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Poll: Is Bitcoin a Long-Term Alternative?
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Is Bitcoin a Long-Term Alternative?

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Old 11-07-2013, 10:39 PM   #1
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Default Is Bitcoin a Long-Term Alternative to Government-Sponsored Currencies?

Bitcoin is at new highs ($325) as of this post. There's a lot of resistance. I'm expecting it to correct at any moment.

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Old 11-07-2013, 10:45 PM   #2
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Can I buy gold with it?
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Old 11-08-2013, 09:53 AM   #3
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Pet rocks, invest in pet rocks.
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Old 11-08-2013, 01:34 PM   #4
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Pet rocks, invest in pet rocks.
That guy made a million bucks.

I had a million in bitcoins, but I blew it on WOW weaponry.
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Old 11-08-2013, 02:08 PM   #5
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That guy made a million bucks.

I had a million in bitcoins, but I blew it on WOW weaponry.

Sorry, I am developing my idea: the Jump to Conclusions Mat


I read and article about Bitcoins, and I still am not sure what they are... I might just stick to what I know and understand.
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Old 11-08-2013, 04:37 PM   #6
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Looks like my vote is worth TWO! so take that... hahaha
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Old 11-08-2013, 07:46 PM   #7
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Sorry, I am developing my idea: the Jump to Conclusions Mat
Ironic
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Old 11-09-2013, 01:31 PM   #8
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sex is the universal currency.
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Old 11-09-2013, 01:32 PM   #9
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go redskins, seriouisly, just go.
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Old 11-10-2013, 02:28 AM   #10
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http://www.orangemane.com/BB/showthr...hlight=bitcoin check this thread out from a BIT ago. Some wonderful crazy going on
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Old 11-10-2013, 09:05 AM   #11
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I'm thinking of jumping in.
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Old 11-10-2013, 06:08 PM   #12
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http://www.orangemane.com/BB/showthr...hlight=bitcoin check this thread out from a BIT ago. Some wonderful crazy going on
No one cares.
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Old 11-10-2013, 10:59 PM   #13
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No one cares.
awwwwwwwww so really this is all you got? This is weak Kade I expected better from you. Bring something worth fighting about

Last edited by fankadeo; 11-10-2013 at 11:11 PM..
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Old 11-18-2013, 11:48 AM   #14
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Default Let's recap

Oct 2009: the first exchange rates were $1 = 1,309.03 bitcoins (less than a tenth of a penny)

May 2010: the first pizza sold for 10,000 bitcoins ($25 value then)

July 2010: bitcoin increased 10 fold from less than a penny to about 8 cents.

Feb 2011: MILESTONE bitcoin reached parity with the US dollar, $1 per bitcoin

June 2011: MILESTONE bitcoin reaches $10

June 8, 2011: bitcoin goes over $30 then comes crashing back down to $10

2012: remains stable and trades between $5 to $13 for the entire year

2013
Jan: $13
Early March: $30
Late March: $90, Baja mentioned then new currency
April: MILESTONE bitcoin reaches $100
April 9, 2013: bitcoin goes over $250 then comes crashing back down to $75
Oct 2, 2013: Silk Road was taken down, bitcoin dropped from $150 to $110
Nov 7, 2013: $325, tripled since the silk road takedown, and I expected a correction at this all time high price.
Nov 18, 2013: $650, doubled since the start of this thread. WTF?!


That $25 pizza in 2010 would be worth $650,000 today.


Present Day:

Last edited by Arkie; 11-23-2013 at 01:54 PM..
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Old 11-19-2013, 09:50 PM   #15
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Quote:
Originally Posted by Arkie View Post
Oct 2009: the first exchange rates were $1 = 1,309.03 bitcoins (less than a tenth of a penny)

May 2010: the first pizza sold for 10,000 bitcoins ($25 value then)

July 2010: bitcoin increased 10 fold from less than a penny to about 8 cents.

