Digital 'bitcoin' currency surpasses 20 national currencies in value

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posted on Mar, 31 2013 @ 04:52 AM
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Originally posted by TheNewRevolution
reply to post by sk8ter
 


What exactly are bitcoins backed by again?

*Second line.*


As long as they are not backed by the fed, the bank of england, the eu central bank, or the IMF, then they are OK by me.

They are not backed by anything, just like those precious greenbacks you desire so much, except you cannot just print, or electronically create bitcoin.

Their creation is limited, and you are free to try and create your own, nobody is stopping you, people do it all the time.

There is no pyramid, no ponzi, and it is only of value through scarcity.

With the current exchange rate of 1 bitcoin = $90, I do find it laughable that you consider you $90 of Ponzi, fiat money, printed out of thin air, most likely kept in a bank with the morals of satan himself, more valuable than 1 bitcoin.

If bitcoin ever becomes a big enough threat, then the central banking system will outlaw it, they do control the governments after all.

Until then, there is a glimmer of hope that this may prove to be the seed of a future currency that is fair, honest and acceptable to the world.




posted on Mar, 31 2013 @ 05:05 AM
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Originally posted by superman2012
reply to post by ChaoticOrder
 


$250,000 worth of Bitcoins stolen in net heist
They can get stolen, nothing is impossible.
Care to weigh in here as well?

As I stated on the very first page, a bitcoin exchange does not equal the bitcoin network. The bitcoin network has never been hacked. If you want a reliable bitcoin exchange then try VirWox, they were around long before bitcoin even existed.

And that other link is completely ridiculous, it's impossible for a legitimate exchange to manipulate the exchange in that way because all data including recent trades and the market depth is completely public. Honestly that article seems to be written by a 2 year old.
edit on 31/3/2013 by ChaoticOrder because: (no reason given)



posted on Mar, 31 2013 @ 05:12 AM
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I do not think id invest in any currency i couldn't have a physical form of to put under my mattress - if i chose to.

in theory its no different to any banked currency, but im old fashioned in some ways.



posted on Mar, 31 2013 @ 05:21 AM
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Originally posted by Biigs
I do not think id invest in any currency i couldn't have a physical form of to put under my mattress - if i chose to.

Casascius physical bitcoins
edit on 31/3/2013 by ChaoticOrder because: (no reason given)



posted on Mar, 31 2013 @ 05:23 AM
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Originally posted by ChaoticOrder

Originally posted by Biigs
I do not think id invest in any currency i couldn't have a physical form of to put under my mattress - if i chose to.

www.casascius.com...



ooooooo shiny!

Thank you for that link, okay suddenly not so strange for a digital currency



posted on Mar, 31 2013 @ 05:27 AM
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Originally posted by Biigs
ooooooo shiny!

Thank you for that link, okay suddenly not so strange for a digital currency

lol, I never cease to be amazed by how effective physical bitcoins can be at changing a persons opinion of bitcoin. Really it's just the secret private key embedded into the coin and protected by a hologram. Having your keys on a flash drive is almost the same thing... you might say the flash drive represents a physical bitcoin container like the coin.

BTW I updated the link in my last post, just want to make that clear so people aren't confused. The bitcoin wiki explains it better and I don't want people to think I'm advertising the casascius website.
edit on 31/3/2013 by ChaoticOrder because: (no reason given)



posted on Mar, 31 2013 @ 06:23 AM
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reply to post by ChaoticOrder
 


Since the value of the coin is determined by the 'data' on it or in it confirming its genuine.... it requires a computer and a connection to the determined "exchange rate".

Its still ultimately, mostly useless as an asset in its actual physical form. No better than any bank note.

Real currency is something small and high in perceived value thats actually worth using as well as bartering with, gold is great to look at, amazing for electrical circuits and connections, many many real world applications - its rarity and application creates its value.



posted on Mar, 31 2013 @ 06:52 AM
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reply to post by Biigs
 



Since the value of the coin is determined by the 'data' on it or in it confirming its genuine.... it requires a computer and a connection to the determined "exchange rate".

