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

I hope there's a crash soon so I can get some delicious bitcoins.

[QUOTE=Faz;39762885]YESS gonna buy a new gaming pc wit all these dollas[/QUOTE] then ruin it by running it at 99% 24/7 getting more dollaz [editline]1st March 2013[/editline] [QUOTE=DinoJesus;39764040]Just off topic curiosity on my part but I gotta ask. What is worth investing in besides bitcoins for a smallish scale profit. I've never really considered investing until now. I don't really want to devote a crazy amount of cash or anything, I just want to try out investing and hopefully make a nice little profit. By smallish I mean like a profit of say 20 to 50 bucks over a course of less than a year.[/QUOTE] check out forex, might be interesting to you. create a demo account first.

arguing with scout1: nobody wins because the only winning move is not to play

[QUOTE=joe588;39765621]then ruin it by running it at 99% 24/7 getting more dollaz[/QUOTE] My room becomes freezing in the winter, so I load up my GPU and turn the fan up a notch to heat it up. I used to use furmark, but then I switched to a bitcoin miner. As far as I'm concerned I'm getting paid to stay warm, and I've been doing it for 3 winters now on the same card, overvolted and overclocked, and it still runs just as well as it ever has. [editline]1st March 2013[/editline] I know, it's an anecdote, but mining doesn't "ruin" a computer. In general silicon doesn't degrade unless you run it out of spec.

I don't get all this about finding a buyer. Can't you just sell them to MT. Gox?

[QUOTE=Muthenfrucheir;39765765]I don't get all this about finding a buyer. Can't you just sell them to MT. Gox?[/QUOTE] Yes, the people concerned about buyer availability don't know about/don't want to use exchanges.

[QUOTE=Muthenfrucheir;39765765]I don't get all this about finding a buyer. Can't you just sell them to MT. Gox?[/QUOTE] I'm sure if everyone started shoving their bitcoins to Mt.Gox the company will suffer losses. They have to limit how much they can buy somehow, or buy higher amounts of BT for a cheaper price. No one is going to buy BT as its peak price. I think the easiest way / only way to sell them off while maintaining its value is privately between people. Well, this proves that bitcoin can be damn lucrative to invest. I can't believe I considered investing in BT last year when the value was around $5 and decided not to.

[QUOTE=adam1172;39766474]I'm sure if everyone started shoving their bitcoins to Mt.Gox the company will suffer losses. They have to limit how much they can buy somehow, or buy higher amounts of BT for a cheaper price. No one is going to buy BT as its peak price. I think the easiest way / only way to sell them off while maintaining its value is privately between people. Well, this proves that bitcoin can be damn lucrative to invest. I can't believe I considered investing in BT last year when the value was around $5 and decided not to.[/QUOTE] Huh? You can only make a buy/sell order on an exchange if you have the resources to complete it. If everyone who had bitcoins suddenly wanted to sell them on an exchange, they certainly could, it's just that the higher bids would be quickly exhausted, and people would have to start selling their coins for less and less if they really wanted to complete the sale on the spot. [editline]1st March 2013[/editline] Here's the current MtGox market depth: [img]https://lh3.googleusercontent.com/-rJNEnCgN_t4/UTFMbJQdESI/AAAAAAAAI5U/kceWTitBWKs/s0/2013-03-01_19-48-43.png[/img] Say you suddenly wanted to sell your 45,000 bitcoins back from the early days and cash out. Buy orders are on the left, and the yellow line represents the total amount of bitcoins people are willing to buy at that price or below. So that means that if you wanted to sell your 45k coins on the spot, you could, but you'd sell so much that you'd have to be willing to take as little as $30 each to sell the last of your coins, since you already fulfilled all of the orders from people willing to pay more than that.

I'm personally against bitcoins. :(

[QUOTE=mblunk;39766536]Huh? You can only make a buy/sell order on an exchange if you have the resources to complete it. If everyone who had bitcoins suddenly wanted to sell them on an exchange, they certainly could, it's just that the higher bids would be quickly exhausted, and people would have to start selling their coins for less and less if they really wanted to complete the sale on the spot. [editline]1st March 2013[/editline] Here's the current MtGox market depth: [img]https://lh3.googleusercontent.com/-rJNEnCgN_t4/UTFMbJQdESI/AAAAAAAAI5U/kceWTitBWKs/s0/2013-03-01_19-48-43.png[/img] Say you suddenly wanted to sell your 45,000 bitcoins back from the early days and cash out. Buy orders are on the left, and the yellow line represents the total amount of bitcoins people are willing to buy at that price or below. So that means that if you wanted to sell your 45k coins on the spot, you could, but you'd sell so much that you'd have to be willing to take as little as $30 each to sell the last of your coins, since you already fulfilled all of the orders from people willing to pay more than that.[/QUOTE] Ahh I see, I'm not very good with economics and stuff like that I just posted based on some short thinking. This would also mean that the more people selling the lower the value of BT right?

