Bit Coin. Please explain it to me like I am a 3 year old.

originally posted by: Frogs
One thing to consider. Most any country worth its salt can turn off the interwebs to most of its citizens like turning off the lights if it really wants to when the poop hits the fan..

Bitcoin seems to be interwebs based...

Sure, it may still be there, but if you can't get to it when you need it...

Its still there, it exists as a number, just go to another country to sell it.

a reply to: Frogs

Thats true up until the free satellite age.

originally posted by: LogicalGraphitti
Is it sustainable? We'll see. Bitcoins biggest threat are the world banks. Can you image an internet currency that doesn't respect the status quo? I'm sure the banksters are watching this very closely and are already making plans to derail bitcoins.

Many banks are actually working feverishly to implement the underlying technology themselves.

originally posted by: muzzleflash
a reply to: trollz
All those charts show it's value sinking btw.

I'd sell all of it right now and go find something else less tapped out to exploit.

Currencies and stocks go up and down from day to day. I really hope your honest advice isn't to sell your entire investment just because prices went down over a 24 hour period... even a month. Do you have any idea how many times people lost millions because they panic-sold their investment when the price dropped? Cryptos are nowhere near tapped out, most people don't even know they exist yet. The top few are only going to keep increasing. Right now is a down period because of various events taking place within the community and world, but it's going to rocket back up higher than it's ever been. Watch.

originally posted by: FamCore
a reply to: NightSkyeB4Dawn

Bitcoin was designed as a peer-to-peer digital currency, to be used for transactions.

But very few people seem to be actually using it as a "currency". Most people are simply holding on to them like they are speculative investments.

According to data HERE, that's false.
Bitcoins sent last 24 hours: 3,245,418.45 BTC. That's almost 8 billion dollars... In 24 hours.

Yup, I'm a dad gum expert.....no bitcoin, no......but load up somewhat on Etherium or Etheriumclassic.....it's a new way of computing and more......also VRC .....but don't over do it....I think in an internet shutdown.......you know.........!!!

Stack ya some silver now hear?

a reply to: rexsblues

I feel your pain. I found out about bitcoin when it was only 25 cents a coin and didn't think it would go anywhere. Its beyond frustrating.

And Wikileaks likes to hide things in the blockchain, like the keys to their dead man's insurance file.

But that kind of talk usually brings out the alphabets.

*shhhhhh*

a reply to: muzzleflash

That's not true, there is a resource behind bitcoin.

It's processing power.

That's not a ponzi scheme.

Behind each bitcoin is thousands of kwh of electricity and high thousands of dollars of computer hardware.

Bitcoin represents computer labor, much how the dollar was supposed to represent human labor.

originally posted by: Lucidparadox
a reply to: muzzleflash

That's not true, there is a resource behind bitcoin.

It's processing power.

That's not a ponzi scheme.

Behind each bitcoin is thousands of kwh of electricity and high thousands of dollars of computer hardware.

Bitcoin represents computer labor, much how the dollar was supposed to represent human labor.

There is not a resource backing it unless it's exchangeable for that resource at a set rate.

So unless you can work out a way of generating electricity out of bitcoin it's still not backed.

a reply to: ScepticScot

There is no resource backing the dollar besides good faith.

No paper money has any intrensic value anymore . Its not backed . It's just belief

originally posted by: Another_Nut
a reply to: ScepticScot

There is no resource backing the dollar besides good faith.

No paper money has any intrensic value anymore . Its not backed . It's just belief

Never claimed there was.

Bitcoin is treated as a commodity, however most commodities have some intrinsic value. Bitcoins value is entirely based on the greater fool theory.

Should be noted that while the Dollar (or any national currency) has nothing physical backing it the value is still maintained by something more than belief. As long as people need to pay taxes there is always demand for real currency. Something that doesn't apply to bitcoin.

Hey OP, here is a video I saw recently which breaks it down quite well!

www.youtube.com...

a reply to: muzzleflash

No more so than derivative trading that banks do with shareholders/depositors fund's - when that goes 2008 will look like a walk in the park.

originally posted by: trollz

originally posted by: LogicalGraphitti
Is it sustainable? We'll see. Bitcoins biggest threat are the world banks. Can you image an internet currency that doesn't respect the status quo? I'm sure the banksters are watching this very closely and are already making plans to derail bitcoins.

Many banks are actually working feverishly to implement the underlying technology themselves.

The underlying technology is great (blockchain) and extremely useful for all sorts of things. It's bitcoins they fear. They don't want another currency to become then defacto currency for global trade.

Maybe it's a topic for another thread, but my question is, what would happen if everyone the world over traded in bitcoins? What would happen to the dollar, euro and yuan? And what's the knock on effect if those currencies collapse?

originally posted by: LogicalGraphitti
The underlying technology is great (blockchain) and extremely useful for all sorts of things. It's bitcoins they fear. They don't want another currency to become then defacto currency for global trade.

Maybe it's a topic for another thread, but my question is, what would happen if everyone the world over traded in bitcoins? What would happen to the dollar, euro and yuan? And what's the knock on effect if those currencies collapse?

