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

Actually, make that $357,000. [img]https://lh6.googleusercontent.com/-_zr-ZIZZiPw/US-TI7XzM7I/AAAAAAAAI20/UIV-Dv-NEZ0/s0/2013-02-28_12-25-55.png[/img] Source: [url]http://bitcoincharts.com/markets/mtgoxUSD_depth.html[/url] [editline]a[/editline] Ninja'd

My 2 bitcoins I have are making me very happy right now.

[QUOTE=mblunk;39748648]Yes, and you don't have to deal with banks when using bitcoin, which is great.[/QUOTE] Please tell me how for example the stuff in the op is any different to the symptoms of the currency exchange deals banks to all over the globes. [editline]28th February 2013[/editline] [QUOTE=Eltro102;39749087][URL="http://arxiv.org/pdf/1107.4524.pdf"]nah[/URL][/QUOTE] Thanks for that [i]We also believe that [h2]large centralized services such as the exchanges and wallet services [/h2]are capable of identifying and tracking considerable portions of user activity[/i] Decentralized currency my ass.

[QUOTE=Killuah;39748255]No that's wrong. You can't have bitcoin buying you 1 bread when you buy from bakery one and 10 breads when you buy from bakery 2. Well yes we can but then either one of them is fucked or they call each other and agree on a price or as a third option the market regulates the price but that needs a central to show current prices for everyone so people can adjust to changes quickly. I think I'll call it a "stock market". What do you think an exchange rate is if not a numerical measure for "what people think it's worth" ?[/QUOTE] wat two bakeries can do that. But won't because it confuses people. There is nothing really stopping them from doing that outside of some states that have price gouging laws. Two bakeries can have two different prices for things, infact is happens. And no, they don't call each other to agree on a price, that's price fixing. What they do is try to match within the price of their competitors while keeping a profit margin.

[QUOTE=Brt5470;39749392]wat two bakeries can do that. But won't because it confuses people. There is nothing really stopping them from doing that outside of some states that have price gouging laws. Two bakeries can have two different prices for things, infact is happens. And no, they don't call each other to agree on a price, that's price fixing. What they do is try to match within the price of their competitors while keeping a profit margin.[/QUOTE] You missed the whole hyperbole, it's like I'm talking to a kid that has never heard of abstraction.

[QUOTE=VistaPOWA;39748821]Oh man, back when Bitcoin was a really experimental and new thing (2009, I think), I thought I'd join, ran the miner for about 4 months while normally using the computer, I had like 11k BTC. I disabled the miner because I thought it was slowing my boot time. I formatted a few months later, forgot about saving the wallet, and Bitcoins in general, even. Back in those days thousands of BTC was worth a pizza. fml now that I realize how much 11k BTC is. $370k. $370k. I could really use that money now. [editline]28th February 2013[/editline] When I say normal usage, read 24/7, I seeded a lot of linux distros back then.[/QUOTE] If it makes you feel any better, millions of people lose PRICELESS things by not backing up. Photos of loved ones, memories, videos of their children. These things happen. And they lose things you can never buy. [editline]28th February 2013[/editline] [QUOTE=Killuah;39749412]You missed the whole hyperbole, it's like I'm talking to a kid that has never heard of abstraction.[/QUOTE] I feel like I'm speaking more abstractly than you. Prices can and do vary. Avoiding laws, prices are determined by the seller by how much they compare value of the product to the value of the currency. If someone came from a time machine from the 1950's, started a bakery, they'd probably sell things for ten cents, because they assume that's the value. Stores that use bitcoins will have to find out how much they are relatively worth in order to declare how much they'll charge for their product. You don't need some central agency to do that for you. Edit: And for the thousandth fucking time, currencies don't have to be centralized. Exchanges can and usually are. Bitcoins don't HAVE to be exchanged, they can be used as is, it's if you want to use them outside of the bitcoin network where you need to convert them. Their equivilent dollar amount is due to the bitcoins buying power. [QUOTE=buro;39749460]It's crazy that people got rich by just letting their pc run while some people will never make that much money in their life even though they work 8 hours each day.[/QUOTE] The people who got Rich either A) got in early, when mining coins was easy, or B) have a shit ton of GPU render machines, which is very expensive.

It's crazy that people got rich by just letting their pc run while some people will never make that much money in their life even though they work 8 hours each day.

[QUOTE=Killuah;39749369]Please tell me how for example the stuff in the op is any different to the symptoms of the currency exchange deals banks to all over the globes.[/QUOTE] I'm waiting for you to make a coherent argument. With logic and evidence. Until then, you're just repeatedly posting the same nonsense. I'd assume you were trolling if I didn't already know this is how you actually post.