[QUOTE=adam1172;39766877]Ahh I see, I'm not very good with economics and stuff like that I just posted based on some short thinking. This would also mean that the more people selling the lower the value of BT right?[/QUOTE] Right, it's (basically) supply and demand in action. [editline]1st March 2013[/editline] [QUOTE=Map in a box;39766694]I'm personally against bitcoins. :([/QUOTE] What did bitcoin ever do to you? :(

[QUOTE=Killuah;39747918]There is no such thing as a decentralized currency.[/QUOTE] [url]http://en.wikipedia.org/wiki/Bitcoin[/url] [B][I][U]Bitcoin (sign: BTC) is a decentralized digital currency [/U][/I][/B]based on an open-source, peer-to-peer internet protocol. It was introduced by a pseudonymous developer named Satoshi Nakamoto in 2009 YEAH OK YOU SURE ARE RIGHT ABOUT THAT DUDE

I don't know why but I have like 40 Bitcoins in my wallet, someone random just donated me a fuckload of money as it seems.

all u hatrs jelly cuz i hav more bitcoinz than u [IMG]http://i.imgur.com/HzfY3M7.png[/IMG] don't h8 seriously though this is seriously one of those patience is worth it type deals isn't it

[QUOTE=Wii60;39767257]all u hatrs jelly cuz i hav more bitcoinz than u [IMG]http://i.imgur.com/HzfY3M7.png[/IMG] don't h8 seriously though this is seriously one of those patience is worth it type deals isn't it[/QUOTE] [img]https://lh3.googleusercontent.com/-W-D_ipzmM-g/UTFho3SaabI/AAAAAAAAI5s/BnuXNHeVx3g/s0/2013-03-01_21-19-14.png[/img] Earned since December with a 5850 [editline]1st March 2013[/editline] So scout1 makes another pass of dumb ratings, but doesn't take me up on my offer to wager FP accounts on bitcoin's future. Says a lot about his confidence in his own ideas that are "so obvious he doesn't even have to prove them."

I fail to see the point of Bitcoin as a nation-independent currency when pretty much everyone selling in Bitcoins adjusts prices according to the value of Bitcoins relative to the US dollar.

[QUOTE=mblunk;39767303]So scout1 makes another pass of dumb ratings, but doesn't take me up on my offer to wager FP accounts on bitcoin's future. Says a lot about his confidence in his own ideas that are "so obvious he doesn't even have to prove them."[/QUOTE] its ok they're just ratings and he's still a terrible poster.

[QUOTE=catbarf;39767936]I fail to see the point of Bitcoin as a nation-independent currency when pretty much everyone selling in Bitcoins adjusts prices according to the value of Bitcoins relative to the US dollar.[/QUOTE] Because you can't email dollars, and the closest thing to doing that, paypal, means you have to give up tons of personal information to set up an account, be subject to regulations and agreements which can include fees/fines, etc. With bitcoin, you can just send the money from address A to B, whether it be equal to $1 million or $0.0001, instantly, without having to having to give or receive any information other than a string of random letters and numbers, and only a tiny, tiny (optional) fee that gives miners an incentive to quickly verify your transaction. The pipe dream is that one day it becomes a replacement for all physical currency and perhaps all currencies in general, but that will almost certainly never happen. What is happening, however, is that it continues to grow and become continually more useful, which makes it more stable and dependable on its own. [editline]1st March 2013[/editline] [QUOTE=J!NX;39767949]its ok they're just ratings and he's still a terrible poster.[/QUOTE] I was really using it to point out he'd come back to the thread without willing to make the bet, but yeah, trying to reason with him is painful.

[QUOTE=mblunk;39767995]Because you can't email dollars, and the closest thing to doing that, paypal, means you have to give up tons of personal information to set up an account, be subject to regulations and agreements which can include fees/fines, etc. With bitcoin, you can just send the money from address A to B, whether it be equal to $1 million or $0.0001, instantly, without having to having to give or receive any information other than a string of random letters and numbers, and only a tiny, tiny (optional) fee that gives miners an incentive to quickly verify your transaction.[/QUOTE] Oh, I totally understand that part. Plus there's the anonymity and relative security of the transaction. I just don't get people supporting it on some weird libertarian grounds. It's still pretty much Monopoly Money slaved to USD.

[QUOTE=catbarf;39768034]Oh, I totally understand that part. Plus there's the anonymity and relative security of the transaction. I just don't get people supporting it on some weird libertarian grounds. It's still pretty much Monopoly Money slaved to USD.[/QUOTE] I identify with libertarians in some ways, and it's just a neat idea to be able to not have to rely on any overbearing entity to be able to send and receive value. It's really just on principle. [editline]1st March 2013[/editline] USD is monopoly money just as much as bitcoin, if not moreso, since the value is in some ways determined by government action, whereas bitcoin value is determined by nothing but the free market's forces.

