BITCON... WHY its totally FLAWED
- Thread starter 1for1
- Start date
1for1
Well-Known Member
Bitcoin Value Reaches An All-Time High Compared To The Dollar:
Digital currency used in place of the dollar isn't exactly a new concept, especially online.
Indeed, Microsoft has used its own points as a sort of alternate currency for Xbox 360 buyers for a number of years, while a number of cross-platform games following the same strategy for points and auction houses.
One of the most popular forms of alternate digital currency introduced in recent years is known as Bitcoin. The company has been in the news in recent months with hackers reportedly making off with about $250,000 worth of digital currency in September of last year.
More recently, Mega announced that it would be taking Bitcoin as a form of payment.
Interestingly, this week Bitcoin hit an all-time high in terms of value compared to the US dollar. Indeed, the exchange rate for the virtual currency and the US dollar climbed past $32 for the first time ever. The previous all-time high was hit in June of 2011 when the exchange rate was set at $31.9099 for the US dollar.
At its lowest point, the exchange rate was under two dollars in 2011 but the value of Bitcoin has risen over the last several months as the currency makes its way to new markets. - See more at: http://bitcoinguy.blogspot.com.au/2...aches-all-time-high.html#sthash.gjJkzewn.dpuf
Digital currency used in place of the dollar isn't exactly a new concept, especially online.
Indeed, Microsoft has used its own points as a sort of alternate currency for Xbox 360 buyers for a number of years, while a number of cross-platform games following the same strategy for points and auction houses.
One of the most popular forms of alternate digital currency introduced in recent years is known as Bitcoin. The company has been in the news in recent months with hackers reportedly making off with about $250,000 worth of digital currency in September of last year.
More recently, Mega announced that it would be taking Bitcoin as a form of payment.
Interestingly, this week Bitcoin hit an all-time high in terms of value compared to the US dollar. Indeed, the exchange rate for the virtual currency and the US dollar climbed past $32 for the first time ever. The previous all-time high was hit in June of 2011 when the exchange rate was set at $31.9099 for the US dollar.
At its lowest point, the exchange rate was under two dollars in 2011 but the value of Bitcoin has risen over the last several months as the currency makes its way to new markets. - See more at: http://bitcoinguy.blogspot.com.au/2...aches-all-time-high.html#sthash.gjJkzewn.dpuf
As long as the black market websites running through the TOR network exist, this currency is going to be the 'weapon of choice', so until mining catches up with the difficulty of 'solving' to bring more into existence, prices will probably increase. Don't get me wrong, there are myriad legitimate uses for this novel currency, but criminals are sharp when it comes to adaptation, and what you have here, with a peer to peer system, is something which makes law enforcement's job VERY challenging for any serious criminal.
In the old days (12 years or so back), international cyber criminals paid each other globally via Western Union. That still required the sender to appear at an agency, fill out paperwork, and be on camera - and give away their physical location (or at least, somewhere within travel time of their operation). They had to know their recipient's geographic location, even if they 'receiver's name was made up, and he too would have to appear to pick up his currency. Sender transmitted money transfer control number, receiver provided same, money dispensed. Typical law enforcement methods (eg physical surveillance) were very, very effective with this. AUSTRAC also mandated photo ID with every transaction - not hard for a criminal to acquire, but another layer of hassle to remain anonymous. Enter digital currency en masse.
I was a customer of e-gold. I'm one of about 22 out of several thousand users who successfully contested a US Federal Government criminal assets forfeiture order late last year. I liked the idea of being able to invest in gold in increments which I chose (keep in mind, I was quite a bit younger then, I like my assets more tangible now). As it turned out, the Russian mafia and credit card scammers, who used the system to move money without the hassles of regulatory oversight, rather liked the system too. So too did peddlers of base and vile wares such as child pornography. Australia simply banned market makers from operating in Australia. The system has, several years later, come apart in court, because of the centralised nature of how the transactions were conducted, and the need for those accounts to need something akin to identification. Sure, thousands of accounts ended up being created by criminals using fake or stolen information, but they had to do so.
Not so with BTC. You can create a bitcoin 'wallet' as easily as entering a URL. The central server confirms the transactions but doesn't regulate them, and merely traces a path, which, if you know how to cover yourself at the end of said path, leads absolutely nowhere.
