Bitcoin hits 500$

[brbacquiring]

Interesting. I have a couple of grand around, I could buy a few. But then I could have invested it in any other market or currency that's seen crazy movement in the last few years. But I just cba with gambling, I suppose.

[believebrah]

what is a bitcoin in terms of its architecture, how can it be mined and what do you mean when you say there is a limited number left and it gets harder and harder to mine it?

[darkeminence]

what is a bitcoin in terms of its architecture, how can it be mined and what do you mean when you say there is a limited number left and it gets harder and harder to mine it?

For beginners: https://en.bitcoin.it/wiki/Main_Page

Bitcoins are mined by millions of people running a mining program that solves complicated algorithms on their pc. Once one of those algorithms is solves (they call it a "block") a block of 25 bitcoins are released amongst the people who participated in mining the block. Nowadays the competition for mining is so high, they can only be mined using specialized hardware called ASIC miners, which cost buttloads of USD. Because the more people are mining, the smaller your share of the released bitcoins will be. And the hashrate (the global rate at which all the miners in the world are mining) is increasing exponentially every day, only the people with the most powerful ASIC miners will get the biggest share of the released bitcoins.

Bitcoins aren't "coins" exactly. The way the bitcoin network works is through transactions. Transactions are tied to addresses, and if you have the private key of the address (the public key), you can access the bitcoins (the transaction amount).

[ze all knowing]

the next step for bitcoin is to see what governments do regarding it. (ie if the US outlaws it...good bye sweet bitcoin) however if they adopt it and recognise it..hello $$

[Flapjacko]

the next step for bitcoin is to see what governments do regarding it. (ie if the US outlaws it...good bye sweet bitcoin) however if they adopt it and recognise it..hello $$

They can't outlaw a currency, has it ever been done?

[darkeminence]

the next step for bitcoin is to see what governments do regarding it. (ie if the US outlaws it...good bye sweet bitcoin) however if they adopt it and recognise it..hello $$

They never said they were going to outlaw it. I'll just quote this again for the heck of it:
http://www.hsgac.senate.gov/media/ma...oad-20-website

“This new website – launched barely a month after Federal agents shut down the original Silk Road -- underscores the inescapable reality that technology is dynamic and ever-evolving and that government policy needs to adapt accordingly. Rather than play ‘whack-a-mole’ with the latest website, currency, or other method criminals are using in an effort to evade the law, we need to develop thoughtful, nimble and sensible federal policies that protect the public without stifling innovation and economic growth. Our committee intends to have that conversation – among others - at our hearing this month on virtual currency.”

[yummy22]

yeah noone is going to buy those coins from you when they are that high lol

[Anubis18]

They can't outlaw a currency, has it ever been done?

The US has put restrictions on them already afaik, alot of people had their bank accounts closed when they sold bitcoins through an exchange and had the USD sent to their account. They can't outlaw it globally, but they have already stated they think its used for money laundering and drug dealing, and so they want to close the exchange sites. No exchanges, no way to get or sell the bitcoins, it will collapse. I dont see this happening in the whole world, but I think its very possible in the US

[BigMass]

its a total bubble. Why? because nobody is buying bitcoin because it's a great alternative currency or a store of value. People are buying it because of the greater fool mentality. Nobody wants bitcoin. What they want is government currency, US dollars etc. The only reason they buy bitcoin is because they're hoping to sell it for more than the bought it for to the next idiot. Nobody really thinks bitcoin is worth $500. What they really think is that they're going to put in $500 USD and sell it for $600 USD. If you can't see how that can't go on forever and how it will eventually end in a total collapse I'm sorry but I can't help you

[yelojackt]

i personally would never store my wealth into something i couldnt physically touch lol.

[Anubis18]

its a total bubble. Why? because nobody is buying bitcoin because it's a great alternative currency or a store of value. People are buying it because of the greater fool mentality. Nobody wants bitcoin. What they want is government currency, US dollars etc. The only reason they buy bitcoin is because they're hoping to sell it for more than the bought it for to the next idiot. Nobody really thinks bitcoin is worth $500. What they really think is that they're going to put in $500 USD and sell it for $600 USD. If you can't see how that can't go on forever and how it will eventually end in a total collapse I'm sorry but I can't help you

I'm of the opinion that silkroad and the other TOR blackmarkets are the only thing keeping bitcoin afloat, the amount of legit businesses that accept them is laughable and they can't possibly compete with more established companies that deal in regular currencies. You are right that most people just buy to resell them, but the people who actually use them IMO are almost entirely on the blackmarkets. The only real advantage to most people is the anonymity, buying and selling bitcoins currently is a pain in the ass and totally not worth it to buy something legal that you could easily just pay regular money for

[yelojackt]

bitcoins are not good stores of wealth because they can easily be stolen or hacked while you have no physical way of hiding them

[darkeminence]

its a total bubble. Why? because nobody is buying bitcoin because it's a great alternative currency or a store of value. People are buying it because of the greater fool mentality. Nobody wants bitcoin. What they want is government currency, US dollars etc. The only reason they buy bitcoin is because they're hoping to sell it for more than the bought it for to the next idiot. Nobody really thinks bitcoin is worth $500. What they really think is that they're going to put in $500 USD and sell it for $600 USD. If you can't see how that can't go on forever and how it will eventually end in a total collapse I'm sorry but I can't help you

And I guess the same isn't done with gold or silver or anything else that holds value? Same principle with gold, one would only buy it hoping it would increase in value. Industrial uses for gold are minimal, most of its value comes from speculation. Bitcoin has far greater uses than gold, it's rarer and more secure and you can't see the actual value of that?

