Bitcoin

[Irish Houstonian]

For those that haven't heard, there is a new "cash of the internet" called Bitcoin. The system is an open-source protocol that produces "coins", which are long chains of code that can be sent instantaneously peer-to-peer.

Each coin and transaction is verified on the master network, so they can't be counterfeited, created or destroyed. And their use is mostly anonymous.

The advantage to users is that they're transmitted instantly over the internet without the necessity of a credit card/debit card/PayPal, etc. The advantage to merchants is that the only fees they're charged is perhaps a 0.5% exchange fee when they want to convert them to dollars.

So, yeah, this thing could really take off. The current price of one Bitcoin is about $200. Only 21 million will ever be created.

Bitcoin is called a cryptocurrency since it is decentralized and uses cryptography to prevent double-spending, a significant challenge inherent to digital currencies.[9] Once validated, every individual transaction is permanently recorded in a public ledger known as the blockchain.[9] The calculations required to authenticate Bitcoin transactions are completed using a network of private computers often specially tailored to this task.[10] As of May 2013, the Bitcoin network processing power "exceeds the combined processing strength of the top 500 most powerful supercomputers".[11] The operators of these computers, known as "miners", are rewarded with transaction fees and newly minted bitcoins. However, new bitcoins are created at an ever-decreasing rate.[9] Once 21 million bitcoins are distributed, issuance will cease.[9] As of August 2013, approximately 11.5 million bitcoins were in circulation.[12]

Bitcoin - Wikipedia, the free encyclopedia

[IrishSteelhead]

A close friend of mine has been balls deep in Bitcoin for a few years now. He has seen it go from $250 a BC to $30 overnight. It is a roller coaster to say the least, but he has done quite well with it. He recently bought 80k worth of hardware for it.

[Irish Houstonian]

A close friend of mine has been balls deep in Bitcoin for a few years now. He has seen it go from $250 a BC to $30 overnight. It is a roller coaster to say the least, but he has done quite well with it. He recently bought 80k worth of hardware for it.

I think the fluctuations have to do with the fact that there are a few hardcore owners/speculators, and volume is so light in trading. But in order for it to catch on with merchants long term it will have to stabilize. Otherwise merchants will be too scared to hold it before they exchange it for dollars.

[ThePiombino]

<iframe width="560" height="315" src="//www.youtube.com/embed/-f_DPrSEOEo" frameborder="0" allowfullscreen></iframe>

[GoIrish41]

I think I read somewhere recently that this system has been used to launder money.

[IrishSteelhead]

I think the fluctuations have to do with the fact that there are a few hardcore owners/speculators, and volume is so light in trading. But in order for it to catch on with merchants long term it will have to stabilize. Otherwise merchants will be too scared to hold it before they exchange it for dollars.

I remember when he first got in he was trading them at $2 each, and acquired a few thousand over the next year. He explained it to me and urged me to put a few thousand in, and I distinctly remember saying "trade real money for virtual money? No thanks." I suck......

[IrishSteelhead]

I think I read somewhere recently that this system has been used to launder money.

IIRC, it had something to do with that "Silk Road" thing didnt it?

[Irish Houstonian]

I think I read somewhere recently that this system has been used to launder money.

Early-on it was pretty easy in the exchanges, because they didn't require any verification, etc. Just deposit, exchange, and withdrawal. But exchanges got shut down for that and most require account verification, etc.

Since payment is mostly anonymous, it's best illegal use would be to buy contraband online, since a PayPal/CC will have all your information.

[GoIrish41]

IIRC, it had something to do with that "Silk Road" thing didnt it?

Not sure if what I read showed a connection to Silk Road, but I imagine it would have been a currency of choice there.

[Irish Insanity]

Not sure if what I read showed a connection to Silk Road, but I imagine it would have been a currency of choice there.

There was a thread a short time ago about 'Silk Road' and Bitcoin was discussed in there quite a bit.

[Circa]

It's huge in the drug business, bitcoin has been around for a couple years the only reason we are hearing about this coin is the drug busts that have preceded.. Found a good article about them and they seem to think the founder of Bitcoin should receive the Noble Peace prize? Interesting read:
Feds Seek 600,000 Bitcoins in Digital Drug Bust


It was a wild ride last week in the world of the Deep Web, that section of the Internet that requires special tools to access. The feds took down the site called Silk Road and claim to have arrested its founder and administrator. The news streams were filled with lurid tales of derring-do in this world that seem to be drawn from a TV mini-series.

My first step was to see if I knew this fellow named Ross Ulbricht whom the feds unmasked as the Dread Pirate Roberts, the hero to cyberpunks everywhere. Sure enough, I found a correspondence from 2009 in which he spoke about a real-time experiment in market action. Thinking that he was talking about business cycles — this must have been on my mind — I said it sounds great.

