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Bitcoins?

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ohiobucks1's avatar

ohiobucks1

USA American

4,915 posts
Nov 19, 2013 2:49 AM
Anybody have any? I don't quite understand why they are worth so much and now this:


http://www.cnbc.com/id/101205416
Nov 18, 2013 9:49pm
justincredible's avatar

justincredible

Nick Mangold

32,056 posts
Nov 19, 2013 2:50 AM
I don't. Wish I would have bought when they were around $100.
Nov 18, 2013 9:50pm
ohiobucks1's avatar

ohiobucks1

USA American

4,915 posts
Nov 19, 2013 2:52 AM
justincredible;1538339 wrote:I don't. Wish I would have bought when they were around $100.

Same. But what is their value based on?
Nov 18, 2013 9:52pm
Commander of Awesome's avatar

Commander of Awesome

Senior Pwner

23,151 posts
Nov 19, 2013 2:54 AM
I'm skeptical of them holding their value long term. Not sure how a currency with such a limited market is sustainable based the fad era.
Nov 18, 2013 9:54pm
M

MontyBrunswick

Nov 19, 2013 3:31 AM
Commander of Awesome;1538351 wrote:I'm skeptical of them holding their value long term. Not sure how a currency with such a limited market is sustainable based the fad era.
This. I know some (dumbass) people who are into it and they're only into it for the potential profit. If everyone is in it for the potential profit, the bubble will eventually pop and it'll become worthless.

You can't create a currency that nobody uses to buy goods and expect it to maintain its value.

I could see a big crash in value before too long.
Nov 18, 2013 10:31pm
justincredible's avatar

justincredible

Nick Mangold

32,056 posts
Nov 19, 2013 3:33 AM
Depending on how involved with them the govt gets I can see them lasting long term. Not at these levels, but if the govt isn't able to regulate them they will probably stick around for a while as a way to transfer goods anonymously.
Nov 18, 2013 10:33pm
Pick6's avatar

Pick6

A USA American

14,946 posts
Nov 19, 2013 3:38 AM
Hasnt there already been a large recent (somewhat) crash in their value?
Nov 18, 2013 10:38pm
justincredible's avatar

justincredible

Nick Mangold

32,056 posts
Nov 19, 2013 3:39 AM
Pick6;1538441 wrote:Hasnt there already been a large recent (somewhat) crash in their value?
I think there was a slight drop a while ago but it didn't last long.
Nov 18, 2013 10:39pm
M

MontyBrunswick

Nov 19, 2013 3:42 AM
Pick6;1538441 wrote:Hasnt there already been a large recent (somewhat) crash in their value?
It crashed and rebounded.

I think it's at a record high now because nobody is exchanging them, they're just sitting on them waiting for the right time to sell.

I wouldn't be the least bit shocked to see it fall from $600/coin to < 5 one of these days
Nov 18, 2013 10:42pm
Glory Days's avatar

Glory Days

Senior Member

7,809 posts
Nov 19, 2013 8:07 AM
justincredible;1538443 wrote:I think there was a slight drop a while ago but it didn't last long.
When the silk road was shut down bit coins took a hit.
Nov 19, 2013 3:07am
G

gut

Senior Member

15,058 posts
Nov 19, 2013 8:59 AM
I noticed a while back they fell from like $230 to $140 or less. Then you had that "hedge fund" get busted for fraud, then the silk road thing. I figured bitcoin was done. But never underestimate momentum and bubbles.

The demand and utility is just not there. And in any appreciable quantity I doubt they are that liquid. I'm not sure about counterparty risk and you always have the threat of govt action. For multiple reasons, I just can't see bitcoin ever being more than a glorified novelty.

