|
People who are 'day-trading' and 'speculating' actually help bitcoins. They give liquidity to the markey and help smooth out price fluctuations. It looks like we actually need more speculators, the current ones we have are just not managing to keep the market stable.
People who are 'hoarding' or 'saving', those who buy bitcoins and hold, also help bitcoins. The amount they put in contributes to the total monetary value of bitcoins, setting the value for what a bitcoin is worth.
Just to be thorough, people who use bitcoins for transactions or sending money also help bitcoins. They give meaning to the system, and they pay the transaction fees which go to the miners who keep the whole thing going.
|
|
|
|
Hi, Welcome to the bitcoin world! Yes, this is the place to find out everything you want to know about bitcoins and probably alot you really don't need to know  There is a bitcoin wiki with lots of information. If you have any specific questions, I could probably answer them (or any of the other people who have been around a while)? To narrow down... Mining section of this forum is a good start..
Many people do not do mining, so that might not be the best place to start, depending on how you want to use bitcoins. |
|
|
|
The bitcoin model will eventually fail. ... I mean it can't survive as a long-term 'currency'...
When bitcoin was first established, a bitcoin was worth nothing, except perhaps for the cost of the hardware (software), an internet connection, the electricity and the time required to generate them, as in fact it remains today.
However, what I did model at that time and what I will share with everyone now are the reasons why bitcoin will imho eventually fail as a currency. The model is inherently flawed and unfair.
Why? Quite simply because the money supply has stopped.
No one will want to buy into a currency that is in constant and perpetual decline. It will effectively be the exact opposite to what we have already seen to date. Bitcoins 'bankers' (the major miners and holders of bitcoins) will be clambering to sell and trade-off their bitcoins, as they become ever increasingly scarce and therefore 'worthless stock'. On this basis, some may also retain bitcoins, with the hope of price increases in relation to rarity, moreover there will be inevitably less and less people to actually trade bitcoins with...
Wow, I think you have wrapped every stupid and often debunked argument into one giant pile of steaming trash. Once all the bitcoins are mined the miners will be paid by the transaction fees. If you insist on valueing a bitcoin based on what it costs to mine one, then you can still do that calculation by comparing how much a miner gets from transaction fees and how much they spend in electricity. You seem to be focusing solely on people buying currency to speculate on exchange rate variance. Since bitcoins are traded freely there will always be room for such people, and indeed they provide a service to the rest of us by providing price discovery and mitigating the price variance. But there are other reasons to hold currency. There are people who use it for transactions and people who are using it as a savings vehicle, these people are actually helped by having a steady exchange rate, and the steadier the exchange rate is the more they will be willing to use it. |
|
|
|
Trading is not done via IRC, trading is done by ... the irc bots, ...
Make up your mind, is it or isn't it done by IRC? |
|
|
|
ping times back to earth are gonna vary between 6 and 40 minutes, which should make for some interesting tcp connections.
space is big.
This is considering that we use today's technology. The technology of the future provides great compression and a gravitational messaging infrastructure which pulls the to endpoints together such that the space left to communicate is a mere meters in distance. This will allow for faster times than you see using the ancient fiber optics of today. I don't see where there is a problem. The real problem is that the Mars underground civilization uses a similar currency that is used across the Galaxy and we will have to convert it to Bitcoin. At that point we will need more decimal points to accommodate the large value of a single Bitcoin. so every should buy a single Bitcoin now and will to the future generations and only allow them to spend it once each Bitcoin exceeds 100 Trillion USD of current value. The problem: this allows for faster-than-light travel. Imagine a faster-than-light information tube. One could encode an arbitrary object at one end, send the stream over the information tube, and the object could be reconstructed at the other end. The object has travelled faster than light, which is impossible in Einstein's mechanics. Faster than light travel is a benefit, not a flaw. Einsteins theories broke the rules as set out by Newton. We changed our understanding rather than reject new ideas just because they did not fit old models. That is the way of scientific progress. The distance between Earth and Mars is probably around 100,000,000 million kilometers at worst times. Provided a Radio Signal travels at nearly or at the speed of light in vacuum, it will only take a few seconds to transmit data back and forth.
The speed of light is about 300,000,000 meters per second. To go 100,000,000 million kilometers would take more than a few seconds. |
|
|
|
Is there somewhere we can sign up to buy one of these when they are available? |
|
|
|
They are naked but are covered by the bond holders, which is in BTC, so not naked?
