BITCON... WHY its totally FLAWED

hawkeye said:
I'm holding, I basically took almost 100% profits when I cashed out a fraction of my position the other day. There's no way for me to lose on this one now, it's only a question of how much will I win. I think the fundamentals are good, but I agree it's more than likely a speculative bubble atm likely to collapse. I may do another small cashout depending on how high it goes. But selling them makes me nervous.
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We are in an indentical position / opinion. :lol:
 
pro$pector said:
Selling is starting to build around $230, first time this has been seen since around $140 or so.

Could be time for a pullback.
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Really interesting to see volumes and how they adjust.
Buyers volumes powered through $200 but are not met with some more selling between the US$230-250 mark.
Yet, a ridiculous number of people are queuing to get onto MtGox.
I too keep a close look on the volumes, really helps to get a feel for the market.
We'll see where this takes us.
 
Was just down at uMart (pc shop) for work, and saw some guy buying up a new system and 2 graphics card for mining, he was talking about it to his mate.

Guys behind counter then commented on how many people are buying stuff!
 
Lol a btc based recovery..

Thinking it might create fiat deflation also as people spend fiat on btc.. Or would that increase the velocity and create more price inflation.. I'm thinking the latter

Goooooooood for gold
 
I just had a guy at work so desperate to get his hands on Bitcoin's asap that he paid me 20% over current Mt Gox sell price for a few as long as I sent them straight away - it seems all this mainstream media attention is working! :D
 
So again I thought about it...

Only 21,000,000 Bitcoins can ever be mined.
This is suspected to be achieved close to the year 2140.

However, they're being removed from circulation every single day.
* Someone formatted their PC (and Bitcoins)
* Transaction fees from wallet to wallet
* You forgot your password

Unlike normal fiat currency, where the mint can just print new pieces of paper endlessly, Bitcoins could effectively (although totally unlikely) be reduced to zero?
 
Marsi said:
Wondering how the carbon footprint of mining cryptos compares with the carbon footprint of mining PM's?
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Ironically, it's going way down. A 620w Avalon ASIC yeilds 60,000Mh/s. A single 6990 GPU needs 375w to touch 850Mh/s.
 
hawkeye said:
I'm holding, I basically took almost 100% profits when I cashed out a fraction of my position the other day. There's no way for me to lose on this one now, it's only a question of how much will I win. I think the fundamentals are good, but I agree it's more than likely a speculative bubble atm likely to collapse. I may do another small cashout depending on how high it goes. But selling them makes me nervous.
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Either bitcoin shoots to the moon = I win.
Bitcoin crashes and people run back to PMs = I win.

I like my odds.
 
The bitcoin bubble explained: Understanding the mathematics of the inevitable bitcoin crash

(NaturalNews) John, Mary and Kate are three "investors" who are buying bitcoins. Each time one of them buys a bitcoin, the value of bitcoins rises due to increased demand.

John got in early and bought 10 bitcoins for $1 each. So John's investment is a total of $10.

Mary got in a month ago and bought 10 bitcoins for $20 each. So Mary's total investment is $200.

Kate just bought her bitcoins, purchasing 10 of them for $200 each. So Kate's total investment is $2,000.

The total amount of their combined purchases as $10 + $200 + $2000, or a grand total of $2210.

But the three of them, in total, THINK they have a grand total of $6,000 worth of bitcoins because ALL the bitcoins they purchased are now "valued" at the most recent purchase price of $200.

In total, these three people believe they have $6,000 worth of bitcoins.

Yet, they only "invested" $2210.

Somehow, $3,790 in "value" was created out of nothing.

Where did this extra $3,790 come from?
Answer: It doesn't exist. It is an illusion.

Bitcoins, like stocks, create the illusion of free wealth during a rise in valuation
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In truth, John, Mary and Kate are all suffering under a shared delusion by thinking they each possess $2,000 worth of bitcoins. All currencies are shared delusions, including the U.S. dollar. They only hold their value as long as very few people sell the currency. Once a selloff begins, the mathematical process that created the excess "virtual valuation" reverses itself, destroying valuations across all the investors.

All currencies depend on "faith" in the currency. That's why the U.S. dollar is claimed to be backed by the "full FAITH and credit of the U.S. government." Without the faith, the currency collapses.

Bitcoin valuations also require faith... faith that a large selloff will not occur. Because if it does, prices will naturally fall as the supply of bitcoins increases due to people selling them into the market.

Perceived valuations do not reflect the actual cash value to be received during a mass selloff. What they reflect is the maximum optimism, multiplied across all account holders, based on the last selling price.
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But make no mistake: Bitcoin has now become a casino. If you are buying bitcoin right now, you are gambling with your money. There's a sucker born every minute... try not to be one of them.

The only smart play right now is to buy bitcoins at market while having an automated sell system in place to sell bitcoins if they drop to a specified trigger price (a non-expiring sell order). To my knowledge, this can only be accomplished through custom software development, not through any existing bitcoin wallet service or exchange service.
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Disclaimer: I know very little about the BTC phenomenon (other than I seem to have missed the boat) but thought I'd share the above article
 
^The above is the exact same for gold or anything. Commodity, share, currency, whatever...

Things are only worth what other people (the market in total) think they are worth and everything is relative.
 
That article is a fantastic description of how bubbles happen. My question isn't whether bitcoin is in a bubble phase right now (it's champagne), but rather how high can it go before the gravy train is derailed? The buy:sell ratio is so incredibly screwed due to Mt Gox being overwhelmed that if they stopped receiving new registrations tomorrow there would still be a line of willing buyers to keep the market afloat into May.

I'll consider selling when BTC hits $600 USD per. At that price, I can cash out BTC 1:1 for mint sealed tubes of ASEs. Unless or until that day comes: Easy come, easy go. This is money that didn't exist in my savings account a month ago, and as a stacker I laugh in the face of volatility.
 
House said:
Disclaimer: I know very little about the BTC phenomenon (other than I seem to have missed the boat) but thought I'd share the above article
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I'm with you there, totally missed it though I should have paid more attention when I first took note about a year ago.

Thanks for the article and links. I had this discussion with a teacher at high school once about the value of things. I didn't agree with him at the time because I was defensive over how much my things were worth and I still don't see it as black and white as he did.

I don't think this BTC thing will last long (in this format at least) but who knows. I'm not being sour about missing out, like others have said it's like any investment; get in early and you'll make your money.

BUT...

I do think that this USD 'value' will change, either the bubble will burst or someone will try to manipulate it. Great idea though, perhaps one not for this place in time? Are we as humans ready for a digital currency (we've been using one for a while really... "oh look I have numbers when I log into my bank account!")

And I'm off on a tangent again :)
 
RetardedMonkey said:
Someone gave me some good settings for my 7970 Ghz's that I have... 720 kH/s each.
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Spill the beans please :cool: :| :D

EDIT: Here's what I am using for LTC, getting around 620 KH for those that care:

cgminer -o http://blah -u xxx -p xxx --scrypt -I 13 --shaders=2048 -g 2 -w 256 --thread-concurrency=8192 --gpu-engine 1050 --gpu-memclock 1700 --temp-target 75 --temp-overheat 85 --temp-cutoff 95 --auto-fan
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