Bitcoin Forum

hello i ahve doubt i.e bitcoins are distributed freely for mining

so my doubt is bitcoins are really moving based on real money i.e

suppose in first say example 1000 people have bitcoins i.e distributed using mining

so for these people how the value of bitcoin paid i.e is this money paid by later investors?

i.e my main doubt is bitcoin has real money
and why for mining giving bitcoins and how it useful to bitcoin

or is this all just another virtual scam?

I will be the mean guy here and tell you to search for the answers yourself. These questions are being asked over and over again when the answers are easily found. Please.

if you can read, please discover in this forum
there is a lot of answer of your question

The reason why bitcoin has value is because there are people like us who determine its value. Ask yourself how much are you willing to pay for that amount of btc. The value is our level of acceptance which is giving it value

Bitcoins enter circulation as rewards/payments for mining.
There is always a limited amount of BTC in circulation so by simple law of Supply and Demand there will be a market value for each BTC.
Do you understand how exchanges work?
The value of BTC is not a moral or subjective value, that is it is not the value you think bitcoins have but rather is is a purely market value.

ok, and i appreciate your answers but before giving advice you need to know one thing

all the answers there are only understandbale for high level users

and for a newbie those are not understandable and you need to know


see in world,answering for question means answering in a way that a newbie also should understnad but several people speak crypto language saying this and that all things who knows those all how can newbie understood
i am still saying frankly how this ming works and what need of paying for mining?

Just keep reading. Spend some time on here and you will learn more and more as time goes by.

Bitcoin value is derived from demand alone.

And demand from bitcoin derived from the protocal, which can be easily copied; and network effect.

Now I can give you this answer: Yes. But in the past, when price was increased up to 1000$, price was highly manipulated from much people. So, mainly problem of bitcoin is speculation, but:


Here this is the perfect answer for x price.

Bitcoin is a decentralized network and someone needs to decide if a payment transaction is correct or not correct. No central authority verifies the transactions, miners do this. To understand the technology completely read the bitcoin paper. The bitcoin network is used as a transfer of virtual currency.

You will need to read more. And specifically good features it offers people.

It holds value of what people will pay for it.  It is like many things like gold, diamonds, etc.  What someone will pay is what it is worth.  That price goes up and  down.

i thought it had value ever since the 1st pizza transaction.

its because people like us that the bitcoin has value, more people buying bitcoins more it will grow, so yes it has a real value.

Look at the number of establishments accepting bitcoins today. It sure is real money to them.

I will pay 300+ USD for a bitcoin.
So you tell me weather it have real value.

Would you still say that if the price on the 4 major exchanges crashed to $100 and stayed there for 2 years?
Ill keep you in mind if that ever happens :D

It seems to me you completely don't understand how mining works at all. You should spend a few minutes reading http://www.coindesk.com/information/how-bitcoin-mining-works/ and https://en.bitcoin.it/wiki/Mining.

Its not virtual scam , but for other altcoins yes some of them is only scam coins.
The more people buy and use Bitcoin , value will go up and when bitcoin finally ended for mining value will go high again.
But still that need more people buy and use bitcoin in this world.

as digital currency, of course, have a bitcoin exchange rate against the US dollar, for the current price of bitcoin exchange declined against the US dollar, it is influenced by the presence of massive sales and the dollar value of the bitcoin amerikan are now being tended to decrease ...  ;D

There's nothing distributed they are working for it. You have half information there you should read more about it.

Nice.I can buy more coins if it happen.
I always buy coins with my free money.

So you would pay $300 for a coin that could be at $100 at that moment in time? whurt

It can be worth 1000, you never now. Better invest in coins, than in some booze.

I believe he is trying to say he can buy more coin if price is at $100...

Bitcoin price is determined purely by market forces. At this current money, 1 BTC is worth $355, which means someone is willing to pay $355 for 1 BTC. So of course bitcoin is having real value.

first of all, we should define 'real'

I suppose if bitcoin can be exchanged for USD easily and USD is having real value, then bitcoin should have real value too.

Yeah, I think everyoneis selling it for a little below BPI right now.

it had real value for a year then dropped, you tell me lol.

