[Pops]

I've heard tulips are a great investment...

[Quinny]

Some people might make money out of this but it seems like a whole load of bullshit to me!

[Sixstrings]

$this->bbcode_second_pass_quote('Quinny', 'S')ome people might make money out of this but it seems like a whole load of bullshit to me!

[PrestonSturges]

I think the thing about bitcoins is that they exist as some sort of encrypted file and only a couple hundred thousand were made. That's why the value keeps going up.

[Sixstrings]

$this->bbcode_second_pass_quote('PrestonSturges', 'I') think the thing about bitcoins is that they exist as some sort of encrypted file and only a couple hundred thousand were made. That's why the value keeps going up.

[Quinny]

Sounds a bit like a Unicorn fart to me!

[PrestonSturges]

Well it goes back to the question of "What is money?" which seems to be a philosophical as well as economic question.

[Gordianus]

$this->bbcode_second_pass_quote('PrestonSturges', 'W')ell it goes back to the question of "What is money?" which seems to be a philosophical as well as economic question.

[Sixstrings]

Ok, here's a good example of what goes on with bitcoin. It was at 1200 yesterday, now today dropping almost $200. Probably on some negative news out of China that the government "doesn't consider bitcoin a real currency" and is barring banks from offering bitcoin services.

But they're not forbidding people buying bitcoin, and far as I know using it as payment.

Source: http://online.wsj.com/news/articles/SB10001424052702303497804579239451297424842

So it's like a penny stock or something with potential but so volatile, one piece of bad news sends it plunging, some good news sends it soaring. I think if you wanted some objective analysis what you'd want to look at is volume and look at total numbers, and graphs on that and where that's going, from what I read bitcoin has "intense demand" among the Chinese.

There is definitely staying power now though, you can look at this very website and right next to the paypal there's a donate with bitcoin button.

So that's the deal with these things, it's like a volatile tech stock that you know is going somewhere yet it's going to be rocky, like I said before don't buy at 1,000 watch it for a while there'd be a dip coming -- so here's a dip. Some bad news comes out, that could be time to buy, then good news comes out, it soars, then it's a sell.

Just my take, the main thing to watch with it is CHINA and the numbers of people buying it and use as payment spreading. At this point no government is going to ban these, it's too wide spread now, what will happen is they'll figure out a way to regulate. Regulation actually sends the price higher, as regulation means acceptance and wider use.

As number of bitcoins get mined, the numbers get harder to discover, bigger computing systems needed. Here's a super mining facility in Hong Kong using innovative liquid cooling:

$this->bbcode_second_pass_quote('', '[')img]http://cdn2.sbnation.com/assets/3660941/bitcoin8.jpg[/img]

The secret Hong Kong facility that uses boiling goo to mine Bitcoins

The mine is the size of a shipping container, and filled with 1-meter-high glass tanks in which banks of blades are immersed in roiling liquid. Each tank can hold 92 blades; the blades themselves are kept at a temperature of 37 degrees Celsius or below by "open bath immersion" technology. Open bath immersion cools computer components by submersing them in liquid with a particularly low boiling point. The heat the components generate mining for coins boils the liquid, causing it to turn gaseous, rise up to a condenser at the top of the tank, and fall once again, removing heat from the components in the process. The ASICMINER open bath immersion system was reportedly built by Hong Kong-based company Allied Control, and operates at a Power Usage Effectiveness of 1.02, which "would make it one of the most efficient designs in the world."

The cooling system is state of the art, but Cao reports that the mine uses common equipment — including racks and valves — found "in local markets easily." This enabled ASICMINER to build its facility quickly and comparatively cheaply before setting it to its mining task. The tanks, when filled with 92 circuit boards, cooling liquid, and an array of racks and rails, each weigh about 200 kilograms. They're pushed into place by a forklift truck.
http://www.theverge.com/2013/12/2/5165428/bitcoin-mine-in-hong-kong-uses-jelly-to-keep-cool

[longpig]

Bitcoin is stupid to invest in, you are best off buying gold. There are no real gold substitutes for money but for Bitcoin there are hundreds of near to identical types of crypto currencies. Yes Bitcoins are limited in supply but the number of other crypto currencies that are identical or similar to it can be unlimited.

The fact is when people see Bitcoins as too expensive they will move to buy other 'cheaper' crypto currencies instead. I am surprised it hasn't greatly happened yet.

