The end of Bitcoin or cryptocurrency in sight?

[FizzyFantom]

coins drop all the time, hopefully it will die but I doubt it will because stupid people like to put value on things that don't have any actual value.

I take issue with your accusation of stupidity when you yourself clearly lack understanding.

Cryptocurrencies are certainly not going any where anytime soon, as much as that might make people upset.

[goldfries]

Well, the prices goes down and probably will go up again. 

PBOC just announced they won't ban BTC and it rose to 420ish. It's going up and down a bit for the past few days.

[Huginn]

 

You stole my line.

Fun fact: We still use the barter system. We trade our time (jobs) for units of currency that everyone trusts is valuable to other people and can be traded for goods. So the currency is a pseudo for our time. We are bartering our time for goods. 

Just saying.

 

Made me think of the movie In Time, completly off-topic.

[Mooshi]

Feel free to send my all your website logins and passwords, preferably bank accounts and such. They are  just bytes of data, they aren't worth anything. :rolleyes:

 

Bytes of data linked the the US dollar which is printed in a country with one of the largest gold reserves on the planet. What does Bitcoin have backing it again besides hopes and dreams?

[helping]

largest gold reserves on the planet.

Relatively speaking it's still quite small. The gold can only back up pennies on the dollar. Gold has nothing to do with the dollar or by extension bitcoin. 

 

Nothing backs the dollar beside the credit of America and the agreed upon value. I can use monopoly money or scribble IOU on a piece of paper with a crayon and it can carry the same value if we agree upon that value. 

 

Bitcoin doesn't need to be backed by anything because the world works with IOU's backed by nothing but an agreed value. 

 

Gold, precious medals, and other valuable materials are usually used only in trade where a country requests a debt paid in some form alternative to assets or cash. 

[Mooshi]

Relatively speaking it's still quite small. The gold can only back up pennies on the dollar. Gold has nothing to do with the dollar or bitcoin. 

 

Gold, precious medals, and other valuable materials are usually used only in trade where a country requests a debt paid in some form alternative to assets or cash. 

 

True, but at least gold is an acceptable asset that's been around for hundreds of years while various currencies, virtual of non, are just bytes of data or funny smelling paper. :V

 

Well, I guess coins count as well..wish we stopped using pennies, though.

[dalekphalm]

Bytes of data linked the the US dollar which is printed in a country with one of the largest gold reserves on the planet. What does Bitcoin have backing it again besides hopes and dreams?

While the US does have a large gold reserve, it's not even REMOTELY close to be enough to back the US dollar. According to the US Federal Reserve website, there is approximately $1.27 Trillion USD in circulation.

 

According to the US Federal Treasury website, there is approximately 261.5 million Fine Troy Ounces of Gold held in reserve, with current market value (As of March 31st, 2014) of just slightly over $11 Billion USD.

 

So, what is the US dollar backed again? Your argument is extremely, painfully flawed. The US Dollar is backed by less than 1% Gold (0.8% specifically).

[helping]

True, but at least gold is an acceptable asset that's been around for hundreds of years while various currencies, virtual of non, are just bytes of data or funny smelling paper. :V

 

Well, I guess coins count as well..wish we stopped using pennies, though.

Not really related to the thread, but more to prove a point if you'd wish to entertain it

 

Why is gold valuable?  :rolleyes:

[AK0490]

Bytes of data linked the the US dollar which is printed in a country with one of the largest gold reserves on the planet. What does Bitcoin have backing it again besides hopes and dreams?

The most powerful computer network in the world.

[Guest]

Let's stop making accusations about what different kinds of money are worth.

 

One thing I know for sure; regular currency as we know it is easily accessible, and sure as hell does not give retailers the excuse mark a product more than $120 above its MSRP.

I could not care less if Bitcoin/Litecoin succeeds or fails; if it becomes the next big thing then I will adopt it as all people do. All I want is for miners to GTFO of the consumer market. Let them spend their money on ASICs, who cares?

 

I'm pretty sure F@H and the rest of the distro computing projects can rival that claim easily. So I'd say it's probably not the most powerful network in the world.

[Caspur]

Crypto currency will not die, but it might all get stolen by the hackers.

