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Bitcoins



Herr Tubthumper

Well-known member
NSC Patreon
Jul 11, 2003
59,199
The Fatherland
Does anyone 'own' any of this currency? I'm not sure I fully understand it, or know where to get it, or how to use it but I like the sound of this alternative cash.

Why Bitcoin scares banks and governments
 




stss30

Registered User
Apr 24, 2008
9,545
I have a very good idea why this currency is soaring in popularity, it's allows anonymity unlike paypal etc where you account can be closed down.
 








Herr Tubthumper

Well-known member
NSC Patreon
Jul 11, 2003
59,199
The Fatherland
Can someone explain the idea in simple terms? I tried to understand it but don't really get it.

I'm not totally on top of it either. And given my hands are quite soft I won't be able to mine for them.
 




stss30

Registered User
Apr 24, 2008
9,545
Can someone explain the idea in simple terms? I tried to understand it but don't really get it.

Basically, Bitcoins rise and fall in price depending on their popularity etc. If you're looking to buy something with bitcoins, the website will track the average price that bitcoins are selling at that day, hence why (if you buy some) you'd probably want to use them as payment on the same day just in case they fall in value. As I said, it allows anonymity which is why it's becoming more and more popular.
 






GreersElbow

New member
Jan 5, 2012
4,870
A Northern Outpost
In essence, it's a reaction to fractional reserve banking. As you're in control of your deposits, since it's virtual and in your own 'wallet'.

Banks rely on depositors to fund their activities, and when you deposit your money. The bank writes you an I.O.U in the form of the ATM's balance for you. As we've seen in the past 5 years, and as recently as Cyprus, the banks dip into depositors' money to fund their trading activities.
 








Butch Willykins

Well-known member
Jun 17, 2011
2,532
Shoreham-by-Sea
I keep trying to understand, but it makes my head hurt.

This documentary is quite good at explaining Fiat based monetary systems though, which is what we have now and different to Bitcoins. (If you can stand the poor graphics and slightly conspiracy theory tone of it).

 


Notters

Well-known member
Oct 20, 2003
24,865
Guiseley
Yup, wondered when this would come up on nsc! The uptake in Britain is lower than a lot of countries so far, probably because you have to send your money abroad to buy them. Mtgox.com, the main broker, is Japanese.

Perhaps [MENTION=6886]Bozza[/MENTION] would like to start taking bitcoin donations for nsc?
 




Chicken Runner61

We stand where we want!
May 20, 2007
4,609
Yup, wondered when this would come up on nsc! The uptake in Britain is lower than a lot of countries so far, probably because you have to send your money abroad to buy them. Mtgox.com, the main broker, is Japanese.

Perhaps [MENTION=6886]Bozza[/MENTION] would like to start taking bitcoin donations for nsc?

Slow on the uptake in Britain?......How do you think the Nigels are paying Murray?
 


beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,265
This documentary is quite good at explaining Fiat based monetary systems

its also flawed so take it with a bag of salt.

bitcoins are a great little computer science project but dont take it too seriously. the fact they are now $140-160 today from $5 a year ago tell you its a bit bubbly. its soared and crashed before. and yes, i am a bit gutted i didnt buy some (twice). it is probably a very good time to mine them, download a bit of software join a pool and leave your computer on. you should make back more than the electrity cost right now.

the anonymity is all very well but do you need that? your bank notes are unless you are being very, very naughty. problem is no one but a bunch of ISP services and fringe new age vendors accept them. you cant use them to buy your weekly shopping, petrol, cloths (im sure theres a hemp clothing vendor to prove that wrong), pay rent or mortgage etc. the supporters of the currency ignore this rather large drawback. the main benefit, its not government backed is its main failling.
 


Chicken Runner61

We stand where we want!
May 20, 2007
4,609
its also flawed so take it with a bag of salt.

bitcoins are a great little computer science project but dont take it too seriously. the fact they are now $140-160 today from $5 a year ago tell you its a bit bubbly. its soared and crashed before. and yes, i am a bit gutted i didnt buy some (twice). it is probably a very good time to mine them, download a bit of software join a pool and leave your computer on. you should make back more than the electrity cost right now.

the anonymity is all very well but do you need that? your bank notes are unless you are being very, very naughty. problem is no one but a bunch of ISP services and fringe new age vendors accept them. you cant use them to buy your weekly shopping, petrol, cloths (im sure theres a hemp clothing vendor to prove that wrong), pay rent or mortgage etc. the supporters of the currency ignore this rather large drawback. the main benefit, its not government backed is its main failling.

So they are more secure than a Cypriot Bank account with over 100k Euros then? Maybe more secure than a private pension in 2030 then?
 






Chicken Runner61

We stand where we want!
May 20, 2007
4,609
Thanks, I kinda get it now. How many bitcoins have been produced? Is it worth going through the trouble of 'mining' or has the bubble burst, i.e. could you make $10 doing this?

I suspect now so many will jump on it will bubble soon. If it succeeds governments will want it on tax returns

Its a bit like all things, First they will ignore it, then they will mock it and when they attack it you know its winning
 


beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,265
So they are more secure than a Cypriot Bank account with over 100k Euros then? Maybe more secure than a private pension in 2030 then?

er, no. they are less secure. the advocates love the Cypriot example but overlook how the bitcoin value has crashed several times. at least with your pension you have legal recourse and its unlikly a provider collapses. bitcoins so far crashes often.

i should point out to anyone looking to follow up mining, unless you have a decent ATI graphics card, its probably not worth it. the calculations used to generate the next block use an insruction the ATIs are efficient at, but Nvidia cards are poor at and CPU outright pony.
 



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