Need 3.2 bitcoins with PayPal - Can PAY NOW

[owenmichaels]

so there's a mutual agreement.


By the way, this is just temporary.


I just saw that I've been on this forum at a total login time of 2 days, 17 minutes.
I'm addicted 


I don't know much, but why are Bitcoins worth so much more than the Euro, Pound?


After all, isn't it traded just online.

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[TheButterZone]

No, I sell BTC for cash in person, in the mail... nobody's sold me BTC for cash in person yet, because I'd have to borrow a car and pay for gas to meet just about everyone who is selling.

[Seth Otterstad]

Owen, I wasted like 8hr a day for two weeks when I found out about bitcoin:)  If you go on bitcoin-OTC and trade for one bitcoin with sturles, people will trust you with $50 or so after a week or two.  You have to build a reputation.  If you have a bank account in the US, just use coinbase.

[owenmichaels]

I'll try that! Thank you Seth, that's a good tip!


But by the way, why is it so much more valuable than Euro or Pound? Shouldn't it be the other way around (or the same)?

 

[Seth Otterstad]

Bitcoin is more valuable per unit than the Euro, but this does not mean anything.  It takes 80 yen to make one US dollar, but that doesn't mean anything either.  It takes 1700 dollars to make one oz of gold.  You need to know something about the supply of the unit for this to matter.  People not used to trading currency or stocks tend to struggle with this concept, but it is very important to learn.

For example, when evaluating a particular stock, its price does not mean anything by itself.  People whose first question about a stock is "what is its price" are losing traders.  The fact that google stock is trading at $700, which is over 25x higher than $27 Microsoft stock, does not tell you anything about those companies.  They are both worth about $230 billion.

You need to look at market cap to evaluate the prices.

http://en.wikipedia.org/wiki/Market_capitalization

[owenmichaels]

Thank you, Seth.

I'm following your advice you gave on the PM, but it's hard to get this guy BitCoins.

[cptmooseinc]

Owen,

The easiest way (in my opinion) to get BitCoins is to create a Dwolla and MtGox account. Transfer funds from Dwolla (via bank account) to MtGox. It takes a few days to get it, but otherwise it's worth the wait because it's cheap and easy. If you need BitCoins really fast, use BitInstant to make a transfer to BTC-e.com. You can buy coins over there cheaper than at MtGox, so it makes the fees you pay a little less painful to eat.

[owenmichaels]

What's Dwolla and MtGox??
Thank you I'll give it a try. The thing is that they take so much time.
Thank you for the advice.

[cptmooseinc]

If you live in the USA, Dwolla is a service you can use that's very similar to Paypal. MtGox accepts this as a funding source.

Create a Dwolla account and link it to you bank and verify it. Also create a MtGox account (they're an exchange for BTC). You'll need to verify your Dwolla account with them which also takes a few days. Once it's verified, you can deposit/withdrawal no problem. If you suspect you'll use BTC often, keep some extra funds pre-loaded into Dwolla so you can transfer them up to MtGox. It usually only takes 1 day for them to clear that way. If your Dwolla balance is at $0, then you can send money to MtGox still, but you'll have to wait for Dwolla to get the funds from the bank, then 2-3 days for it to go to MtGox. It can be a bit of a pain in the ass if you don't have funds in Dwolla already.

This also means that if you get paid in BTC, you can send them to MtGox, sell them, and withdrawal to your Dwolla to get it in your bank account.

One thing, though, is ALWAYS run the numbers between MtGox.com and BTC-e.com before buying BTC. Sometimes the spread is big enough that it's worth doing this:

Load $$$ to MtGox via Dwolla
Use BitInstant to transfer MtGox $$$ to BTC-e $$$ (1.49% fee)
Buy BTC on BTC-e cheaper than MtGox
Get more BTC because of this

I just ran the numbers right now, and MtGox is $15.79/BTC. BTC-e is $15.469/BTC. After you assume the 1.49% BitInstant Fee, the BTC-e Trade fee, and the BTC-e withdrawal fee, you get an extra .01BTC for every $100 you spend. Usually that's not the case. It's not really worth messing with for .01 either, but if you plan on spending $2000, that's an extra .2BTC (worth it to me).

[owenmichaels]

Thank you cptmoose!

This Forum is not bad after all