What is naked? Maybe I just don't understand what you mean by naked? |
|
|
|
So is it taxable income if I were to say go from BTC -> Silver Bullion -> Cash?
I keep seeing people say if they buy something with their bitcoins they don't have to count it as income, but that is just silly. If you buy a bitcoin for 1 USD, and then later buy an item with that bitcoin which is worth $10, then clearly you have made $9 worth of income and you need to count that somehow in your income for taxes. It does not matter if you use the bitcoin to buy usd or a pizza. Technically you are right and it would be the right thing to do, pay taxes honestly. However, in practice most people will not and I seriously doubt there will be consequences. Is the IRS spending massive resources to track BTC transfers to make sure you paid tax when you bought a pizza? I know people (immediate family) who have owed the IRS for decades (10s of thousands of dollars) on reported income and haven't had the IRS come knocking. They seem to be understaffed and focused on the big fish in reality. I am not trying to say what most people will do, or what is even feasible (the way tax laws are written, it is almost surprising anybody gets their taxes right), I am just stating the honest thing to do. |
|
|
|
You can buy shares at the following places:
havelockinvestments.com
bitfunder.com
btct.co
coinbr.com
mpex.co
To be more accurate, you can buy shares at mpex.co, all the others are just pass-through funds that allow people to invest without shelling out the 30 btc account fee to use mpex. hi sir i've checked the site but there is no buying option Which site did you go to? |
|
|
|
If bot lost money, YOU (bond holder) loose your invested principal and promised %?
Is this bot writing naked calls?
I'll put you out of your misery. The calls and puts aren't naked - they're covered by the bond-holders money (with MP covering the rest when there's not enough raised from bondholders). I'm puzzled what you thought the bonds were being sold for if the cash wasn't being used to cover the options - to give money away for free?. All settlements are in BTC - so BTC can cover both sides of the trade. let me put you back to your misery...  If you do not hold the underlying _security_ while you sell a call option, you have sold a NAKED call. Period. I am not sure why you are having such a hard time understanding what is going on here? The people with btc buy the bonds to fund the bot's trading. If the bot makes money, then a portion of that is payed back with the principle to the bondholders (IIUC, the rest of the profit goes to MP?). If the bot loses money, then the bondholders get back less money than they paid in, like last month when they got back 0.77 btc for each 1.0 btc they put in. |
|
|
|
A question if you will. How does it work in the US? One must declare the bitcoins that he holds, or just declare the income when converting them to dollars?
Here in 'merica you would only have to claim your income you made from selling Bitcoins, the Bitcoins you're holding are completely worthless in the eyes of the IRS, they can't tax it. Which is why it is a good thing to pay for things using bitcoins. So is it taxable income if I were to say go from BTC -> Silver Bullion -> Cash? I keep seeing people say if they buy something with their bitcoins they don't have to count it as income, but that is just silly. If you buy a bitcoin for 1 USD, and then later buy an item with that bitcoin which is worth $10, then clearly you have made $9 worth of income and you need to count that somehow in your income for taxes. It does not matter if you use the bitcoin to buy usd or a pizza. |
|
|
|
'Tis no different than reporting and paying taxes for other types of capital gains, such as stocks and precious metals.
Ah, yup. The folks at the IRS must love Bitcoin: all that lovely, lovely capital gains to tax, and if the US-based user does not hold for at least one year before selling, it is taxed at the personal income tax rate. Even better, if the US-based user fails to declare his or her Bitcoin earnings and files a fraudulent tax return, just look at all that lovely, lovely asset-forfeiture potential. Keep it legit. Declare your gains, and remember that if you're making money, then you shouldn't mind paying taxes. Question: If I buy one bitcoin, hold it for a year, buy another bitcoin, hold it for a month, then sell one bitcoin, should I count that as long-term capital gains or short-term capital gains? |
|
|
|
$1000/BTC is not unreasonable once it gains wider acceptance.