[darkeminence]

bitcoins are not good stores of wealth because they can easily be stolen or hacked while you have no physical way of hiding them

Lol you can actually store the passcode for a bitcoin wallet in your brain, they call that a brain wallet. I don't see how it gets anymore physical than that. You can make paper wallets with the wallet private key on them, and store them in a safe...

And welcome to the digital age. Gold can also be stolen if you lay it out on the sidewalk in front of your house. So why would you load bitcoins onto an unsecured computer? Everything is changing brah

[aznb01p]

And I guess the same isn't done with gold or silver or anything else that holds value? Same principle with gold, one would only buy it hoping it would increase in value. Industrial uses for gold are minimal, most of its value comes from speculation. Bitcoin has far greater uses than gold, it's rarer and more secure and you can't see the actual value of that?

Are you implying we use a gold standard right now?

[BigMass]

I'm of the opinion that silkroad and the other TOR blackmarkets are the only thing keeping bitcoin afloat, the amount of legit businesses that accept them is laughable and they can't possibly compete with more established companies that deal in regular currencies. You are right that most people just buy to resell them, but the people who actually use them IMO are almost entirely on the blackmarkets. The only real advantage to most people is the anonymity, buying and selling bitcoins currently is a pain in the ass and totally not worth it to buy something legal that you could easily just pay regular money for

the transactional value of bitcoin was / is around $5-$25. The extra $475 is pure speculation and gambling

[darkeminence]

Are you implying we use a gold standard right now?

I'm not. But why is gold legitimized as an investment while bitcoin isn't? It's the same fukin principle only bitcoin has far greater uses than some chitty metal that looks shiny.

[yelojackt]

And I guess the same isn't done with gold or silver or anything else that holds value? Same principle with gold, one would only buy it hoping it would increase in value. Industrial uses for gold are minimal, most of its value comes from speculation. Bitcoin has far greater uses than gold, it's rarer and more secure and you can't see the actual value of that?

gold and silver are the OPPOSITE of bitcoins. bitcoin is a fiat currency at its best! there is no way to regulate/protect/physically exchange it

EDIT: and it has no inherent value!

[ViewCart]

ITT: everyone regret not buying them when they were cheap, saying now its too late.

In the next BC thread in a couple of months: everyone regrets not buying them when they were 500$

[hewhodar3s]

ITT: everyone regret not buying them when they were cheap, saying now its too late.

In the next BC thread in a couple of months: everyone regrets not buying them when they were 500$

could happen, but it's also just as likely they will crash again and people can then buy into it

[lunchbox12]

gold and silver are the OPPOSITE of bitcoins. bitcoin is a fiat currency at its best! there is no way to regulate/protect/physically exchange it

EDIT: and it has no inherent value!

uwotm8 not sure if srs or trolling

[BigMass]

And I guess the same isn't done with gold or silver or anything else that holds value? Same principle with gold, one would only buy it hoping it would increase in value. Industrial uses for gold are minimal, most of its value comes from speculation. Bitcoin has far greater uses than gold, it's rarer and more secure and you can't see the actual value of that?

pretty much everything you wrote is completely incorrect. Always amused at people's ignorance

[BigMass]

ITT: everyone regret not buying them when they were cheap, saying now its too late.

In the next BC thread in a couple of months: everyone regrets not buying them when they were 500$

lmao and people say it's not a bubble

[aznb01p]

I'm not. But why is gold legitimized as an investment while bitcoin isn't? It's the same fukin principle only bitcoin has far greater uses than some chitty metal that looks shiny.

You think the governments and corporations are going to trade in bitcoins? I could exchange apples for money, doesn't mean I'm paying off student loans w/ them.

[EssexBrah]

could happen, but it's also just as likely they will crash again and people can then buy into it

This is the problem, its so unpredictable you never know whats going to happen

[Anubis18]

gold and silver are the OPPOSITE of bitcoins. bitcoin is a fiat currency at its best! there is no way to regulate/protect/physically exchange it

EDIT: and it has no inherent value!

Well gold only has value because we place value on it, and bitcoin is also limited in supply just like gold so they can't just make more and devalue it. I'm not sure what you mean theres no way to regulate/protect/exchange it though? They are trying to regulate it, and you obviously can exchange it, protecting it is a matter of protecting the pc/usb where its stored or you can even make a paper wallet and store that.

[Tzaddiq]

ITT buy high, sell low

[darkeminence]

pretty much everything you wrote is completely incorrect. Always amused at people's ignorance

Then tell me mr wizard what's wrong about what I said.

[jamesbwbevis]

ITT: everybody has 30k+ lying around to invest in bitcoins, and everybody ''almost did it'', but no one actually did

lol this

[Dutchspliff]

bitcoins are not good stores of wealth because they can easily be stolen or hacked while you have no physical way of hiding them

you can store them on a physical plastic card, so what you are saying is not true.