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(BusinessWeek)   Bitcoin millionaires are quickly becoming a virtual reality   (businessweek.com ) divider line 76
    More: Interesting, bitcoins, virtual currency, California State Assembly, Duane Reades, Tyler Winklevoss, Brooklyn College, payment processor, illegal narcotics  
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4495 clicks; posted to Business » on 12 Apr 2013 at 11:24 AM (2 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-04-12 08:20:15 AM  
Bitcoins always remind me of 'The Restaurant at the End of The Universe' where the Golgafrinchams decided that leaves were currency which automatically made all of them rich. Of course then they had to burn down the forests to stop the rampant inflation.

/It must be great to be rich in a currency that nobody actually accepts
 
2013-04-12 08:31:38 AM  

Smashed Hat: Bitcoins always remind me of 'The Restaurant at the End of The Universe' where the Golgafrinchams decided that leaves were currency which automatically made all of them rich. Of course then they had to burn down the forests to stop the rampant inflation.

/It must be great to be rich in a currency that nobody actually accepts


I wonder who will be the first of the bitcoin millionaires to be dead for a year for tax purposes.
 
2013-04-12 09:55:41 AM  

Smashed Hat: Bitcoins always remind me of 'The Restaurant at the End of The Universe' where the Golgafrinchams decided that leaves were currency which automatically made all of them rich. Of course then they had to burn down the forests to stop the rampant inflation.

/It must be great to be rich in a currency that nobody actually accepts


Well, it doesn't really matter whether you can "use" the coins, just if someone else is willing to give you "usable" currency for the coins.   In that way, it is kind of like a rare baseball card or painting.... by itself, those don't make you rich.... the fact that someone will give you $1.5 million for it, does.
 
2013-04-12 11:26:36 AM  
You can always buy drugs with them
 
2013-04-12 11:27:37 AM  
Considering how volatile it's been in the past few day, I would say many of these opportunists are cashing out. Went from $250 to $60 in less than a day. Also the primary trading site, Magic: The Gathering Online Exchange, shut trading down for a day as the plunge was occurring.

Bitcoin!

/I'm going to go use dirty fiat monies and buy some delicious tacos, something that you can't do with Bitcoins.
 
2013-04-12 11:37:42 AM  
https://www.bitmit.net/en/item/18136-10-taco-bell-gift-card

you can buy anything with bitcoin if the other party is willing to accept.
 
2013-04-12 11:46:51 AM  

trotsky: Considering how volatile it's been in the past few day, I would say many of these opportunists are cashing out. Went from $250 to $60 in less than a day.


That's a major issue with Bitcoins... the market is so limited, that "cashing out" has the potential to dramatically lower the value of your investment. There might be a few lucky Bitcoin millionaires out there who can get their, but a great deal of people will be stuck holding 10,000 worthless imaginary bits of data.
 
2013-04-12 11:50:36 AM  

TheRealist: https://www.bitmit.net/en/item/18136-10-taco-bell-gift-card

you can buy anything with bitcoin if the other party is willing to accept.


Sure. The process is follows:

Identify object. If it's Roger Ver's shiatty BTC Store, you'll be paying a pretty steep mark-up to start. If he decides to ship the product. Hell, if you can find it, the search engine on his crappy site was totally broken.

BTC to BTC transfers are fine. If you download the blockchain, which is enormous. And what can you buy with this sort of transaction? Well, old barn wood contaminated with lead and furry porn.

Actually buying something? Well, if bitmint isn't hacked and you lose everything, you have to hope that the exchange rate doesn't tank while you wait for your transaction to go through.

Basically, bitcoin is an obstacle to the quick and easy consumer transaction. Last I heard the burrito place in New York not only stopped taking BTC but also closed.

Bitcoin!
 
2013-04-12 11:51:58 AM  

trotsky: Considering how volatile it's been in the past few day, I would say many of these opportunists are cashing out. Went from $250 to $60 in less than a day. Also the primary trading site, Magic: The Gathering Online Exchange, shut trading down for a day as the plunge was occurring.

Bitcoin!

/I'm going to go use dirty fiat monies and buy some delicious tacos, something that you can't do with Bitcoins.


