FriscoKid said:

---

queso1 said:

---

FriscoKid said:

---

What a fun ride if you got in early. I'm really interested in it, but I know almost nothing.

I looked at the "mining computers", but low cost energy is a real problem. I wonder if a fuel cell would be cost effective to power your computer. (Seriously, but kind of nerding out a bit)

---

My brother and I were looking into solar.

---

Did it come close to making sense? It's a big startup cost.

---

He's a mech engineer and did his masters on solar. It was profitable. But payback was about 3 years I think. Too much investment for me. Plus it would be unsightly in the backyard.

Like bank robberies?

But the feds don't care and the culprits live in Asia

See Mt. Gox

queso1 said:

---

FriscoKid said:

---

queso1 said:

---

FriscoKid said:

---

What a fun ride if you got in early. I'm really interested in it, but I know almost nothing.

I looked at the "mining computers", but low cost energy is a real problem. I wonder if a fuel cell would be cost effective to power your computer. (Seriously, but kind of nerding out a bit)

---

My brother and I were looking into solar.

---

Did it come close to making sense? It's a big startup cost.

---

He's a mech engineer and did his masters on solar. It was profitable. But payback was about 3 years I think. Too much investment for me. Plus it would be unsightly in the backyard.

---

Got ya.

If I'm understanding this correctly, Person A does a transaction with Person B. During the course of that transaction, whichever random computer ends up verifying the transaction gets rewarded with bitcoins?

So, people are essentially hooking their computer up to this network in the hope that free money just falls into their lap during the course of a transaction.

In other words, incremental money is being created out of thin air during a transaction? Person A transacts with Person B for 10 bitcoins. Person C with the computer verifies and then gets 10 of his own bitcoins so 10 are exchanged and 10 new are created?

What am I missing here?

Arggggg I wire transferred some money into coinbase a week ago and I'm still waiting for the transfer to complete. In that time Bitcoin has gone up 60%.

60%!!!!

YouBet said:

---

If I'm understanding this correctly, Person A does a transaction with Person B. During the course of that transaction, whichever random computer ends up verifying the transaction gets rewarded with bitcoins?

So, people are essentially hooking their computer up to this network in the hope that free money just falls into their lap during the course of a transaction.

In other words, incremental money is being created out of thin air during a transaction? Person A transacts with Person B for 10 bitcoins. Person C with the computer verifies and then gets 10 of his own bitcoins so 10 are exchanged and 10 new are created?

What am I missing here?

---

There are only 28 million BT, IIRC. Once those are all paid out, a % of each transaction will go to the block chain processors that confirm the quickest.

So to exchange 1BT, we will each pay .001 BT to the miners, so I pay 1.001, and you get .999BT. Basically.

TexAgs91 said:

---

Arggggg I wire transferred some money into coinbase a week ago and I'm still waiting for the transfer to complete. In that time Bitcoin has gone up 60%.

60%!!!!

---

Legitimate currency

How much has the value of gold gone up since it's discovery by ancient man? At one time, it was a worthless element sitting under the ground. Now we have the golden rule, the gold standard (well..used too) and gold jewelry.

So it's an arms race to see who can number crunch the quickest at the narrowest margin. I know they run hardware and OS specifically engineered to run these algorithms at the most optimal speed vs power consumption. There are giant farms of them in China.

I regret not getting in early, but it has the bell curve shape and other characteristics of a bubble, and buys big in now after it has been a big lead story for weeks of months seems like chasing the bubble, which is very speculative, instead of catching something new early and getting in early before it breaks, which is also speculative but also relatively low risk of your investment is small.

queso1 said:

---

How much has the value of gold gone up since it's discovery by ancient man? At one time, it was a worthless element sitting under the ground. Now we have the golden rule, the gold standard (well..used too) and gold jewelry.

---

That's actually pretty interesting.

http://www.zerohedge.com/news/charting-price-gold-all-way-back-1265

Gold has many legitimate industrial uses. It is superbly conductive and does not oxidize or corrode in normal conditions, making it an important metal for sensitive electronic contacts and corrosion preventative plating.

Gold is an inflation hedge. You buy gold because it goes up when the dollar or other current crashes.

I have very small early investment. What I stand to lose is where I'm at right now. Is really be pissed if I sold now and it went to $1,000,000. I've got friends who sold at $3000 amd they are on the ledge.

MouthBQ98 said:

---

So it's an arms race to see who can number crunch the quickest at the narrowest margin. I know they run hardware and OS specifically engineered to run these algorithms at the most optimal speed vs power consumption. There are giant farms of them in China.

I regret not getting in early, but it has the bell curve shape and other characteristics of a bubble, and buys big in now after it has been a big lead story for weeks of months seems like chasing the bubble, which is very speculative, instead of catching something new early and getting in early before it breaks, which is also speculative but also relatively low risk of your investment is small.

---

Yes, thus cheap power and cheap compute are the ideal mining camps.
The Chinese do most of it.

I've always heard that in 1200, an ounce of gold would have bought you a nice suit. In 2016, it will buy you a nice suit. Therefore, it holds it value.

queso1 said:

---

I've always heard that in 1200, an ounce of gold would have bought you a nice suit. In 2016, it will buy you a nice suit. Therefore, it holds it value.