Everything has a value.

I think the value of things is what people give them

Money hasn't got real value.

It has real value. What are we doing here then if btc has no value? hMM?

Bitcoin has value because it is the fastest, cheapest, and most secure way to send money to anyone. Unlike fiat currencies, bitcoin easily lets you pay people who use other  kinds of money. And it does not require trust in a third party. That is the most powerful idea in money in at least 100 years.

Whilst I'm a massive fan of bitcoin, it might be one of the most revolutionary ideas in money in the last 100 years, but as it stands it isn't ideal as a currency or a store of value. I just hope one day that the price will stablize or level out or maybe we don't even peg bitcoin to fiat and it becomes its own value.

Yup, same here

well I bought a amazon gift card with bitcoin.. so yes people consider it real value.  :)

Secuirty depends solely on the user which can be a good thing but may also lead to theft.

Cheapest for sure though. 0% fees often!

Yes, miners payed bills (machine, power) to get coinbase btcs.
It's basic labor, work that's backing btc value.

I just paid someone bitcoin for coding services. So yes it has real value.

As long the other party sees it does.

Yes, bitcoin have real value cause you need a lot of hardware, electricity and time to create it.

Not just that. There are lots of products for sale for btc, that alone is good enough proof that btc has value.

yeah... you can buy lots of products with bitcoin: funerals, boob reductions, face punching services, guns that point backwards, etc.. :)

That, You can visit Mining section to know more about it.

Yeah it does.. If it doesnt, then what am I doing here?

for me, cassimares have right, Bitcoin has a value of hardware, electricity and all that is needed to create it!

The best argument for bitcoin having value is because you can buy stuff with it. When I buy a pound of gold, I assume to seller sees the value of my bitcoin as greater than the value of his gold.

Gold has value and its used 90% in jewerly only... no real usage, no special properities. Gold is useless, but people just agreed that gold has value.
So it has.

You sir, get an A+ !

My first lesson in BTC was that no money has value beyond the perception of value. Gold is a shinny rock, dollars are fancy paper. It is our belief of value that is central.

Bitcoin is a token that represents a fluctuating amount of fiat. We use it instead of banks, paypal and whatnot because it has qualities the others cant touch. Decentralized - What gets sent got sent and can't be undone and taken away. Speed - It's about as instant as instant gets (unless you count confirmation, even then it's still faster than credit cards and most bank wires) Secure - You can't hack bitcoin.

So the value is in those benefits listed above.

Bitcoin doesn't have any intrinsic value in and of itself. People give BTC its value by willingly exchanging it for something that is already considered valuable like the dollar.
However even if nobody else agrees that it has value, it still remains valuable to the miner by virtue of associated mining costs, electricity, hardware etc. Miners pay real money to 'make' Bitcoins but it's all a gamble.

iti s regulated by supply and demand

This isn't really true. Gold has intrinsic value because it is a metal and a precious one at that. You can makethings out of it, and not just jewelry.

Gold is the original POW money, not like any fiat.

its safe to say that if it didnt have real value, we all woundt have been doing bitcoin right.

its only when people started to buy things with it, and selling bitcoin for cash made a huge spark for most.

That doesn't really matter, the cost of mining can provide some psychological indication to where the BTC price should be, but it doesn't create the value. Example:

If I buy very expensive paint, brushes and canvass, then spend 100 hours on painting and (since I can't paint a shit) my finished painting is butt-ugly and no one wants to buy it at any price - then (despite the costs) it won't have any value.


Yes, you can use gold for other things. But most of its value is the general consensus that the gold is valuable. If all of a sudden all the people stopped recognise gold as a 'store of value' or investment, its price would fall by something around 80-90% (I've seen some analysis the other day).

Helium (the gas used in the balloons) is pretty rare and we may run out of it soon, but it's not considered valuable. Link

http://chemistry.about.com/b/2013/12/02/will-we-run-out-of-helium.htm (http://chemistry.about.com/b/2013/12/02/will-we-run-out-of-helium.htm)

Maybe investing in helium isn't a bad idea?  ???

Bitcoin has real value also as a store of value, I can use BTC to purchase an infinite amount of tangible goods so it is really worth something.

