BITCOIN as an alternative to regular currency

[Zenyatta]

I've lived through too many bubbles in just 20 years that I know one when I see one. One of the key factors is the lengths people go to 'prove' its not a bubble. It will only really crack when the last fool enters the ring and the smart fools start to sell.

I don't doubt your wisdom in general, but on this occasion I'm willing to bet against you. My wager is that within 5 years, the price of Bitcoin will have stabilized, exceeding $US 100 000, with Bitcoin widely used as a currency and starting to replace central banks/credit cards/paypal, on a par with Gold, western union and widely used as a store of value. I think it is the revolution that advocates say it is.

http://preev.com/

Looks like the price is crashing at the moment though, down to 650 and falling when I just checked!

Is the bubble popping as Peter thinks, or will it rebound again to new highs as I think? Stay tuned folks!

[Zenyatta]

12 pages in and I still don't get what the amazing thing it offers haha
As far as I understand it cuts out transaction charges?

"The virtual currency is here to stay and can make you money. Here are 3 reasons it's gaining fast":

http://money.msn.com/top-stocks/post--t ... 14-bitcoin

[burdo77]

I'd be interested to see a poll on whether betangel traders think this is a good investment?

[Euler]

I'd be interested to see a poll on whether betangel traders think this is a good investment?

BitCoin isn't an investment its pure speculation. Yes it may rise, but ultimately is has no underlying value, even as a currency. It's out and out pure speculation. See my note on value.

You could replace the word Gold for BitCoin for all the pro arguments, so you may as well buy Gold at least that a recognised interchangeable form of value and has very well defined outer limits in terms of usage and availability.

Even if BitCoin went up 10 fold in the next year it still wouldn't change my opinion on it. People people are speculating on it hoping they will not be the one carrying the can when it all goes wrong. A dangerous game to play.

I'm happy to stay out.

[Euler]

You could always buy some walnuts!

http://in.reuters.com/article/2012/08/2 ... NV20120828

[superfrank]

discussed BTC with my bro last night and we don't agree - he thinks they have the potential for immense "value" (his argument being that the supply is limited and if/when they become integral to global commerce it adds value). if you compare BTC with FIAT currency then i can see his point (both are backed by nothing and any "value" is based on confidence in the associated system).

the problem i have with it is that their could potentially be thousands of virtual currencies (JP Morgan are already planning their own ) and so the limited supply argument is more difficult to make.

i'm a fan of BTC from a libertarian pov (the way FIAT currency is loaned/printed into existence benefits only private banks and rich people), but, and call me old-fashioned, i'm sticking to gold and silver as my main protection against the coming hyperinflationary apocalypse!

[steven1976]

When they say supply is limited I understand there will be 21 million coins. How small can each coin be split down into? That statement Zen posted a link for the other day suggested he had a very small amount of one coin so I'm wondering how small of a share can people earn?

[Zenyatta]

When they say supply is limited I understand there will be 21 million coins. How small can each coin be split down into? That statement Zen posted a link for the other day suggested he had a very small amount of one coin so I'm wondering how small of a share can people earn?

The smallest unit is the 'Satoshi',

1 BTC = 100,000,000 Satoshis
http://bitcoin.stackexchange.com/questi ... -a-satoshi

[steven1976]

Thanks Zenyetta,
I notice on that link it says that in the future there may be further subdivisions if needed. So are they finite or not is questionable?

[Euler]

Less than $500 this morning.

[kelpie]

Yes, if someone invested in bitcoins in early Dec 2013 at USD1200 they'll be spluttering in their coffee this morning, at USD500 and falling

Although... I see bitcoin halfed in value in April 2013. Dropped from USD200 to USD100 in a few weeks. It took six months to recover the starting price on that one.

[Euler]

As a trader, the volume figures on that graph make for interesting reading.

[superfrank]

People's Bank of China trying to kill off BTC in China causing the latest falls... http://www.marketwatch.com/story/bitcoi ... 2013-12-18

China's central bank reportedly met with more than 10 of the country's largest third-party payment processing companies and demanded they stop all digital currency transaction, the New York Times reported.

they don't much care for things they can't control.

[Tobedotty]

I've been collecting massive amounts of bitcoin exchange data recently (gigabyte scale). When I get around to sifting through it and ordering it in a useful way I'll share some interesting tidbits.

[steven1976]

I thought the whole point of bitcoins was governments had no control?