We'd all be some rich motherf***ers.
That will be only those who do not dump all their bitcoins once it hit 100$ and wait to dump 5% of their bitcoins once it hits 10 000$. Just an example. Bitcoins are moving from weak hands to strong hands and will continue to move in that direction for quite some time. |
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Being a long term bear on bitcoin is about the same as being long term bull on fiat. Both could be classified as a form of insanity.
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My cost of mining for the next few years will be around $3.9 / BTC.
Someone is delusional. |
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What licenses are necessary to operate a Bitcoin exchange in the UK ?
AFAIK, in UK proper exchange would need to get FSA licence. This basically means employing a "fit and proper person" (read: a lawyer) as a compliance officer, having some minimal reserves. Whenever some unhappy customer after exhausting exchange's complaint procedure escalates the complaint to FSA the exchange automatically would have to pay 400£ to FSA to cover expenses of investigation of the complaint and then make the customer whole as FSA directs. The compliance can get quite expensive rather quick. On the other hand anyone with a brain would prefer this exchange to others due to FSA provided "safety net" How will trade with bitcoins be taxed ? (ie. VAT of trading fee, or as value added TAX of the entire amount - that's some kind of showstopper, but I digress)
This indeed a show stopper. I would love to hear how all those proposed UK based exchanges expect to get around 20% VAT. They can only play with fire until HMRC decides to go after them. Alternatively such UK based exchange would not accept anyone from EU or UK as customers and work only with the rest of the word and as such make VAT not applicable. Given all the troubles, some offshore jurisdiction would be quite a viable route. My conclusion: a UK based exchange is a non starter. I'd love to be proven wrong. |
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It's about creating wealth in a form that isn't taxable.
If you were given the choice between bitcoin mining with under a year ROI (and that's all in bitcoin)... vs a typical investment where you pay capital gains tax... Which would your prefer? Sadly, Bitcoin isn't a magical anti-tax fairy. When you sell those coins for something else, you'll owe taxes on them and in all likelihood you won't even be able to enjoy preferable tax treatment (e.g. capital gains tax) for it. Perhaps you're planning on breaking the law and not paying taxes on your income— well, okay, but Bitcoin isn't special there, you can do that just as easily if you're paid in cash— but this is insanely foolish at least in the US— tax collection is insanely powerful and the deck is not stacked in your favor. It is simple, never sell your bitcoins . Then there is no tax to pay. Instead use them as a collateral for loans just like Oracle's Larry Ellison does with his Oracle shares. Unfortunately, one might have to wait until Bitcoin's "market cap" hits 10 billion USD for "stock loans" to become available. |
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don't tell me they don't know price fixing doesn't work (in the way they publicly claim it would).
Ohh they do know. But they must make appearances and hence they MUST DO SOMETHING. There is absolutely nothing constructive they can do (except incarcerating themselves, perhaps). Therefore the dazmn politicians do something even if it is an absolutely pointless thing. |
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ASIC's are quite different from ALL previous generations of mining hardware. The major new factor is that the manufacturers will be able to produce huge quantities of chips at very very low price per chip. I will tell you now that this basically guarantees that for a typical mining server it's price will asymptotically approach 2x cost of its auxiliary components (case, PSU, control boards etc).
I.e fully packed analog of the the avalon box will be sold for something around 300$. The price will be higher of course for new generations of more powerful mining chips.
BTW OP is quite reasonable.
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really the moral of the story is "grab as many Bitcoin now while you still can".
grab and stash and do not let it go  I had to turn down a number of potential investment opportunities only because risk/reward on those, comparing to simply holding BTC, was just so pitifully horrible. |
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otoh, if they do it right, they could make millions.