[mr moose]

Not really related to the thread, but more to prove a point if you'd wish to entertain it

 

Why is gold valuable?  :rolleyes:

not too sure if your question is rhetorical, but,  The value of gold, just like any other precious metal (E.G Platinum) is not an artificial one,  it is like many commodity values based on supply/demand.  There are only so many metals than can do what gold does, so its value is easily predicted.  All currency is tied to commodity, and GDP which largely dictates a countries currency value is tied heavily to commodity value.   This means that gold has an intrinsic worth, unlike bitcoin who's worth is dictated solely by the number of people who wish to use it.  There are other options to bitcoin but not to gold.  That is why the gold standard has been used for such a long time.

 

As far as the dollar goes, regardless of whether you store your dollars as 1's and 0's on a server in a bank or as a paper currency, the total amount of available currency is limited, so it's worth is dictated by sources outside of immediate supply and demand.  Where bitcoin ends up is any ones guess,  But to claim it does not have an artificial value is only a little bit erroneous. 

 

If anyone thinks gold has no real value as tied to the dollar, just google "why do people buy gold before a recession"

 

EDIT:  all I am really getting at with this post is that economics on this scale a very complicated and even highly regarded economists don't fully understand the working of it.  So it's not really fair to walse in and shit on someone's opinion because in reality there is a certain truth to it.

[helping]

not too sure if your question is rhetorical, but,  The value of gold, just like any other precious metal (E.G Platinum) is not an artificial one,  it is like many commodity values based on supply/demand.  There are only so many metals than can do what gold does, so its value is easily predicted.  All currency is tied to commodity, and GDP which largely dictates a countries currency value is tied heavily to commodity value.   This means that gold has an intrinsic worth, unlike bitcoin who's worth is dictated solely by the number of people who wish to use it.  There are other options to bitcoin but not to gold.  That is why the gold standard has been used for such a long time.

 

As far as the dollar goes, regardless of whether you store your dollars as 1's and 0's on a server in a bank or as a paper currency, the total amount of available currency is limited, so it's worth is dictated by sources outside of immediate supply and demand.  Where bitcoin ends up is any ones guess,  But to claim it does not have an artificial value is only a little bit erroneous. 

 

If anyone thinks gold has no real value as tied to the dollar, just google "why do people buy gold before a recession"

 

EDIT:  all I am really getting at with this post is that economics on this scale a very complicated and even highly regarded economists don't fully understand the working of it.  So it's not really fair to walse in and shit on someone's opinion because in reality there is a certain truth to it.

Mostly rhetorical, but what I'm getting at is the assigned value to gold.

 

Sure it's worth something, but is it really as useful as it costs relative to other commodities or materials? It has a few specific uses, but it's cost does not reflect the usefulness IMO. 

I don't really hold beauty to be useful in this sense either. 

[One Who Craves Souls]

Not to mention the rarity of gold itself in the universe, as well as some other precious metals(even more rare). And today, when you know the origin and how these elements were created, you learn to admire those precious metals even more than our ancestors. Then realize their rarity actually have some value in our universe. 

[mr moose]

Mostly rhetorical, but what I'm getting at is the assigned value to gold.

 

Sure it's worth something, but is it really as useful as it costs relative to other commodities or materials? It has a few specific uses, but it's cost does not reflect the usefulness IMO. 

I don't really hold beauty to be useful in this sense either. 

 

It's value is mostly due to the cost of digging it up versus the cost of finding an alternative.  The fact that jewelry has a value is only because the metal has a value, In other words being jewelry does not dictate the price. A classic example is electronics, there is no real alternative to gold for the production of many electronic components,  this means demand exceeds supply by enough to price gold as high as it is, for an even bigger example check out platinum,  supply is very costly (because it is rare) yet demand is huge, so the cost of it is quite excessive.  These values are not easily manipulated and that is why they play a large role in determining the value of the dollar.

[DoubleY]

I remember last January the Bitcoin dropped to around $60, then about 6 months later it spiked up $2,000. It'll go back up eventually. 