Scary thing is there have been some alternatives proposed or developed. If the market flocks to "bytecoin" then your bitcoin become completely worthless. Most of the demand comes from investors - the reason gold works is thousands of years of valuing gold as a form of currency. It's a circular credibility issue - gold holds value because it always has. You don't have to worry about people abandoning gold for something else.
Nov 19, 2013 3:59am
S

sportchampps

Senior Member

7,361 posts
Nov 19, 2013 2:43 PM
How are bitcoins taxed in the us. Who is to stop whoever makes them from creating more causing inflation
Nov 19, 2013 9:43am
Fab4Runner's avatar

Fab4Runner

Tits McGee

6,196 posts
Nov 19, 2013 2:47 PM
I really don't know much about them, but they are featured quote frequently in the Good Wife, which is one of my fave shows.
Nov 19, 2013 9:47am
sleeper's avatar

sleeper

Legend

27,879 posts
Nov 19, 2013 3:24 PM
sportchampps;1538661 wrote:How are bitcoins taxed in the us. Who is to stop whoever makes them from creating more causing inflation
There are only a possible 21 million bitcoins that can be "created". They are mined using some kind of algorithm so the supply is controlled by people spending x amount of hours to earn one bitcoin with a super fast computer.
Nov 19, 2013 10:24am
G

gut

Senior Member

15,058 posts
Nov 19, 2013 3:48 PM
There's a lot of problems/roadblocks for bitcoin ever emerging as a viable currency or much more than a novelty. You need liquidity and millions of transactions to stabilize value, but it's not going mainstream until you have liquidity and stable value.

This is nothing more than speculators trying to fleece the last man holding the bag. When the bubble pops you're left mostly with the underground transactions, but then without speculators to provide liquidity even the crooks stop accepting it.
Nov 19, 2013 10:48am
derek bomar's avatar

derek bomar

Senior Member

3,722 posts
Nov 19, 2013 4:54 PM
justincredible;1538339 wrote:I don't. Wish I would have bought when they were around $100.
they used to be $1 in 2011
Nov 19, 2013 11:54am
derek bomar's avatar

derek bomar

Senior Member

3,722 posts
Nov 19, 2013 4:55 PM
theyre at a record high because of the Silk Road thing - took a lot of the coins out of the market.
Nov 19, 2013 11:55am
G

gut

Senior Member

15,058 posts
Nov 19, 2013 5:02 PM
LOL @ that guy only selling 1/5 his stash.

That's a big chunk of change to put at risk. And he's lucky he just happened to look when the price was $700-$800 because it's hard to imagine not unloading a bunch when it was $130 or $240.

He's still got $500k in bitcoins, which seems stupid at these prices, much less for a market/asset he clearly hasn't been following or know much about. Then again it might take some time to unload that much without moving the price against you.
Nov 19, 2013 12:02pm
justincredible's avatar

justincredible

Nick Mangold

32,056 posts
Nov 19, 2013 5:03 PM
derek bomar;1538796 wrote:they used to be $1 in 2011
Yeah, but I didn't know about them back then.
Nov 19, 2013 12:03pm
derek bomar's avatar

derek bomar

Senior Member

3,722 posts
Nov 19, 2013 5:40 PM
gut;1538803 wrote:LOL @ that guy only selling 1/5 his stash.

That's a big chunk of change to put at risk. And he's lucky he just happened to look when the price was $700-$800 because it's hard to imagine not unloading a bunch when it was $130 or $240.

He's still got $500k in bitcoins, which seems stupid at these prices, much less for a market/asset he clearly hasn't been following or know much about. Then again it might take some time to unload that much without moving the price against you.
the market cap for BC's is about $7.2B - $500k wouldn't move it that much I wouldn't think.
Nov 19, 2013 12:40pm
G

gut

Senior Member

15,058 posts
Nov 19, 2013 7:14 PM
derek bomar;1538842 wrote:the market cap for BC's is about $7.2B - $500k wouldn't move it that much I wouldn't think.
probably not...Guess I didn't do the math - remember hearing about 10M have been mined (out of a max of 20M), x700 = $7B

Be interesting to analyze the trading data. Not convinced, in addition to being a huge bubble, that there isn't market manipulation going on. At least you have this guy as proof of someone who was able to get $700+ for his coins (although, ponzi schemes pay out small piles for the same reasons).
Nov 19, 2013 2:14pm
G

gut

Senior Member

15,058 posts
Nov 19, 2013 7:14 PM
If these ever drop back down to like $50 maybe I'll buy one as a souvenir
Nov 19, 2013 2:14pm