Bitcoins at $360, Anyone Paying Attention To Whats Happening?

reply to post by superman2012


Not a ponzi scheme or any other pyramid scam, but it can be a scheme and a scam

The problem starts with the concept of crypto-currency (safety and value) then it goes into the anonymous creator of the protocol and bitcoin (there are good reasons to remain anonymous but one of the most pressing must be liability, imagine if it was created by a master crook that knows the specific weaknesses of the system, granted many people have examined it but the chance is still present).

The concept of the structure and in it the part that seems like a pyramid scam are the miners and the market around it, miners were the pioneers (and supposedly where the inventor could have re-cupped the money for his creation, if monetary oriented), imagine the first diggers of gold the first tones would have had only the value regarding what one could do with the metal I doubt that anyone would have made much effort to mine the initial samples of the metal but as soon as it become popular an industry around it was created (from land rights, to mining equipment, to prostitutes , every one wanted to get a bit of the profit, not specifically the yellow metal) this is the situation bitcoin is at now...

The cost of digging is increasing (as it was designed to be) so the support markets around it are becoming smaller and increasingly more specialized, there are even corporations formed to dig them up, in a while we could even see nationalizations . The digger digger business is now extremely professional and resource intensive it is no longer for the common Joe (but like a ponzi scheme those first in had the chance to make real profit), but the crypto-currency is not only defined by the first miners there are real benefits if it works as advertised (and people continue to support it), in fact it is best than the fiat money in use today that can be devalued (quantitative easing) and generally managed by central banks for selfish competitive reasons and market control.

But the fact remains if we can't even trust our government to back the fiat currency what trust can we place on the crypto-currency that no one central point has responsibility over and can work to avoid a drastic collapse in value. Like we see governments doing in the real world with the fiat today. Even if the planning is all f'up, and is resumed to "kick that crysis away from us", we still have running water, now imagine a crash on bitcoin where only the larger players invested in it can hope to make corrective moves (at a large risk, those are the same players that benefit from the large fluctuations and I doubt that many are bitcoin miners)...

It just another fiat currency that someone outside a government is able to fluctuate the value of. They have the ability to make these rare or common, fluctuating the price to their liking.

ASCI miners, FTW!!

I'm going to order a few third gens next year and double or triple up my investment within a year. The trick is being way ahead of the curve and being one of the first 100 to preorder. After enough have preordered, goodluck getting your investment back.

reply to post by Panic2k11


...and in other news, I have buried little coins that I shall call Schrute bucks around the my town. Each one is worth $300 in goods and services around town and are transferable to any business that will accept them. Am I getting closer?

defcon5
It just another fiat currency that someone outside a government is able to fluctuate the value of. They have the ability to make these rare or common, fluctuating the price to their liking.

I think this is rather accurate. A fiat currency that is valued in fiat currency, that was once pegged to gold/silver.

I'm wondering if there are new currencies being created similar to Bitcoin, as emerging competitors. Will there be a "virtual currency" market that gets too saturated and confusing, where only large brands succeed?

From a mining perspective, the difficulty is so high now that its not really worth it. From my understanding the coins are generated from the mining process, I dont pay much attention to BTC anymore although I made a fair bit of money mining them back when gpus were a feasible option. Now you have to have a ton of ASICS to crank out anything worth while.


Sadly I didnt hold on to the coins i had, I wish i would have now though!

Im all into litecoin now, not nearly worth as much as bitcoin, but its topped $4 usd for the first time in a few months. Not sure if it will be as successful, but one can only hope.

I don't see a tremendous difference to the physical money we use today other than it forgoes the little scraps of paper and worthless slugs of alloy that we currently use, oh, and it's value isn't being printed out of existence.

onequestion
reply to post by spartacus699

 

A number, and i don't want to hear, "what everything goes to # because they won't be worth anything".

Oh that code. ya okay. No I thought maybe they might actually were coins too. I like the idea of bitcoin currency. I gonna do some research on that.

This wont last long. If anyone here owns bitcoins, you'd be crazy not to sell them now. 360 bucks a pop is insane.

reply to post by onequestion


Digital make believe money does not a good investment make.. Mark my words you buy high and you.'ll sell low...the bottom always drops out

gnosticagnostic
reply to post by onequestion

 

Digital make believe money does not a good investment make.. Mark my words you buy high and you.'ll sell low...the bottom always drops out

I think you mean buy low and sell high. But yes, what goes up, must come down. If I could sell put options in bitcoins, I'd be all over that.

reply to post by JohnnySasaki


No she is wanting to buy them now at 360 lol that's way too high for ppl to invest in... the bottom will drop out

gnosticagnostic
reply to post by JohnnySasaki

 

No she is wanting to buy them now at 360 lol that's way too high for ppl to invest in... the bottom will drop out

Oh, my mistake.

reply to post by gnosticagnostic


Even if it goes down now, its only going to gain more momentum and go higher in the future. This is barely getting touched.

onequestion
reply to post by gnosticagnostic

 

Even if it goes down now, its only going to gain more momentum and go higher in the future. This is barely getting touched.

Then what are you waiting for? Go buy some.

reply to post by JohnnySasaki


I would but im broke.

Can someone explain this in the simplest terms. Is this bitcoin something you can cash in on and they mail you a check? You buy one for maybe 1.00 - it goes to 300.00 and you cash in like stocks? If not what good is it? I'm hearing it is virtual only yet also hearing people should cash in.

What this would equate to is investing your money into someone who is investing your money so is really no different than the stock market. I'm confussed.

reply to post by Dianec


Its a currency.

You play it like a currency. Right now its like a stock due to volatility.

BC is interesting there have just been too many bubbles. When and if it stabilizes it might be something. Remember liquidity is necessary for this currency to work. That was the major factor the last time I investigated this currency. There was no liquidity. No one could unload their BC's when the price shot up. I personally would never even consider buying any BC's with the price up. I would wait for a crash, but again will there be liquidity then? Probably not.

reply to post by onequestion


So they are having the public invest in money like the government does? Because, from what I've learned in recent months - our whole monetary system is based on what we make of it (nothing tangible).

It's still confussing but thank you for trying to explain. It's such an unknown I wouldn't mess with it (personally). I want to know 'if I want my money you will give it to me in a form that I can purchase goods and services with'. If that can't be done I see no value in it. Maybe that's why I'm not among the super weathly though - too old fashioned.