It didn't go to $2K, but I see your pont

[Lays]

I have no clue why you feel like that but I have a STRONG feeling you highly misinformed about bitcoin and its beneficial use-cases. Currently, when you buy something online, you give the site not only your name, but also your house address, email address, credit card info, and whatever other info they want to have. Bitcoin allows you to purchase something online without giving up your information to sites, and the hackers who hack those sites...Also, in order for money to be sent quickly around your country and even the world requires massive fees placed by money transfer companies(who do need to profit). Bitcoin allows you to send money to anyone in the world for free, or an extremely small miner's fee. I don't know what your gripe with crypto-currency is, but information is key in making an informed decision on a subject. 

 

 

That's what paypal is for..    If you buy something online, why would you not give them your email and house address..? Lol

[TopWargamer]

It didn't go to $2K, but I see your pont

On Gox it was 2K for a few seconds, and on BTC-e it went to around 1.7K or 1.8K I believe? Not saying that the chart's wrong, but it's tracking Bitstamp, and not Gox or BTC-e.

[DoubleY]

On Gox it was 2K for a few seconds, and on BTC-e it went to around 1.7K or 1.8K I believe? Not saying that the chart's wrong, but it's tracking Bitstamp, and not Gox or BTC-e.

Gox isn't on this site anymore, but here is BTC-E

[TopWargamer]

Gox isn't on this site anymore, but here is BTC-E

That's much lower than what I remember. I swear it was A LOT higher than that...

[DFPFilms1]

You know the difference between invisible internet currency and the UDS? About nothing be ides where it's accepted first off it is backed by jack****, second it is only worth money because people want it to be worth money! as soon as it loses it's appeal poof! Say bye to the value, gold is the way to go.

[AK0490]

Let's stop making accusations about what different kinds of money are worth.

 

One thing I know for sure; regular currency as we know it is easily accessible, and sure as hell does not give retailers the excuse mark a product more than $120 above its MSRP.

I could not care less if Bitcoin/Litecoin succeeds or fails; if it becomes the next big thing then I will adopt it as all people do. All I want is for miners to GTFO of the consumer market. Let them spend their money on ASICs, who cares?

 

I'm pretty sure F@H and the rest of the distro computing projects can rival that claim easily. So I'd say it's probably not the most powerful network in the world.

Go to ebay, you can go buy all the GPUs you want for cheaper then MSRP. Everyone can stop bitching about this already.

 

You really think F@H has more power behind it then something that actually pays? LOL http://www.forbes.com/sites/reuvencohen/2013/11/28/global-bitcoin-computing-power-now-256-times-faster-than-top-500-supercomputers-combined/

[RuecanOnRails]

Go to ebay, you can go buy all the GPUs you want for cheaper then MSRP. Everyone can stop bitching about this already.

 

You really think F@H has more power behind it then something that actually pays? LOL http://www.forbes.com/sites/reuvencohen/2013/11/28/global-bitcoin-computing-power-now-256-times-faster-than-top-500-supercomputers-combined/

 

**than**

 

In addition, that article was written November 28th 2013; One day later the hashrate was 5,063,826 GH/s with a difficulty of 707,408,283.

Today, the hashrate is an estimated 54,708,179 GH/s with a difficulty of 6,119,726,089. An increase more than 10x in only 5 months, bringing the Bitcoin network to be closer to 2560 times more powerful than the top 500 supercomputers.

 

 

Current and historical* difficulty data and trends.

https://bitcoinwisdom.com/bitcoin/difficulty

 

*Goes back to September 2012.

[Apparate]

I'm curious to know, what happen if Bitcoin is REALLY successfull, will it change our life in a way? Maybe prices will drop or anything? Kinda curious...any economists here?

[AK0490]

**than**

 

In addition, that article was written November 28th 2013; One day later the hashrate was 5,063,826 GH/s with a difficulty of 707,408,283.

Today, the hashrate is an estimated 54,708,179 GH/s with a difficulty of 6,119,726,089. An increase more than 10x in only 5 months, bringing the Bitcoin network to be closer to 2560 times more powerful than the top 500 supercomputers.

 

 

Current and historical* difficulty data and trends.

https://bitcoinwisdom.com/bitcoin/difficulty

 

*Goes back to September 2012.

I should have mentioned the fact that the article was old, but I didn't really even need to. I thought it made it point pretty well.