Bitcoin

[Kentactic]

Have any of you used bitcoin? I read it just dropped 80% so perhaps one could buy bitcoin and hope the market rises again and then cash out? Im not 100% on how Bitcoin works so perhaps I sound like an idiot. One thing is for sure, it would be a risky investment. But like my favorite poker saying goes, "scared money dont make money".

[Kentactic]

Update: It was at $102 per bitcoin... its now up at $714.49 per bitcoin according to the buy/sell price on their website. This all happened in one day.... shoulda bought this morning.... if I bought 1 bitcoin this morning and sold right now I would make $600 by clicking a few things on my phone.... if I understand this correctly (which I very likely dont) this might be something to look into...

The crash today was supposedly caused by a selling of 6000 bitcoins or 3.6 million dollars (approx. for the what they were worth at the time of sale). Surprisingly thats really not that big of a transfer for Bitcoins.

[Grudgie]

Really? The chart I am looking at doesn't show that it went to $100. Here's the chart at the website I follow:

http://www.xe.com/currencycharts/?from=XBT&to=USD&view=1M

This drop in price could be due to the fed auctioning off 29,665 bit coins they seized from a silk road bust. A massive selloff like that will drive prices down. Take a look at the two year chart from that link and you will see Bitcoin shows some classic signs of a bubble.

Stages of a bubble:


I'd say to keep a careful watch on Bitcoin if you missed out on the first ride up. Bitcoin will really come into its own in the future when it is more widely accepted. I'm talking once Ebay and Amazon accept bitcoins as a means of payment we could see well over $2000 per bitcoin. And don't beat yourself up Kentactic. I don't think it is that quick to buy and sell Bitcoins yet. The easiest way to get Bitcoins is to go through a website like Coinbase and even then it takes about a week for you to get your coins.

[crudos]

What is a legitimate site to buy a bitcoin?

[APX808]

Bitcoin 101 - How To Buy/Get Your First Bitcoins

Buy bitcoins using cash that way you'll be anonymous, you can't really buy Bitcoins using a creditcard or paypal, and even if you could, I recommend you to don't do it.

[Well-Prepared Witch]

I personally stay the heck away from Bitcoins. They're a neat idea, I'll grant you.  A currency not tied to any government, almost underground, harder to track, etc.  I think, though, that they're a fad.  I think they're much like Esperanto - the language that was supposed to tie all nations together, let everyone understand each other.  It was a fad that got hot and then fizzled out and now maybe a couple thousand people over the world speak it.  I see Bitcoin in the same way - oh, what a neat idea, but it'll never work.  If it does get popular, you know governments are going to step in one way or another.  Plus, someone's got to run it, and how are we to trust them any more than we'd trust a government's fiat currency?  My $0.02.  I'm not an investment advisor.

[Kentactic]

Well according to Coinbase they take about 1 hour to do a transfer right now. Unless you buy an amount that they must go into storage for the Bitcoins. Then its up to 48 hours. Im really just interested in buying a coin or two to try and turn a couple bucks here and there. Immediately selling back into USD once the price rises.

[Kentactic]

Im just trying to understand that my Idea actually works first... I give little money... you give me bitcoins... I wait and sell for huge profit... hopefully.... then you give me lots more USD then I gave you.... winner winner chicken dinner...

If that works im jumping on the next dump...

[Grudgie]

Well according to Coinbase they take about 1 hour to do a transfer right now. Unless you buy an amount that they must go into storage for the Bitcoins. Then its up to 48 hours. Im really just interested in buying a coin or two to try and turn a couple bucks here and there. Immediately selling back into USD once the price rises.

Thanks for the intel. I didn't know. I'm in the same shoes as you watching bitcoin right now.

[special-k]

I heard that Bitcoin has just experienced a significant hack attack.  I'd stay away from it... at least until the dust settles.

http://www.ibtimes.com/bitcoin-exchanges-facing-massive-concerted-attack-hackers-bitstamp-suspends-withdrawals-1554749

[Kentactic]

100 Bitcoins says those are government funded hacker's.

[Grudgie]

I wouldn't count on it. Why would the state need to discretely undermine a digital currency? They could just decree it illegal and back it up with force like with everything else.

[Kentactic]

I wouldn't count on it. Why would the state need to discretely undermine a digital currency? They could just decree it illegal and back it up with force like with everything else.

That would be way too blatant. The NSA exists for this very purpose among others. They've got billion dollar buildings full of badass hackers and hackers toys all over the country and world. Its much easier to attack it via the web than physically with boots and guns.

Nobody even knows its them..