In the meantime, it never occurred to me that I might actually have exchanged emails with the founder of the Silk Road. It has long been an eBay-style marketplace for illicit goods and services. Yes, narcotics are among them. It sounds scary, doesn’t it? Yes, it does, until you actually visit the place, as I did only a few months ago.

Here you have many sellers of marijuana, cocaine, methamphetamine, and many psychedelics. There are customer reviews, solid product descriptions, lots of back and forths between users, a high level of quality control, and all the apparatus we’ve come to expect from regular Internet shopping.

None of these products appeal to me in the slightest. The drugs I like — caffeine and alcohol — you can buy at the grocery store. But you come to realize something important after browsing the Silk Road. Maybe it is obvious. Maybe you already know this. But it needs to be said: The desire on the part of a large swath of humanity to dope itself up with something cannot be suppressed, no matter how hard governments try.

Everyone has an interest in seeing peace and normalcy come to these markets. Silk Road was achieving exactly this…

Yes, many of these drugs are personally harmful. Some are not, and it is absurd that they are illegal at all. Regardless, none of them embody some kind of evil that can be or must be vanquished from the planet. At these markets, you find willing buyers and willing sellers, no different from any other sector of life. What makes this market different is that it is illegal, so, therefore, it is dangerous.

At one level, it is incredible and amazing that the Silk Road survived as long as it did — out there in plain view for anyone who downloaded the right browsing software. It was the most conspicuous sign on the planet of the impotence of government. Despite all the power, all the guns, all the courts and legal status, government couldn’t get rid of the thing.

The tools of the Deep Web take some of the danger away, and that is all to the good.

So how did the feds finally catch up with the guy who ran the Silk Road? It wasn’t through technological failure or compromise. Ulbricht, who allegedly ran the site, was just a bit too reckless in throwing around his name and clues to his identity. The investigator on the case traced him through various public postings, connected the dots, and even ran a little sting operation designed to ramp up the charges (an agent pretended to be a hit man for hire, and got himself hired!).

Who cheered the shutdown? Governments, sure. But there’s another group out there who would be thrilled by the end of Silk Road. That would be the drug cartels. Just as Amazon meant competitive pressure on the big sellers and publishers, just as PayPal became a rival to the big money transfer companies, and just as online brokers have eaten into the market for large brokerage houses, so too did Silk Road begin to loosen the grip of the violent drug cartels.

In other words, this site was a threat to the powers that be both in government and in the drug business. Imagine bypassing the middleman and letting producers and consumers connect directly? No more dangerous alleyways. No more risky cash transfers. No more turf wars. The “turf” becomes digital, which is perhaps the best way to optimize search. Guns and bullets are replaced by user rankings and reviews.

So let’s just grant that there will be no end to the demand for, and, therefore, the supply of, drugs. The government’s war on drugs has actually intensified use and driven people to ever harder forms of drugs. Everyone has an interest in seeing peace and normalcy come to these markets. Silk Road was achieving exactly this, which is why many people think that the Dread Pirate Roberts (the nomenclature of Silk Road’s owner) ought to get the Nobel Peace Prize.http:

//dailyreckoning.com/feds-seek-600000-bitcoins-in-digital-drug-bust/

[Irish Houstonian]

IIRC, it had something to do with that "Silk Road" thing didnt it?

Yep. The cool thing about the system: because it's open-source you can see online the 'wallet' that holds all of the Bitcoins seized by the FBI in the raid of the operator. And if you're willing to make a donation you can leave the FBI a note:

https://blockchain.info/address/1F1t...set=0&filter=0

[GoIrish41]

There was a thread a short time ago about 'Silk Road' and Bitcoin was discussed in there quite a bit.

Didn't see that. Thanks.

[Irish Houstonian]

Forgot to mention: one thing that bitcoin's really good at is online gambling, for obvious reasons.

Just imagine if vbucks became bitcoins...

[Irish Insanity]

Forgot to mention: one thing that bitcoin's really good at is online gambling, for obvious reasons.

Just imagine if vbucks became bitcoins...

Maybe they already are

[Junkhead]

Forgot to mention: one thing that bitcoin's really good at is online gambling, for obvious reasons.

Just imagine if vbucks became bitcoins...

I have bought tons of illegal things with vbucks.

[phgreek]

I think I read somewhere recently that this system has been used to launder money.

right. It has been linked to Drug transactions as well...it is becoming the trade currency for black market...

In a way it proves its value...in another way...it dooms it...

IMHO being a threat to currency and all the power that goes with it is a very tall order...people with that much power are not encumbered by our laws, and don't answer to governments.

Now...by being associated with shady folks...just makes the job of erasing this endeavor easier as it makes sense to the public..."legal" or not.

Its instability won't be its undoing...IMHO

[Irish Houstonian]

FYI, the price of Bitcoin has doubled in the last two weeks.

