Bitcoins

[Deleted User]

This is a very good watch: http://www.youtube.com/watch?v=gERNbqUNMm4

"Finextra interview with IBM architect Richard G Brown about Bitcoin and Litecoin"

hander

So I notice the OP hasn't posted since last year. Did they buy or not? (I haven't read 19 pages in total).

BTC is now 275GBP. Buying from UK sites, e.g. localbitcoins etc is approaching 300.

It's clear that BTC is gaining acceptability as a form of payment but its current rate of appreciation counteracts people's willingness to spend it. In short, the majority of people buying are doing so as 'insurance' against it going sky high and are most likely hoarding it.

Interesting times. I'm positive about cryptocurrencies in general but the fervour that surrounds BTC at the moment is hardly helping to get it established as anything more than an opportunity to 'get rich quick'. It has happened for a few, of course, but, really, does anyone expect it to happen for many?

Jegersmart

Ark_Welder wrote: »

The notion that Bitcoin is the basis for anything other than an online game is the nonsense. The same level of B.S. surrounds it as for Dotcom and more recent share sectors.

LOL

I guess with hindsight this statement was........>.<

(and we have all made them:D)

J

BoracicLint

hander wrote: »

It's clear that BTC is gaining acceptability as a form of payment but its current rate of appreciation counteracts people's willingness to spend it. In short, the majority of people buying are doing so as 'insurance' against it going sky high and are most likely hoarding it.

Interesting times. I'm positive about cryptocurrencies in general but the fervour that surrounds BTC at the moment is hardly helping to get it established as anything more than an opportunity to 'get rich quick'. It has happened for a few, of course, but, really, does anyone expect it to happen for many?

I disagree to an extent. The notion that most are buying it to hoard it may be true in the west, but the biggest bitcoin exchanges are now in the far east where I feel the demand is driven by its de-regulated aspect, allowing people in China for example, to send large amounts of money out of the country where they would be otherwise unable due to legislation.

Then there's it's use as an alternative to the likes of Western Union. These antiquated methods of sending money charge extortionate fees, where as bitcoins can be sent instantly, anonymously, and securely for practically zero cost.

I was fortunate enough to speculate (not invest) in Bitcoins a while ago and have seen unfathomable returns. Whether or not Bitcoin survives, the idea of a decentralised global currency which is free from manipulation is very welcome, and I could quite easily see it surviving alongside traditional fiat currencies.

sabretoothtigger

The fact that its game plan points out that by diminishing over time, its 'rarity' is enhanced, makes it particularly useless for anything other than a gamble. Certainly not for something to facilitate transactions for growing economies.

There was the California gold rush where anyone with a spade could pickup nuggets of gold from a riverbed so they had a bucket full in a day. Now that'd take a fleet of JCB a month maybe to do the same, I guess gold is more rare but its also used still for transactions in some countries and the entire world till a few decades ago.

We have the fallacy that only an expanding currency base can contain a growth economy but the opposite still allows greater GDP

Satoshi

I have been trying to get an answer to a simple question on the BitCoin forums -what happens when the last Bit Coin is mined? It should be such a simple question to answer but despite some very confident gibberish answers I still can not get a solid answer.
My question is very simply this........ If I understand it correctly BitCoin is so widely admired for the technical sophistication that allows it to operate without a central authority. Those mining for new bitcoins including myself at present (its called mining to try and make people think its as good as gold and silver) are the ones providing all the computing power to run things around the world. I have to admit it is very impressive, as more people use it more people will be mining for bitcoins and letting their powerful computers be used by the world of bitcoin. Hopefully they will mine enough BitCoins to cover their expensive computer set ups and high electricity bills.
But what happens when the last of the limited number of 21Million BitCoins is mined? Who will provide all that expensive computer power and high electricity bills for no incentive then? The predictions of when this will happen are way into the future but who knows if lots of people decide to start mining for BitCoins it could be sooner than the predictions think.
My point is, the design is flawed and is inherently designed not to last forever. When the end comes it will most likely be a shock and those who trusted BitCoins will be gravely disappointed.

paddyrg

Once the last BTC has been calculated, you don't need the powerful processing power.

Much like gold, you and I can buy and trade in lumps of it, sell it to a pawnbroker, he can do stuff with it. None of us have to go down a mine to use it as a value token. Because we use it as a value token, we agree a price. That price we agree is what makes people open gold mines. Mining is separate from but dependent on people using it as a value token.

When the last ounce of gold is mined, we still use it as a value token. Bitcoin promoters hope we will do the same with bitcoins. 'Mining' needs the powerful computing, use as a token doesn't.

Satoshi

paddyrg wrote: »

Once the last BTC has been calculated, you don't need the powerful processing power.

Much like gold, you and I can buy and trade in lumps of it, sell it to a pawnbroker, he can do stuff with it. None of us have to go down a mine to use it as a value token. Because we use it as a value token, we agree a price. That price we agree is what makes people open gold mines. Mining is separate from but dependent on people using it as a value token.

When the last ounce of gold is mined, we still use it as a value token. Bitcoin promoters hope we will do the same with bitcoins. 'Mining' needs the powerful computing, use as a token doesn't.

Thanks but I have seen similar answers before on the BitCoin forums, it just does not make sense.

who will run the worldwide transactions when no more mining is done? At the moment it is those doing the mining.

gold and silver are physical metals, bitcoin is virtual.

DiggerUK

Satoshi wrote: »

I have been trying to get an answer to a simple question on the BitCoin forums -what happens when the last Bit Coin is mined? ...........When the end comes it will most likely be a shock and those who trusted BitCoins will be gravely disappointed.

The protocols as they stand allow them to move the decimal point 8 places....this allows them to fractionalise current bitcons. What's to stop them moving the decimal point 42 places?
This procedure allows them to cryptoQE as many MiniMeBitcons as they want.

Those who claim that there isn't any 'them', will have to answer how there isn't, when this scam was set up by somebody somewhere, not fairies at the bottom of the garden.

Then of course there is always the ability to open up a new mine out of cyber space.....Bitcon2
..._

dryhat

Satoshi wrote: »

Thanks but I have seen similar answers before on the BitCoin forums, it just does not make sense.

who will run the worldwide transactions when no more mining is done? At the moment it is those doing the mining.

gold and silver are physical metals, bitcoin is virtual.

When there is no more mining to be done, miners will make their money from processing transactions and earning fees for doing so.

Incidentally, although the last coin is due to be mined in 2140, it will never actually happen due to an effect similar to "zeno's paradox"