynic.

We just had this discussion in the lounge

Basically what the largest percentage of bitcoin transactions are for, is purchases on the Silk Road.

Silk Road is an online black market operated as a Tor hidden service, such that online anonymity is granted to users.

Most the the items on there are drugs and other illegal things.

It's all a stupid fad that's currently going on. There's a finite limit of bitcoins, and once they are all out in the market, the price will just rise.

The worst thing about them is definitely the market fluctuations since they aren't tied to anything. Yesterday within the matter of a few hours, they went from 240 ish dollars per coin to 130 per coin and then back up to 260 a coin. Because of the huge fluctuations, it's going to be really hard for a company to allow transactions with bitcoins unless they have a converter tied to the market in real time since if I wanted to buy a high price item, I could just wait until the market crashes again.

Wouldn't see surprised to see bitcoins gone and a new system trying to taking over in a year or two

 

[beowulf]

We just had this discussion in the lounge

Basically what the largest percentage of bitcoin transactions are for, is purchases on the Silk Road.



Most the the items on there are drugs and other illegal things.

It's all a stupid fad that's currently going on. There's a finite limit of bitcoins, and once they are all out in the market, the price will just rise.

The worst thing about them is definitely the market fluctuations since they aren't tied to anything. Yesterday within the matter of a few hours, they went from 240 ish dollars per coin to 130 per coin and then back up to 260 a coin. Because of the huge fluctuations, it's going to be really hard for a company to allow transactions with bitcoins unless they have a converter tied to the market in real time since if I wanted to buy a high price item, I could just wait until the market crashes again.

Wouldn't see surprised to see bitcoins gone and a new system trying to taking over in a year or two

There are companies like bitpal that take care of the converting. But yet indeed it is a very up and down "currency".

 

[Krishna]

There are companies like bitpal that take care of the converting. But yet indeed it is a very up and down "currency".

Yes, it's just like paypal, but still the fact that the ever fluctuating value of the bitcoins makes it pretty hard for companies to set their prices if it's not tied to something like the USD or the Euro.

Also, as much as people don't want to admit it, the bitcoin is beginning to get centralized since MtGox is basically the exchange setting the price and every other site is reflecting their prices in the exchanges. If one party is setting the prices of the bitcoins, then it's being centralized.

 

[karnige]

its not going anywhere and I suspect will be a normal thing in 10 years

 

[EvilCoop]

If it collapses enough, I might partake, the drug dealers aren't just gonna give up on it and so I think the demand will rebound for it somewhat.[/AMORALDBRM]

However, the concept of rebelling against the central banks with it is stupid. The Fed doesn't devalue its currency by 65% in a matter of hours.

 

[Oilslick941611]

its not going anywhere and I suspect will be a normal thing in 10 years

there's a finite amount of it, there is a fixed amount of coins, it will never catch on fully.

 

[Knave]

Didn't it just double in value over a week and then in a day it gave up all those gains?

It's an interesting idea but it's not something I'd ever consider doing on a personal level.

 

[Krishna]

Didn't it just double in value over a week and then in a day it gave up all those gains?

It's an interesting idea but it's not something I'd ever consider doing on a personal level.

Here's the market prices

http://bitcoinity.org/markets

You can flip through the markets and time periods.

MTGox's prices are wrong because they've closed the market to try and prevent a crash and stop a DDOS attack

So they've gone from 200+ yesterday to 75 ish today. Why would anyone think it's a good idea to put money into it?

 

[beowulf]

Here's the market prices

http://bitcoinity.org/markets

You can flip through the markets and time periods.

MTGox's prices are wrong because they've closed the market to try and prevent a crash and stop a DDOS attack

So they've gone from 200+ yesterday to 75 ish today. Why would anyone think it's a good idea to put money into it?

Like I said in the lounge some people like to have part of their "portfolio" in investments that have more risk which of course have more reward. You're taking one hell of a chance but it could work in your favor if you play it right. I mean why does anyone short stocks? Buy penny stocks? All about the potential reward.

 

[Slot 3]

Had a very minute amount of Bitcoins. Thank goodness I cashed out before this fiasco.

 

[member 51464]

The key is to invest and hold on long-term. Only fools buy high and sell low.

 

[EvilCoop]

The key is to invest and hold on long-term. Only fools buy high and sell low.

Why wouldn't you sell if you made 20x your initial investment?

 

[kurt]

I don't understand what gives them actual value of any kind whatsoever? Are they kind of like beanie babies?

 

[Kestrel]

I don't understand what gives them actual value of any kind whatsoever? Are they kind of like beanie babies?

I think that's the point a few people have made about them not being backed by anything. If everyone suddenly loses interest, they have no value or anything supporting that value, completely crashing the currency.

 

[beowulf]

The key is to invest and hold on long-term. Only fools buy high and sell low.

For the most part yes, but having some risk in ones portfolio is not a bad thing.

 

[member 51464]

Why wouldn't you sell if you made 20x your initial investment?

You would. I was responding to those making it seem like they'd lose a ton since the value dropped substantially. I just meant one should not panic and sell at the first sign of trouble necessarily.

For the most part yes, but having some risk in ones portfolio is not a bad thing.

Agreed.

 

[Dado]

I don't understand what gives them actual value of any kind whatsoever? Are they kind of like beanie babies?

They're worse than beanie babies. No intrinsic value whatsoever, the entire scheme is a scam.

 

[beowulf]

They're worse than beanie babies. No intrinsic value whatsoever, the entire scheme is a scam.

Seems to be going more in that direction but originally it wasn't. As mentioned by Krishna these basically came about as a way to make illicit trades for drugs and weapons on the "hidden web" that would not leave a financial trail like a particular counties real currency.

 

[MilanKraft*]

You know you guys could have bought it for 5 cents a few years ago.

So going from $200 to $100 or whatever is really meaningless in the big picture.

I'm skeptical about it myself, you can't trust anything.

 

[LSnow]

You know you guys could have bought it for 5 cents a few years ago.

So going from $200 to $100 or whatever is really meaningless in the big picture.

I'm skeptical about it myself, you can't trust anything.

If you invested a couple thousand in bit coin couple of years ago you would be millionaire.

its not that meaningless.

 

[beowulf]

Interesting if funny comparison.

http://www.cbc.ca/news/business/story/2013/04/12/business-pittis-bitcoin-gold.html

 

[Phion Keneuf]

My buddy told me about this when it was in the low double digits.

I feel like a ****ing idiot.