Bitcoin virtual currency hits (ALL-TIME) record high after exchange deal - Polidicks

[b]A Bitcoin thread has been made in general discussion: [/b][url]http://facepunch.com/showthread.php?t=1257249[/url] [quote]The event is a historic one for Bitcoin. When the initial Bitcoin bubble of summer 2011 collapsed, a number of media sources quickly spread the message that Bitcoin was a foolish crypto-anarchist dream and a fad that failed, and it was time to move on to more “legitimate” products backed by the full support of the banking establishment. After hitting bottom at $1.994 in November, however, Bitcoin simply refused to die. The price bounced back to a high of $7.22 in January 2012 before settling down at $4.90, and news slowly began to once again turn positive. [...] as the announcement of WordPress accepting Bitcoin in early November broke the downward trend, and Bitcoin Central’s banking partnership deal in December cemented the new paradigm. Finally, in January Bitcoin truly started to take off. A series of positive announcements, including unprecendented profits by Bitcoin gambling site SatoshiDice, large-scale underlying adoption and the arrival of ASIC mining hardware chips, sent the price on a sudden course upward, and in February Reddit and Mega accepting Bitcoin cemented the new paradigm.[/quote] Source: [url]http://bitcoinmagazine.com/bitcoin-price-breaks-all-time-high/[/url] Source 2: [url]http://news.cnet.com/8301-1023_3-57571732-93/bitcoin-virtual-currency-hits-record-high-after-exchange-deal/[/url] Source 3: [url]http://www.theverge.com/2013/2/28/4039042/bitcoin-value-reaches-new-high-against-us-dollar[/url] Source 4: [url]http://thenextweb.com/insider/2013/02/28/bitcoin-virtual-currency-stages-epic-comeback-hits-new-all-time-high-of-32/[/url] Entire history of Bitcoin's value in USD on MtGox: [img]https://lh5.googleusercontent.com/-zUp4wrADzF8/US8w5vurBZI/AAAAAAAAI2M/5cWVa-xOqRc/s0/chart.png[/img] What is bitcoin? [media]http://www.youtube.com/watch?v=Um63OQz3bjo[/media] The best possible explanation that I've seen for this comes from redditor DJohnston: [quote]Runeks, Thanks for passing along the numbers. In my own analysis I find BTC to be fairly valued at the current $29 to $32 range. I'm using a bottom up analysis based on a relationship between the number of transactions per day and the BTC price in USD. This relationship seems logical given the number of transactions, while diverse represents the utility of BTC, that is to say: the ability of BTC to transfer payments to other people. In my analysis it seems that the primary driving factor for the price of USD per BTC is growth in transactions. There appears to be a direct and quantifiable relationship between the number of BTC transactions processed each day to the price of BTC in USD. Consider on January 1st 2011 there were 659 transactions per day and the price per BTC was $0.30 USD. The resulting ratio if you divide the transactions by the price is 2,197. A few days ago (February 23rd 2013) there were 62,748 transactions and the price was $29.11 USD. Resulting in a nearly unchanged ratio of 2,156. The ratio has fluctuated over time from a low of 616 on August 1st 2011, and a high of 5,166 on June 1st 2012 when BTC were over valued and undervalued respectively. However the fair market value over time seems to return to the 1,800 to 2,300 range. I will be interested to see if this relationship holds into the future as it has the last 2+ years. If so I'm calling it the "BTC Transactions To Price Effect (or perhaps the "BTC Transactions To Price Ratio" would convey the idea more easily). The usefulness of this effect lets us observe transactions per day and gauge if the market is over valuing, under valuing or offering fair market value for BTC. -DJohnston[/quote] More information: [url]http://bitcoin.org/[/url] [url]http://www.weusecoins.com/[/url] [url]https://en.bitcoin.it/wiki/Main_Page[/url] [highlight][h2]Update:[/h2][/highlight] Bitcoin has shot from the trend it set over the past few months to jump by almost 50% overnight, so while the last few months of gains have been steady, these ones are less reliable. [img]https://lh4.googleusercontent.com/-MbyCrfF2ZbI/UTd8mL8Ur_I/AAAAAAAAI-U/jZ56XiAL5P8/s0/chart.png[/img] [highlight][h2]Update:[/h2][/highlight] [img]http://i.imgur.com/MqlJBq9.png[/img]

Damn, wish I had bought some... Imagine if I had spent a couple hundred on bitcoins back at their low. I'd have a nice wad of cash lying around now

oh god i have 0.00002 btc i'm rich fuckers

My investment is paying off real nicely.

[QUOTE=Dog;39746448]oh god i have 0.00002 btc i'm rich fuckers[/QUOTE] time to pimp that car. Seriously though I'm interested in this.

mining bitcoins is a dick. managed to get 0.6 over a week, though i guess the electric bill is higher than that.

I just knew I should have bought bitcoins a few months ago :v:

[QUOTE=Lazore;39746492]mining bitcoins is a dick. managed to get 0.6 over a week, though i guess the electric bill is higher than that.[/QUOTE] So it takes a while to get bitcoins? Anyway to earn extra coins?

Damn, I was thinking about buying some when they were like 2€/coin. Oh well!

I've got like 0.98btc which I bought back when they were like £3

I was actually going to buy a bunch of bitcoins around November since I thought the exchange prices were going to raise and you could make some easy money, but the payment options are all really fussy since you can only use methods where you can't chargeback, and I couldn't be bothered with the hassle.

[QUOTE=Pvt. Martin;39746498]So it takes a while to get bitcoins? Anyway to earn extra coins?[/QUOTE] some sites that is used by some mining groups tend to give you like a little ammount but nothing over 0.1 Only the most hardcore of miners actually get shit out of it. There are GPU's that works insanely much better than others, and some set up renderfarms with 10s of these GPU's.