Feb 2011: MILESTONE bitcoin reached parity with the US dollar, $1 per bitcoin

June 2011: MILESTONE bitcoin reaches $10

June 8, 2011: bitcoin goes over $30 then comes crashing back down to $10

2012: remains stable and trades between $5 to $13 for the entire year

2013
Jan: $13
Early March: $30
Late March: $90, Baja mentioned then new currency
April: MILESTONE bitcoin reaches $100
April 9, 2013: bitcoin goes over $250 then comes crashing back down to $75
Oct 2, 2013: Silk Road was taken down, bitcoin dropped from $150 to $110
Nov 7, 2013: $325, tripled since the silk road takedown, and I expected a correction at this all time high price.
Nov 18, 2013: $650, doubled since the start of this thread. WTF?!


That $25 pizza in 2010 would be worth $650,000 today.
Serious question, why is the value of bitcoin $650? Is there a way to exchange for actual dollars beyond buying something of real value (drugs) and selling it for cash? I don't know much about it but it seems like the main value is being an untraceable currency that is great for black market sites like SR, or straight up speculation. Am I off?
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Old 11-20-2013, 09:26 AM   #16
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Quote:
Originally Posted by Mr.Meanie View Post
Serious question, why is the value of bitcoin $650? Is there a way to exchange for actual dollars beyond buying something of real value (drugs) and selling it for cash? I don't know much about it but it seems like the main value is being an untraceable currency that is great for black market sites like SR, or straight up speculation. Am I off?
It's just an infinitely cheaper and functionally superior way to transact over the internet. Big and little amounts. Wiring large cash amounts around the world is 1000s of times more expensive. The transaction costs comparison is like hundreds of dollars to 1 cent. There are no third party transaction costs so that makes micro payments possible. You can easily tip others like I could send you 3 cents (0.00005587 BTC) for enjoying one of your posts if I had one of your addresses to send it to. You'll have a collection of addresses that all go to your bitcoin wallet. Each time you transact a new address is automatically generated for you or you can use one of the previous ones. For example, this address goes to my wallet - 1HLBw9688PQiqbmPMx7wT1ZyZTXpuHYDkw

That address was generated days ago and already has thousands of confirmations around the world on a decentralized ledger. My bitcoin is set in stone (or set in the blockchain) Nobody can hack the bitcoin system. Yes, they can hack online accounts just like any other bank accounts but not bitcoin itself. It's safer than USD which can be either counterfeited or legally duplicated through QE. You have no control over the money in your pocket being less of the total supply. With bitcoin, you know exactly what % of the supply you have and that can't change unless you spend or receive it.

The price scares people, but it doesn't matter what it costs. You can always just own a few cents if that's all you really wanted. It's trending up because more people are using it. The bitcoin community is still just a tiny percentage, but the market capitalization is over $6 billion. You can buy cars, houses, just about anything. The first ATM machines sprang up earlier this month.
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Old 11-20-2013, 09:33 AM   #17
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Quote:
Originally Posted by Mr.Meanie View Post
Serious question, why is the value of bitcoin $650? Is there a way to exchange for actual dollars beyond buying something of real value (drugs) and selling it for cash? I don't know much about it but it seems like the main value is being an untraceable currency that is great for black market sites like SR, or straight up speculation. Am I off?
Many places will convert it, ranging from extremely shady (blind drops at airports) to just mildly risky (sites with very poor security records that you have to give bank account info to).

It's a speculation bubble, which makes it a poor currency currently. The speculation bubble means it's in a massive deflationary spiral at the moment. The example of the pizza is perfect. You're a lot better off NOT buying the pizza, because the value of that BTC used will likely be much higher soon.

The worst possible thing you can do with BTC right now is actually spend it....

Currency with massive deflation is just as unsuitable for commerce as currency with massive inflation.

Most likely BTC is in for a roller coast of inflationary and deflationary cycles that will prevent it from being a viable currency for quite some time (if ever). With a bit of good luck though, you can make a whole lot of money. With a little bad luck, you'll lose a whole lot of money. Just like a highly volatile stock.
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Old 11-20-2013, 09:38 AM   #18
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The price scares people, but it doesn't matter what it costs. You can always just own a few cents if that's all you really wanted. It's trending up because more people are using it. The bitcoin community is still just a tiny percentage, but the market capitalization is over $6 billion. You can buy cars, houses, just about anything. The first ATM machines sprang up earlier this month.
The absolute price certainly is meaningless, but the roller coaster of price change is a huge problem. Until/unless it stabilizes, doing any kind of commerce (buying or selling) is a LOT more risky than with USD.