Sure. However, there are only so many bitcoins are mined and only very few ASIC miners like Jeff who managed to start early will do really good. The rest will inevitably ramp up difficulty and still have to share all the same new coins. In risk/reward models, that I've looked at back in May, it was clear that if BTC price rises as it has now then ASIC mining project will be profitable (assuming other risks, like getting a dodgy manufacturer etc work out). However, when comparing that model with simply holding BTC it became painfully obvious that risk/reward of mining investment was significantly worse. @smoothie. Great to hear that litecoin is doing so well. It probably will do even better once GPU miners are "kicked out of Bitcoin" and have nowhere to go but to start mining litecoins. |
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1. I am very happy that someone got amused. My "complaints" are very much tongue in cheek as usual and so amusement is the best I could hope for. LOL
2. I have not much to say about ASIC's because I am not in ASIC game for a while now. Back in May/June I have decided that I will let other ASIC players to play this dog eat dog game without me and I would better hold on to BTC.
Considering that those ASIC players had to invest their money back then when BTC fetched about 5$ they now need to at least quadruple their money just to catch up on to their cost of lost opportunity. Good luck with that.
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This thread's name is kind of wrong. Who the hell cares about gold? I am more interested if there is any other asset on this damn planet that performed better than Bitcoin during last 4, 3, 2, 1 years, or 8, 6, 4, 2, 1 month or any other period of time?
Nevermind, I'll wait until we get to 4 digits before I get really excited.
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SCAM  indeed. geez, I am wondering if anyone will fall for this. But if history repeats itself someone on this forum surely will. |
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I think many people when talking about extending trust completely miss one important point, specifically concept of money velocity and circulation. One does not really need to have a lot of trust obtained or extended to effectively transact in a ripple network. One would need, basically just one month or one week turnover worth of "well connected" trust, that can be easily bought using collateral such as bitcoins or gold, for example. Whether it is a week or a month or a year worth of trust depends mostly on ones income/expense cycle.
You do not need to drown the wheels of commerce in oil to make it work, just a few drops of the oil in the right place will do the trick.
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It is a living organism - much like a virus.
More than that, it creates a foundation (along with other distributed networks) for something much greater than a new financial system  I think that almost nobody will realize when it happens, at least not right away. The shift will probably be too subtle, seeming like an incremental advance rather than a monumental change. Yes, indeed. This potential is often missed. Bitcoin is not only the first monetary system ever proposed that credibly offers perfect information to all participants, it is the first system humanity has implemented which can serve as an authoritative record that's not under any single entity's control. I believe there are some proposals for "smart property" and "distributed markets" based on bitcoin kicking around. I think as you're alluding to miscreanity, numerous core functions of society could start getting offloaded to blockchain-style p2p systems, one by one, until it's central to civilization. The tide would indeed be slow and subtle, but quite powerful. yep, some people do get it. |
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ribosomes are so ruthless, LOL
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point taken, but what is an extra zero between friends (editing in a zero in the original post on the back of your feedback sic.).
A necessary condition for existence of such lending company is availability of someone willing to buy and sell BTC related risks i.e availability of liquid options on BTCUSD. Until there are available decent financial instruments and derivatives on BTC this idea is a nonstarter. Gotta wait with the suit for now.
Basically, the following things have to happen first:
1. Bitcoin based ETF.
2. Liquid options on this ETF.
3. Availability of some properly insured bitcoin storage services/banking.
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4th Law of Robotics.
A robot must not draw pictures of human being(s) except where such action would conflict with the First or Second Law of Robotics.
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lastbit, do you think that whatever you said would still be applicable when:
- half of the houses on the planet are heated by bitcoin ASIC powered "cost offset" heaters,
- half of space heaters on the palnet have "bitcoin cost offset module" with a bunch of latest bitcoin hashing chips inside?
- there are multiply racks full of bitcoin asic hashing gear in every datacenter that has decent energy pricing.
- etc...
It seems you are ignoring that logically after prototypes are done the next step for bitcoin ASIC manufacturers will be "mass production" of a huge quantity of chips and plugging them into everything even remotely viable as dedicated gear or as 'cost offset' device.
Now tell me if there a single entity on the planet that can build a set of DC's consuming say 10% of all electricity used on the planet for heating just to piss everyone off?
In context of my post talking about theoretical cost of 51% attack at this moment using GPU tech is rather ridiculous.
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