Well, I imagine the world economy would stabilize a bit. For example, Venezuela is currently in a total economic crisis, and people there are turning to bitcoin to keep their money stable and accessible. We've been seeing a huge push for a long time towards globalism and a global economy, so cryptocurrencies like bitcoin actually seem like the perfect way for TPTB to do that - one currency across every country. Once TPTB find a way to control cryptocurrencies (or at least profit from them), I foresee the world officially ditching regular fiat currency. We're already moving heavily away from physical cash in favor of electronic payments with cards and whatnot, so it's only a matter of time.

originally posted by: ScepticScot
Bitcoin is treated as a commodity, however most commodities have some intrinsic value. Bitcoins value is entirely based on the greater fool theory.

Should be noted that while the Dollar (or any national currency) has nothing physical backing it the value is still maintained by something more than belief. As long as people need to pay taxes there is always demand for real currency. Something that doesn't apply to bitcoin.

Obviously there is a demand in bitcoins/crypto-currencies or it wouldn't have gotten to where it has.

Primarily, the value comes from the benefits that using it as a currency in itself offers:

User Anonymity

Bitcoin purchases are discrete. Unless a user voluntarily publishes his Bitcoin transactions, his purchases are never associated with his personal identity, much like cash-only purchases, and cannot be traced back to him. In fact, the anonymous Bitcoin address that is generated for user purchases changes with each transaction.

No Third-party Interruptions

One of the most widely publicized benefits of Bitcoin is that governments, banks and other financial intermediaries have no way to interrupt user transactions or place freezes on Bitcoin accounts. The system is purely peer-to-peer; users experience a greater degree of freedom than with national currencies.

Purchases Are Not Taxed

Since there is no way for third parties to identify, track or intercept transactions that are denominated in Bitcoins, one of the major advantages of Bitcoin is that sales taxes are not added onto any purchases.

Very Low Transaction Fees

Standard wire transfers and foreign purchases typically involve fees and exchange costs. Since Bitcoin transactions have no intermediary institutions or government involvement, the costs of transacting are kept very low. This can be a major advantage for travelers. Additionally, any transfer in Bitcoins happens very quickly, eliminating the inconvenience of typical authorization requirements and wait periods.

Mobile Payments

Like with many online payment systems, Bitcoin users can pay for their coins anywhere they have Internet access. This means that purchasers never have to travel to a bank or a store to buy a product. However, unlike online payments made with U.S. bank accounts or credit cards, personal information is not necessary to complete any transaction.

Source

Each one of those benefits, to me and obviously many others, makes bitcoins valuable and worth using. And as long as it has value (demand), and can be used as a currency - then at the end of the day, it is in fact a legitimate currency.

originally posted by: Navieko

originally posted by: ScepticScot
Bitcoin is treated as a commodity, however most commodities have some intrinsic value. Bitcoins value is entirely based on the greater fool theory.

Should be noted that while the Dollar (or any national currency) has nothing physical backing it the value is still maintained by something more than belief. As long as people need to pay taxes there is always demand for real currency. Something that doesn't apply to bitcoin.

Obviously there is a demand in bitcoins/crypto-currencies or it wouldn't have gotten to where it has.

Primarily, the value comes from the benefits that using it as a currency in itself offers:

User Anonymity

Bitcoin purchases are discrete. Unless a user voluntarily publishes his Bitcoin transactions, his purchases are never associated with his personal identity, much like cash-only purchases, and cannot be traced back to him. In fact, the anonymous Bitcoin address that is generated for user purchases changes with each transaction.

No Third-party Interruptions

One of the most widely publicized benefits of Bitcoin is that governments, banks and other financial intermediaries have no way to interrupt user transactions or place freezes on Bitcoin accounts. The system is purely peer-to-peer; users experience a greater degree of freedom than with national currencies.

Purchases Are Not Taxed

Since there is no way for third parties to identify, track or intercept transactions that are denominated in Bitcoins, one of the major advantages of Bitcoin is that sales taxes are not added onto any purchases.

Very Low Transaction Fees

Standard wire transfers and foreign purchases typically involve fees and exchange costs. Since Bitcoin transactions have no intermediary institutions or government involvement, the costs of transacting are kept very low. This can be a major advantage for travelers. Additionally, any transfer in Bitcoins happens very quickly, eliminating the inconvenience of typical authorization requirements and wait periods.

Mobile Payments

Like with many online payment systems, Bitcoin users can pay for their coins anywhere they have Internet access. This means that purchasers never have to travel to a bank or a store to buy a product. However, unlike online payments made with U.S. bank accounts or credit cards, personal information is not necessary to complete any transaction.

Source

Each one of those benefits, to me and obviously many others, makes bitcoins valuable and worth using. And as long as it has value, and can be used as a currency - then at the end of the day, it is in fact a legitimate currency.

The value it has is fuelled by the speculative demand for it.

There are undoubtedly uses for it as a means of payment, however those uses would remain if bitcoin were valued as a fraction of what it currently is

It also suffers from the problem that the same uses can be easily replicated or improved on by other digital currencies.

As a currency alternative I see no issue with bit coin. As an investment it is an obvious bubble.

a reply to: ScepticScot
Sure I concede that it's perceived value might be quite a bit inflated compared to it's true value - as is often the case for any currency - however that doesn't mean it has no true value. None of that changes the fact though that it is, in it's current state and at this current time, a real currency. As long as there is a demand for people to use it as a form of currency, it will remain a currency. And I predict it will remain that way for quite some time yet - until as you say, a better/more valuable alternative makes way.

a reply to: trollz

I amy have missed it - but someone asked what happens of your hard disk dies?