Bitcoin Query

Cotta

dryhat wrote: »

This time last year I was paying £11 per bitcoin.

And in 12 months time, £516 may seem as cheap as £11 does now.

But regardless of the price, the true value of Bitcoin lies in the core technology - a brand new technology with the potential to revolutionise the world economy.

I'm assuming Bitcoins can't just be bought for the going rate, rather they are purchased for what someone is selling them for?

dryhat

puk999 wrote: »

I confess to knowing nothing about Bitcoin, but there are alternatives to Bitcoin with similar technologies, so who is to say that Bitcoin won't wither and die?

For example, Bitcoin could be Betamax and Litecoin VHS

You are correct of course. Other coins offering something different or better could overtake bitcoins. Nobody knows.

But what is not in doubt is the revolutionary aspect of this new technology.

Bitcoins (as currency) were the first manifestation of the new technology. The first "app" if you like. But the technology allows for so much more.

It solved a problem which was considered unsolvable and all other coins more or less copy the idea.

dryhat

Cotta wrote: »

I'm assuming Bitcoins can't just be bought for the going rate, rather they are purchased for what someone is selling them for?

The "going rate" is down to market forces. That is, whatever price willing and able sellers and buyers agree on.

Cotta

I just went onto "localbitcoins" and the cheapest Bitcoins to buy seem to be £527, however when I select selling the cheapest seem to be £101, what does this mean and why the difference?

dryhat

Cotta wrote: »

I just went onto "localbitcoins" and the cheapest Bitcoins to buy seem to be £527, however when I select selling the cheapest seem to be £101, what does this mean and why the difference?

With localbitcoins you are buying from individuals. The site just introduces buyers and sellers, but the deal is done privately between you.
The higher price you pay is for the convenience of not having to go through the long-winded and arduous process of getting verified at exchanges like Bitstamp or Mt.gox. These "proper" exchanges require this because you buy and sell through the exchange and they allow cash payments and withdrawals so have to satisfy anti-money laundering and "know your customer" rules.

As for the selling price, you have to be aware that some scammers are out to confuse and trick people.
Be wary when you see very high or low buy/sell prices, particularly from people with low volume and feedback.

bitkeef

You can also use the CoinDesk bitcoin price Index to see prices.

You can also sell through bitbargain in the UK once you are signed up as a seller.

Make sure you know what mBTC and exactly what and how much you are paying for. Perhaps read up a little first, as there are a lot of scammers out there.