Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Aug 17 Bitcoin = $108.25
Old 08-16-2013, 09:40 PM   #1
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
Aug 17 Bitcoin = $108.25

For interest only:
While the bitcoin doesn't evoke much interest here, it seems worthwhile to have some basic understanding of the concept as there are currently 1.2 billion bitcoins in circulation.
This article is an overview.Decoding Bitcoin - Zachary Warmbrodt - POLITICO.com

Wikipedia has a more involved explanation as well as a history and some "expert" financial views of the concept/investment.
The coming days and weeks are expected to see a number of exploratory court cases that may determine the future (which is finite in the year 2140).

Quote:
Brito, who next week will publish a Bitcoin primer for policymakers, estimates there are hundreds of thousands of people using the cryptocurrency and that they fall into three main groups: tech early adopters, entrepreneurs, venture capitalists and speculators, and politically motivated types who like the fact it is not controlled by a government.

“Like the Internet of the 1980s, the ecosystem is both young and highly technical,”said Charles Hoskinson, Director of the Bitcoin Education Project. “The users currently are mostly from Western European and North American countries and under 40. Most have college degrees or some university education. And most are fairly comfortable with using computers and the Internet. Over time we expect to see enormous growth in countries with unstable economies and poor financial services sectors such as Zimbabwe.”
The relative anonymity of the tranactions may have tax implications.
__________________

__________________
Today is the oldest you've ever been, and the youngest you'll ever be again. - Eleanor Roosevelt
imoldernu is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-01-2013, 08:40 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RonBoyd's Avatar
 
Join Date: Dec 2007
Location: Denver, Colorado
Posts: 5,280
Man buys $25 of Bitcoins in 2009, now worth $848,000 - AfterDawn
__________________

__________________
"It's tough to make predictions, especially when it involves the future." ~Attributed to many
"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."~ Lau tzu
RonBoyd is offline   Reply With Quote
Old 11-01-2013, 09:04 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,459
According to MakeUseOf bitcoins are also used as ransom:

"CryptoLocker is a piece of malware targeting computers running the Microsoft Windows operating system. It is typically spread as an email attachment, often purporting to be from a legitimate source (including Intuit and Companies House). Some say it is also being spread through the ZeuS botnet.
Once installed on your computer, it systematically encrypts all documents that are stored on your local computer, as well as ones that are stored on mapped network drives and mounted removable storage.


The encryption used is strong, 2048 bit RSA, with the decryption key for your files being stored on a remote server. The odds of you being able to break this encryption is almost nonexistent. If you want to get your files back, CryptoLocker asks for you to fork over some cash; either two bitcoins (At the time of writing, worth almost USD $380) or $300 in either MonkeyPak or Ukash prepaid cards. If you donā??t pay within three days, the decryption key is deleted and you lose access to your files forever.
I spoke to popular security expert and blogger Javvad Malik; this is what he had to say about CryptoLocker."

And on Silk Road as the exchange for drugs by mail.
__________________
calmloki is offline   Reply With Quote
Old 11-01-2013, 11:26 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Feb 2011
Posts: 1,629
US gov't appears to be cracking down on bitcoin as at least a facilitator of criminal enterprise if not a growing economic threat as (potentially illegal) shadow currency. IMHO bitcoin holders face a real risk of their entire holdings becoming as worthless as a counterfeit $3 bill.

Silk Road busted by Feds; Ross Ulbricht arrested: Bad news for Tor and Bitcoin? | Computerworld Blogs

Federal prosecutors accuse a digital currency of money laundering; What does it mean for Bitcoin? - MarketWatch.com

Bitcoin account tied to Mt. Gox exchange seized by Department of Homeland Security: report - The Tell - MarketWatch
__________________
ERhoosier is offline   Reply With Quote
Old 11-01-2013, 12:12 PM   #5
Thinks s/he gets paid by the post
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 3,844
Bitcoin is just another fiat currency, just like the US dollar. Both only have value because we expect that other people will continue to value it.

