This year's best investment up 5250% ...

sabretoothtigger

Lokolo wrote: »

LOL. Now I know you're talking crap.

It could be that important to some who lose alot of money from their local currencies.

2nd point is, BTC has not been that volatile for 6 months. Its not grown massively either. The current trend is industrialisation

The economy of BTC is about a few billion now, so its big enough to attract professional interest.

I dont think its a fad but there are many currencies in greater demand then this one.

A criminal was caught using BTC recently, its not totally an untraceable system actually the transactions are listed publicly which would be inferior to old Switzerland system I guess. I have a copy of every BTC receipt ever made, doesnt this make it more open then our current system where new money can be created for some without consent or even knowledge of others

So crime is not its backbone either, any more then dollar bills are useful to criminals or diamonds? Many people wear a diamond but its a well worn system that can fund vicious civil wars. I wouldnt accuse those people of aiding war crimes.
Theres a great deal of suffering aided by the dollar system, hopefully BTC or similar will increase competition - this makes it a positive in the world

jimjames

Did a bit more reading and the first article started like this...

Bitcoin isn’t a get-rich-quick scheme: no matter what you do it’s extremely unlikely you’ll become a millionaire overnight. Like any currency, bitcoins aren’t even guaranteed to hold their value from one day to the next. But if you’re curious and want to learn more about this fascinating economic experiment, read on.

Read more: How to earn, spend and mine bitcoins | Analysis | Features | PC Pro http://www.pcpro.co.uk/features/384190/how-to-earn-spend-and-mine-bitcoins#ixzz2icWvACXn

late_bloomer

I like the idea of BitCoins - Unlike fiat currency, it can't be printed and thus should it become widely adopted will tend to increase in value due to the strictly limited supply. A nice change to what's going on today in the US and UK where relentless QE is eroding the value of our money.

I think that the main risk is that there are very powerful people, institutions and, of course governments that will do whatever the heck they can to stop bitcoins from gaining traction. Anytime something comes along that is threat to their power and control, there will be a fight.

Apart from anything else, I just like the fact that is not controlled by anyone.

Linton

late_bloomer wrote: »

I like the idea of BitCoins - Unlike fiat currency, it can't be printed and thus should it become widely adopted will tend to increase in value due to the strictly limited supply. A nice change to what's going on today in the US and UK where relentless QE is eroding the value of our money.

....

If bitcoin will increase in value why should anyone ever use it for buying their groceries or whatever? Why not save it? And if it isnt used for purchasing what use is it?

Relentless QE doesnt seem to be eroding the value of our money. Our inflation rate now is not very different to what it has been for the last 20 years and rather lower than for the 20 years prior to that

Glen_Clark

Linton wrote: »

Relentless QE doesnt seem to be eroding the value of our money. Our inflation rate now is not very different to what it has been for the last 20 years and rather lower than for the 20 years prior to that

Depends how you measure inflation . The Government has a vested interest in only measuring the things that haven't risen much. Land prices have tripled since QE began, London house prices up 12% in 4 weeks, but that doesn't count. They prefer to measure the price of cheap electronic imports (But how much longer can we keep running up the national debt to buy them?)

brasso

late_bloomer wrote: »

I think that the main risk is that there are very powerful people..... that will do whatever the heck they can to stop bitcoins from gaining traction.

Ah yes, those people... the ones that conspiracy enthusiasts like to describe as "shadowy", and who are blamed for everything.

You think they are the main risk (if indeed they exist)? You don't think that shameless speculation, ramping, and a volatility that sees this would-be currency bouncing up and down 1900% in one year are greater risks?

I've said it before and will say it just once more. Something that wants to be a currency has to have total credibility. People need to rely on it and have a rough idea what its value is. To jump 1900%, then plunge 60% because a drug-dealing website gets shut down, before hurtling upwards again makes it a laughing stock as a wannabe currency.

If you want to be wary of individuals in relation to this issue, I suggest that bigger villains (and real ones, not imaginary bogeymen) are the rampers. These people don't speak from a position of neutrality; they are speculators who have bought a stock of these geek-units and then do the rounds, trying to talk them up in the hope that the gullible will bite. It's shameful self-interest and is exactly the sort of unethical speculative behaviour they love to deride in others. The guiding principle seems to be: If I benefit from it, it's testament to my sound investment instincts, but if others benefit instead of me, they are selfish speculators who have ruined the global economy and should be thrown in jail.

SavingFish

If you're "investing" in bitcoins I hope you're keeping track of all your acquisitions and disposals. You'll need that information for tax purposes.

Of course if you're exchanging them directly for goods and services you'll also need a record of the exchange rate at that time, or to obtain a Sterling valuation for each transaction.

Wouldn't want anyone to get caught out for accidental tax evasion.

Glen_Clark

brasso wrote: »

. Something that wants to be a currency has to have total credibility. People need to rely on it and have a rough idea what its value is. To jump 1900%, then plunge 60% because a drug-dealing website gets shut down, before hurtling upwards again makes it a laughing stock as a wannabe currency.

I wish you were wrong because I would love to see the Bank of England lose its monopoly on printing money in England. They have been abusing it for far too long. Printing money to create inflation robs the poor to give to the rich and they seem as hooked on it as a junkie on heroin.
But unfortunately you are right.
The most powerful vested interests will undermine Bitcoin if it becomes credible enough to threaten their monopoly.

late_bloomer

Linton wrote: »

If bitcoin will increase in value why should anyone ever use it for buying their groceries or whatever? Why not save it? And if it isnt used for purchasing what use is it?

Relentless QE doesnt seem to be eroding the value of our money. Our inflation rate now is not very different to what it has been for the last 20 years and rather lower than for the 20 years prior to that

QE is eroding the value of our money. Regarding the statistics - inflation statistics are produced by the government, the very people who have a very strong vested interest in making sure that inflation rate appears to be low to protect against rising interest rates which both the UK and the US can't afford due to debts.

In other words, statistics are likely not the full picture. I've certainly noticed that my money doesn't stretch as far as it used to - I don't need government inflation rate statistics to show it.

Archi_Bald

late_bloomer wrote: »

QE is eroding the value of our money.

What's the alternative you suggest to keep the country alive?