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662
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Bitcoin / Bitcoin Discussion / Re: Bitcoin Digest
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on: September 20, 2011, 08:19:58 PM
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Good question. I would also like a website that filters all important announcements. Something like:
- Bit-pay got a new thing going with mobile devices and physical payments
- Bitcoinica has grown a lot and people are now shorting bitcoins with 5x leverage
- The price rose once again to the $6 mark
- A chain-restaurant in the US was supposed to begin accepting bitcoins this weeked, but nothing happened
reddit is not bad, but there are many questions there. If you want a weekly round up, you will have to go through lots of stuff.
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663
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Other / Beginners & Help / Re: Bitcoin Address?
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on: September 20, 2011, 07:19:24 PM
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Question is, what determines the price of BTC in the exchange? If it's related to the difficulty and the price is adjusted according to it then I see no point.
There was a thread somewhere relating prices to difficulty with some nice graphs (I'll post it here when I find it), but I think it was inconclusive. I think price and difficulty and not very related. Difficulty is based on mining rig investments (this could be connected with price indirectly) and price is mainly based on speculation. One thing that you must consider here, is that miners made heavy investments in hardware around June/July and they want to get their money back. Considering that Bitcoin is highly inflationary right now (50 new coins every 10 minutes) we need a lot of money coming into the markets each month. If miners are selling 30 coins out of each block, for example, we need around 1 million dollars a month to keep the prices at $5. Maybe there are miners that don't sell below $4, but I have also seen people with lower electricity costs stating that until it hits $1, it is still profitable to sell. |
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664
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Other / Beginners & Help / Re: A Must Check Out!
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on: September 20, 2011, 01:44:46 PM
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The 1 year estimate is just that. An estimate. It assumes that everything stays the same, namely the Bitcoin price and the difficulty, which are unrealistic assumptions. The difficulty is likely to increase and the Bitcoin price is likely to... No one knows  In July (only 2 months ago), those calculations had a break even point after 5/6 months because the Bitcoin price was above 10. |
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665
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Other / Beginners & Help / Re: Bitcoin Address?
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on: September 20, 2011, 01:31:01 PM
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Thanks for sharing the details of your rig  How many BTC do you earn on an average in let's say, 1 week? I am ready to invest more in building a powerful mining rig similar to yours and be an active Bitcoin Community user. However, I want to know more about the profits. How much time did it take you to recover the cost of your hardware? The time to get the investment back is usually around one year, depending on your electricity cost. Use a calculator to get more accurate numbers. The problem is that no one knows what will happen a year from now. For example, if someone comes up with custom hardware for mining (FPGA/ASIC), the difficulty will rise a lot and you may never get your money back. The Bitcoin price is another important variable here. If it drops to $2, you are screwed. |
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669
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Economy / Speculation / Re: Rally incoming!
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on: September 19, 2011, 09:06:35 PM
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Ah, thats the first time I see their rates. They are a higher than I had thought (/hoped) and TBH, too close to credit cards I think to make many merchants jump on the opportunity. In fact, Im not sure but isnt 3% higher than you'd pay for most credit card merchant systems?
I understand they have fixed costs to cover with very little business right now, but if needed, they should seek funding (AFAICT, there is no VC funding or?) so they have breathing space to aggressively price their services and get this business going. <1% should be their goal IMHO, or at least low enough so that its a real advantage for merchants.
I think 3% is more or less what credit cards companies charge. Paypal fees also start at 3%. The difference here is that bit-pay's 3% include a currency conversion. Fees for that are usually much higher. I would say that bit-pay allows a merchant not to lose money by accepting Bitcoin, which is not a bad deal right now. |
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674
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Other / Beginners & Help / Re: Who is driving the market prices?
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on: September 19, 2011, 12:17:30 AM
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I have been reading about Bitcoin for several months. Well, a little everyday or a couple of days. I'm still a newbie, but I liked something about Bitcoin: It's open, and it's not regulated. Well, this has obvious downsides. But I'm more to ignore them and consider them usual noise that alter the signal quality. I checked over bitcoinica, and it was a great trading platform, so I decided to get started there. But, there is a question which makes me wandering: Who is driving the market prices? Bitcoin is different that every trading platform is closed to itself and has its' own prices, orders, and users. But what I'm noticing is that the price adjusts for the different trading platforms. Check out: http://bitcoincharts.com/markets/The prices are not exactly the same, but they almost are. These are different trading platform; which have different volumes and users. There is certainly something pushing the market in a particular direction Any ideas?  Bitcoinica is not a good place to start. 5:1 leverage with Bitcoin's volatility is insane. Why don't you try some calm waters at TradeHill/MtGox? As for your second question, there are people doing arbitrage. For example, say I have two accounts, one at MtGox and the other one at TradeHill. I have USD and Bitcoins in both. If the lowest ask at TradeHill is lower than the highest bid at MtGox, I will earn money if I buy at TradeHill and sell at MtGox. That is why most exchanges have the same prices. |
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675
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Other / Beginners & Help / Re: $100 bitcoin investment - How long will it take to double?
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on: September 18, 2011, 11:16:48 PM
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I'm really curious about the potential in making money through buying and selling bitcoins  Let's say I invest $100 in to buying bitcoins. so I would sell them for a little higher than I bought them, buy more at a lower price, then repeat over and over again Let's say I was just the average person, sometimes lucky, sometimes not lucky. How long do you guys think it would take me to turn my $100 investment in to $200? Man... it depends on your strategy to sell/buy. How do you plan to know what is low or high? For example, now the price is 5.27. Would you buy or sell? I'l tell you what, grab this chart from the last five days and cover the right side with your hand or something. Then, see when would you buy and when would you sell as you slowly uncover the next days. Now you can see how much money you would have made. PS: Obviously you're gonna get rich because you are going to cheat |
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676
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Bitcoin / Mining / Re: FPGA Miner Design for Sale to Someone willing to Market It
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on: September 18, 2011, 10:25:57 PM
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Also, I've learned that you miners are a skeptical group.
Maybe you are new here? Everyone at the forums is very suspicious of new services. Say you come up with a simple widget that displays MtGox's price and you announce it here. No one will install it and you will get 5 replies asking for the source code to check that it isn't malicious. There have been many problems and scams in the Bitcoin world. You have to earn people's trust if you want to be taken seriously. Gavin Andresen leads the development team of the official client, but I guess that a simple video will do for now. |
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677
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Other / Beginners & Help / Re: Is it hard to buy & sell bitcoins?
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on: September 18, 2011, 09:46:10 PM
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It's not so easy for Google Checkout to be reversed, so why no love there? I saw a BTC Seller using Google Checkouts earlier, but the price was rather high and they didn't carry very many.
Yes, if you have a credit card and you are in a rush, you can go here: http://btcnow.netThe price is $6 at the moment. |
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678
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Bitcoin / Mining / Re: FPGA Miner Design for Sale to Someone willing to Market It
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on: September 18, 2011, 09:15:47 PM
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Am I missing something? He isn't asking for money. The question is: if I was selling these, how many would you buy? You don't pay to answer. Besides, if you are wasting your time posting to call this a scam, you might as well give a real answer.
When he comes asking for money, you can tell him to get lost. Right now, it isn't the case.
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