Bitcoin has dropped in value since last year. I can understand people losing money because bitcoin's value dropped. However, would a lower bitcoin value make the currency more viable? People would have an easier time using bitcoin if the currency is $5 for every bitcoin instead of $1,200.
Bitcoin Question
- Thread starter pgtl_10
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StopMakingSense
Member
No it's incredibly divisible. (8 or more decimals if need be)
That said, don't buy bitcoins.
That said, don't buy bitcoins.
TheLostBigBoss
Banned
Buy bitcoins if you want to hold the most volatile currency that only exists to be instantly exchanged to USD and can be lost if you lose your key.
You missed the money boat by about two years.
You missed the money boat by about two years.
wondermega
Member
BC value has stagnated and been sitting fairly consistently low since that mtgox incident in, what, April? I've wanted to buy some, expecting that at some point they would swoop back up but at this point it seems like a waste.
This. Also, Bitcoin evangelists who keep mentioning that it's a legitimate currency must love the fact that its highly volatile exchange rate might just mean that the pack of gum you bought a week ago with your bitcoins might just have cost you $50 bucks.
BocoDragon
or, How I Learned to Stop Worrying and Realize This Assgrab is Delicious
On the topic, I noticed Blockchain is back on the iOS app
Store. Did Apple go back on their no cryptocurrency wallet app stance? Or is the app crippled in some way?
Store. Did Apple go back on their no cryptocurrency wallet app stance? Or is the app crippled in some way?
People won't use a currency that can (and has) changed value by more than 20% in a single day. Nothing scares people away faster (and rightfully so) than volatility.
Well that, and the fact that so much Bitcoin usage tends to involve shady purchases. Most people don't want to use something that's better known as the currency of drug dealers and questionable online casinos than as a 'legitimate' currency. And don't even get me started on the fraud - so many people in the Bitcoin market are just there to run get rich quick schemes and scams to enrich themselves, making even the act of buying or selling Bitcoin fraught with pitfalls.
Bitcoin isn't counterfeit money because it's not being fraudulently created in an attempt to pretend to be some other kind of money. Remember, 'money' is just some medium that facilitates exchange (among other things); if a bunch of people get together and say that Bitcoin serves as such a medium of exchange, then it's (by definition) money. They're not creating something that attempts to be dollars, or Euro - just something that can be used to facilitate transactions. (Well, at least in theory. The underlying cryptography is sound; the limitation is human nature, and the desire of so many people to enrich themselves at the expense of others through fraud.)
Well that, and the fact that so much Bitcoin usage tends to involve shady purchases. Most people don't want to use something that's better known as the currency of drug dealers and questionable online casinos than as a 'legitimate' currency. And don't even get me started on the fraud - so many people in the Bitcoin market are just there to run get rich quick schemes and scams to enrich themselves, making even the act of buying or selling Bitcoin fraught with pitfalls.
Bitcoin isn't counterfeit money because it's not being fraudulently created in an attempt to pretend to be some other kind of money. Remember, 'money' is just some medium that facilitates exchange (among other things); if a bunch of people get together and say that Bitcoin serves as such a medium of exchange, then it's (by definition) money. They're not creating something that attempts to be dollars, or Euro - just something that can be used to facilitate transactions. (Well, at least in theory. The underlying cryptography is sound; the limitation is human nature, and the desire of so many people to enrich themselves at the expense of others through fraud.)
you don't have to buy whole bitcoins. A lower value wouldn't change the volume of bitcoins on the market, it'd just deflate some numbers.
Bitcoin isn't counterfeit money because the amount of bitcoins that's currently circulating is transparent and the methods of how it's being created are intended.
you can't flood the market with counterfeit bitcoins.
the only thing i'd really blame the bitcoin system for is that people are essentially WASTING POWER to farm bitcoins. Bitcoins carry a nasty carbon footprint.
Could you please explain the mining of Bitcoins? I am unclear on how that works.
Also how does the market know how many Bitcoins are available?
i'm not an expert, so people who are, cmiiw:
the entire production of bitcoins as well as the verification of the system is maintained by a huge network. everyone who mines (basically, running thousands of (pointless?) calculations) will both maintain the integrity of the bitcoin economy, as well as generate bitcoins for you.