CSB Time:

I remember when I was 16 I realized the bubble market that was around with Magic the Gathering  when I could buy 10 packs of cards for $25 and I was almost guaranteed a $250 card, plus many more of lesser value.  I worked the system and made some serious cash in a month, at one point my dad told me I needed to get a summer job, so I pulled out my wallet and slapped more than a grand on the table. He looked at me and said, "nevermind" I pulled in more that summer than I did any other summer job I ever had.

/End CSB
 
2013-04-12 11:52:41 AM  
April 10, 2013

Lulz.
 
2013-04-12 11:55:34 AM  

Supes: trotsky: Considering how volatile it's been in the past few day, I would say many of these opportunists are cashing out. Went from $250 to $60 in less than a day.

That's a major issue with Bitcoins... the market is so limited, that "cashing out" has the potential to dramatically lower the value of your investment. There might be a few lucky Bitcoin millionaires out there who can get their, but a great deal of people will be stuck holding 10,000 worthless imaginary bits of data.


While Magic: The Gathering Online Exchange was down another trading site, one with far less volume, was seeing massive drops and volatility over trades as small as 60 bitcoins. BTC millionaires are either early adapters who kept it close to the chest, scammers like Pirate (who made off with an awful lot or money) or suckers investors like the Winkledingus twins who were buying up large amounts of BTC.
 
2013-04-12 11:58:43 AM  

trotsky: TheRealist: https://www.bitmit.net/en/item/18136-10-taco-bell-gift-card

you can buy anything with bitcoin if the other party is willing to accept.

Sure. The process is follows:

Identify object. If it's Roger Ver's shiatty BTC Store, you'll be paying a pretty steep mark-up to start. If he decides to ship the product. Hell, if you can find it, the search engine on his crappy site was totally broken.

BTC to BTC transfers are fine. If you download the blockchain, which is enormous. And what can you buy with this sort of transaction? Well, old barn wood contaminated with lead and furry porn.

Actually buying something? Well, if bitmint isn't hacked and you lose everything, you have to hope that the exchange rate doesn't tank while you wait for your transaction to go through.

Basically, bitcoin is an obstacle to the quick and easy consumer transaction. Last I heard the burrito place in New York not only stopped taking BTC but also closed.

Bitcoin!


You can use bitcoins to buy drugs and then sell the drugs for cash.  Duh!  Bitcoin!
 
2013-04-12 12:02:08 PM  

Rapmaster2000: trotsky: TheRealist: https://www.bitmit.net/en/item/18136-10-taco-bell-gift-card

you can buy anything with bitcoin if the other party is willing to accept.

Sure. The process is follows:

Identify object. If it's Roger Ver's shiatty BTC Store, you'll be paying a pretty steep mark-up to start. If he decides to ship the product. Hell, if you can find it, the search engine on his crappy site was totally broken.

BTC to BTC transfers are fine. If you download the blockchain, which is enormous. And what can you buy with this sort of transaction? Well, old barn wood contaminated with lead and furry porn.

Actually buying something? Well, if bitmint isn't hacked and you lose everything, you have to hope that the exchange rate doesn't tank while you wait for your transaction to go through.

Basically, bitcoin is an obstacle to the quick and easy consumer transaction. Last I heard the burrito place in New York not only stopped taking BTC but also closed.

Bitcoin!

You can use bitcoins to buy drugs and then sell the drugs for cash.  Duh!  Bitcoin!


I buy liquor and sell it for food stamps.  I then sell the food stamps for gift cards.  I then buy things with the gift cards and put them on eBay.  I then take my eBay auction proceeds to buy BitCoins which I sell for cash to buy liquor to sell for food stamps.
 
2013-04-12 12:15:02 PM  
Should've taken the money.
 
2013-04-12 12:23:08 PM  

trotsky: Considering how volatile it's been in the past few day, I would say many of these opportunists are cashing out. Went from $250 to $60 in less than a day. Also the primary trading site, Magic: The Gathering Online Exchange, shut trading down for a day as the plunge was occurring.