Bitcoin vs Gold boils down to this. There are no real gold substitutes but there are plenty of bitcoin substitutes and the number can be unlimited.

Gold = Toilet paper limited in supply and can not be reproduced.

Bitcoin = Major brand of toilet paper that is very expensive only because people are too stupid to switch to a cheaper brand yet. Other crypto currencies are producing plenty and is only a matter of time before the market place is flooded with crypto's and they all become worthless.

[Keith_McClary]

$this->bbcode_second_pass_quote('longpig', 'B')itcoin is stupid to invest in, you are best off buying gold. There are no real gold substitutes for money but for Bitcoin there are hundreds of near to identical types of crypto currencies. Yes Bitcoins are limited in supply but the number of other crypto currencies that are identical or similar to it can be unlimited.

The fact is when people see Bitcoins as too expensive they will move to buy other 'cheaper' crypto currencies instead. I am surprised it hasn't greatly happened yet.

Bitcoin vs Gold boils down to this. There are no real gold substitutes but there are plenty of bitcoin substitutes and the number can be unlimited.

Gold = Toilet paper limited in supply and can not be reproduced.

Bitcoin = Major brand of toilet paper that is very expensive only because people are too stupid to switch to a cheaper brand yet. Other crypto currencies are producing plenty and is only a matter of time before the market place is flooded with crypto's and they all become worthless.

[Sixstrings]

$this->bbcode_second_pass_quote('longpig', 'T')he fact is when people see Bitcoins as too expensive they will move to buy other 'cheaper' crypto currencies instead. I am surprised it hasn't greatly happened yet.

[Keith_McClary]

$this->bbcode_second_pass_quote('Sixstrings', 'T')he thing to watch is, WHICH crypto currency takes off and gets widespread use.
...
the one that got to critical mass first stays #1.

What good is another cryptocurrency if everyone is using bitcoins? So just saying that's the thing to watch here, if it really takes off and you see that pay by bitcoin banner next to every paypal banner.

[Keith_McClary]

Another explanation:
How the Bitcoin protocol actually works
No math required:
$this->bbcode_second_pass_quote('', 'T')o understand the post, you need to be comfortable with public key cryptography, and with the closely related idea of digital signatures. I’ll also assume you’re familiar with cryptographic hashing.

[Keith_McClary]

Today's Dilbert

[Tanada]

I have never used Bitcoin but I am interested in it as a possible replacement for fiat currency so I check up on it from time to time. Here is the newest news, a new update is supposed to alleviate government fears of totally untraceable payments between parties.

If you use Bitcoin what has been your experience? Do you think this is a good or bad change?

$this->bbcode_second_pass_quote('', 'E')lliptic says its tool, built by 4 PhD holders, can make a hugely accurate guess as to who each wallet belongs to — and it can do so in real-time. Using machine-learning, its software crunches through the web and dark web, skimming references to wallets and other digital clues to build up a picture of the owner.

Tom Robinson, Elliptic's cofounder, told Business Insider the tool could be a "game changer for the institutionalisation of bitcoin." If banks can satisfy anti-money laundering regulation then they can start to think about handling bitcoin. The tool was created after conversations with dozens of lenders.

Elliptic has today released a visualisation tool showing the flow of bitcoin between entities over the entire six- year history of bitcoin, naming the 250 largest entities where bitcoins are sent to and from.

[Outcast_Searcher]

Even though first world fiat currencies have inflation erosion and precious metals (the actual metal) has storage cost and volatility risk -- until stories like the following stop appearing in the news -- I'd rather not GAMBLE on the crypto-currency "store of wealth", thank you very much.

http://www.usatoday.com/story/money/201 ... /21351737/

$this->bbcode_second_pass_quote('', '
')BitStamp, which runs the world's third largest bitcoin exchange, announced on Tuesday that $5.4 million worth of the cyber currency had been lost to a security "breach."

[Tanada]

I was hoping out of the hundreds of people who lurk and post regularly around here at least one or two would have some actual experience with the product. Seems like years ago there was a bitcoin donation box on the side menu for this corner of the internet.

[careinke]

$this->bbcode_second_pass_quote('Tanada', 'I') was hoping out of the hundreds of people who lurk and post regularly around here at least one or two would have some actual experience with the product. Seems like years ago there was a bitcoin donation box on the side menu for this corner of the internet.

[Strummer]

$this->bbcode_second_pass_quote('careinke', '1'). There is only a finite amount of a crypto currency and the amount is known.