[QUOTE=buro;39749460]It's crazy that people got rich by just letting their pc run while some people will never make that much money in their life even though they work 8 hours each day.[/QUOTE] You can't get rich by just running your pc any more. You need dedicated mining machines. And based on your location your electricity bill might overweight any bc you get.

[QUOTE=Brt5470;39749419]If it makes you feel any better, millions of people lose PRICELESS things by not backing up. Photos of loved ones, memories, videos of their children. These things happen. And they lose things you can never buy. [editline]28th February 2013[/editline] I feel like I'm speaking more abstractly than you. Prices can and do vary. Avoiding laws, prices are determined by the seller by how much they compare value of the product to the value of the currency. If someone came from a time machine from the 1950's, started a bakery, they'd probably sell things for ten cents, because they assume that's the value. Stores that use bitcoins will have to find out how much they are relatively worth in order to declare how much they'll charge for their product. You don't need some central agency to do that for you. Edit: And for the thousandth fucking time, currencies don't have to be centralized. Exchanges can and usually are. Bitcoins don't HAVE to be exchanged, they can be used as is, it's if you want to use them outside of the bitcoin network where you need to convert them. Their equivilent dollar amount is due to the bitcoins buying power. [/quote] Exchanges are the centers of currencies no matter if you exchange for other currency or actual goods(aka trading) I didn't say central agencies declare prices, central agencies like the New York stock market are the agencies people create to determine prices. And they are a logical consequence of the fact that a currencies worth can change. And that's why currencies will always be centralized in one way or another. [quote] The people who got Rich either A) got in early, when mining coins was easy, or B) have a shit ton of GPU render machines, which is very expensive.[/QUOTE] Please tell me what valuable service or good these early adopters provided back then or now in exchange for the money, whether it is bitcoin or dollar or cheese-coins, they are receiving.

[QUOTE=buro;39747805]I kinda want to invest in a mining rig now but I feel like it's too late.[/QUOTE] Well I guess it isn't [I]too[/I] bad with pool mining according to a lot of things I've been reading, so I might just try it with both of my computers overnight and see what happens. I'd actually be interested in seeing if there's a way to link two computers to work together while mining if anyone knows how. [B]EDIT: [/B]I really should have invested in this back in 2010 when I heard of bitcoins, they were cheap as hell if I remember correctly.

[QUOTE=tarkata14;39749912]Well I guess it isn't [I]too[/I] bad with pool mining according to a lot of things I've been reading, so I might just try it with both of my computers overnight and see what happens. I'd actually be interested in seeing if there's a way to link two computers to work together while mining if anyone knows how.[/QUOTE] If you want to start mining, you need a wallet, a pool, and a miner program. The ones I suggest are blockchain.info, BTC guild, and cgminer, respectively. Just make miner accounts for each of your computers. A 7970 gets about 0.1 BTC per 24 hours for reference.

if the number of goods and services that you can buy and sell with btc is increasing then surely it will eventually not matter that much about the USD exchange rate since you could just just trade nearly exclusively with it [editline]28th February 2013[/editline] [QUOTE=Killuah;39749657]Please tell me what valuable service or good these early adopters provided back then or now in exchange for the money, whether it is bitcoin or dollar or cheese-coins, they are receiving.[/QUOTE] they stuck their neck out and put their own time and money and electricity on the line for an untested currency that might or might not have worked, thus allowing all subsequent transactions to happen in the first place they took a risk so other people didn't have to, and in so doing created an entire new system of anonymous economics exchange sounds like a decent service to me (i mean obviously they didn't [I]create[/I] it, that was what's-his-name, but they did solve a [URL="http://en.wikipedia.org/wiki/Collective_action#Collective_action_problem"]collective action problem[/URL]. very few people wanted to be the only person to put their money into a system that might not work and it wouldn't have got off the ground otherwise - encouraging this sort of cooperative behavior is exactly the sort of thing society ought to be doing)

I still don't understand how bitcoins come from seemingly nowhere. Can anyone explain "mining" and how it makes money?

[QUOTE=mblunk;39749988]If you want to start mining, you need a wallet, a pool, and a miner program. The ones I suggest are blockchain.info, BTC guild, and cgminer, respectively. Just make miner accounts for each of your computers. A 7970 gets about 0.1 BTC per 24 hours for reference.[/QUOTE] Are there big differences between mining programs aside from preference? I just notice that there are a lot of choices for mining programs and I'm not sure why certain ones are better.