The driver has been Chinese investment.

The FEC also ruled that politicians can recieve political contributions in bitcoin.

[nlroma1o]

Has anyone purchased any of this currency yet? I'm a little embarrassed to admit that I've actually researched this way more than I originally intended, and I think I am going to purchase a small amount in the near future.

[PANDFAN]

i can't comprehend the concept at all...makes no cents(c what i did there) to me

[tussin]

Short short short

[BGIF]

Bitcoin exchange CEO arrested for money laundering - Jan. 27, 2014

The perils of travel on the Silk Road don't seem to have changed much since Marco Polo's time.

[phgreek]

Bitcoin exchange CEO arrested for money laundering - Jan. 27, 2014

The perils of travel on the Silk Road don't seem to have changed much since Marco Polo's time.

That didn't take long...

be interested to see if another cyber currency takes over, or this one somehow survives...

[Circa]

TigerDirect.com - Electronics, Tablets, Phones, Office Supplies & Video Games

This one has.. and from some deep into It, It's only going to get bigger! Seed was planted long ago

[Irish Houstonian]

The Beef O'Brady's Bowl is now the Bitcoin St. Petersburg Bowl. At least for the next 3 years.

The sponsor is Bitpay, one of the better-funded bitcoin payment processors.

BitPay to Sponsor St. Petersburg Bowl in First Major Bitcoin Sports Deal - WSJ

Meanwhile, the feds are auctioning off about 30,000 of the bitcoins seized in the Silk Road raid. If you can put down a $200,000 deposit, you're in luck.

U.S. to Auction Bitcoins on June 27 - WSJ

[Circa]

anyone else see the rise of the coin?
Bitcoin Charts / Markets
I suggest a little investment.

1 currency

[irishfan]

bump

[Meatloaf]

I was going to buy some a few weeks ago when one btc was going for $7000, but I was waiting for the price to come back down. Fml.

[calvegas04]

I was going to buy some a few weeks ago when one btc was going for $7000, but I was waiting for the price to come back down. Fml.

I was going to a couple months ago when it dropped close to 2k, FML

[IrishLax]

Guys, this is a giant scam. That's all. It's going to crash. It's being driven by demand... that's it. You cannot trade a bitcoin for $10k+ of a commodity right now... you can only trade it for cash from people who "want a bitcoin"... it's blind speculation.

[irishfan]

Guys, this is a giant scam. That's all. It's going to crash. It's being driven by demand... that's it. You cannot trade a bitcoin for $10k+ of a commodity right now... you can only trade it for cash from people who "want a bitcoin"... it's blind speculation.

I go back and forth and how scammy I think it is, but there are several places online where you can use btc to purchase things.

[zelezo vlk]

Guys, this is a giant scam. That's all. It's going to crash. It's being driven by demand... that's it. You cannot trade a bitcoin for $10k+ of a commodity right now... you can only trade it for cash from people who "want a bitcoin"... it's blind speculation.

But how many tulips does it buy?

[notredomer23]

I remember I bought my fake ID my freshman year of college in 2012 in Bitcoin. Think it was worth something like $175 around that time (or I bought $175 worth of bitcoin, I forget). Either way, kinda wishing I held onto it, though I do agree with Lax 100%.

And I gotta say, this isn't directed at anyone on this board, but those that discuss bitcoin on social media are worse than the people that push their pyramid schemes.

[ND NYC]

ive started playing the tech companies that enable the blockchain/bitcoin technology like Nvidia and AMD last couple years.
was all set to open a coinbase account back then and start trading etc, but I didn't, was too confusing to me...sure regret that now!

[IrishLax]

I go back and forth and how scammy I think it is, but there are several places online where you can use btc to purchase things.

Correct, but you cannot buy $10k worth of common commodities for 1 bitcoin. The exchange rate isn't there... which is what tells you it's currently driven by speculation/market demands NOT any sort of reasonable, established valuation.

I'm not begrudging people who got in on this early and are cashing out now for tons of money. That's awesome, well done. What I'm telling you is that once the "fever" stops and the demand is no longer outstripping supply, the value will absolutely plummet. This is inevitable. The entire concept of currency says that it cannot possibly be worth what it's being traded at... people are treating it like a pump-and-dump stock. And that's how all people should warily approach investing in bitcoin.

So have fun riding the roller coaster but know when to get off.

[STLDomer]

Houstonian must be a billionaire by now.

[STLDomer]

I have a very small amount of Bitcoin just to ride the wave.

Ethereum is where I have more faith and investment.

[phgreek]

I have a very small amount of Bitcoin just to ride the wave.

Ethereum is where I have more faith and investment.

I thought this thing would be long dead...amazed.

[Wild Bill]

https://www.coindesk.com/cboe-begin-...g-december-10/

The Chicago Board Options Exchange (CBOE) has announced that its planned bitcoin futures product will begin trading on Dec. 10.

