Bitcoins - the new currency?

[onewheeldave]

Thats not the point.If people create there own currency and stop using Pound sterling.All our economy would collapse.Maybe they want it to happen The new World order and all that

 

Maybe not a bad thing. If, for example, the our economy was actually a root cause of all our problems, it's collapse might not be a bad thing.

[Hairyloon]

Thats not the point.If people create there own currency and stop using Pound sterling.All our economy would collapse.Maybe they want it to happen The new World order and all that

The collapse of the current world economy is inevitable.

It would be a very good plan to have an alternate economy in place ready to replace it.

[geared]

If anyone is still holding bitcoins it'd be a good idea to sell them up pretty soon.

 

The next generation of 'mining equipment' has just been released, where one 'rig' can now payout 1000 coins a month.

Obviously people have ordered as many as they can, backorders stretch to the end of the year.

 

People in the community expect the value to drop back down to the $5 a coin level it was at, due to the massive influx of new coins about to hit the market.

 

So if you're holding them now, cash out soon because they'll soon be worth very little.

 

This also means the end of home mining, these new types of rigs are so much faster that even the highest spec computer won't even be able to break even - you'll spend more on electricity than you will make in coins.

It's a pro game now, which is kinda sad

[Nagel]

If anyone is still holding bitcoins it'd be a good idea to sell them up pretty soon.

 

The next generation of 'mining equipment' has just been released, where one 'rig' can now payout 1000 coins a month.

Obviously people have ordered as many as they can, backorders stretch to the end of the year.

 

People in the community expect the value to drop back down to the $5 a coin level it was at, due to the massive influx of new coins about to hit the market.

 

So if you're holding them now, cash out soon because they'll soon be worth very little.

 

This also means the end of home mining, these new types of rigs are so much faster that even the highest spec computer won't even be able to break even - you'll spend more on electricity than you will make in coins.

It's a pro game now, which is kinda sad

 

But Bitcoins are created at a fixed rate. The supply can't suddenly increase, in fact it slows down at a fixed rate for the next 25 years till it becomes zero.

[Phanerothyme]

But Bitcoins are created at a fixed rate. The supply can't suddenly increase, in fact it slows down at a fixed rate for the next 25 years till it becomes zero.

 

That's right - the encryption algorithm gets more difficult based on a moving average bitcoin creation rate, in order to fit the production curve that tops out at 21MBTC in 2033. In fact since 2013, BTC is being produced at a slower rate than 2012, as the "reward era" has changed for the first time.

[Vague_Boy]

Thats not the point.If people create there own currency and stop using Pound sterling.All our economy would collapse.

 

Well the pound has certainly collapsed. Most people just haven't noticed.

 

A Parliamentary research paper on inflation found that, from 1750 to 2005, prices rose nearly 150-fold. As a result, one (decimal) penny in 1750 would have had the purchasing power of more than a pound in 2005.

LINK

 

LINK to the research paper

 

LINK to House of Commons chart showing the purchasing power of Sterling since 1750

 

As you can see from that chart, the purchasing power of the pound fell of a cliff in the 20th century.

 

The U.S. dollar has gone much the same way.

 

The unrestrained creation of money since 1971 has gradually been eroding the purchasing power of most currencies, and has resulted in a subtle form of indirect taxation. In terms of purchasing power, the US dollar has lost 82% as measured by the Consumer Price Index (CPI).

LINK

 

82% in just over 40 years, due entirely to excessive money printing.

 

Bitcoin and the rise in the price of gold are simply symptoms of a much wider financial malaise, the abandonment of the idea of money as a store of value and its transmutation into something that can be created out of thin air if you need more of it.

 

Both Bitcoins and gold have value because they are scarce. Sterling has lost value because those chumps at the BoE just create hundreds of billions more at the flick of a keyboard (both with Quantitative Easing and through general increases in the broad money supply).

 

It ain't rocket science.

[Nagel]

Front page of the FT -

 

http://pbs.twimg.com/media/BG9XCgJCIAYaa-G.jpg:large

[NorthernStar]

Front page of the FT -

 

http://pbs.twimg.com/media/BG9XCgJCIAYaa-G.jpg:large

 

WOW:o, wished I'd have stuck with it now - you must be quids in, well done:cool:

[Phanerothyme]

He could be a millionaire yet!

[mafya]

I came across this link about Reasons not to buy bitcoins= http://www.forbes.com/sites/timothylee/2013/04/03/four-reason-you-shouldnt-buy-bitcoins/

If you got in there at the right time like Nagel than its all good but personally I'm not to keen on electronic currency.

They are at £117 something at the moment.