If you read the incident reports closely, it's not bitcoin that is being targeted, but rather the places where bitcoin is exchanged in or out. I don't remember which US government department reported on bitcoin, but they said it was perfectly legal. What people do with bitcoin can obviosly be illegal, though.
__________________
sengsational is offline   Reply With Quote
Old 11-01-2013, 04:48 PM   #6
Thinks s/he gets paid by the post
grumpy's Avatar
 
Join Date: Jul 2004
Posts: 1,321
My son, the techie, made a modest investment in bitcoins and urged me to do the same. I explained to him that I never invest in things I don't understand. He already has a substantial (paper) gain on his bitcoins and has decided to invest in the hardware needed to "mine" bitcoins.

I don't see any problem with him making a relatively small investment in something that interests him, that he understands, and which has the potential for a quite large profit. I'll stick with dividend paying stocks.
__________________
...you can check out any time you like, but you can never leave...
grumpy is offline   Reply With Quote
Old 11-01-2013, 05:18 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,695
what is amazing is the bitcoin has nearly doubled in value since this thread was started
__________________
Running_Man is offline   Reply With Quote
Old 11-01-2013, 06:59 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Feb 2011
Posts: 1,629
Quote:
Originally Posted by sengsational View Post
Bitcoin is just another fiat currency, just like the US dollar. Both only have value because we expect that other people will continue to value it.

If you read the incident reports closely, it's not bitcoin that is being targeted, but rather the places where bitcoin is exchanged in or out. I don't remember which US government department reported on bitcoin, but they said it was perfectly legal. What people do with bitcoin can obviosly be illegal, though.
Basically agree, however the status of any non-securitized 'virtual currency' remains uncertain at best. IMHO bitcoin's lack of backing by any central banking authority, along with increasing actions of various gov'ts to control it (even potentially outlaw it), will eventually lead to people loose confidence in it.

From what I read, US Govt (FinCEN) simply chose to apply money laundering rules/reg's ("Money Servicing Business" status) to bitcoin transactions.
Bitcoin Virtual Cash Gets Money-Laundering Rule - WSJ.com

Reading the actual US Gov't (FinCEN) position most often quoted (link below), the document clearly states its opinion only relates to regulation under the Banking Secrecy Act and not about how vitrual currency activities "comport with other federal or state statutes, rules, regulations, or orders". FinCEN stated that, for purposes of BSA, "virtual currencies" (like bitcoin) presently do not "have all the attributes of real currency". However FinCEN also notes that "convertible virtual currencies" may serve as a "substitute for real currency", which certainly does not appear to exclude a future revisit of this issue.

http://fincen.gov/statutes_regs/guid...-2013-G001.pdf
__________________
ERhoosier is offline   Reply With Quote
Old 11-01-2013, 10:00 PM   #9
Thinks s/he gets paid by the post
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 3,844
Quote:
Originally Posted by ERhoosier View Post
IMHO bitcoin's lack of backing by any central banking authority, along with increasing actions of various gov'ts to control it (even potentially outlaw it), will eventually lead to people loose confidence in it.
Confidence is what it's all about. Because of the way it works (no centralized anything), there's no easy way for a government to attack it except for the conversion points to real currency, goods, or services. Governments can clamp down on those, but apparently there are ATM's that spit out local currency in trade of bitcoin. Call me paranoid, but I think that at least some of the instability in bitcoin price came at the hand of governments that don't like the idea of not being in control of such things. I'm not really 'for' or 'against' it, I just think it's cool.
__________________
sengsational is offline   Reply With Quote
Old 11-01-2013, 10:52 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Quote:
Originally Posted by sengsational View Post
Bitcoin is just another fiat currency, just like the US dollar. Both only have value because we expect that other people will continue to value it.
Just like gold, which also has a very low intrinsic value.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is online now   Reply With Quote
Old 11-02-2013, 11:17 AM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 6,337
Anybody interested in BitCoin may also be interested in my collection of little bean bag dolls. It is predicted to quadruple in value, though it hasn't done it yet.
__________________

__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 07:02 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.