---

It's seems to but we are also pulling it out of the ground still. There is no more BT. 28MM. I think it busts down to 1-2k and the slowly grows over time.

MouthBQ98 said:

---

So it's an arms race to see who can number crunch the quickest at the narrowest margin. I know they run hardware and OS specifically engineered to run these algorithms at the most optimal speed vs power consumption. There are giant farms of them in China.

I regret not getting in early, but it has the bell curve shape and other characteristics of a bubble, and buys big in now after it has been a big lead story for weeks of months seems like chasing the bubble, which is very speculative, instead of catching something new early and getting in early before it breaks, which is also speculative but also relatively low risk of your investment is small.

---

Consider that a derivatives market is about to open up.... I think it's still early....

I've taken a small investments in various coins I think may be the googles or amazons of this space.. diversity at this stage could pay off big 80/20 rule applies.

What I put down I won't lose any sleep over if it all collapsed zero when I wake up tomorrow.

So bitcoins are backed by nothing, they don't provide any economic value, and you can't spend them anywhere?

And the Winklevoss twins are bitcoin billionares? Those dudes just can't catch a break.

queso1 said:

---

How much has the value of gold gone up since it's discovery by ancient man? At one time, it was a worthless element sitting under the ground. Now we have the golden rule, the gold standard (well..used too) and gold jewelry.

---

Gold is the best comparison to bitcoin, because it is also worthless (the total industrial and jewelry usage value are way below spot) other than the fact that people decide that is is valuable.

Deats said:

---

queso1 said:

---

I've always heard that in 1200, an ounce of gold would have bought you a nice suit. In 2016, it will buy you a nice suit. Therefore, it holds it value.

---

It's seems to but we are also pulling it out of the ground still. There is no more BT. 28MM. I think it busts down to 1-2k and the slowly grows over time.

---

BTC were created out of thin air...

Nothing physically says more can't be created. (If you even believe they exist at all).

The biggest issue with a finite supply of something that doesn't physically exist is loss. When a private key is lost... your supply shrinks to zero.

Not exactly true.

Its only 21MM, not 28MM.

See this.

https://en.bitcoin.it/wiki/Controlled_supply

You could create a new version of btc, but there are only 21MM btc.

oldarmy1 said:

---

---

hilarious!

The only thing that really interests my newb mind about the cryptocurrency stuff as far as "the future!" goes is the eventual implementation of government backed cyber coins and blockchain taking over the record keeping functions of banks.

I imagine a potential future to be government backed coins, where in addition to the transaction fees going to the miners (ie the mainstream financial instutions) in the blockchain...conveniently a portion goes to government as tax as well.

up almost 20% today!

$16,000 USD and climbing!

JJxvi said:

---

The only thing that really interests my newb mind about the cryptocurrency stuff as far as "the future!" goes is the eventual implementation of government backed cyber coins and blockchain taking over the record keeping functions of banks.

I imagine a potential future to be government backed coins, where in addition to the transaction fees going to the miners (ie the mainstream financial instutions) in the blockchain...conveniently a portion goes to government as tax as well.

---

Blockchain is coming for institutional payments, for instance, to replace things like the SWIFT network.

So I know nothing about it but have to deal in it some. This is unreal funny. Money that I had left in there because I hadn't got around to selling is going crazy.

As far as Bitcoin goes, I dunno about it. Most arguments about its value revolve around scarcity and comparisons to gold, etc. But, what does bitcoin become worth when any kind of new coin with a jump in technology becomes available? Bitcoin might be scarce, but the potential supply of new cryptocurrency of all kinds is infiinite in the long term.

JJxvi said:

---

As far as Bitcoin goes, I dunno about it. Most arguments about its value revolve around scarcity and comparisons to gold, etc. But, what does bitcoin become worth when any kind of new coin with a jump in technology becomes available? Bitcoin might be scarce, but the potential supply of new cryptocurrency of all kinds is infiinite in the long term.

---

Correct.

Gold has a "jewelry" value and take $$ to get it out of the ground.

I could create DeatsCoin tomorrow.

Deats said:

---

Not exactly true.

Its only 21MM, not 28MM.

See this.

https://en.bitcoin.it/wiki/Controlled_supply

You could create a new version of btc, but there are only 21MM btc.

---

Once again. There is no physical limit. It is arbitrary and artificial. Additionally, if 51% of the blockchain miners agree that the blockchain should be altered... it is.

These things can literally be created from nothing.... or vanish...

garc said:

---

up almost 20% today!

---

Coinbase says last day +$5,000 +40%....

Must be last 24 hours. Absolutely stomach churning rise....

TexasRebel said:

---

Deats said:

---

Not exactly true.

Its only 21MM, not 28MM.

See this.

https://en.bitcoin.it/wiki/Controlled_supply

You could create a new version of btc, but there are only 21MM btc.

---

Once again. There is no physical limit. It is arbitrary and artificial. Additionally, if 51% of the blockchain miners agree that the blockchain should be altered... it is.

These things can literally be created from nothing.... or vanish...

---

Not really since the blockchain can't be replicated (well except by a 51% attack). That's the revolution of computer science...