I'm not sure about that unless eventually difficulty is so high one needs to spend close to $1000 on electricity to mine one BTC. Currently mining 1 BTC on GPU costs about $40-$50 on ASIC about $4-$5. As more people get into mining bitcoins the difficulty will go up. As more ASICs are introduced to the network, the difficulty will go up. In just a few years the block reward will drop in half again. If the price of bitcoins goes up, then more people join in mining and the difficulty goes up, so if a bitcoin costs $1000 then the cost to mine a bitcoin will trend toward $1000. |
|
|
|
You can buy shares at the following places:
havelockinvestments.com
bitfunder.com
btct.co
coinbr.com
mpex.co
To be more accurate, you can buy shares at mpex.co, all the others are just pass-through funds that allow people to invest without shelling out the 30 btc account fee to use mpex. |
|
|
|
I really don't like the fact that early adopters can own a huge % of the total currency that will ever be in existence. I wish the mining rate would taper off, but never go to 0. That way people that just hold their money get diluted eventually. There's no risk that Satoshi suddenly shows up one day with BTC worth $10 trillion
Early adopters currently own 100% of the bitcoins in existence, and over half of the total that will ever be in existence. We are all early adopters, if you think about how few people in the world have even ever heard of bitcoins. Anybody who wants can join us and be an early adopter too. |
|
|
|
Ok I've been asking around quite a bit and so far no one has raised their hand on this one. So I'll ask again.....
Has anyone, anywhere, on any format, had success transferring cash out of the exchange system into a bank account? I hear all the time about people wiring money in, but I've yet to find a reliable way to transfer money out.
I used Dwolla to transfer money inoto MtGox, I used dwolla later to transfer more money out of mtgox. A more useful point of data would be anybody who requested money from an exchange and did not get it. Have you heard anybody like that? If not, then you are just spreading nonsense. |
|
|
|
Btc is NOT a ponzi scheme and anyone who calls it one either doesn't understand what a ponzi scheme actually is or doesn't understand btc - likely both. Btc MIGHT be a pyramid scheme - that is at least worth discussing, but not ponzi.
Please describe how BTC might be a pyramid scheme... I'm interested in this. When the price of bitcoin is bubbling (as it was the past couple months), people buy bitcoins because they hope to sell it tomorrow for more money. This continues until there are no new people to buy the bitcoins at a higher rate, and the price collapses. However, when the price is more stable (like for most of 2012), bitcoins are able to function more like a currency. People sell things for bitcoin and then use the bitcoins to buy other stuff. So if you are not using bitcoins as a currency, then it resembles a pyramid scheme. Bitcoin is very flexible, it has many uses and each person can chose whether they want to view it as money or a commodity, currency or investment, store of wealth or payment processor. |
|
|
|
|
Shouldn't the march statement be up by now?
|
|
|
|
Its time we figured out a truly decentralized way to exchange btc for fiat. Title is not typo.
You don't like it, then do something about it. There is still plenty of room in the exchange market if you do things right. Start with a clear understanding of the legalities of handling multiple currencies and transferring those around the world. This will require legal and accounting expertise. Build up that a technically sound exchange platform. This will require programming and networking expertise. Get the community to use your platform, people will gravitate toward the largest bitcoin exchange because it will have the best liquidity. This will require marketing expertise. Thus if you can get a good legal, accounting, programming, networking, and marketing team together and build the ideal bitcoin exchange, then MtGox will shrink into the background and you will control the bitcoin marketplace. |
|
|
|
Please do your part killing this offensive piece of shit scamsite. Never trade on MtGox. Not now, not ever. Every dollar you pay in taxes goes to feed some bureaucrat swine, pay for hospitals, education and bombers. Every dollar you pay in MtGox fees goes to feed swine exclusively.
Find a different exchange, trade there, never MtGox again.
Oh mighty wise one, do you have a suggestion for a better exchange to use? The first bitcoins I bought were on TradeHill, because they allowed easy Dwolla deposits and I thought MtGox seemed sketchy (this was right around the time of the big MtGox hack and rollback etc). Tradehill went away, so I stopped using them. I then used MtGox, now I have an account there and a small amount of money there, so unless another option is clearly better I will keep using them because it is familiar. They do have a record of developing very long lag times during high volumes of trade, so I would be interested in an exchange that does the whole exchange thing better. I tried putting up an ad on localbitcoins, but never got any response. I used Coinbase to buy some bitcoin, but their daily limit is obnoxious and they are just selling bitcoins, it is not the same as trading on a market. What is the best option, or do we still need somebody to make the ideal exchange site? |
|
|
|
|
Show Posts