Would you start a business that only accepted a highly volatile stock as payment?
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Old 11-20-2013, 09:49 AM   #19
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Would you start a business that only accepted a highly volatile stock as payment?
I would accept bitcoin because I could instantly convert it to USD (not that I would want to) at the point of sale, and I would have access to every country with no charge-backs. I could deal with them on my terms cheaper than my competitors that don't accept bitcoin.
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Old 11-20-2013, 10:02 AM   #20
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The bitcoin community is still just a tiny percentage, but the market capitalization is over $6 billion. You can buy cars, houses, just about anything. The first ATM machines sprang up earlier this month.
The BTC market will never stabilize unless it takes at least the majority share of the "market" from the USD. It's a catch-22. The only way for BTC to become a viable currency is to be widely used and accepted, and maintain a reasonably stable value. Unfortunately, the only way to become widely used and accepted is to be used by more people, and the more people that use it, the more the deflationary cycle will continue, preventing a stable value.

There are currently 12 million BTC. There is currently around 2 trillion dollars in the M1 supply, meaning to replace the USD, the actual exchange rate is at a minimum, 1.7 million USD to BTC (never mind the actual money supply is far more than $2T, M1 is just bank deposits + actual minted currency).

So, potentially, your 1 BTC could be worth 1.7 million USD (if it replaced all M1). Right now it's "worth" $550. In other words, it'll be a LONG time before the BTC price stabilizes if it starts gaining significant acceptance as an alternative to USD, even if it only take 1/2 or 1/3 of the currency market. Even at 1/10, it would have to deflate to $170,000 per BTC.

So, like I said. The worst possible thing you could do right now is actually use BTC to buy something, which is why it's a horrible currency.

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Old 11-20-2013, 10:03 AM   #21
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I would accept bitcoin because I could instantly convert it to USD (not that I would want to) at the point of sale, and I would have access to every country with no charge-backs. I could deal with them on my terms cheaper than my competitors that don't accept bitcoin.
So in other words, no, you would NOT use BTC as a currency.
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Old 11-20-2013, 10:16 AM   #22
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So in other words, no, you would NOT use BTC as a currency.
I wouldn't spend it, but others are. The daily transactions are going up. I don't know what it was spent on a few years ago, but computer nerds started buying equipment with it. It's still not mainstream, but people have bought everything from cars to houses.
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Old 11-20-2013, 10:21 AM   #23
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I wouldn't spend it, but others are. The daily transactions are going up. I don't know what it was spent on a few years ago, but computer nerds started buying equipment with it. It's still not mainstream, but people have bought everything from cars to houses.
How many of those transactions are for legit transactions (rather than drugs, etc?) and not as a way to cash in or out? Because a few transactions are done legit, doesn't mean much.

And again, in order to replace the USD in any significant way (BTC isn't even a blip yet), the value is going to have to change drastically.

no stable value = not a currency

It's a speculation bubble.
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Old 11-20-2013, 10:39 AM   #24
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no stable value = not a currency

It's a speculation bubble.
The speculation is only on whether it will stabilize at some price higher or lower than today. Volatility decreases over time. It had more volatile growth spurts in earlier years before it stabilized at around $8-$12 for the computer nerds and the shady market. It's been speculated up as the market expands. Everybody knows it has absolutely no value if it isn't used. It will eventually settle at a price higher than the last stable range which was around $80-$120 for most of late spring, summer and early fall.
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Old 11-20-2013, 10:53 AM   #25
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The speculation is only on whether it will stabilize at some price higher or lower than today. Volatility decreases over time. It had more volatile growth spurts in earlier years before it stabilized at around $8-$12 for the computer nerds and the shady market. It's been speculated up as the market expands. Everybody knows it has absolutely no value if it isn't used. It will eventually settle at a price higher than the last stable range which was around $80-$120 for most of late spring, summer and early fall.
That's an awesome analysis pulled directly out of your ass! Gratz!

Like I've said multiple time now. The only way BTC will become a viable currency is if it's used, and if it's used it's value is going to have to go up drastically in relation to the USD in order to fullfill currency/value needs.

$170,000/BTC is the value necessary to replace 10% of commerce.
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