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Bitcoins
liam.mccaffrey - 5/3/13 at 02:10 PM

Anyone know anything about them or why they have rocketed in price recently!?!?? 30% over the last week or so! Someones making money.

tomprescott - 5/3/13 at 02:23 PM

Apparently they are the main way for grey economies to operate now - they are the best performing currency at the moment. It still amazes me that they have taken off conceptually - I would have assumed that paypal and similar services would suffice, though I still don't really understand how you can have totally anonymous, yet still secure, transfer of an intangible piece of code. How do you know you're receiving the actual value and not just an unusable copy?

Also, how can you have shares in a currency? Surely all this means is that there is a privately-owned bourse, and people are only trading derivatives between each other against the tangible assets owned by other users/members?

jossey - 5/3/13 at 02:25 PM

As above its a new thing which is drawing alot of attention from investors which is making the price rise.

This is off the bitcoins forums


Long time fundamental forward outlook:

The value of a bitcoin will rise with adoption, until some optimal adoption level is achieved. On the way up, speculators who correctly foresee this level, will put an upward pressure to the value earlier.

If speculators erroneusly predict the optimal adoption level, the value may overshoot, and we will have a period with lower value.

When the optimal level of adoption is reached, a bitcoin hoard can no longer be regarded as an entrepreneural investment, so bitcoin will slowly move from the hoards to profit making investments in the real economy. That is a slow downwards pressure on the value of a bitcoin.

Additionally, economic events will happen around the world, creating volatility for bitcoin as it does for other currencies.

You will have to fill in the metrics for yourself, it is not really possible to predict.

liam.mccaffrey - 5/3/13 at 02:25 PM

sorry I should have said the exchange rate, bitcoin to USD, has risen 30%

designer - 5/3/13 at 02:31 PM

I have no idea what you' re talking about!!!

Daddylonglegs - 5/3/13 at 03:20 PM

quote:
Originally posted by designer
I have no idea what you' re talking about!!!


If it's any consolation, neither do I!!

SeaBass - 5/3/13 at 03:22 PM

quote:
Originally posted by designer
I have no idea what you' re talking about!!!


Use google - the world's a fascinating place.

femster87 - 5/3/13 at 03:29 PM

That has to be the most interesting and bizzare thing I have learnt today. I have just spent the last 30mins reading about it.

[Edited on 5/3/13 by femster87]

whitestu - 5/3/13 at 03:43 PM

So who is issuing them and making loads of money?

richardm6994 - 5/3/13 at 05:30 PM

A friend at work goes mining for bitcoin...whatever that means!

It's blown my mind just talking to him about it but from what I gather your computer (or computers linked together with friends) gets sent a load of information which it then works through and there is a chance you may find a bitcoin (or a percentage of a bitcoin). Then these bitcoins can be sold for money at the going rate....

I still don't get it though.....other than the bitcoins being worth something if you find one

Daddylonglegs - 5/3/13 at 06:24 PM

quote:
Originally posted by SeaBass

Use google - the world's a fascinating place.


Always do, just didn't feel the urge today

coyoteboy - 5/3/13 at 06:45 PM

I was under the impression that the primary purpose of bitcoins was for drugs sales?