druid
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Activity: 54
Merit: 0
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September 09, 2011, 03:16:31 AM |
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I agree on the part "they saw the price go down so they decided to sell"
but for those price down runs there are some other factors responsible as well:
Bubble people, one or two larger thefts and relatively small market...All these things have caused turbulence and made climate for someone who wanted "free card" as you nicely noticed to step out and take $.
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grod
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September 09, 2011, 05:48:20 AM |
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The bitcoin network takes about $1000/hour to run. And that's not even paying for "free cards (and power supplies, and motherboards...)" for miners. If you think the total amount of $ invested is still the total amount in people's accounts in mtgox... Well, I know for a fact you're wrong. There's nearly $700 that I've extracted just by myself, with my tiny mining operation over the past 4 months -- and that money is NEVER going back to buy bitcoins. It's going to AMD, Antec and possibly Xilinx.
Not only do your shares get diluted by 3% a month but money is actively being siphoned out of the pool to pay for power and hardware. As I've said before, simply breaking even on a $ investment in bitcoin is being ahead of the game. Long term, sure, greater fools *SHOULD* arrive. Maybe. For now you'll just have to sit back and hope they arrive as the total real world currency worth of your bitcoins keeps shrinking.
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Minsc
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September 09, 2011, 07:21:42 AM |
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The bitcoin network takes about $1000/hour to run. And that's not even paying for "free cards (and power supplies, and motherboards...)" for miners. If you think the total amount of $ invested is still the total amount in people's accounts in mtgox... Well, I know for a fact you're wrong. There's nearly $700 that I've extracted just by myself, with my tiny mining operation over the past 4 months -- and that money is NEVER going back to buy bitcoins. It's going to AMD, Antec and possibly Xilinx.
Not only do your shares get diluted by 3% a month but money is actively being siphoned out of the pool to pay for power and hardware. As I've said before, simply breaking even on a $ investment in bitcoin is being ahead of the game. Long term, sure, greater fools *SHOULD* arrive. Maybe. For now you'll just have to sit back and hope they arrive as the total real world currency worth of your bitcoins keeps shrinking.
How much money is spent on paper and coin money? On credit cards such as the cards, the processing machines, visa & mastercard fees, the cost of fraud, the cost of internet gateways? On tax collecting? |
1DcXvfJdeJch9uptKopte5XQarTtj5ZjpL
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Cluster2k
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Activity: 1692
Merit: 1018
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September 09, 2011, 11:08:23 AM |
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How much money is spent on paper and coin money? On credit cards such as the cards, the processing machines, visa & mastercard fees, the cost of fraud, the cost of internet gateways? On tax collecting?
How much money is spent? A lot. The question is, why should bitcoin duplicate the existing efforts? Credit cards aren't going to disappear now that bitcoin is here. Bitcoin would require duplicated efforts in cards, processing machines, there are fees in bitcoin (I often can't transfer bitcoins without tossing in at least 0.01). There is fraud in bitcoins too (mybitcoin, MtGox, negligence like Bitomat, etc). Bitcoin isn't free of taxes either. As soon as funds from your bitcoin activities reach the real world there's a paper trail of capital gains that can be traced. It's the individual's choice whether they choose to declare this income, or face possible consequences. |
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cbeast
Donator
Legendary
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Activity: 1736
Merit: 1006
Let's talk governance, lipstick, and pigs.
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September 09, 2011, 11:32:59 AM |
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Lots of charge cards have disappeared to be replaced by Master Charge (now Card) and the later VISA. Things change. Maybe bitcoin will be the next change.
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Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
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Minsc
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September 09, 2011, 02:44:47 PM |
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How much money is spent? A lot. The question is, why should bitcoin duplicate the existing efforts? Credit cards aren't going to disappear now that bitcoin is here. Bitcoin would require duplicated efforts in cards, processing machines, there are fees in bitcoin (I often can't transfer bitcoins without tossing in at least 0.01). There is fraud in bitcoins too (mybitcoin, MtGox, negligence like Bitomat, etc).
Bitcoin isn't free of taxes either. As soon as funds from your bitcoin activities reach the real world there's a paper trail of capital gains that can be traced. It's the individual's choice whether they choose to declare this income, or face possible consequences.
No chargebacks. And bitcoins should stay in bitcoin. I hope to buy vehicles and land with bitcoin when I get the money to buy either. |
1DcXvfJdeJch9uptKopte5XQarTtj5ZjpL
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Jixtreme
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September 09, 2011, 03:00:47 PM |
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And bitcoins should stay in bitcoin. I hope to buy vehicles and land with bitcoin when I get the money to buy either.
It would be phenominal if this was a realistic possibility. Someday, hopefully. |
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netrin
Sr. Member
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Activity: 322
Merit: 251
FirstBits: 168Bc
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September 09, 2011, 04:39:59 PM |
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 There's cheap cards, you say? And cheap coins? Previous to this remarkable analysis the only real world I've heard had something to do with Silky Gawker (1 June 2011, $8/BTC). Has despair brought us well below the bear trap?  |
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Jixtreme
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September 09, 2011, 04:50:04 PM |
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Remarkable.
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cbeast
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Activity: 1736
Merit: 1006
Let's talk governance, lipstick, and pigs.
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September 13, 2011, 11:36:30 AM |
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That is a nice graph. I suspect though that bitcoin is something new and will see that pattern reiterate many times as the mean value grows. It looks like traders may be helping the value grow over time.
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Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
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molecular
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Activity: 2772
Merit: 1019
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September 13, 2011, 12:32:08 PM |
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I'd fall into that category but I never held any coins, always sold in 1 to 2 BTC increments as I earned it. I did just get to the break-even point a few days ago. Any miner that held the coins with the intention of getting a free video card should have done the same, holding coins was a bad gamble.
To date I've sold 55 BTC for a total or 816.77 USD. Not bad at all. Thanks BTC investors.
Also, you all can rejoice that I've stopped mining and removed 1.2 GH from the mix. Current market prices aren't worth it when electric is $0.15 kWh (thanks Progress Florida), even though it'd be profit from this point.
You know you don't get paid USD for mining, right?  it's not a loss until you sell it. So if you ever think that the price of BTC at any point in the future will rise into the retroactively profitable range, keep mining. I will not stop to point out that in such a case it's more profitable to simply buy BTC instead of mining them. |
PGP key molecular F9B70769 fingerprint 9CDD C0D3 20F8 279F 6BE0 3F39 FC49 2362 F9B7 0769
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molecular
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Activity: 2772
Merit: 1019
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September 13, 2011, 12:34:06 PM |
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By the way, for all you former miners, the best thing to do right now is perform services or sell products for BTC. Then you're slowly causing the amount of BTC available on the exchange to lower since it's going to you instead of an exchange. Less available BTC on an exchange means higher prices. That means you're raising the price of the BTC that you just acquired simply by acquiring it and you didn't have to mine anything. Talk about a good investment!
Or: simply take the USD from selling your rig and buy BTC for it. |
PGP key molecular F9B70769 fingerprint 9CDD C0D3 20F8 279F 6BE0 3F39 FC49 2362 F9B7 0769
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