Bitcoins

grey_gym_sock

it's really more like fiat currency, or even precious metals, rather than shares. in that it doesn't produce an income.

sabretoothtigger

the value could rise to $100,000

Not sure why the price would only go one way. Gold has very limited supply, far slower then the world population, but as people have noted it still goes down for many years though over decades obviously it goes up

Think I'd rather have the physical PM, a bit of code that says I have 100k is too fragile and its proposed advantage - that no legal court can confiscate is also a downfall as there is nothing to back it either.

All codes can be broken ? Ask the third Reich how their unbreakable enigma code worked out for them for example

DiggerUK

Bitcoins are a bit like theories of backwardation in markets; they sound deeply meaningful and full of promise, but you need a dictionary written by Lewis Caroll to make out what the hell it is all about.

And that means you get to learn b()gger all about what anybody is talking about.

You could just as easily say that the answer is 42 of course, at least you wouldn't sound stoopid.
..._

JohnRo

sabretoothtigger wrote: »

All codes can be broken ? Ask the third Reich how their unbreakable enigma code worked out for them for example

Open source, it's the exact opposite of enigma. Everyone can see every little change and analyse it in infinite detail, because there is no central control there is no one who can dictate the code.

sabretoothtigger

If its open source, how can it not be spoofed or is the idea this would not be possible en masse
A perfect system is very unlikely, its more how do they correct mistakes. If the code for bitcoins is known why do people bother to mine, obviously there is something to that process and its apparent limit of 21m

drc

What do people think about these?

Are they going to be a credible alternative to the current monetary system or will they go the same way as the Dutch Tulip frenzy?

They used to be discussed a lot on conspiracy/fringe websites but now are being discussed in mainstream 'papers' like The Guardian, Economist etc.

vivatifosi

I'm a bit concerned about the Indie article and how they are being used to buy and sell drugs anonymously. Up until then I'd thought they were a bit pointless. As a concept I wouldn't want to 'invest' as too risky.

ruggedtoast

I think they are mostly used to buy guns and illegal pornography. I wouldn't be rushing to associate myself with them.

antrobus

drc wrote: »

...Are they going to be a credible alternative to the current monetary system or will they go the same way as the Dutch Tulip frenzy?....

Bitcoins are Global Tulips.

vivatifosi wrote: »

.. . As a concept I wouldn't want to 'invest' as too risky.

It's the fact that they're being touted as an 'investment' that's the red flag.

ruggedtoast

http://www.guardian.co.uk/technology/2011/jun/22/bitcoins-how-do-they-work

Basically looks like you are relying on a bunch of computer nerds to keep wanting to pay actual cash for them.