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The Everything Bitcoin Thread

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"We do believe that Bitcoin will play an important role in payments in the future, but we have nothing to announce," eBay spokeswoman Jennifer Hakes said.

http://www.reuters.com/article/2014/08/14/us-bitcoin-ebay-idUSKBN0GE2D420140814

They do now!

EBay's own PayPal announced it will start accepting bitcoin "over the coming months"...

http://www.bloomberg.com/news/2014-09-08/ebay-s-paypal-unit-to-start-accepting-bitcoin-payments.html

Edited by CanadianLoonie

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Incorrect on an epic scale.

Fiat currency is fiat because of government fiat ie. laws and orders/rules and regulations, aka because the government said so.

Or in your lexicon, government makes it legitimate.

So until a government passes legal tender laws declaring bitcoin to be use for payment, bitcoin is not a fiat currency.

The Canucks will win back-to-back Stanley Cup championships before that will happen!

Its backed by nothing, so by your standard, its the same as government currency.

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Certainly, but I'm talking about VALUE as you've discussed it previously.

Value is subjective, it is what people thinks and/or feels something is worth.

US dollars in the form of Federal Reserve Notes can be printed/electronically created by the Federal Reserve at any time in unlimited quantities as they see fit for whatever reason.

Bitcoin as a protocol/algorithm is limited by its current source code to produce only 21 million coins over a 131 year period between 2009 and 2140...and the rate of production is predictable and can be clearly mapped out between then and now.

So the bitcoin inflation rate is around 10% annualized right now, but in around 10 years time, the rate drops below 1% annualized, which will be lower than the rate of annual worldwide gold production.

And in case some didn't know, gold in mined out of mostly gold mines by mining companies.

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Value is subjective, it is what people thinks and/or feels something is worth.

US dollars in the form of Federal Reserve Notes can be printed/electronically created by the Federal Reserve at any time in unlimited quantities as they see fit for whatever reason.

Bitcoin as a protocol/algorithm is limited by its current source code to produce only 21 million coins over a 131 year period between 2009 and 2140...and the rate of production is predictable and can be clearly mapped out between then and now.

So the bitcoin inflation rate is around 10% annualized right now, but in around 10 years time, the rate drops below 1% annualized, which will be lower than the rate of annual worldwide gold production.

And in case some didn't know, gold in mined out of mostly gold mines by mining companies.

So how is one different from the other except for the fact that legal tender is government-issued? Would you accept bit coin for your newsletter?

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So how is one different from the other except for the fact that legal tender is government-issued?

Did you read how the respective quantity is produced?

One is a debt liability of a central bank with all of it's negative baggage in tow, the other isn't.

One can be sent over the Internet like any other piece of information like any other Internet protocol to any device on the Internet worldwide, for the other an international wire-transfer is almost always routed through the Federal Reserve Bank of New York where a certain government can scrutinized and potentially have control over international capital flows.

If you want to transport fiat banknotes over borders, customs laws limit how much you can bring in/take-out without declaring it, with the other you can bring in millions of dollars worth pass customs on a USB flash drive and nobody will ever suspect it.

Privacy FTW!

Would you accept bit coin for your newsletter?

Yes, bitcoin is happily accepted and is actually preferred over fiat.

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Bitcoin price plunges, prompting concerns about ‘mining’ activity

Bitcoin is getting hammered in markets that trade the digital currency, prompting providers of its core computing infrastructure to shut down operations.

The sell off, which appears to have been exacerbated when Asian traders were forced to meet collateral demands under margin trading rules, left bitcoin down 14.49% at $194.04 in the late New York morning Wednesday, following a 15.02% plunge Tuesday, according to news service Coindesk. The digital currency is now down 39% from Dec. 31 alone and is off 83% from the all-time high of $1,165 that it hit at the end of a furious rally in November 2013.

That price decline is creating something of a mini-crisis in the business of bitcoin mining, the vital process through which new bitcoins are added to the money supply. Working within a network of independent computers, bitcoin miners are tasked with confirming transactions initiated by users of the digital currency and compete to solve a mathematical puzzle in order to be compensated for that work with newly issued bitcoins.

As the price of bitcoin falls against the dollar and other fiat currencies, it induces miners to shut down operations, because they can no longer cover costs such as equipment, rent and electricity quoted in those traditional currencies. The problem was made more acute by what had been a yearlong, exponential buildup in mining infrastructure -- machines comprised of highly specialized, super-powerful computers -- which made competition for bitcoins tougher. Bitcoin’s core software algorithm periodically adjusts the difficulty of its mathematical puzzle to keep it in line with the amount of computing power in the network. That way, new bitcoin payouts are kept to more or less a 10-minute schedule regardless of how well equipped the miners are to solve the puzzle.