Read this New York Times articles. http://dealbook.nytimes.com/2014/01/21/why-bitcoin-matters/?_r=0 (http://dealbook.nytimes.com/2014/01/21/why-bitcoin-matters/?_r=0)

As for the volatility of bitcoin, it's true there's no central bank that serves as a reserve to back it up. The people who back them up are the ones who see enough values in security, privacy, and the convenience to exchange their fiat currency and golds for the bitcoin equivalent.

Bitcoin has what is known as intrinsic and intangible value. it is valuable because we say it is valuable, just like gold.

well i just bought an iphone 5 with bitcoin, so yeah it has value.

Bitcoin is a very same scam as fiat curreny is. Both isn't covered by anything, only people trust and mining is just brilliant way to solve bitcoin "money" supply.
You cant make them out of thin air, like banks do with money and cant throw them in place all at once, then only few first people would became BTC owners.

if it didnt have value in the 1st place, i think bitcoin would have been more in the dark.

The only difference right now is that taxes have to be paid in fiat.
Once bitcoin becomes established in international trade, even that might go.

Why pay taxes on bitcoin ??? I don't get the point if it can't be traced.

Probably refers to official bitcoin business.
Whenever you made a profit (no matter how) you have to pay taxes. And most of bitcoin businesses are connected to fiat, so there is the trap.
Only in case you never turn your btc into fiat you are free of tax (in theory), but being a big fish you are screwed anyway.
From law point of view, bitcoins are also considered as possession (property, estate), and you cant obtain possessions without paying a proper tax. 

 

Why do people take a fiat banknote and provide you a service?
Because they trust the government and the country that value of that banknote will stay pretty stable.

Similarly people take bitcoin because they trust the decentralized system.

What if the businesses take bitcoin through Bitpay or Coinbase? The sales should be logged and can be traced by the authority easily.
Are the businesses just pay tax like they have done business in fiat? After all, they receive fiat from Bitpay or Coinbase after the sales.

Bitcoin is still undervalued.
When most people on the street accepts bitcoin, the price will then go to the moon.
Buy your bitcoins now while they are still cheap.

There's nothing free, they are putting great energy into mining (paying big electricity bills for it)
And yes you have value, the value people want to pay for it.

Correct, whenever prove (reveal) the identity, can be easily traced.
I have no bitcoin business (running just regular) and only assuming ... bitcoins can be, and are considered as assets so at the end of tax year you have to inform the respective institute and pay proper tax.
Whoever not doing, may result in penalty ... just my opinion

One day some people in the past did use seashelves as monney ;)

If bitcoin limits itself just as a money-exchange mechanism, then you have better alternatives (faster, cheaper etc., Ripple is one of the examples). Bitcoin should have value also as store of value.

Mining costs a lot of money: electricity costs, hardware costs and so on.  The difficulty is rising, you will need to buy new hardware every so often. This is anything but free.

I have one question. What will happen to bitcoin when all will be mined? Then there will be only need for some infrastructure to deal with network maintenance and flow of coins.

Bitcoin has real value for sure. The question is, does it have imaginary part (http://en.wikipedia.org/wiki/Imaginary_number)? That would be so cool, a currency unit in 2 dimensions!  :)

Yes you have value because

1) There is people willing to pay for it
2) The way to obtain then without paying, requires energy (mining)

There will still be bitcoin mining when block reward becomes zero and miners will then earn only tx fees.
Also, I expect big bitcoin holders will keep mining even at loss to support the network.

I can exchange my bitcoin for USD or Euro easily.
I can spend my bitcoin on numerous products and services, from multinational corporations and from small local shops.

Why would it have no real value? :)

Think of it much like digital gold.

If you're on this forum, then you probably already consider that it does. Many individuals' opinion on its value is all that counts for it to be worth something.

I'd say you have the difficulty which gives the value. For sure the supply and demand but as example, gold has also it's difficulty to find it and it's (like Bitcoin) rather rare.

yeah... BTC has somehow connected itself to commodity values, once the Bit License is functional, hedge fund money will flow into
crypto, Happy Holidays.