[QUOTE=tom1029;39750158]I still don't understand how bitcoins come from seemingly nowhere. Can anyone explain "mining" and how it makes money?[/QUOTE] Users donate their computer power and time to process transactions and verify them. For their time, basically the software awards them a bitcoin, or part of one. That's the basic idea.

[QUOTE=tom1029;39750158]I still don't understand how bitcoins come from seemingly nowhere. Can anyone explain "mining" and how it makes money?[/QUOTE] mining is basically just having a little mint of your own to produce money, since bitcoin is meant to be decentralized they can't have a central mint or authority, the 'difficulty' of mining is set by the amount of BTC in the market - i.e. you'll need to expend more power to get the same amount of BTC the more there are in the market. This is needed to slow inflation down

And to add to that, like I explained before, the amount of bitcoins in relation to the number of users helps determine it's effective value. Like supply and demand. As more people want bitcoins, their demand goes up, people are willing to exchange more for them, and the value goes up. This means that it makes it more profitable to put in the time to mine, thus helping increase the supply and keeping inflation in check.

is it good idea for me to start doing this.? is it one of these better late than never times.?

[QUOTE=tarkata14;39750166]Are there big differences between mining programs aside from preference? I just notice that there are a lot of choices for mining programs and I'm not sure why certain ones are better.[/QUOTE] cgminer is usually the fastest and most versatile, it lets you set the miner's GPU priority from -14 (lowest) to 14 (highest) where 0 means it will tend to run at an equal priority to other operations. Anything below 0 will cause your miner performance to drop as the GPU ignores the miner to do other tasks, anything above will increase your miner performance in a logarithmic fashion with an exponential increase to the noticeable lag to the rest of your system. I run mine at 3. There's GUIminer, which is a little easier, but sometimes not as fast and also less configurable. IIRC it doesn't let you set the priority. [editline]28th February 2013[/editline] [QUOTE=theevilldeadII;39750344]is it good idea for me to start doing this.? is it one of these better late than never times.?[/QUOTE] If you have an AMD card and don't pay for electricity and don't mind warming the room up significantly, then yeah. It'll be a few months of 24/7 operation before you have a few full coins though.

My GPU is too bad to do mining, I looked it up and it only does about 80 mhashes/s. :(

Welp Time to invest in every thing that will seem like a failure, now. See you all when I'm rich and famous

[QUOTE=mblunk;39750364] If you have an AMD card and don't pay for electricity and don't mind warming the room up significantly, then yeah. It'll be a few months of 24/7 operation before you have a few full coins though.[/QUOTE] so it's automatic mining.?

[QUOTE=theevilldeadII;39750454]so it's automatic mining.?[/QUOTE] Yeah, you just set up the program and leave it running in the background, and check your wallet account every now and then and watch your balance rise.

[QUOTE=buro;39749460]It's crazy that people got rich by just letting their pc run while some people will never make that much money in their life even though they work 8 hours each day.[/QUOTE] same could be said about any investing in stocks, the lottery, ect ect. although leaving a PC on all day only costs a few dollars a week....

[QUOTE=LoLWaT?;39750442]Fuck it. Guess I'll jump on board now too. Though I should probably wait just a bit longer and see what happens to the value (there seems to be a trend).[/QUOTE] I am new to it my self but it look's like it goes up sometimes and back down some times and back up ans so on so forth so the sooner you start the better I guess [editline]28th February 2013[/editline] [QUOTE=mblunk;39750461]Yeah, you just set up the program and leave it running in the background, and check your wallet account every now and then and watch your balance rise.[/QUOTE] oh thank god I thought I was going to have to click on a rock each day or something

IBM's "Watson" or whatever should handle this nicely.

[QUOTE=Glitchman;39750510]IBM's "Watson" or whatever should handle this nicely.[/QUOTE] IIRC Watson has been reduced down to a single 1U server. Not enough to fit any sort of serious computing power in. A $150 ASIC can out-mine $2000 worth of video cards or ~$20,000 worth of CPU.

[QUOTE=Reader;39747870]I have got 4850 coins from 2009, that's like 145k USD I got for little effort. Gon sell soon[/QUOTE] mother fucker congrats if you're serious.

[QUOTE=mblunk;39750547]IIRC Watson has been reduced down to a single 1U server. Not enough to fit any sort of serious computing power in. A $150 ASIC can out-mine $2000 worth of video cards or ~$20,000 worth of CPU.[/QUOTE] I REFUSE TO BELIEVE THAT [img]http://i.imgur.com/qEyRdlM.jpg[/img]