nanogeek at April 5th, 2013 04:32 — #1
Do any of you have Bitcoins? How do you feel that there price rose so sharply before being dropped by hackers? What did you use them for?
Personally, I haven't got any but I have a friend who bought 5 Bitcoins at $50. He sold 3 for $145 later on.
brisingrkill at April 5th, 2013 05:39 — #2
Don't have any my self. I think it is just a fad to do with the lowering of real world money.
A easy way to liken it to is fine wine. wine works because it has people investing in the wine to make a profit down the road. like Bitcoin you only make more if the interest in the currency is strong enough to justify the high price same as for wine. the interest in one vintage will push the price up. but as with any thing the price can be artificially heightened. in wine the price is just been artificially raised by the Chinese in resent years. like the price of bit coins being raised by the resent events in Europe. The problem of having the price inflated means that the fall at the other end will be catastrophic and will see a big decline. As with wine the market got to big the Chinese started making there own wine and some chateau moved out of the market to direct sales and have had a down turn in profit. The same could happen to Bitcoin as the people who entered on the back of declining European markets exits when thy have recovered the currency falls in value.
Bitcoins may get enough of a following to survive the problems but since the currency is not backed by anything like real world currency (resources, economy etc). It is only backed by user interest. it will have a hard time justifying a high price if it gains enough user use.
As with hacking real world banks get hacked all the time same with Bitcoins. Bitcoin is harder to hide incidents of hacking because it is web based so has more exposure than regular banks. Bitcoin,s equivalent to a bank is a wallet. so hacking will be more prevalent with Bitcoin as it doesn't have the same backups as banks or the level of user input to replace lost money.
as with using Bitcoins. you use them as you use ordinary money on the web, just you have to use services that except them. There are a few banks that are trying to bring Bitcoins to the real world so you will be able to have instant transfer from Bitcoins to real world currency.
overall hopefully Bitcoins take off big time as it will decentralize currency and stop a lot of the problems with real world currency.
nanogeek at April 5th, 2013 06:38 — #3
interesting thoughts, i personally hadn't thought of them exactly like that.
There is an interesting point in this article about what hackers might be trying to do:
ladyfitzgerald at April 5th, 2013 08:51 — #4
Reminds me of the 17th centuryTulip Craze.
anon_user at April 5th, 2013 08:54 — #5
Never understood why anyone would be willing to pay hard cash for Virtual cash.
ladyfitzgerald at April 5th, 2013 08:57 — #6
Easy. Greed. Speculators want something for nothing and have no problem with someone else footing the bill for them.
anon_user at April 5th, 2013 09:04 — #7
But it wouldn't be greed as it's just Virtual, as long as no-one pays hard cash for them then there is nothing to be made.
And as for the exchange rate...you've gotta be joking, especially paying for food and shopping apparently the hassle you go through just to prove that you're not pulling a 'fast one'.
Just plain silly in my book, still, if hackers want Virtual money I have some spare money from an old Monopoly game £100 monopoly I am willing to sell for £1000 hard cash.
Any takers ?
nanogeek at April 5th, 2013 09:05 — #8
Some people used them as an investment (like gold and real estate). Others want to operate in more shady activities anonymously.
nanogeek at April 5th, 2013 09:06 — #9
Ah but you cannot generate Bitcoins easily. Mining is a long and arduos process
anon_user at April 5th, 2013 09:06 — #10
So is Monopoly
nanogeek at April 5th, 2013 09:08 — #11
Nice! I don't quite understand what you exactly trying to argue here?
anon_user at April 5th, 2013 09:12 — #12
Just that I don't see the point in Virtual money, no body made money in the sims and tried to sell their cash off for real cash so why bother now, there's nothing to say that it's going to be a worthwhile investment. Not unless someone has inside knowledge about the worlds currencies.
nanogeek at April 5th, 2013 09:15 — #13
Well, the difference is that people can buy real items for BitCoins, Monopoly Money or Simolians has no real world value. They are too easy to make, so there is no trust in the system. You have to imagine Bitcoins as another country's currency, and that you are going for the exchange rate into it. Except there is no cash. it is all on the credit card
anon_user at April 5th, 2013 09:18 — #14
I understand what you're saying but you try paying for goods with them and see how much you get bounced about before you get accepted as a legit consumer.
nanogeek at April 5th, 2013 09:24 — #15
If you are in the U.K there is a video game made by E.A(sigh) called FIFA 13(I don't play it much) . Within this game there is a mode, called Ultimate Team. Madden may have this same feature. You buy your players for a virtual cash, imaginatively named ... coins. You get about 500 coins if you complete a match- quite a small amount. (There are other ways to get cash.)
Now to the important part. There is an auction House where you can buy or sell players. Some people trade players buy buying them low and selling them higher. This gives them profit. The profit margins are not high as there are so many players, and EA issues a 5% tax when you sell players. Hence it is not easy to make this money trading either. This is important as it puts trust into the system that your coins will be worth the same amount of players in the long run.
Due to the fact that this happens, you can buy FIFA coins for real cash, and many people do. It is just on a different scale. You can also sell them on(admittedly not for as much). the reason this happens is that making money requires work... what does this remind you of? Money is always minted... it is not limited edition. And there is enough coins that there wil never be the problem of some people hoarding them all. This creates trust in the system, and so you can buy and sell these coins on from third party's. For example http://www.fifacointrader.com/
nanogeek at April 5th, 2013 09:25 — #16
Some places will happily accept them, no questions asked. A BitCoin is a BitCoin in their eyes
bubbatie1 at April 5th, 2013 10:10 — #17
hermitt at April 5th, 2013 10:24 — #18
HAHAHAHAHA!! Bubbatie1, that's an excellent response to Bit Coins. LOL
nanogeek at April 5th, 2013 10:27 — #19
hahahahahha, saw that in a maths lesson a while ago.
nanogeek at April 5th, 2013 10:34 — #20
meh... We can sum up this thread in 3 Words:
Who needs BitCoins?
Actually we can do it in 2:
In fact I think that I can do it in 1:
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