The rate at which bitcoins are being generated has a declining slope though, so eventually it will stagnate eventually, limiting the amount of bitcoins that will eventually be available.
i'm not an expert, so people who are, cmiiw:
the entire production of bitcoins as well as the verification of the system is maintained by a huge network. everyone who mines (basically, running thousands of (pointless?) calculations) will both maintain the integrity of the bitcoin economy, as well as generate bitcoins for you.
The rate at which bitcoins are being generated has a declining slope though, so eventually it will stagnate eventually, limiting the amount of bitcoins that will eventually be available.
Thank you for the explanation.
The Bitcoin system sounds very shady. The system is meant to be more transparent but it seems to be even less transparent than a traditional currency.
Also there is a new currency called Darkcoin which seems to be a currency designed for illicit activities.
It's not shady at all. It can be used for nefarious purposes, but that goes for cash as well. The supply of bitcoins and transactions cannot be manipulated or controlled by governments or big companies, which makes it popular to both libertarian types and criminals. Nobody can steal your bitcoin as long as your private address keys are safe.
The volatility swings are problematic, but things have calmed down considerably since last year. Of course, if someone dumps a large amount of bitcoins on the market, the price (in fiat currency) will plummet. That's basic supply & demand and by design there's no way to prevent this.
The technology is legit and it has some interesting features. The network is in place and while it's not exactly thriving, it's quite functional and usable. It took years before the Internet and the Web really took off, the same thing could happen to bitcoin and it may happen overnight. Or maybe something better will come along and make it into a curious footnote in history.
Arrowgigantic
Member
I wanted to make this coin, but I didn't really want to go through all the work to make a coin.
YARANAIKOIN?
YARANAIKOIN?
But what good is your currency if it's value is derived in terms of its conversion rate to fiat currency?
Bitcoin mining is validating transactions. It is made hard so no single entity can take over it (51% attack). One issue is what will happen when there is little incentive and someone with enough equipment could take over the network and block transactions.
Mining pools are where people share their mining power and split the reward depending on how much you contributed. You have to do this because the reward is given every ten minutes to a single "miner" so a solo miner will have to mine for years for a single reward. Sadly mining pools tend to get large because people want a consistent income and one pool has hit 51% in the past.
terrisus
Member
OP, coming after your thread on losing your job, if you're planning on putting money into Bitcoins in hopes of surviving on that, one tip:
Don't
Don't
Well any new currency will take time to be adopted. More and more merchants are accepting it because of services like BitPay. In the meantime being able to trade fiat for Bitcoin and Bitcoin for fiat is only the natural first step. EDIT: I'm not predicting anything here. Just saying that just like anything (i.e. internet) it will take time for adoption of it.
Nothing shady about it. Everyone holds the books and can verify any transaction on the blockchain. If I send you a few bits and you say you didn't receive it, I can look it up and verify that you did indeed receive it.
For day to day stuff, basically none. Anything not illegal is almost always purchased more easily with your fiat money.
It offers consumers basically nothing other than technolibertarian rainbows, kittens, and ice cream.
Broder Salsa
Banned
It's all about titcoins these days.
Educate yourself about Bitcoin by someone who actually knows what they're talking about.
https://www.youtube.com/watch?v=xUNGFZDO8mM
It goes for almost 2 hours, but if you want to be correctly informed about Bitcoin, it's well worth it. Most stuff you find on the Internet it either overly optimistic, or unfairly pessimistic.
My personal opinion is that it's here to stay and will get progressively stronger. There's too much money invested in it, and lots of really smart people getting involved from companies like PayPal. It's certainly worth people's time to at least research and invest in if you have some disposable income.
https://www.youtube.com/watch?v=xUNGFZDO8mM
It goes for almost 2 hours, but if you want to be correctly informed about Bitcoin, it's well worth it. Most stuff you find on the Internet it either overly optimistic, or unfairly pessimistic.
My personal opinion is that it's here to stay and will get progressively stronger. There's too much money invested in it, and lots of really smart people getting involved from companies like PayPal. It's certainly worth people's time to at least research and invest in if you have some disposable income.
Fair point but the OP doesn't have a job right now. OP, please do yourself a favor and wait until you have disposable income before spending it on things like Bitcoin.
I'm not suggesting it won't go lower from here but there has been more than one bubble in Bitcoin, the time it rose to $32, then $266, and then $1200+. All of those bubbles were preceded by a lengthy period of stagnation.
Now could very well end up being a good time to buy. I don't suggest putting a lot of money in something so volatile, but at these prices, just buying one coin may pay off in the long term if it really takes off.
Still banned. I am also curious for an update.
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