I find it humorous that it happens the week after NPR did a full story on how BitCoin is being used as an alternative exchange in places whose currencies are collapsing. I would think that someone in NPR would have been familiar with how news stories increasing the awareness of lucrative alternatives can often lead to unusual price spikes/shortages that others would certainly take advantage of.
 
2013-04-12 12:26:21 PM  
I never quite got the allure of a mostly regulation free electronic currency, perhaps because I play Eve where people are constantly farking with the in game currency since by design it is an unregulated electronic currency where things like Ponzi Schemes don't break the TOS.

Plus if you can "mine" bitcoins via CPU time and they become a serious currency, the Chinese gold farmers will just get into it and fark it all up sooner or later.
 
2013-04-12 12:28:06 PM  

ha-ha-guy: Plus if you can "mine" bitcoins via CPU time and they become a serious currency, the Chinese gold farmers will just get into it and fark it all up sooner or later.


It doesn't work like that, the amount of bitcoins in 'circulation' is topped out at a fixed number and each 'mining' releases fewer coins.
 
2013-04-12 12:30:26 PM  
trotsky - it is certainly in its infancy and the scammers/hackers are terrible, wretched people, but i'm sure time will help things evolve.  Two things are for sure: They're here to stay, and no one is forcing anyone to use any of it.
 
2013-04-12 12:31:03 PM  

ha-ha-guy: I never quite got the allure of a mostly regulation free electronic currency, perhaps because I play Eve where people are constantly farking with the in game currency since by design it is an unregulated electronic currency where things like Ponzi Schemes don't break the TOS.

Plus if you can "mine" bitcoins via CPU time and they become a serious currency, the Chinese gold farmers will just get into it and fark it all up sooner or later.


Isk is actually way more stable than bitcoin and, with isk, you don't have suckers Captains of Industry investing their family's savings in some ridiculous ponzi scheme run by a dude with the user name of "Pirat". There was one idiot investor who took his wife's 401K and invested it with some ponzi scheme. He lost something like 30k of his wife's dirty fiat retirement cash.

And, also, with Isk you can buy timecards to play Eve. Again, way more useful than bitcoin.

I wonder how many new bitcoin buyers are Russian "businessmen" who were frozen out of Cyprus.
 
2013-04-12 12:40:53 PM  

trotsky: And, also, with Isk you can buy timecards to play Eve. Again, way more useful than bitcoin.


Eve, the game where suckers pay you to keep playing and take more of their money!
 
2013-04-12 12:42:11 PM  

TheRealist: trotsky - it is certainly in its infancy and the scammers/hackers are terrible, wretched people, but i'm sure time will help things evolve.  Two things are for sure: They're here to stay, and no one is forcing anyone to use any of it.


This is a great Username/post. Look, I disagree. The volatility alone kills it's use as any sort of currency. Sure, I've seen it go from $0.50 to $250. But it never actually settles down. Massive $50 drops in the space of me taking a shiat. Or getting a cup of coffee. That certainly does not make for a stable, usable currency.

And who backs them? The "free market" which is dominated by a card game trading company and a bunch of sleazy ex-con artists?

The process to actually cash out is hilariously over-complicated and I doubt it will be any better. Magic: The Gathering Online Exchange limits users to withdrawing $1000 a day. Building on this fact is that most people who have BTC immediately cash them out for dirty fiat monies.

Hell, even Silk Road only uses BTC as a method to ensure an anonymous transaction.

Add to all of this the issues with the massive block chain downloads, the transaction fees which pile up because of Satoshi Dice and other major issues (like how mining only occurs within a pool or with ASICS, all of which, so far, are buggy pieces of shiat.)
 
2013-04-12 12:52:57 PM  

Supes: trotsky: Considering how volatile it's been in the past few day, I would say many of these opportunists are cashing out. Went from $250 to $60 in less than a day.

That's a major issue with Bitcoins... the market is so limited, that "cashing out" has the potential to dramatically lower the value of your investment. There might be a few lucky Bitcoin millionaires out there who can get their, but a great deal of people will be stuck holding 10,000 worthless imaginary bits of data.