[QUOTE=Lazore;39746743]some sites that is used by some mining groups tend to give you like a little ammount but nothing over 0.1 Only the most hardcore of miners actually get shit out of it. There are GPU's that works insanely much better than others, and some set up renderfarms with 10s of these GPU's.[/QUOTE] If you want to mine, keep in mind that AMD cards will be about 5x faster than an equivalent-for-gaming nvidia card. It's because nvidia cards will just defer some more complex compute instructions to the CPU, which is nowhere near as fast as doing the whole thing on the GPU like AMD. [editline]28th February 2013[/editline] For example, a GTX TITAN costs about 3x as much as a 7950, and mines bitcoins 3x [i]slower.[/i]

[QUOTE=mblunk;39746766]If you want to mine, keep in mind that AMD cards will be about 5x faster than an equivalent-for-gaming nvidia card. It's because nvidia cards will just defer some more complex compute instructions to the CPU, which is nowhere near as fast as doing the whole thing on the GPU like AMD. [editline]28th February 2013[/editline] For example, a GTX TITAN costs about 3x as much as a 7950, and mines bitcoins 3x [i]slower.[/i][/QUOTE] Yup, remember i found a big cheat sheet where every good mining card was listed according to price, and mining per hour, and power inefficiency

[QUOTE=Lazore;39746785]Yup, remember i found a big cheat sheet where every good mining card was listed according to price, and mining per hour, and power inefficiency[/QUOTE] [url]https://en.bitcoin.it/wiki/Mining_hardware_comparison[/url]

I bought 11 bitcoins for [B]£2[/B] a few years ago. I should have waited to sell it much longer, I decided to sell it a few months later for [B]£6[/B]. 11 bitcoins now is worth around... [B]£240[/B]

It's gonna crash soon, better sell all your coins

[QUOTE=Reader;39746804]It's gonna crash soon, better sell all your coins[/QUOTE] Read the analysis in the bottom of the OP. The current price is perfectly acceptable. The trend mentioned has held for bitcoin's entire history, and there's been tons of positive news for bitcoin lately, so a correction would've already happened by now, there's no evidence to support downward speculation. Unless you want people to sell so you can get more coins for cheap ;)

Those Avalon ASICs mine at about 65,000 mhash/s. For comparison a 6870 is around 280 mhash/s.

[QUOTE=anis;39746957]Those Avalon ASICs mine at about 65,000 mhash/s. For comparison a 6870 is around 280 mhash/s.[/QUOTE] And what's the speed at which they gain 50BTC?

Under a week currently. Like $2k worth of BTC a week.

[QUOTE=mblunk;39746766]If you want to mine, keep in mind that AMD cards will be about 5x faster than an equivalent-for-gaming nvidia card. It's because nvidia cards will just defer some more complex compute instructions to the CPU, which is nowhere near as fast as doing the whole thing on the GPU like AMD. [editline]28th February 2013[/editline] For example, a GTX TITAN costs about 3x as much as a 7950, and mines bitcoins 3x [i]slower.[/i][/QUOTE] [QUOTE=Lazore;39746743]some sites that is used by some mining groups tend to give you like a little ammount but nothing over 0.1 Only the most hardcore of miners actually get shit out of it. There are GPU's that works insanely much better than others, and some set up renderfarms with 10s of these GPU's.[/QUOTE] I gave mining a go; I have 2x HD Radeon 6950's and I worked out even on mining pools with good ratings, it was going to take me like a week of straight mining to earn one bitcoin (And that was before the difficulty increase, granted BTC worth has tripled since then) The electricity spend from a week of running a miner 24/7, as well as the fact that it maxes both GPUs out at 100% making the computer unusable, makes it totally unworth it. If you want to mine for profit then you seriously need to consider setup and electricity costs, and how long you are willing to wait to start making a profit. In the next year or so I'm going to be earning a fair amount of money and I'm seriously considering investing in some mining hardware and trying to muster up a nice wallet of coins incase the share price rises again (Which it most likely will, being a limited currency and all)

-snip-

Bought 130 euro's of bitcoins back in nov. Just sold them for 360 euro's. :v: People called me crazy when I bought them. obligatory: [media]http://www.youtube.com/watch?v=ON-7v4qnHP8[/media]

heres a crazy thought: why does bitcoin mining use GPU instead of CPU? why can't you pick one or the other? Is a gpu just way faster?

I also remember when they were giving out 0.50 BTC for free in a faucet. 0.50BTC is now worth [B]£11[/B]

It's likely the value has gone up since many more people have jumped into the currency. Relative demand for each bitcoin is rising.

[QUOTE=Penguiin;39747539]heres a crazy thought: why does bitcoin mining use GPU instead of CPU? why can't you pick one or the other? Is a gpu just way faster?[/QUOTE] Simple explanation: because modern GPUs have thousands of "cores" that can all simultaneously execute the (relatively simple) hashing instructions. Most people are just now getting a hold of quad/6-core CPUs. [editline]28th February 2013[/editline] [QUOTE=Brt5470;39747552]It's likely the value has gone up since many more people have jumped into the currency. Relative demand for each bitcoin is rising.[/QUOTE] Exactly. There's been a tendency for the bitcoin's value to "stick" proportionally to the network transaction rate. The proportion has been holding a similar value for years now.

[QUOTE=Lazore;39746492]mining bitcoins is a dick. managed to get 0.6 over a week, though i guess the electric bill is higher than that.[/QUOTE] i mined a shitton in 2009. i have 780 BTC :smile: i think i should sell some

I'm starting a bitcoin-based online media company.