In a statement published today, the firm said that trading would commence at 5 p.m. CT, with the first full day of trading starting that Monday. Trading on the CBOE Futures Exchange (CFE) under the "XBT" ticker, the company added in its release that trading of the futures product would be free through the end of December.

The announcement is a notable one given that a bitcoin future being launched by CME Group will go live the following week on Dec 18.

Ed Tilly, CBOE's chairman and CEO, said in a statement:

"Given the unprecedented interest in bitcoin, it's vital we provide clients the trading tools to help them express their views and hedge their exposure. We are committed to encouraging fairness and liquidity in the bitcoin market. To promote this, we will initially offer XBT futures trading for free."

The launch confirmation comes months after the Chicago-based exchange first detailed its plans to create a bitcoin futures product. At the time in August, the CBOE was working with New York-based bitcoin exchange Gemini, which is run by investors Cameron and Tyler Winklevoss, ahead of the launch.

The move also comes amid a time of climbing prices of bitcoin. The cryptocurrency is currently trading at roughly $11,400, as per CoinDesk's Bitcoin Price Index (BPI).

Not sure if this means it has staying power or not. The feds and the federal reserve aren't interested in competition so it's kind of surprising it's gotten this far.

[phgreek]

https://www.coindesk.com/cboe-begin-...g-december-10/



Not sure if this means it has staying power or not. The feds and the federal reserve aren't interested in competition so it's kind of surprising it's gotten this far.

Exactly...

[SonofOahu]

Guys, this is a giant scam. That's all. It's going to crash. It's being driven by demand... that's it. You cannot trade a bitcoin for $10k+ of a commodity right now... you can only trade it for cash from people who "want a bitcoin"... it's blind speculation.

This.

[IrishSteelhead]

Yay. One my biggest regrets in life saying good morning as a top thread......sniff sniff......

[Veritate Duce Progredi]

A close friend of mine has been balls deep in Bitcoin for a few years now. He has seen it go from $250 a BC to $30 overnight. It is a roller coaster to say the least, but he has done quite well with it. He recently bought 80k worth of hardware for it.

Did your friend stay on the train? If he bought 80k of mining gear, he should've had a hefty sum of bitcoins saved up. I'd imagine he's already retiring?

[Johannes]

If you had purchased one bitcoin for $200.07 when Houstonian made this thread, it would be valued today at $11,831.05. That’s over a 59-fold increase.

I’m not sure what it’s like trying convert that into actual US currency, nor am I saying it’s a good investment, but damn... crazy to think about.

[Veritate Duce Progredi]

Yeah, if you purchased 500 bitcoins at that time you'd have nearly 6 mil in BCs.

[Wild Bill]

If you had purchased one bitcoin for $200.07 when Houstonian made this thread, it would be valued today at $11,831.05. That’s over a 59-fold increase.

I’m not sure what it’s like trying convert that into actual US currency, nor am I saying it’s a good investment, but damn... crazy to think about.

There's absolutely zero chance I would have had the stomach to let this ride out to the current prices. I would have been nervous around $5k and dumped as it approached $10k. But yeah, if you bought early and have balls of steel, tip my cap.

[zelezo vlk]

Yeah, if you purchased 500 bitcoins at that time you'd already be dead by overdose on coke and hookers

ftfy

[Legacy]

Some non-profits accept donations in Bitcoins. Bitcoins can be part of a retirement account. Putting them in your Roth....

Donate Bitcoins United Way

Are Bitcoin Profits Taxable? (Motley Fool)

[irishfan]

Correct, but you cannot buy $10k worth of common commodities for 1 bitcoin. The exchange rate isn't there... which is what tells you it's currently driven by speculation/market demands NOT any sort of reasonable, established valuation.

I'm not begrudging people who got in on this early and are cashing out now for tons of money. That's awesome, well done. What I'm telling you is that once the "fever" stops and the demand is no longer outstripping supply, the value will absolutely plummet. This is inevitable. The entire concept of currency says that it cannot possibly be worth what it's being traded at... people are treating it like a pump-and-dump stock. And that's how all people should warily approach investing in bitcoin.

So have fun riding the roller coaster but know when to get off.

8 surprising places where you can pay with bitcoin - Business Insider

I can blow 17k (current price) on Overstock.com with 1 btc. Or I could buy one item for a fraction of btc.

[IrishLax]

8 surprising places where you can pay with bitcoin - Business Insider

I can blow 17k (current price) on Overstock.com with 1 btc. Or I could buy one item for a fraction of btc.

You can't get a direct conversion to a common commodity (crude oil, etc.) for a bitcoin right now. As far as I'm aware a bitcoin "worth" 10k USD does not have 10k of USD purchasing power in commodities markets. If that's changed recently, I'd be very interested.