There is a sucker born every minute.  You can rip him off.  But if you can't find a sucker then you're the sucker who was ripped off.
 
2013-04-12 12:54:47 PM  
You are entitled to your opinion, sir, I just think that things will evolve much faster than people realize. It is still the wild, wild west in bitcoin land but i do believe it will stabalize at some point.  When?  I don't know that.
 I have been involved since the very start so i do have a vested interest.  I've never been hacked because i understand how to protect myself, I've never bought drugs with them, I didn't invest in the pirate40 ponzi scheme because it was clearly one. So, yes, my username is appropriate.


If you had the choice to pay someone $100 with a 3.5+% fee (CC/paypal/WU) or $100 with no fees, which would you choose? That's what this boils down to in the long run. The gov't doesn't have a problem with bitcoin, I use all my real information and intend to pay taxes on any potential gains they make me.. but for me, it's more about balancing power away from the banking oligarchs.  That's it, gotta run and get back to working for the man.
 
2013-04-12 12:55:14 PM  
Oh, I almost forgot. Your wallet.dat is one hard drive wipe away from disapearing forever. Sure, you can store your buttcoins on a shady on-line service that may or may not go off-line or just up and swipe you hard-earned coins.

Bitcoin!
 
2013-04-12 01:03:19 PM  
Wait, Glenn Beck didn't give his seal of approval on bitcoin as a valid investment, did he?
 
2013-04-12 01:04:44 PM  

TheRealist: You are entitled to your opinion, sir, I just think that things will evolve much faster than people realize. It is still the wild, wild west in bitcoin land but i do believe it will stabalize at some point.  When?  I don't know that.
 I have been involved since the very start so i do have a vested interest.  I've never been hacked because i understand how to protect myself, I've never bought drugs with them, I didn't invest in the pirate40 ponzi scheme because it was clearly one. So, yes, my username is appropriate.


If you had the choice to pay someone $100 with a 3.5+% fee (CC/paypal/WU) or $100 with no fees, which would you choose? That's what this boils down to in the long run. The gov't doesn't have a problem with bitcoin, I use all my real information and intend to pay taxes on any potential gains they make me.. but for me, it's more about balancing power away from the banking oligarchs.  That's it, gotta run and get back to working for the man.


But bitcoin does have transaction fees. http://en.bitcoin.it/wiki/Transaction_fees

And banking oilgarchs? Like the guys who run Magic: The Gathering Online Exchange? Or the other, smaller services? Mt.Cox has an awful lot of power over the currency of the futuretm then most of the suckers Captains of Industry care to admit. They shut down trading the other day because the price was falling too steeply a DDOS attack. This act pretty much hobbled any attempts to do much of anything with the buttcoins.

For maximum hilarity, look up Butterfly Labs. These clowns have been "working on" ASIC systems for seven months now.
 
2013-04-12 01:05:52 PM  

trotsky: Oh, I almost forgot. Your wallet.dat is one hard drive wipe away from disapearing forever. Sure, you can store your buttcoins on a shady on-line service that may or may not go off-line or just up and swipe you hard-earned coins.

Bitcoin!


you can make several copies of your wallet.dat file and store them in separate places.  no online service has ever "swiped" anyones coins.
 
2013-04-12 01:06:49 PM  
Bitcoin is only the first.

It's been imagined a second and third "Bitcoin Like" currencies that pop up.

Imagine a large tax haven bank doing something identical. Risks are similar, but with another set of complications, and probable advantages.
 
2013-04-12 01:10:49 PM  

trotsky: But bitcoin does have transaction fees. http://en.bitcoin.it/wiki/Transaction_fees

And banking oilgarchs? Like the guys who run Magic: The Gathering Online Exchange? Or the other, smaller services? Mt.Cox has an awful lot of power over the currency of the futuretm then most of the suckers Captains of Industry care to admit. They shut down trading the other day because the price was falling too steeply a DDOS attack. This act pretty much hobbled any attempts to do much of anything with the buttcoins.

For maximum hilarity, look up Butterfly Labs. These clowns have been "working on" ASIC systems for seven months now.


