BITCOIN... a comment on recent events and effects on value

[O.S.O.K.]

I've read and participated in discussions here in the past about BITCOIN.

Some were quite dismissive of this cyber-crypto currency.

Just thought I'd ask the peanut gallery if anyone noticed the recent effect on the value of BITCOIN by the situation in Greece?

It went up from $240's to $280's and $290's per coin.

Basically, those directly affected by the currency situation in Greece started buying BITCOIN and this, along with others seeing the increase and also buying in looking for a short term capital gain, pushed the price up by $30-$40 per coin.

Think about this - the Grecian economy is about the size of Louisiana's economy. And difficulty there had that kind of effect on valuation.

To me, this just confirms that BITCOIN is a good bet for hedging your capital - protecting it from a negative economic situation.

I really like the fact that BITCOIN can only increase in supply at a very slow and steady rate and this will end by 2020... that means that it can't be manipulated by central banks - like all of the fiat currencies of the world... and further, it means that if SHTF economically - we should see a dramatic increase in value of BITCOIN. Like from the current $280 to $5000 and beyond. In fact, if more and more people get on the BITCOIN wagon and begin using it as a means of exchange, it could go much much higher in value. Some predict upwards of hundreds of thousands of $ per bitcoin value after 2020 given world-wide use. Fixed supply, increasing demand...

Remember it's divisible (fungible) down to 9 decimals - so you could be using .000000026 BITCOIN in the future to buy a beer at the bar...

[alismith]

I know absolutely nothing about bitcoins.

How can one use it to buy things at the bar or a store? Won't you need some sort of electronic device to transfer the coins? And, how safe it is with hackers trying to hack into the system?

[5.56NATO]

Japanese police have arrested the CEO of the failed company MtGox, which was once the world's biggest exchange of the virtual currency, bitcoin.

Mark Karpeles, 30, is being held in connection with the loss of bitcoins worth $387m (£247m, €351m) last February.

He is suspected of having accessed the exchange's computer system to falsify data on its outstanding balance.

MtGox claimed it was caused by a bug but it later filed for bankruptcy.
http://www.bbc.com/news/world-asia-33745611



Gold, silver, lead in hand is much much safer.

[raxar]

yes, I find people's desire to put their money into something with even less inherent value than paper to be fascinating

[Nobeard]

The main problems I have with bitcoin is the lack of intrinsic value and inability to take physical possession of them.

Just like the federal reserve notes we use as 'paper money' there is no true value other than what you are able to trade them for.
If there is any type of outage,even temporary, that prevents access to electronic banking the bitcoins are worthless.

Every heard the phrase 'bad money will take good money out of circulation'?
When the U.S. government began making 'sandwich' coins with the copper center in 1965 people started going through their change and holding onto the older ones that were silver. Economics professor in college gave a stastic that less than 30% of the the pre-1964 coins ever found their way back to the U.S. mint.

Here is another thing thats important to consider:
If you can not take physical possession of something without the assistance or intervention from another person, then it is not truely yours.
Having a stash of silver and gold coins in a safety deposite box is okay as long as you dont need them on a weekend and theres no bank holiday.

[Schuetzenman]

I don't trust them or the concept. One good solar EMP that toasts the electronics, power grid and probably every PC will erase all of them probably. Make mine coins, real coins, silver coins, something I can hold in my hand.

[Viking350]

If the Mt Gox incident didn't warn you about Bitcoins, then I wish you luck.

http://www.thestar.com/business/2014..._currency.html

[5.56NATO]

This might turn out like another scam/ponzi scheme that was in the news. Some guy had bilked investors of four million dollars and got caught. The guy did a year in club fed and had to give the fedz one million to keep the other three he stole.

[O.S.O.K.]

Well, I see nothing's changed. lol

Your bitcoin holdings can be held on a thumb drive = to prevent any EMP problems or hacking problems.

The MtGox thing had nothing to do with Bitcoin and everything to do with fraud. Fraud is perpetrated using all kinds of assets and none are immune.

Think about the fraud the FED has been and continues to perpetrate on the entire world...

I personally like the fact that no central bank can screw with the value of Bitcoin or any of the clone krypto currencies.

Do a little more research before you completely dismiss the concept guys. Being conservative is great, but don't let that keep you from seeing.

Oh and the number of places that take Bitcoin for payment are increasing every year. To use it, you send the vendor the Bitcoin and they get a notice of receipt - with your smartphone, pad or laptop.

Those in Greece that put their money into Bitcoin still have their money - now appreciated in value by about 18% and they can use it all over the place to get what they need. Their government can't declare a "Bitcoin bank holiday" or any other abuse. Not that the Greek people don't deserve some given their communistic ways...

It's not THE answer to currencies yet, but it's growing - as are the many clone's that have been created. They're all basically using the same open coding.

Buy gold and silver? You bet! I do. Buy land? Absolutely, I did. Play the stock market with a quick exit assured? Sure! Bitcoin is just a very small part of my savings - but if it takes off, I'm going to benefit. If a bank holiday is declared, I'll still have something that will be accepted for payment in a growing number of places.

Think of it as just another diversification asset.

Again, do some research before you condemn.

[Viking350]

Are you up or down on your Bitcoin investments?

[5.56NATO]

Well, I see nothing's changed. lol

Your bitcoin holdings can be held on a thumb drive = to prevent any EMP problems or hacking problems.

The MtGox thing had nothing to do with Bitcoin and everything to do with fraud. Fraud is perpetrated using all kinds of assets and none are immune.

Think about the fraud the FED has been and continues to perpetrate on the entire world...

I personally like the fact that no central bank can screw with the value of Bitcoin or any of the clone krypto currencies.

Do a little more research before you completely dismiss the concept guys. Being conservative is great, but don't let that keep you from seeing.

Oh and the number of places that take Bitcoin for payment are increasing every year. To use it, you send the vendor the Bitcoin and they get a notice of receipt - with your smartphone, pad or laptop.

Those in Greece that put their money into Bitcoin still have their money - now appreciated in value by about 18% and they can use it all over the place to get what they need. Their government can't declare a "Bitcoin bank holiday" or any other abuse. Not that the Greek people don't deserve some given their communistic ways...

It's not THE answer to currencies yet, but it's growing - as are the many clone's that have been created. They're all basically using the same open coding.

Buy gold and silver? You bet! I do. Buy land? Absolutely, I did. Play the stock market with a quick exit assured? Sure! Bitcoin is just a very small part of my savings - but if it takes off, I'm going to benefit. If a bank holiday is declared, I'll still have something that will be accepted for payment in a growing number of places.

Think of it as just another diversification asset.

Again, do some research before you condemn.

That's fine until the plug is pulled or no one wants bitcoins anymore.

[Aggressive Perfector]

About all I know of Bitcoin is that it's used for a lot of transactions in illegal marketplaces on the deep web (explore tor, you'll see what I mean).

[Gunreference1]

Lead Developer Quits Bitcoin Saying it 'Has Failed'

http://www.newsmax.com/Finance/Marke.../16/id/709751/

Steve

[Viking350]

I'm a big enough man to admit when I am wrong. I was one of those who were down on the crypto currency. now Bitcoin is over $1000. I hope you still have your Bitcoin investment O.S.O.K.

http://www.investopedia.com/news/bit...oSA&yptr=yahoo

[O.S.O.K.]

Unfortunately, no I had to sell some time ago to pay bills... figures. But do keep in mind that $1000 may still be a bargain believe it or not... the prediction is that they will go up, up, up as the supply begins to restrict.