[QUOTE=mblunk;39767995]Because you can't email dollars, and the closest thing to doing that, paypal, means you have to give up tons of personal information to set up an account, be subject to regulations and agreements which can include fees/fines, etc. With bitcoin, you can just send the money from address A to B, whether it be equal to $1 million or $0.0001, instantly, without having to having to give or receive any information other than a string of random letters and numbers, and only a tiny, tiny (optional) fee that gives miners an incentive to quickly verify your transaction.[/QUOTE] The trade off of consumer protection for pseudo-anonymity is a pretty poor deal

[QUOTE=Lonestriper;39768118]The trade off of consumer protection for pseudo-anonymity is a pretty poor deal[/QUOTE] How is consumer protection given up? Honestly curious, haven't thought about it much.

[QUOTE=mblunk;39768140]How is consumer protection given up? Honestly curious, haven't thought about it much.[/QUOTE] Bitcoin transactions are irreversible and based upon a faith system. You have faith that the person receiving your bitcoins will in return deliver the product they promised, there is no authority that can get those coins back if what you received was non-existent or substandard. If it turns out they are scammers your only source of reprieve is to attack their reputation (hence the scammer tag on bitcointalk) Although there may be methods to reduce risk it still is not nearly as comprehensive or safe like fiat transactions [editline]2nd March 2013[/editline] Unless specifically fiat currencies were involved in the bitcoin transaction (such as converting them) your shit out of luck

[QUOTE=Lonestriper;39768241]Bitcoin transactions are irreversible and based upon a faith system. You have faith that the person receiving your bitcoins will in return deliver the product they promised, there is no authority that can get those coins back if what you received was non-existent or substandard. If it turns out they are scammers your only source of reprieve is to attack their reputation (hence the scammer tag on bitcointalk) Although there may be methods to reduce risk it still is not nearly as comprehensive or safe like fiat transactions [editline]2nd March 2013[/editline] Unless specifically fiat currencies were involved in the bitcoin transaction (such as converting them) your shit out of luck[/QUOTE] Ah yeah, too true. I know people asking for refunds from BFL only get refunded the USD equivalent, so as the value rises, they get less coins back. I guess people could still take them to court, although there's no telling how that would go.

So I did some searching on the bitcoin's longterm price history and last time this happened it reached just about the same price in mid-May of '11. Within half a year the price of the bitcoin had dropped over 30 dollars. [t]http://bitcoincharts.com/charts/chart.png?width=1381&m=mtgoxUSD&SubmitButton=Draw&r=&i=&c=0&s=&e=&Prev=&Next=&t=S&b=&a1=&m1=10&a2=&m2=25&x=0&i1=&i2=&i3=&i4=&v=1&cv=1&ps=0&l=0&p=0&[/t] Looking at the long term, we're likely going to see a massive drop in maybe as soon as a year with the amount of increase in processing power we'll see in the future. Once they start seeing that drop I think a lot of people will start selling because of what happened last time it dropped at this amount.

[QUOTE=WitheredGryphon;39772145]So I did some searching on the bitcoin's longterm price history and last time this happened it reached just about the same price in mid-May of '11. Within half a year the price of the bitcoin had dropped over 30 dollars. [t]http://bitcoincharts.com/charts/chart.png?width=1381&m=mtgoxUSD&SubmitButton=Draw&r=&i=&c=0&s=&e=&Prev=&Next=&t=S&b=&a1=&m1=10&a2=&m2=25&x=0&i1=&i2=&i3=&i4=&v=1&cv=1&ps=0&l=0&p=0&[/t] Looking at the long term, we're likely going to see a massive drop in maybe as soon as a year with the amount of increase in processing power we'll see in the future. Once they start seeing that drop I think a lot of people will start selling because of what happened last time it dropped at this amount.[/QUOTE] The first crash was due to a vulnerability in the Mt.Gox website afaik.