Not that I care significantly about Bitcoin, but your constant referring to Mt.Gox as "Magic: The Gathering Online Exchange", reminds me of the trolls who always referring to Obama as B. HUSSEIN Obama.

Sure, that's what it originally stood for, but now it's just Mt.Gox. You'd come off less as someone with an axe to grind if you'd use the proper name.
 
2013-04-12 01:13:06 PM  

trialpha: trotsky: But bitcoin does have transaction fees. http://en.bitcoin.it/wiki/Transaction_fees

And banking oilgarchs? Like the guys who run Magic: The Gathering Online Exchange? Or the other, smaller services? Mt.Cox has an awful lot of power over the currency of the futuretm then most of the suckers Captains of Industry care to admit. They shut down trading the other day because the price was falling too steeply a DDOS attack. This act pretty much hobbled any attempts to do much of anything with the buttcoins.

For maximum hilarity, look up Butterfly Labs. These clowns have been "working on" ASIC systems for seven months now.

Not that I care significantly about Bitcoin, but your constant referring to Mt.Gox as "Magic: The Gathering Online Exchange", reminds me of the trolls who always referring to Obama as B. HUSSEIN Obama.

Sure, that's what it originally stood for, but now it's just Mt.Gox. You'd come off less as someone with an axe to grind if you'd use the proper name.


That isn't my intent at all, actually. Bitcoin is a source of comedy for me. I write it out like that to remind everybody that THE major bitcoin player was once a magic card broker. I have axe to grind. Hell, if anything I enjoy the debate.
 
2013-04-12 01:13:44 PM  
I meant that I have NO axe to grind. I could care less what you do with your money.
 
2013-04-12 01:16:29 PM  

SVenus: Bitcoin is only the first.

It's been imagined a second and third "Bitcoin Like" currencies that pop up.

Imagine a large tax haven bank doing something identical. Risks are similar, but with another set of complications, and probable advantages.


It has happened. Once Bitcoing became nearly impossible to mine, LiteCoin began to get some attention. Not LiteCoin is at the point where the average person cannot mine it.
 
2013-04-12 01:18:18 PM  

trotsky: Considering how volatile it's been in the past few day, I would say many of these opportunists are cashing out. Went from $250 to $60 in less than a day. Also the primary trading site, Magic: The Gathering Online Exchange, shut trading down for a day as the plunge was occurring.

Bitcoin!

/I'm going to go use dirty fiat monies and buy some delicious tacos, something that you can't do with Bitcoins.


It depends on the type of taco you want to buy I guess.
 
2013-04-12 01:24:44 PM  

Reverend J: CSB Time:

I remember when I was 16 I realized the bubble market that was around with Magic the Gathering when I could buy 10 packs of cards for $25 and I was almost guaranteed a $250 card, plus many more of lesser value. I worked the system and made some serious cash in a month, at one point my dad told me I needed to get a summer job, so I pulled out my wallet and slapped more than a grand on the table. He looked at me and said, "nevermind" I pulled in more that summer than I did any other summer job I ever had.

/End CSB


Yeah that sounds real.
 
2013-04-12 01:25:15 PM  
Can I exchange Bitcoins for Triganic Pu?

How about for a Ningi?

No?

Then I don't want any.
 
2013-04-12 01:57:03 PM  

sure haven't: Reverend J: CSB Time:

I remember when I was 16 I realized the bubble market that was around with Magic the Gathering when I could buy 10 packs of cards for $25 and I was almost guaranteed a $250 card, plus many more of lesser value. I worked the system and made some serious cash in a month, at one point my dad told me I needed to get a summer job, so I pulled out my wallet and slapped more than a grand on the table. He looked at me and said, "nevermind" I pulled in more that summer than I did any other summer job I ever had.

/End CSB

Yeah that sounds real.


Maybe embellished a little, but I was doing the same thing waaaay back when the marvel trading cards were the big thing.

Buy a case, get a few hologram cards, flip to morons, buy more cases, pocket the rest. Obviously you need to be doing it at the top of the bubble to reap real rewards.
 
2013-04-12 02:18:21 PM  
Serious question...

How does one turn a basic PC into one of these Bitcoin Mining things and just let it run in the background doing its thing?