[APX808]

The could declare it illegal like downloading movies and software from the pirate bay... 

[Grudgie]

Bitcoin is currently $278. The 1 year chart looks like a nearly perfect bubble.

[Kentactic]

Its $616 as of NOW! If you wanted to buy 1 bitcoin... Is it really fluctuating that dramatically or are you guys reading outside sources view of its value vs. What they are actually charging for it?

[Grudgie]

I must be Kentactic. I just looked at Coinbases chart and they have a completely different price than Xe.com. What site are looking on?

[Kentactic]

Im on coinbase.com I click buy/sell and it gives a cost per coin. You can buy them at any decimal amount. Like. 0.05 bitcoins.

[DMCakhunter]

Just saw this.
http://www.cnbc.com/id/101441220

Merged with existing relative topic & edited for clarity. ~ s-k

[crudos]

While I support the concept of Bitcoin, seems like there are still ALOT of growing pains....

http://www.cnbc.com/id/101442245

[Grudgie]

Let's not forget that most currency is digital. Only a portion of dollars are actually physical paper and most people know someone who has had their money stolen right out of their bank account from a hacker or identity thief.

[brat]

Due to inherent problems within the exchange mechanism used to trade the Bitcoin crypto-currency, the Mt. Gox exchange has closed up shop and filed for bankruptcy. Some $473,000,000 worth of BTC has simply vanished in what could be one of the largest digital heists in history. Investigators in Japan are inquiring into the unregulated exchange and the U.S. Federal government is also looking into it, but because of the nature of Bitcoin itself the money is, for all intents and purposes, gone. The operator of the exchange Mark Karpelès, who may or may not be involved in the disappearance of user funds has apologized for “causing trouble.”

If you don’t hold it in your hand, there is always the possibility of counter party risk, as is clearly the case with the Mt. Gox Bitcoin debacle.

And it's gone (original)

[Well-Prepared Witch]

This is why unregulated, uninsured currency is a seriously risky investment.  There's a reason we have FDIC insurance and rules around investing.

[Burt Gummer]

The US dollar is a "Fiat" currency (as is bitcoin)
It means that it isn't "backed" by anything materially valuable like gold & silver. And it's only value is perceived by the user based on it's scarcity.

The US dollar is the MANDATED currency in the US. You will go to jail if you use something else. http://en.wikipedia.org/wiki/Liberty_Dollar
This insures it's continued use and allows for the government to inflate the money supply (Print & spend money) which is the whole purpose behind having a national currency.

Your banks also play a major role in your money though their "fractional reserve" lending policies. with what a bank can take the $100 dollars you deposited loan out 90% to someone else, gain interest, and all this time claim a balance sheet of $190 while it only has $10
This is why there is the FDIC who's job it is to send as much as possible money to that bank in case it looses it's illusion of solvency in the eyes of it's depositors.

This brings to front the process of inflation (which is where bitcoin has an advantage) The value of your money decreases with every dollar created by your gov, and loaned out by your banks. Slowly, yes. But it increases exponentially and there is no stop or pause button for anyone to press.

This is why I prep.

If I may I would recommend to you to watch these following videos which explains what money, currency, our current situation is perfectly. (yes he's trying to sell you gold but can you blame him?)

1] Origins of Money & Currency

Silver & Gold - Hidden Secrets Of Money Ep 1 - Currency vs Money - Mike Maloney

2] Evolution of empire & Currency

Silver & Gold - Hidden Secrets Of Money Ep 2 - Seven Stages Of Empire - Mike Maloney

3] His personal story and predictions

Death Of The Dollar - Hidden Secrets Of Money Ep 3- Mike Maloney

4] Why the dollar is a scam

The Biggest Scam In The History Of Mankind - Hidden Secrets of Money Ep 4 - Mike Maloney

5] History of Fiat Currency

When Money Is Corrupted - Hidden Secrets Of Money Ep 5 - Mike Maloney

So back to bitcoin, buy some.
Why? because uncle Sam hates it. It directly undermines their influence, because it inflates at a pace dictated by the demand for it and the inflation advantage is dispersed so it ignores it (no gov/banks with magically deep pockets)  It's something they can't regulate, it holds a hail marry chance of replacing the dollar when it goes belly up. Saving me from having to trade bullets. But it's a chance so I'll take it.

Any more questions feel free to ask, felt the post was getting a bit long.

Also I'd like to point out that I announced the whole bitcoin thing when it first came out . Pretty sure it was the old L&L forum.

[JohnyMac]

O-Kay, really stupid question - Can you buy things with Bit coin?