Yes that is true, if you don't trust the hologram hasn't been tampered with or you believe the coin is a fake casascius coin, then you will require an internet connection to verify it's validity. Comparing it to a bank note isn't too far off the truth, because there's no easy way to tell if the note is fake without taking it to a bank.


its rarity and application creates its value.

And that's exactly what gives bitcoin value. Bitcoin has many useful properties which no other currency possesses, such as quick transactions to anywhere in the world without needing to go through banks. The number of bitcoins to ever be created is also set to a finite limit, making it scarce. This is the basic reason why people choose to use bitcoin even though no one is forced to... and that demand for bitcoin creates its value.



posted on Mar, 31 2013 @ 06:56 AM
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reply to post by onequestion
 


I finally got up the interest to google bitcoins. What happens when the computers controlling bitcoins accidentally crash or are hacked?



posted on Mar, 31 2013 @ 07:00 AM
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I willing to wager the people in charge of or who setup the bitcoin are pretty wealthy.

All currency and trading standards are a product of a man with an idea who got payed to invent it.

Men of 10,000 years ago traded animal skins/fur because its value was in its application, the value was derived from its actual use. currency came around when man had so many furs that he couldn't even carry them, so he started to substitute usable items for rare, small objects.

Anything that only represents a value is ALWAYS at the mercy of exchange fluctuation. Digital means theres a whole new layer of dependency of a system that sustains the value.

Overall, i will not be converting any of my gold or cash into bitcoins ever. - outside of a short time deal that brokers me a profit of course



posted on Mar, 31 2013 @ 07:11 AM
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Originally posted by Biigs
I willing to wager the people in charge of or who setup the bitcoin are pretty wealthy.

All currency and trading standards are a product of a man with an idea who got payed to invent it.

Men of 10,000 years ago traded animal skins/fur because its value was in its application, the value was derived from its actual use. currency came around when man had so many furs that he couldn't even carry them, so he started to substitute usable items for rare, small objects.

Anything that only represents a value is ALWAYS at the mercy of exchange fluctuation. Digital means theres a whole new layer of dependency of a system that sustains the value.

Overall, i will not be converting any of my gold or cash into bitcoins ever. - outside of a short time deal that brokers me a profit of course


you and me, and alot of others. the actual person that produces and encodes bitcoins is the person that you have to have absolute trust in.....bernie madoff anyone?



posted on Mar, 31 2013 @ 07:26 AM
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reply to post by jiggerj
 



What happens when the computers controlling bitcoins accidentally crash or are hacked?

There is no single point of failure because it's decentralized. Every single computer in the network would need to fail, and that's not going to happen unless the internet goes down everywhere. And if that happened we'd have many other more important issues on our hands. And even if it did happen, assuming the harddrives of our PC's were safe, we could restore bitcoin to exactly how it was as soon as the internet came back.



posted on Mar, 31 2013 @ 07:35 AM
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reply to post by Biigs
 



I willing to wager the people in charge of or who setup the bitcoin are pretty wealthy.

Yes many of the early miners are probably fairly wealthy now because the mining difficulty was much lower back then when the total network hashing power was much lower. But really it's the same thing with almost anything. The first people to mine gold benefited the most because it was easier to find. The early investors of a successful business benefit the most because shares are much cheaper. The early bird always gets the worm, as they say. But they took the risk and invested their time and money into the mining equipment or the business they invested in. The early adopters always have to take a larger risk and thus they are generally rewarded much better. The early adopters of bitcoin dedicated their computing power to the bitcoin network to help secure it when it was in its most vulnerable stage. It was always open source and completely public, open to anyone who wanted to join the party.



posted on Mar, 31 2013 @ 02:15 PM
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reply to post by ChaoticOrder
 


So a legitimate exchange couldn't, but, can you get bitcoins on a not so legit site? Couldn't they do what is described? I'm not trying to be facetitious, I'm trying to learn and you seem to be an expert so rather than going through endless google searches that don't answer my questions, I'm asking you. Hope you don't mind.



posted on Mar, 31 2013 @ 05:03 PM
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reply to post by ChaoticOrder
 


You seem to be something of a spokesperson to bitcoins. Anyone who states an opposing opinion gets the old ad hominem treatment.