End of the day - where there is supply, there is demand. Flawed or not, bitcoin is the currency of choice for the new digital underworld. Demand will persist until this is crushed or something else better appears.
In the old days (12 years or so back), international cyber criminals paid each other globally via Western Union. That still required the sender to appear at an agency, fill out paperwork, and be on camera - and give away their physical location (or at least, somewhere within travel time of their operation). They had to know their recipient's geographic location, even if they 'receiver's name was made up, and he too would have to appear to pick up his currency. Sender transmitted money transfer control number, receiver provided same, money dispensed. Typical law enforcement methods (eg physical surveillance) were very, very effective with this. AUSTRAC also mandated photo ID with every transaction - not hard for a criminal to acquire, but another layer of hassle to remain anonymous. Enter digital currency en masse.
I was a customer of e-gold. I'm one of about 22 out of several thousand users who successfully contested a US Federal Government criminal assets forfeiture order late last year. I liked the idea of being able to invest in gold in increments which I chose (keep in mind, I was quite a bit younger then, I like my assets more tangible now). As it turned out, the Russian mafia and credit card scammers, who used the system to move money without the hassles of regulatory oversight, rather liked the system too. So too did peddlers of base and vile wares such as child pornography. Australia simply banned market makers from operating in Australia. The system has, several years later, come apart in court, because of the centralised nature of how the transactions were conducted, and the need for those accounts to need something akin to identification. Sure, thousands of accounts ended up being created by criminals using fake or stolen information, but they had to do so.
Not so with BTC. You can create a bitcoin 'wallet' as easily as entering a URL. The central server confirms the transactions but doesn't regulate them, and merely traces a path, which, if you know how to cover yourself at the end of said path, leads absolutely nowhere.
End of the day - where there is supply, there is demand. Flawed or not, bitcoin is the currency of choice for the new digital underworld. Demand will persist until this is crushed or something else better appears.
has put on $10 since I dumped a lot last week. do I regret it yeh but it think it will crash back to $20's as butterfly labs asics land in the wild. I think they will be enough to make it really tough for GPU miners like myself. Just think all those people are going to want get the money back that they spent on their basics where as the GPU miners are content to hold on to coin at the moment.
Fat Freddy
New Member
"...True there's no other virtual currency that has the market penetration and acceptance of bitcoin. Whatever happens to the price, it will be the king of crypto currencies for the foreseeable future."
Just my personal opinion, but I think that's a lot like the blind king of all that he can see.
This Bitcoin stuff will either be the Brave New World Currency Of The Future or else it'll be the new high of cyberlunacy and another laughable crash+burn flash in the pan like the 90's dot com fiasco, junk bonds, etc ad infinitum.
My money is on the latter.
Just my personal opinion, but I think that's a lot like the blind king of all that he can see.
This Bitcoin stuff will either be the Brave New World Currency Of The Future or else it'll be the new high of cyberlunacy and another laughable crash+burn flash in the pan like the 90's dot com fiasco, junk bonds, etc ad infinitum.
My money is on the latter.
For someone to make money someone has too lose money. I also see this being the case. Early entries into the system do well, people getting in late get burned...
I am in the category of don't know enough about it so don't do it. I tried to learn more but it is not for me. Glad some did ok.
I am in the category of don't know enough about it so don't do it. I tried to learn more but it is not for me. Glad some did ok.
$50 might have been the psychological barrier like it was with silver. We'll see what happens with the crash although this is a far more thinly traded market than even silver which itself is thin compared to most commodities. Making it much more volatile. For me it is a long term bet on the future of currency. Whereas Gold and Silver are more short term to medium term bets, that if I see them going parabolic, like Bitcoin did these past few weeks, I will be looking to sell.
1for1
Well-Known Member
Anyone Getting one of these? At this price it will pay itself off in no time..
http://bitcoinguy.blogspot.com.au/2013/02/new-bitcoin-mining-hardware-bitforce-sc.html
NEW Bitcoin Mining Hardware: Bitforce SC 1,500 GH/s Bitcoin Miner from Butterflylabs
http://bitcoinguy.blogspot.com.au/2013/02/new-bitcoin-mining-hardware-bitforce-sc.html
NEW Bitcoin Mining Hardware: Bitforce SC 1,500 GH/s Bitcoin Miner from Butterflylabs