On Monday, CEX.io, a company that mines bitcoins on behalf of clients that rent out its computing power, announced that it would temporarily halt this “cloud mining” operation, citing “the recent bitcoin price drop, as well as the upscaling of the mining difficulty.”

http://www.marketwatch.com/story/bitcoin-price-plunges-prompting-concerns-about-mining-activity-2015-01-14-121034915?dist=lbeforebell

***********************************************

How big a death wish does one have to have to buy this on margin?

Edited by nuckin_futz
  • Upvote 1

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Flushing out speculators and get-rich-quick types is a good thing...

Yup, an 83% decline over 15 months is always a good thing.

LOL

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Yup, an 83% decline over 15 months is always a good thing.

LOL

Not the first time it has happened...

2015-01-13_15-10-49.png

Looks like a recurring pattern, no?

BTCUSD201314.png

Edited by CanadianLoonie

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Looks like a recurring pattern, no?

No, sadly it doesn't.

Fess up CL. How underwater are you on your Bitcoins?

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No, sadly it doesn't.

Fess up CL. How underwater are you on your Bitcoins?

Give it up. Bitcoin can drop to 1 dollar Tmr and CL will still tell you it's a good sign because it started at 1 cent a couple years ago

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Give it up. Bitcoin can drop to 1 dollar Tmr and CL will still tell you it's a good sign because it started at 1 cent a couple years ago

I am willing to say bitcoin will trade at parity with the price of gold by the end of this decade and will offer up a 1 oz. Gold Maple Leaf as a wager if anyone wants to take me up on it...any takers?

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I am willing to say bitcoin will trade at parity with the price of gold by the end of this decade and will offer up a 1 oz. Gold Maple Leaf as a wager if anyone wants to take me up on it...any takers?

I don't think bitcoin will exactly do that, but some other cryptocurrency legitimately back by some government or institution might..

I remember reading somewhere the bank of Canada is considering introducing their own cryptocurrency.

Edited by drummer4now

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I don't think bitcoin will exactly do that, but some other cryptocurrency legitimately back by some government or institution might..

I remember reading somewhere the bank of Canada is considering introducing their own cryptocurrency.

Yeah, its not the bitcoins themselves that will have lasting value but the underlying technology. Paypal, Visa, Mastercard, Interac, Apple Pay, etc are all working hard to try to become the ubiquitous virtual wallet of tomorrow and this form of technology may be the type of framework some of them will use to one extent or another.

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So thought i would bump this up. Bitcoin seems to be going back up. Ive never paid attention until now to be honest. But im at that point in my life where i have a bunch of money saved, and im looking to start making moves.

Im 25, im already tired of working after only 9 years. While i know my work life is far from over Im looking to start investing to make my money work for me, im exploring all avenues,ive never invested per say, at 25 i already own my own home, but im looking at making some serious moves, and this Bitcoin thing really keeps getting in my head, it is a SUPER high risk, but at the same time could be a really huge reward. Ive also looked into opening a business, and investing in real estate. But that seems so old fashioned, and lets be honest, we all want to be millionaires, with real estate its possible if you make the right moves. Opening a business in todays day and age (im talking a convinience store...) wont get you far very fast atleast. The internet in todays day and age seems to be the fastest avenue to becoming a millionaire.

Do you guys who are knowledgeable in bitcoin really think it could take off at some point? Is this a ship worth climbing aboard? Or are there better options out there? Obviously im very new to the investing game, im researching as much as possible to make the wisest choice possible.

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I did work in fort mac for 3 months on the patch, but have been in sales the past 5 years. I make a really good living doing what im doing. But my only method of making money at the moment is a pay cheque from my job. Id like to generate more income from other areas.

Also i dont live in Vancouver haha. Housing is more affordable in the Okanagan.

Maybe im naive, as im in the early stages of my research, but from what i have read so far, Bitcoin could be the next big thing, it has already soared once before, and plummeted, but maybe it could really take off again? Its very risky but who knows right? How many people wish they could have invested in Microsoft or Apple when they first got started and missed the boat?

Edited by CanuckGAME

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I did work in fort mac for 3 months on the patch, but have been in sales the past 5 years. I make a really good living doing what im doing. But my only method of making money at the moment is a pay cheque from my job. Id like to generate more income from other areas.

Also i dont live in Vancouver haha. Housing is more affordable in the Okanagan.

Maybe im naive, as im in the early stages of my research, but from what i have read so far, Bitcoin could be the next big thing, it has already soared once before, and plummeted, but maybe it could really take off again? Its very risky but who knows right? How many people wish they could have invested in Microsoft or Apple when they first got started and missed the boat?

Nobody knows, obviously. It's very high risk, which you have already said... and it's a gamble, like any sort of high risk high reward investment. If you're willing to risk and quite possibly lose your investment with hopes of beating the odds - go for it.

In my opinion, you're better off investing some cash into the oil/energy sector. While it may not have quite bottomed out completely yet, it will most likely rebound within the next 5 years or so. As long as your patient, it may be a safer bet in the medium term.. not to mention you'll probably collect some dividends in the meantime.

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