[QUOTE=WitheredGryphon;39772145]So I did some searching on the bitcoin's longterm price history and last time this happened it reached just about the same price in mid-May of '11. Within half a year the price of the bitcoin had dropped over 30 dollars. [t]http://bitcoincharts.com/charts/chart.png?width=1381&m=mtgoxUSD&SubmitButton=Draw&r=&i=&c=0&s=&e=&Prev=&Next=&t=S&b=&a1=&m1=10&a2=&m2=25&x=0&i1=&i2=&i3=&i4=&v=1&cv=1&ps=0&l=0&p=0&[/t] Looking at the long term, we're likely going to see a massive drop in maybe as soon as a year with the amount of increase in processing power we'll see in the future. Once they start seeing that drop I think a lot of people will start selling because of what happened last time it dropped at this amount.[/QUOTE] Yeah alien is correct, this was close to a perfect storm. Bitcoin went viral and interest skyrocketed, so the price did too. Then right as it peaked, the biggest exchange was hacked and orders were manipulated. They managed to undo the damage to the accounts, but not their reputation - not overnight, at least. Hope dwindled, but never died, so it started picking back up again, this time at a slower pace. A bunch of good news has been hitting in rapid succession lately, mostly involving more organizations accepting bitcoin payment, so interest is rising quickly again, although much more slowly than the initial bubble. Keep in mind that the amount and speed of miners has no long-term influence on the supply, so it's not like ASICs are going to completely upend the system. It'll just make things more interesting.

Can you get an ASIC right now? It almost seems too good to be true tbh Make enough bitcoins to make back your investment in less than a week Use it for 6mo and you'll be making serious bank Of course difficulty increases will throw a wrench in that but hey... you already made back your investment so its just pure profit then on out. Only downside is I'd probably want to set up a different/whole knew PC just doing ASIC work as I wouldn't want my current PC to become a bitcoin slave 24/7. Maybe I could make a media center PC of sorts, super small/portable... and whenever I'm not using as a makeshift roku box I'll have it mining. Which means my investment into this is going to be more like $500-$600 instead of $150

[QUOTE=KorJax;39772914]Can you get an ASIC right now? It almost seems too good to be true tbh Make enough bitcoins to make back your investment in less than a week Use it for 6mo and you'll be making serious bank Of course difficulty increases will throw a wrench in that but hey... you already made back your investment so its just pure profit then on out. Only downside is I'd probably want to set up a different/whole knew PC just doing ASIC work as I wouldn't want my current PC to become a bitcoin slave 24/7. Maybe I could make a media center PC of sorts, super small/portable... and whenever I'm not using as a makeshift roku box I'll have it mining. Which means my investment into this is going to be more like $500-$600 instead of $150[/QUOTE] There currently are no ASIC products shipping to customers. The one with the $150 5W 4.5 GH/s box (Butterfly Labs or BFL) has been claiming to ship "soon" for so long that many are getting refunds or accusing them of being a fraud. That's why I'm personally holding off on any ASIC orders until I can go to the bitcointalk forums/subreddit and see pages full of regular people posting their gear and performance.

[QUOTE=KorJax;39772914]Can you get an ASIC right now? It almost seems too good to be true tbh Make enough bitcoins to make back your investment in less than a week Use it for 6mo and you'll be making serious bank Of course difficulty increases will throw a wrench in that but hey... you already made back your investment so its just pure profit then on out. Only downside is I'd probably want to set up a different/whole knew PC just doing ASIC work as I wouldn't want my current PC to become a bitcoin slave 24/7. Maybe I could make a media center PC of sorts, super small/portable... and whenever I'm not using as a makeshift roku box I'll have it mining. Which means my investment into this is going to be more like $500-$600 instead of $150[/QUOTE] I did some more research on the ASICs, and apparently it all boils down to: "During a gold rush, you want to be the one selling the shovels." Only the first few people with ASICs are going to get any benefit from them. After a period of maybe 2 or 3 weeks, I believe ASICs will be outputting a hashrate relative to what high-end GPUs can come up with now. Magnitudes higher than what we have now, but what matters is how much your machine can do relative to the rest of the network. For example, I think I read somewhere yesterday (maybe it was in this thread, actually?) that 1.2 TH/s is around 5% hashing power of all current mining. Butterfly Labs (smart motherfuckers) are offering a 1.5 TH/s ASIC for $29,899 USD. Based on current mining difficulty, that will yield around 172.7 BTC on the first day, but will decrease every day. The more ASICs being used, the more that will decrease. I'm assuming Butterfly Labs has a metric fucktonne of pre-orders, but all of those people are stupid. They are being shipped to the people who put their pre-orders in first, and if you're not at the very top of the list, you've just wasted hundreds or even thousands of dollars. You can't even really use these machines for anything else once the mining difficulty proves too much for them. To conclude, Butterfly Labs and those Avalon(?) fellows are the smart ones. Anyone who is purchasing these ASICs is wasting their money, unless you are literally in the top few dozen people to receive your order. Even then, you won't be getting near as much BTC per day as these mining calculators show you. In the meantime, these few companies selling them will be making treasure from the wannabe miners who aren't skeptical enough. Once again, "During a gold rush, you want to be the one selling the shovels." [editline]2nd March 2013[/editline] Also, think there is enough interest in BTC for a Bitcoin thread in General Discussion? I'm still skeptical as to what the future of the currency will be, but I like Bitcoin and I know others here do too. Even the ones who hate it to be cool.