Bitcoin

Discussion in 'General Discussion' started by CanWeTalk, Apr 3, 2013.

  1. CanWeTalk

    CanWeTalk Banned

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    What the heck is this virtual currency that has been in the news the past month? What in the world are it's uses and what can you purchase with it? Currently one bitcoin equals about $100.

    This guy is starting a business where he sets up ATMs in a country and will exchange bitcoin for the countries money.

    [video=youtube;OgxeB6ro_NI]http://www.youtube.com/watch?feature=player_embedded&v=OgxeB6ro_NI#![/video]
     
  2. toxigal

    toxigal Well-Known Member

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    Let me google that for you

    Not new, been around since 2009.
     
  3. CanWeTalk

    CanWeTalk Banned

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    I did not say it was new but in the news the past month. While you're googling, what are it's uses and what can you purchase with it. Sounds like some sought of scheme to me.
     
  4. AbortedWalrus

    AbortedWalrus Well-Known Member

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    Bitcoins are a technical thing. The idea was to create a currency that is not issued by a government so that it couldn't be controlled by governments. Bitcoins are farmed by running a computer algorithm to generate a code that represents the currency, in laymans terms.

    As for usage, there are a few primary uses right now. They are often exchanged for work done by hackers or computer programmers. They can also be exchanged for drugs and other nefarious purposes. In my experience there are not a lot of legitimate uses for them at this point, but that may or may not change in the near future.
     
  5. raider.adam

    raider.adam Well-Known Member

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    You can buy anything with them... as long as the person/business accepts them as a form of payment.

    As an aside, I find it hilarious someone tells another person to google further answers for them.
     
  6. CanWeTalk

    CanWeTalk Banned

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    As hilarious as someone who can not read correctly
     
  7. BReynoldsIsBald

    BReynoldsIsBald Couldn't Care Less

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    The bitcoin currency has taken off in value since the Cyprus theft of private property and talk about theft in other European countries. It is just another medium form of exchange in certain 'sub-cultures' for now. Theoretically you can buy anything a person is willing to sell you in exchange for bitcoin .. similar to paper fiat, gold, silver or any other form of currency.

    It has become very popular for grey/black market items because it requires a lot of resources and intelligence to trace. It is also very popular among the programming sub-culture because of their anarcho inclinations.
     
  8. forkiks

    forkiks Well-Known Member

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    When someone doesn't know information about something, the best thing is to do some research on the matter, by reading up on it, etc...it seems your method of research for this is to ask for a quick summary from this forum - i mean, you are already providing your opinion on the topic and you are clueless . Is this how you gather information about everything? The quick summary is that it's a type of currency, as mentioned. Bitcoins have been in the news longer than the last month...
     
  9. toxigal

    toxigal Well-Known Member

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    oops, sorry, my bad. reading comprehension failure.
     
  10. toxigal

    toxigal Well-Known Member

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    when the question is so broad, it's the best answer.
     
  11. AbortedWalrus

    AbortedWalrus Well-Known Member

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    Yeah. It's just that not many upstanding citizens or businesses use them at this point. And to find those people that do you have to venture to places on the internet that... no one should ever go.
     
  12. BReynoldsIsBald

    BReynoldsIsBald Couldn't Care Less

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    The Federal government has already shown it's will and ability to debase and destroy the currency. Many see value in another currency option which can not be debased by political entities and the more attention this currency gets, the more mainstream it can go. Seems to be a lot of interest to some who are not deep web types. One could spend bitcoins today without "venturing into places on the internet that... no one should ever go".

    There are already a decent amt of currencies used for trade in America that aren't federal reserve notes.
     
  13. Tartan69

    Tartan69 Pawn in game of life

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    Fully agree. Although I've always preferred answering those kinds of questions via the LMGTFY.com service:

    Let me google that for you
     
  14. toxigal

    toxigal Well-Known Member

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    wow! I didn't know that even existed. I always googled, got the link and then posted the link. your way is a lot cooler!
     
  15. raider.adam

    raider.adam Well-Known Member

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    Haha, I didn't click on your original link. I saw you named it "let me google that for you" so I assumed that is what you used.
     