Follow up question...

Where do I spend or cash these in for real money?
 
2013-04-12 02:52:39 PM  
static2.businessinsider.com
 
2013-04-12 03:07:11 PM  

TheRealist: trotsky - it is certainly in its infancy and the scammers/hackers are terrible, wretched people, but i'm sure time will help things evolve.  Two things are for sure: They're here to stay, and no one is forcing anyone to use any of it.


Well, one thing is true.  I'm not so sure about that first thing.
 
2013-04-12 03:12:07 PM  
KellyX:

you would need to download the bitcoin-qt client software to start mining.  https://en.bitcoin.it/wiki/Bitcoin-Qt  it is very, very slow to download.  your PC will probably never find a block because you are up against a lot of stronger mining rigs, so you should find a pool to join where you all share the block rewards. be aware mining takes a lot of resources(pretty much all of them) so you should probably use a spare PC and not the one you use regularly.

as for your follow up, you need to find an exchanger like dwolla/mtgox or okpay..there are a bunch of "exchangers" and more coming online... surf the bitcoin site above in detail, it is the official wiki,hope this helps
 
2013-04-12 03:12:25 PM  

KellyX: Serious question...

How does one turn a basic PC into one of these Bitcoin Mining things and just let it run in the background doing its thing?

Follow up question...

Where do I spend or cash these in for real money?


First answer: not really any more. Mining BTC has moved from CPU to GPU and now there are specially produced ASIC rigs that will end up making everything else obsolete. Plus running the mining program any more will run your GPU at 100% the entire time, which is some serious wear and tear on your graphics card. You might also want to compare electric costs versus the BTC payout. Downloading the BTC client entails downloading a couple of gig of transactions as well.

Second: There are a couple of shady sites out there where you can spend your BTC. You could also play Satoshi Dice or invest in a Ponzi scheme. If you want to cash out, there are a few exchanges.
 
2013-04-12 03:14:32 PM  

KellyX: Serious question...

How does one turn a basic PC into one of these Bitcoin Mining things and just let it run in the background doing its thing?


Here's a decent guide for a complete novice. But as the article notes, at this point mining isn't really cost-effective for most people given the electricity you have to use.

A bigger concern are some newer trojans that turn infected computers into remote Bitcoin miners, transferring anything found back to the source.
 
2013-04-12 03:20:13 PM  
"Some were so taken with the concept that they launched Bitcoin businesses, such as exchanges where people can buy the coins or exchange them for dollars"

Amazing how they're so selfless as to take your dirty filthy dollars and turn them into nice safe Bitcoins.
 
2013-04-12 03:25:24 PM  

HotWingConspiracy: sure haven't: Reverend J: CSB Time:

I remember when I was 16 I realized the bubble market that was around with Magic the Gathering when I could buy 10 packs of cards for $25 and I was almost guaranteed a $250 card, plus many more of lesser value. I worked the system and made some serious cash in a month, at one point my dad told me I needed to get a summer job, so I pulled out my wallet and slapped more than a grand on the table. He looked at me and said, "nevermind" I pulled in more that summer than I did any other summer job I ever had.

/End CSB

Yeah that sounds real.

Maybe embellished a little, but I was doing the same thing waaaay back when the marvel trading cards were the big thing.

Buy a case, get a few hologram cards, flip to morons, buy more cases, pocket the rest. Obviously you need to be doing it at the top of the bubble to reap real rewards.


There was an amazing underground economy in the 1990s in Hamilton, Ontario, until The Silver Snail closed down it's store. Probably because the Silver Snail put their boxes where the teenagers could steal them, (whereas Bayshore Hobbies shrewdly kept the boxes behind the counter, and survived the MTG boom and bust and came out ahead).
 
2013-04-12 03:43:04 PM  

trotsky: TheRealist: You are entitled to your opinion, sir, I just think that things will evolve much faster than people realize. It is still the wild, wild west in bitcoin land but i do believe it will stabalize at some point.  When?  I don't know that.
 I have been involved since the very start so i do have a vested interest.  I've never been hacked because i understand how to protect myself, I've never bought drugs with them, I didn't invest in the pirate40 ponzi scheme because it was clearly one. So, yes, my username is appropriate.


