Bitcoins: The time is now

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I did some research on bitcoins these past couple of days and I want in. This is an internet currency and it is like 1995 was for domains. Unfortunately, the program has advanced so much that individuals can no longer mine the currency on regular computers.

Soon, Ebay and other major computer sites will be accepting bitcoins. It looks like the best that one can do now is actually buy them verses mining. Today one bitcoin is going for about $600. The price, however, will skyrocket. I think it is a good investment.

What do you think?
 
Abba said:
I did some research on bitcoins these past couple of days and I want in. This is an internet currency and it is like 1995 was for domains. Unfortunately, the program has advanced so much that individuals can no longer mine the currency on regular computers.

Soon, Ebay and other major computer sites will be accepting bitcoins. It looks like the best that one can do now is actually buy them verses mining. Today one bitcoin is going for about $600. The price, however, will skyrocket. I think it is a good investment.

What do you think?
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More like 2005 in housing.
 
I don’t know - I’d like to invest in something good but bitcoins are so expensive. I’ve been considering gold and silver; in the short time I have gold has already gone up since some supposedly went “missing” in China. Then again gold really went down last year so it’s all a gamble.
 
No asset backing. No government backing. No Reserve Bank backing. Russia and India going to make them illegal. Volatility that makes the post war Italian Lire look stable. Limited numbers going to be produced makes the elect of the Protestant predestination look a large number.
Its present use limited to drug runners and money launderers, and one or two trendy cafes where you can buy a cup of coffee with bit coins (unless the Mt Gox exchange has another glitch with the value of the “currency” falling by 80% overnight.)
Simple answer from a simple man is no, it is not a good investment. Buy American housing, it is about as safe and at least you own the land.
 
I don’t know if Bitcoins will be a wise investment in time or not, but I felt I needed to chime in to correct some unfortunate perceptions. Mainly, that Federal Reserve backing or government backing is needed or even desirable. The main POINT behind Bitcoin is that it is a decentralized digital currency. It neither needs nor desires government or Fed backing in anyway.

It is in fact, an expected course of action for governments to attempt to make illegal a currency that they cannot control, even though the U.S. Constitution has no problem with non-government currencies, and in fact, several founders and key historical American figures vehemently opposed central banks such as the Federal Reserve. Andrew Jackson fought loudly against (and defeated) the central bankers in his time, only to have his likeness printed upon our current central bank “funny money”.

The Federal Reserve is no more Federal than Federal Express. It does not work for the American People. It works for a group of private bankers. Our money has no real backing anymore since Nixon detached it from the gold standard. It is less “real” than Bitcoins are. Producing Bitcoins at least requires work and there are a limited supply of them. Federal Reserve Notes can be made “out of thin air” by banks at the time of any loan or mortgage. That’s a funny thought considering that most of us work for 30 years to pay off what is mostly an illusion made only on paper. But its true and research will confirm this.

Furthermore, I think its unfair to stereotype BitCoin as the currency for illicit and trendy warez. Traders in illicit warez will of course gravitate to less traceable methods of payment. I assure you cash is still king here. And since BitCoin is still young, by definition those establishments which accept it are going to be seen as “trendy” because its still a novel method of payment, but this will change in time, of course.

That said I agree that land and food are far more useful and real than any monetary unit, physical or electronic.
 
That bus sailed a long time ago.

Ideally, you would have bought into Bitcoin about two years ago, and be selling out now, you’d be sitting pretty.

It’s two highly valued now to be a good value. IMNAAHO.

ICXC NIKA
 
SecretCatholic said:
I don’t know if Bitcoins will be a wise investment in time or not, but I felt I needed to chime in to correct some unfortunate perceptions. Mainly, that Federal Reserve backing or government backing is needed or even desirable. The main POINT behind Bitcoin is that it is a decentralized digital currency. It neither needs nor desires government or Fed backing in anyway.

The Federal Reserve is no more Federal than Federal Express. It does not work for the American People. It works for a group of private bankers. Our money has no real backing anymore since Nixon detached it from the gold standard. It is less “real” than Bitcoins are. Producing Bitcoins at least requires work and there are a limited supply of them. Federal Reserve Notes can be made “out of thin air” by banks at the time of any loan or mortgage. That’s a funny thought considering that most of us work for 30 years to pay off what is mostly an illusion made only on paper. But its true and research will confirm this.

