bitcoin flying high

[Soul-Sing]

Dear cafemembers I bought a bitcoin some while ago. It can offer you all a firm single malt. (Islay)
From 1 bitcoin=24 euro to a 100. Man I am in heaven.( For a short while.) Skol!!

[Kirboosy]

If only I would of bought several hundred when they were at 15-30 bucks....


Very nice for you though. Congrats!

[|{urse]

Had I started mining 2 years ago, I'd be silly rich.

[bashhimup]

Nice job.

[3rdalbum]

I want to buy a bitcoin or two in the hopes that the price will continue rising and I can cash out for a profit.

However I read about the 1929 stock market crash, railway stocks, tulip mania and the South Sea Bubble. Oh, and Dotcom.

It all comes crashing down when people get wise or get nervous, and I think we're not far away from that. I'll buy after the crash and see what happens.

[Soul-Sing]

In the first place I was curious about the concept, the idea, and technology. It was in the beginning a bit 'underground' imo. But the concept becomes mainstream maybe, some day.
And indeed its about trust. Everything about economy is about trust. Over 112 euro now....

[Sharpie1]

And now Instawallet has been hacked - or has it ? And the bubble will burst.

Sharpie1

[Ace.....]

I saw the Aljazerra inside story broadcast last week.
Anybody else see that?

I was way shocked.
Like out of sight.

Had they rigged it for that?
Very possibly.
I've seen similar phoo phoo operations before on the TV.

For those that didn't see it.... it is still available for viewing online:
http://www.aljazeera.com/programmes/...639241668.html

You'll see that the guy they chose to represent bitcom was an official UK trader - with a Mohecan haircut!
When he spoke, he wasn't calm and rational.... instead it was a rant, with his hand in the air doing a classic Rapper 'downward point' LOL.

I actually don't mind if some guy has got his own style.
But, I do expect a calm, considered outline/argument.
And, as an introduction (which it would be for the majority watching a mainstream news channel), some idea as to what the hell it is that I'm supposed to be exchanging my money for.
Like who is sat there, in front of the PC, saying, 'let's generate a million more signatures (or whatever a bit coin actually is).'

I know the BoE does that..... but at least there's like a million people out there watching what they're doing, and the effects are market driven, based upon transparency.
Who is controlling bitcoins?

Like as 3rdAlbum said
This sounds way too much like 'paying the price of a house for a tulip bulb'.

And..... it appears to be run by would be rappers, sporting a Mohecan cut, doing a 'down pointing' rant. LOL

Seems kind of wierd to me..... I guess that doesn't mean it won't work.

But.......

[Ace.....]

So I looked a bit(coin) further into this.

It seems the money (bitcoins) are generated by the general public.
Anybody who wants to create this form of money can do so.

25 bitcoins are created every ten minutes (decreasing) until 21 million have been created in 2140AD

You install the software, called mining software.
This software attempts to solve a mathematical puzzle.
If you are lucky, it solves the puzzle in an hour (say).
Otherwise, it apparently could take years.

But if you do win, then you get 50 bitcoins for free.... or for the price of the electricity consumed by your PC.

The software, of which there are many, can be set to run in background mode, operating only when you're not using your PC.
Plus, you can install it on your web site, and use your visitors PC while they are browsing your site.

Like say ubuntu did this, and you left yourself logged in, then you would be helping ubuntu create bitcoins (an example only obv).

So the big question as to who gets paid for the newly released coins.... the answer is.... the electricity companies, AND the graphics card companies.
The latter, cos the better your graphics card, the faster you can solve the puzzles.
OR, apparently you can buy a specific chip designed purely for maximising the puzzle solving speed.

For the average bod; this is no diff to the weekly lottery, so, often people combine to form a syndicate.
This way, if some bod wins, then the syndicate gets paid out and each person gets their share.

I guess with modern PC's that partially shut down (and save electricity)... by running the software, the PC never shuts down, so you do pay a price.

Apart from luck.... the only way to do this profitably, is to set up your system with the latest hardware and software, and run a few PC's.
Ideal if you've got personal solar or wind power.
But at current valuations, it could be worth it for a bit of fun.
A site offers the full package just on a sign up basis, even offering the website code (devious eh?)
They take a small cut on winnings 3% I think.

A bizarre financial system, but that's how it works.

[tgalati4]

How is this different from a Ponzi scheme?