WTF is a Bitcoin?

[Fatfishblu]

So, a Bitcoin is virtual currency that costs over $200 USD per coin!!! Why would anyone waste money on something intangible? Just trying to figure this one out.

http://www.theglobeandmail.com/repo...coin-surges-through-200-mark/article10932113/

 

[Philbert]

Like it was pointed out, paper money is not really different in regard to the fantasy of real value. It's an illusion, that it's "real". It represents value (like a bitcoin) but is only a promise of such (like a bitcoin); inflation and demand determines the actual value, like Confederate Dollars eventually determining the cost of a portion of cornbread by the size of the Confederate Dollar bill...lay it down on the slab of cornbread and cut around it.
American Dollars are paper and the more we have the less they are worth against an assumed gold and silver hoard.(ancient system).
I wish Dollars were rising in value like bitcoins, but not a sound economic situation.
If I owe you $200 are you gonna take 1 bitcoin in return that was $9 a month ago and $200+ now? Probably not...
A simple response,though, as economics is a lot more complex than I care to get into, but that's why some like those wascally bitcoins. Something new outside the purview of national governments to fuck with.

 

[Fatfishblu]

So, what can I buy with Bitcoins? Can I use Bitcoins to make monetary purchases of merchandise (like Paypal) or can Bitcoins only be exchanged for tangible currency? I'm confused as to what purpose Bitcoins serve? What is their backing other than being a controlled currency? I need to purchase something from the UK. Do I pay via credit card and incur conversion charges or do I purchase a few Bitcoins and pay that way?

 

[Rey C.]

A pyramid scheme. Why not just buy Dutch tulips? At least they smell good.

Top Bitcoin exchange Mt. Gox, which facilitates more than 70 percent of trades, has halted trading for 12 hours following a gigantic decline in Bitcoin prices.

The price of a Bitcoin on Mt. Gox is currently $120, a dramatic drop from a high of $260 yesterday. ( layfire: ) On Wednesday, Bitcoin prices dropped from $260 to about $150 in a matter of a hours. The price rebounded briefly, but then dropped again this morning. ( :wallet: )

This has led Mt. Gox to take action, and it has halted trading for 12 hours. Mt. Gox writes in a short update:

Market Cooldown for 12 hours

Orders will not be accepted for the moment as we need to upgrade our database to accommodate the trading volume. However, you may still cancel your pending and open orders. Trading will resume at 11.00 am JST. Our apologies for the inconvenience caused and thank you for your patience while we work to resolve this issue.

Question of the day on CNBC? Where is your money more secure: in a Bitcoin or in a Cyprus bank account? :rofl2:

 

[HansMoleman]

So, what can I buy with Bitcoins? Can I use Bitcoins to make monetary purchases of merchandise (like Paypal) or can Bitcoins only be exchanged for tangible currency? I'm confused as to what purpose Bitcoins serve? What is their backing other than being a controlled currency? I need to purchase something from the UK. Do I pay via credit card and incur conversion charges or do I purchase a few Bitcoins and pay that way?

There are new businesses adding bitcoin payments all the time, but it is still a small market. There are a few adult sites/services that you can pay for with bitcoins that I've seen. The theory is fantastic, but we'll see how the adoption goes. The benefit to a business is the tiny fees. So lets say I run a online t-shirt shop and I accept credit cards, or bitcoins. If some guy has bitcoins and pays that way, I might pay .06% instead of 2-15% in fees and I can choose to receive bitcoins or just receive the cash equivalent. If you want the USD/EUR/whatever you just check a box and the exchange sells the bitcoins you get as soon as they come in so you don't take any risk if bitcoins were to fluxuate in value. Most sites that are adding bitcoin payments are actually charging those users less money since they make more from them.

The obvious problem with bitcoins is the price fluxuation. If I buy $5,000 worth of bitcoins today, that might be worth $2,000 next month, or $50,000. The price needs to stabilize before people can really use it as a currency. Right now its more of a speculative holding for investors who see it as a major deal in the future.

Btw, my BTC address for tip jar:
1Nac6Cs379Gup35NcMYnGqyq5TYeqPg4jA

 

[CptHa]

Why would anyone waste money on something intangible?

Ask the religious.

 

[~~whimsy~~]

Back in 2012 would have been the ideal time to invest. Now it is just a penis with ADD. Strong, flop, strong, flop... oooh a new type of cryptocurrency to make a strong investment!

 

[earlyriser]

Similar to the major currencies, but not backed by governments

 

[Supafly]

I think the difference between bitcoins and other currencies, when it comes down to crashing markets, is not THAT huge. If markets crash again, which they seem to be doing sometime soon, a lot of us, or shall I say, most of us will lose a shitload of our money, by having to make up for the failings of the managers of the markets. Of course, those who manage to become rich enough, and/or know when exactly shit hits the fan, can even multiply their wealth during these times.

I wouldn't invest in cryptocurrency, but only, because I have no money to waste

 

[xfire]

Anyone I see on social media that has anything about bitcoin on their profile or in their timeline I automatically boot off my lists.

 

[seamanmonkey]

Wish I had bought some years back

 

[Rey C.]

Wish I had bought some years back

But in order to use it, you'd have to either sell it or spend it (in whole or in part). You know what it's worth now, but at what point would you turn loose of it? How would you have felt watching it zoom up to around $20K a few years ago and then watching it plummet back to earth?

Remember, there's only three things (and three things ONLY) that you can do with money: spend it, save/invest it or give it away. But when you have it, you have to decide when and how you're going to do one or more of those three things.


Just things to think about.