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More than $1 billion dollars worth of a digital currency known as "bitcoins" now circulate on the web – an amount that exceeds the value of the entire currency stock of small countries like Liberia (which uses “Liberian dollars”), Bhutan (which uses the “Ngultrum”), and 18 other countries.
Unlike traditional currency, bitcoins are not issued by a government or even a private company. Instead, the currency is run by computer code that distributes new bitcoins at a set rate to people who devote web servers to keep the code running. The bitcoins are then bought and sold for regular U.S. dollars online.
Bitcoin is in high demand right now -- each bitcoin currently sells for more than $90 U.S. dollars -- which bitcoin insiders say is because of world events that have shaken confidence in government-issued currencies.
The storm had been building for over a week now. Last Monday at around 5 p.m. 25,000 Bitcoins were transferred from 478 accounts on the currency's largest exchange -- Mt. Gox. But that was just the beginning. Now Mt. Gox is admitting to a major breach and has shut down, in an unprecedented action. In all, approximately $8.75M USD worth of Bitcoins appear to have -- at least temporarily -- been stolen in the intrusion.
No thanks it's already been proven that it can be hacked and money stolen from it.
Nope, I cannot provide any substantial info as to why I feel this is a scam.
To me, as this is a "privatized" currency...someone out there can make as much of it as they want and charge whatever they want during the "rush" to get some...and then...just devalue the sh!t out of it when people start to try and pull them out and convert them to "real" currency...
Who makes this currency then, and who controls it.........?
Originally posted by ChaoticOrder
So much ignorance in this thread it gives me a headache. Superman, bitcoin is not anchored to the US dollar in any way. The more worthless the US dollar becomes, the more US dollars each bitcoin will be worth.
By the way OP I already posted this article in a thread I started a few hours ago:
MSM Reporting on Cyprus Driven Bitcoin Boom
To put it simply, if you wish to create new bitcoins you must have your computer carry out complex calculations until you reach a solution to the given problem, and that solution is the proof you did the work necessary. The value of bitcoin is determined according to free market forces on the bitcoin exchanges, no one determines the value by themselves, open market buy and sell orders determine the low and high prices, very similar to the process which determines the value of gold or silver on a day to day basis.
but me personally.... I'll protect my assets the old fashioned way...