If you had the choice to pay someone $100 with a 3.5+% fee (CC/paypal/WU) or $100 with no fees, which would you choose? That's what this boils down to in the long run. The gov't doesn't have a problem with bitcoin, I use all my real information and intend to pay taxes on any potential gains they make me.. but for me, it's more about balancing power away from the banking oligarchs.  That's it, gotta run and get back to working for the man.

But bitcoin does have transaction fees. http://en.bitcoin.it/wiki/Transaction_fees

And banking oilgarchs? Like the guys who run Magic: The Gathering Online Exchange? Or the other, smaller services? Mt.Cox has an awful lot of power over the currency of the futuretm then most of the suckers Captains of Industry care to admit. They shut down trading the other day because the price was falling too steeply a DDOS attack. This act pretty much hobbled any attempts to do much of anything with the buttcoins.

For maximum hilarity, look up Butterfly Labs. These clowns have been "working on" ASIC systems for seven months now.


A big part of that 3.5% fee is for insurance- The merchant gets paid even if the buyer later defaults, and the buyer is protected against sellers who don't deliver. If you pay your bills every month, have good credit, and use a cash back or other bonus/points type card, you get free money for a month. Very few places charge extra for using the CC, so the price to the buyer is the same plus they get CC bonuses back. It's worth it to the seller to get his money on the spot and not have to deal with tracking down deadbeats.

The CC companies don't get rich off of transaction fees. There's plenty of fraud to eat into that fee. They make their money on interest and penalty fees. Neither of which are incurred if you manage your money wisely.

Now a lot of cards will hit you with outrageous fees if you try to do an international transaction (citibank), but if you shop around you can find ones who don't.

If I drop $1k in bitcoins on a merchant who doesn't deliver, its gone. I'll take the 2.5% insurance and 1% cash back on my CC thank you very much.

And if you really think JP Morgan or Goldman Sachs are going to be impacted by this one whit, you should take a much closer look at where they make their real money. IPO's, bond flotations, Treasury auctions, investment banking, loans, futures trading, derivatives, etc. And they'll be happy to do that in whatever the currency is.
 
2013-04-12 03:58:12 PM  
Huh. A largely unsecured, highly volatile, remarkably susceptible "currency"? No.
 
2013-04-12 04:12:41 PM  
After spending some time outside of the US and getting paid in Euros - Bitcoins have been sounding really great.

In theory I mean.

In practice it's far too volatile and risky for me.
 
2013-04-12 04:23:58 PM  

trotsky: KellyX: Serious question...

How does one turn a basic PC into one of these Bitcoin Mining things and just let it run in the background doing its thing?

Follow up question...

Where do I spend or cash these in for real money?

First answer: not really any more. Mining BTC has moved from CPU to GPU and now there are specially produced ASIC rigs that will end up making everything else obsolete. Plus running the mining program any more will run your GPU at 100% the entire time, which is some serious wear and tear on your graphics card. You might also want to compare electric costs versus the BTC payout. Downloading the BTC client entails downloading a couple of gig of transactions as well.

Second: There are a couple of shady sites out there where you can spend your BTC. You could also play Satoshi Dice or invest in a Ponzi scheme. If you want to cash out, there are a few exchanges.


There is a bar in NYC that now takes Bitcoins.
 
2013-04-12 04:37:37 PM  
mcreadyblue:

There is a bar in NYC that now takes Bitcoins.

That's got to be a pain in the ass to do a daily exchange rate on your bitcoins.  Do they establish it at one price-point for the day?  I hope they immediately convert that money - especially if they took any bitcoins on Tuesday.

I went to a bar in Florida that had a Wall Street Martini based on the DJIA.  So if the Dow was 10,204, then the martini was $10.20.  I was having three at a time in 2009.  I was just there last month and I didn't see the special anymore.  Now is the time to run it.
 
2013-04-12 04:39:16 PM  
If this where I chuckle about people who look down on the USD as a fiat currency, but are moving to Bitcoin?
 
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