Makes it hard to trust when the only person adamantly supporting the idea is simultaneously attacking everyone who doesnt.

...You may want to try a lighter touch, if your actually genuinely trying to persuade anyone.



posted on Mar, 31 2013 @ 05:17 PM
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Yeah, sure bitcoins make for great currency....











... until the power goes out.




posted on Mar, 31 2013 @ 05:18 PM
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Originally posted by wemustbreakyou

Originally posted by ChaoticOrder
reply to post by wemustbreakyou
 


I already explained what determines the price, read my last few posts. As for what backs it, you could say its the energy which goes into creating them (if you have poor hardware it will cost more in electricity than what the mined bitcoins are worth). But that's not quite true because it's obviously impossible to convert your bitcoins back into electricity. In reality nothing backs them except trust in the system, if the system is hacked or something and it collapses there would be nothing tangible left at the end. A common saying in the bitcoin community is "in cryptography we trust". It's the same cryptography used all throughout the banking system and if it's broken we'll have a lot more problems to deal with than bitcoin collapsing.


reply to post by theruthlessone
 


Your questions were answered in my previous posts.
edit on 30/3/2013 by ChaoticOrder because: (no reason given)


I dont understand how it is legal. I would also like to know who is behind it all.

And if you are telling me that people that are good with computers are able to 'mine' the currency then I hate the idea. Why should someone be able to 'mine' currency? Thats value? I might design a currency that you earn by completing levels in a video game. Same thing right? If he gamecoin is created you know the work of completing the level has been done...

Lets all create digital currencies since its legal. Dibs on "gamecoin".


Your p!ss taking couldnt be closer to the truth


You CAN create "gamecoin" if you like, nothing is stopping you except your ignorance. All you need to do is write the code and put it up on the interweb thinggy for everyone to join in. There are other P2P "bit currencies" in existance already, but BTC is the most well known.

You will need to build a mining rig to get in on the action and guess what you use as part of a good rig?.......... Lots and lots of gaming cards....(thats the computer hardware and not top trumps) now are you paying attention?

Chaoticorder knows what she is talking about and instead of trolling her you should be listening, researching and learning. Companies on line are already accepting BTC for goods and services and there are exchanges online where you can exchange them for hard cold cash,

All you need to do is spend a few hours researching it. I was just looking over a guys impressive rig that is mining 10 coins a day, you do the math.

The only possible scam I can see related to BTC at the moment is being performed by a company called Butterflylabs. I have my own suspicions about this company and what they are upto, but am not ready to air them on here. Again, if you are interested you could research and learn what it is they are doing and form your own conclusions.

PEACE,
RK



posted on Mar, 31 2013 @ 05:20 PM
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reply to post by jiggerj
 


I dont know where i stand on the bitcoin issue. But i can tell you one thing.

A month ago they were worth 12$, and now they are worth 90. So from an investors standpoint they are a valid option. If the value of the coin directly ties into the state of the economy in Europe and the US, then i would expect them to climb for a short period, then either stabilize or drop at which point i would sell and or buy.

I look at bitcoins like i look at any stock.



posted on Mar, 31 2013 @ 05:23 PM
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Originally posted by CranialSponge
Yeah, sure bitcoins make for great currency....

... until the power goes out.



You can store them on a USB stick


and you bank would never lock its doors on you and loot your account now would it?

PEACE,
RK



posted on Mar, 31 2013 @ 05:45 PM
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Originally posted by onequestion
reply to post by jiggerj
 


I dont know where i stand on the bitcoin issue. But i can tell you one thing.

A month ago they were worth 12$, and now they are worth 90. So from an investors standpoint they are a valid option. If the value of the coin directly ties into the state of the economy in Europe and the US, then i would expect them to climb for a short period, then either stabilize or drop at which point i would sell and or buy.

I look at bitcoins like i look at any stock.


So, someone can go online and buy $90 worth of goods for one bitcoin. How does the seller turn that bitcoin into...? What can he turn it into? Gold? Silver? U.S. dollars? I have NO idea.



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