Furthermore, I think its unfair to stereotype BitCoin as the currency for illicit and trendy warez. Traders in illicit warez will of course gravitate to less traceable methods of payment. I assure you cash is still king here. And since BitCoin is still young, by definition those establishments which accept it are going to be seen as “trendy” because its still a novel method of payment, but this will change in time, of course.

That said I agree that land and food are far more useful and real than any monetary unit, physical or electronic.
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Anyone with even a fundamental understanding of economics, knows that currency is a creature of the government that produces it and it confidence standing on the world stage, just ask Zimbabwe. The rampant printing presses of American currency makers is the only thing keeping the stock market, another Casino, from falling. With the debt ceiling debate almost a bi-annual circus within your legislature, I can understand the rush to a de-regulated market. But the volatility and the computer alchemy needed to mine them encourages suspicion. Perhaps the Mt Gox fiasco is just teething problems, however this alone is a red flag.
It is true that modern economics and especially banking relies on a common delusion, however at least it is a shared delusion supporting a common economy. Even the Tulip Markets worked until someone broke the spell. Bitcoins will work only when there is general agreement as to its saved value and its spending power. Other investments based on more stable platforms are still more attractive. Food production and distribution; banking ,and in America, arms dealing all are attractive investments.
 
My favorite crypto currency is Dogecoin, the preferred crypto currency of Shiba Inus worldwide. very currency. much coin. such profit. wow.
 
I would advise against it. I think that it’s done well for itself initially, but the window to invest and profit has past.

Dogecoin is doing slightly better, as it has not fixed the number of bitcoins available, allowing for it to become more scalable.

But neither have any sort of backing, they’re completely dependent on user demand. So although the sky is the limit, so (unfortunately) is the floor.
 
Some of the most successful traders ever have said things like “Do the opposite of what the headlines scream”, and “When the public starts to get in, it is time to get out.”
 
I wanted to turn my 8 year old son’s addiction for Minecraft into an addiction to mining bitcoins. He even asked, “When are we going to play bitcoin?”

Then I looked at what it takes: huge computer power, a pool of miners, and $$ invested in chips and machines. And a long, long time. By now big corporations have probably made the investment and made it impossible for the little guy to make it worthwhile.
 
Abba said:
I did some research on bitcoins these past couple of days and I want in. This is an internet currency and it is like 1995 was for domains. Unfortunately, the program has advanced so much that individuals can no longer mine the currency on regular computers.

Soon, Ebay and other major computer sites will be accepting bitcoins. It looks like the best that one can do now is actually buy them verses mining. Today one bitcoin is going for about $600. The price, however, will skyrocket. I think it is a good investment.

What do you think?
Click to expand...
I read a lot about Bitcoin a couple of years ago, when the price was around $10 per Bitcoin. I considered investing $100 or so, but I didn’t. Obviously, now I wish I had invested, and sold when the price went up to $1000 per Bitcoin. I would have turned that $100 investment into $10,000, over a period of about two years. But hindsight is 20/20.

Bitcoin still could go up quite a lot, but maybe it will and maybe it won’t. (It also could fall quite a bit, or even go to zero.) If I were going to buy Bitcoins as an investment now, I wouldn’t invest more than I could easily afford to lose. In other words, I would look at it as speculation, rather than investment.
 
I call it “bitcon”.

Strongly suggest that you all go to Denninger’s Market Ticker website and use the search field to search for “bitcon”. Yes, that spelling. Read the articles that come up, especially the first two, the first one is from about a year ago or so. Denninger goes into a fair amount of explanation to show why he has serious reservations about Bitcoin and given my own background, I found myself in agreement on nearly all of his points.

Not that it’s relevant to the topic but Denninger is a Catholic, by the way. Shrill most of the time, but his articles on the ACA and banking have been on the mark.

Also Martin Armstrong thinks the only reason Bitcoin and other independent digital currencies are allowed to exist is to pave the way for the eventual introduction of fully digital currency backed by the banks and governments themselves. In other words, Bitcoin is a kind of laboratory in which they can see what works and what doesn’t. Armstrong strongly believes governments would like to get rid of all cash, if everything is digital, everything is subject to tax. In theory, no more black markets. My take is the people will figure out how to get around that, how I don’t know …
 
Currency is useless unless you can physically put your hands on it. The world we live in is showing us that more and more each day.
 
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