Bitcoin as an investment?

[onewhippedpuppy]

As fickle as the internet is, I would have a very hard time investing in anything that doesn't have some physical foundation. Now if you'll excuse me, I'm going to buy some stock in MySpace.

And yes, once it shows up for discussion in OT you've probably missed the boat on buying in early.

[jwasbury]

Credits Will Do Fine - YouTube

[cockerpunk]

Originally Posted by masraum

As I've read several times wrt investment bubbles, by the time you hear everyone talking about the next hot thing, it's too late.

yup, i laughed at bitcoin when i first herd of it 3 years ago. they were something like $20 back then

man i wish i'd have thrown a couple grand into them .... i'd have a brand new 911 if i'd hve done that.

yes, bitcoin is still laughable as a currency, but i'd have gotten out and been laughing at bitcoin all the way to the bank,

[Rot 911]

Not too late to register for the North American Bitcoin Conference: North American Bitcoin Conference

[HarryD]

I have been watching this and have a question. You "mine" for bit coins by solving mathematical puzzles. Who owns the puzzles (and solutions) and why are they willing to pay for them? To my paranoid mind, there is a whole other story about the why of this and I suspect it is not necessarily a benign thing.

[cockerpunk]

Originally Posted by HarryD

I have been watching this and have a question. You "mine" for bit coins by solving mathematical puzzles. Who owns the puzzles (and solutions) and why are they willing to pay for them? To my paranoid mind, there is a whole other story about the why of this and I suspect it is not necessarily a benign thing.

the mathematical puzzle is inherent in the transaction process. basically, every server of bitcoin tries to find the unique solution to where all the bitcoins transacted in the last time slot go. and all the fractions etc etc. as soon as your server has found that, it transmits that, which all the other server check, and if it passes, then you get a fraction of a bitcoin. this is how the bitcoin transation system is considered safe ... everyone in the system verifies its accuracy.

its a pretty cool system. its just even more fiat then fiat currencies. i have no idea why all the precious metal folks don't see that.

[masraum]

I don't think "they" want the solution to the puzzle. I think it's just a way to control the creation. But, nefarious folks could certainly have used this sort of thing to "crack" something. But if that was the case, I think enough people have looked at the process that it would be well documented. I suspect it's more about making it difficult, but not impossible to get the money.

[JJ 911SC]

Selling time... Bitcoin executive arrested for money laundering bailed for $1 million - The Globe and Mail

[sc_rufctr]

Originally Posted by JJ 911SC

Selling time... Bitcoin executive arrested for money laundering bailed for $1 million - The Globe and Mail

lol... I'm very surprised

[intakexhaust]

^^^ read that one the other day... perfect. LOL

Anyhow I'm curious, whats the tax implications on bitcoins? Its virtual, right? I get it if the valued 'virtual' is 'cashed' in... again, might be the wrong word used, er' described. But as an example, how would one categorize it if just trading and its not a real asset?

Also, if currently recognized as a 'what the heck' investment, its a 'what the heck' why not? No government anywhere has set regulators and pretty much are unable to. Kind of neat. Based on faith, what one is willing to trade for, credibility relying on stability between computers, it might not be a bad diversity if the world economy's go backwards... or perhaps grows. Is it even virtually relevant?

Or worse, turncoats might nail you, be convicted of supporting a new world underground, anti-establishment. Ouch.

[Cajundaddy]

Bitcoin is simply digital currency or virtual currency. Currency trading is not really an investment and is always highly speculative. Like any speculative play some will manage to win and some will lose their shirts. If you have the ability to control demand you can rig the game and win big.

Feeling lucky?

[pitargue]

Is it like trading baseball cards or pogs?

[911_Dude]

Bit coin is a great concept, but a total fail as a currency. What can you buy with it, except a few hundred kilos of blow?

No currency has any real value. Its just what people deem it to be i.e. beads, shells, printed paper, metal. But at least those types of currency were actually used to buy stuff. Bitcoin is just traded as a pure speculation trade. Is pure hype at this point and only good for a momentum play. Good luck trying to actually buy something with this "currency".

[john70t]

Originally Posted by Cajundaddy

Bitcoin is simply digital currency or virtual currency. Currency trading is not really an investment and is always highly speculative. Like any speculative play some will manage to win and some will lose their shirts. If you have the ability to control demand you can rig the game and win big.

Feeling lucky?

Wall street? Is that you?

[GWN7]

"Created in 2009 by a developer or team of developers going by the name Satoshi Nakamoto, whose true identity remains unknown, the bitcoin’s earliest adopters have included people expressing a desire to conduct their affairs in a realm outside of government-sanctioned commercial spaces."

Developed by Unknown, to hide transactions away from governments. Yea that's going to work out well. Every government wants their piece of the action.

[JJ 911SC]

Originally Posted by Cajundaddy

... some will manage to win and some will lose their shirts. If you have the ability to control demand you can rig the game and win big.

Just like an over hype start-up, all the big money to be made has already been (is being) cashed.

Originally Posted by Cajundaddy

... and some will lose their shirts...

Someone has to pay the cash out.

[911_Dude]

Looks like its about time for all the "Investors" to bail.

Bitcoin's Mt Gox disappears, insolvency feared

[JJ 911SC]

Its the beginning of the end...

Revenue Canada says BitCoins aren't tax exempt - Business - CBC News

[speeder]

There is the beginning of the end, the end of the beginning and just the end of the end.

Apparent collapse of Mt. Gox exchange threatens Bitcoin economy - latimes.com

[slakjaw]

Bitcoin is extremely interesting to me. People who mine bitcoin are doing things like renting a place then not paying the bills till they get evicted or the power is shut off. Apparently mining bitcoin is no longer worth the electricity that it uses.

More and more business are accepting cryptocurrency all the time. I think it is here to stay. about 2 years ago I left my computer on for several days mining bitcoin. I have like 0.04 (lol) which is worth like 20 bucks. lol.