  16. Jayfar

    Jayfar I'm very old®

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    And as currencies go, it can be more than a little volatile:

    Bitcoin price goes on wild ride - Apr. 3, 2013

    Also there have been several instances of bitcoin exchanges being hacked/compromised, per stories I see on slashdot from time to time.
     
  17. AbortedWalrus

    AbortedWalrus Well-Known Member

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    Don't get me wrong, I'm not saying it has no potential. I'm just saying that currently there isn't a ton of use for it. I've been following it for a while and I think the Cyprus incident really may have accelerated the acceptance of it.
     
  18. raider.adam

    raider.adam Well-Known Member

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    The thing is the Cyprus hasn't really increased its acceptance so much as a currency but as an investment option. It's not like the people who moved stuff over are now using it to pay for goods and services. They are likely going to move it back into other currency when they need it.

    Sort of like "oh crap they are going to raid my bank account, I am going to dump the money into buying gold. No one actually buys anything with the gold. They convert it back to currency when they need it.
     
  19. Jayfar

    Jayfar I'm very old®

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  20. hkp

    hkp Señor Member

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  21. five apples

    five apples Deacon Blues

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    A currency based on absolutely nothing, I am not sure how it has gotten this far or how it can possibly be sustained. I know lots of my Indian co-workers were into it a few years ago. I looked into it at the time and it seemed to me like something doomed to failure. It fails in the basic concept of what a currency is.

    There are some people out there now using it for online sales and so on. But no major financial institution will accept this. I think a lot of people will end up loosing money on it.
     
  22. hkp

    hkp Señor Member

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    It's based on piracy and drug trafficking from what I can tell. And fear of a USD collapse. The irony isn't lost on some of us.
     
  23. Tartan69

    Tartan69 Pawn in game of life

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    From a technical standpoint it actually *is* based on something. There's some crazy computer algorithm that people use to "mine" for bitcoins, and if your particular algorithm code "finds" a bitcoin, you get to keep it. That's simplifying it to an extreme, but somehow it is legitimate based on that. Heck I'm an IT professional and I don't even come close to understanding the whole process.

    Regardless, if you can't get the normal public on board with agreeing it is a legitimate currency, then no amount of justification (right, wrong, or indifferent) is going to make it usable as a currency in the long run beyond anyone outside of a select group of people.
     
  24. five apples

    five apples Deacon Blues

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    A currency at its most basic core is based on the value of the country issuing it. At best this is a commodity or stock. However commodities (such as gold) can actually be used to make things and stocks are supposed to be based on the value of the company issuing or its perceived future value. So in the end all it is based on is what people who own it and sell it think its worth, you can say in the end that is true of the dollar or a share of Apple, but at some basic point they actually have a quantifiable value. If you can't go buy a gallon of milk with it or go to your bank and change it into actual money to buy the gallon of milk with, it can never truly be a currency. Yes a massive over simplification, but something bitcoin can't ever be either.
     
  25. Tartan69

    Tartan69 Pawn in game of life

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    If the owner of the local corner bodega decides that I can buy his milk with bitcoins, then absolutely it becomes a form of currency...just not a government-recognized one. Which is one of the reasons why it exists.

    Note the surprisingly lengthy list of places you can actually use it to buy things:

    https://www.spendbitcoins.com/places/
    https://en.bitcoin.it/wiki/Trade
    Where to Spend Your Bitcoins | Bitcoin Magazine

    I think both our end arguments are ultimately the same though, in that the chances of this ever becoming more than a niche currency beyond this specialized group are infinitely small.
     
  26. supersupper

    supersupper Appetizer

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  27. Panniculus

    Panniculus Banned

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    Let me know when strippers accept Bitcoin.
     
  28. seand

    seand Well-Known Member

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    As a technical aside, if you ever have to move a small amount of money into bitcoin for any reason (say some service provider of some sort with visions of being "outside the grid" for example), the most economical way I found was to use a free Person to Person money transfer from a Capital One 360 account (formerly ING Direct banking) to bitfloor.com.

    I find the brouhaha about bitcoin speculation a little overplayed and find it generally annoying to have an electronic currency that can be so relatively expensive to move, say $20 into.
     
  29. seand

    seand Well-Known Member

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    You just have to know how to slip it into their virtual G-strings.
     
  30. Panniculus

    Panniculus Banned

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    You mean their USB port AMIRITE!!
     

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