Bitcoin

[jkjsooner]

It seems that bitcoin has been in the news a lot lately. I have to admit I didn't know what it was until a few weeks ago.

I'd love to have your opinions on it. Do you think it's a legitimate currency?

[KantoSooner]

I suppose I expose my traditionalist bent: who/what stands behind it? If nothing, then doesn't it run the risk of being the equivalent of tulip bulbs in sixteenth century Holland?

[yermom]

i heard about it and some strange flaws years ago from security people and it seemed it wouldn't scale very well

i'm surprised it has lasted/taken off as much as it has. i remember when they were almost worth a dollar...

[Boomer.....]

I've read some on them, but still don't quite understand it. Something about a guy who created the concept, there is a limited quantity, you can mine (create) them on a computer, etc. scares me. I think it is much too volatile to be considered a legit form of currency. 1 bitcoin was around $450 a month ago, was over $1200 yesterday, but is below $1000 today.

[jkjsooner]

I've read some on them, but still don't quite understand it. Something about a guy who created the concept, there is a limited quantity, you can mine (create) them on a computer, etc. scares me.

The mining part serves a dual purposes. The reason it exists is to encourage users/nodes/computers to do the work required to validate transaction orders. At least that's my understanding. Also the number of bitcoins given to those who do this work is progressively less and less.

As for the scaling issue yermom mentioned, that sounds like a real concern to me. Every node has to know of every transaction that has ever occurred. That seems absurd on the face of it.

[badger]

Don't blow your inheritance on Bitcoin (http://np.reddit.com/r/Bitcoin/comments/1r88vl/need_advice_on_inheritance_arbitrage_family_etc/).

[KantoSooner]

It sounds like it would be subject to the same constraints that crippled economic growth in early modern Europe and its reliance on precious metals as the only store of value.

[Jacie]

Hey buddy, want a couple of beanie babies? I got the rare ones . . .

[jkjsooner]

Don't blow your inheritance on Bitcoin (http://np.reddit.com/r/Bitcoin/comments/1r88vl/need_advice_on_inheritance_arbitrage_family_etc/).

Wow. How pathetic is that guy?

I like this comment:


Congratulations! You were able to lose money in a bull market that has gone up over 4000% this year alone. It takes a special kind of person to be able to do this.

[8timechamps]

I first heard of it a couple of years ago, and have always thought it was risky. However, it appears to be gaining some traction. I doubt I'll ever become involved, but it is interesting.

[SicEmBaylor]

Legitimate, but I believe it's in a bubble.

[Jacie]

Someone bought a $100,000 Tesla with Bitcoins
By Melanie Hicken @melhicken December 6, 2013

The things you can buy with the digital currency Bitcoin continue to grow, from sandwiches to fine art -- and now expensive cars.

A Florida man bought a Tesla Model S from a Lamborghini dealership in Newport Beach, Calif., this week. It was the first time the dealer had accepted Bitcoin, it said.

"That's right, an electronic currency was used to purchase a fully electric vehicle," the dealer's blog stated.

The buyer, who wishes to remain anonymous, bought the top-of-the-line Tesla (TSLA) for $103,000, which was equivalent to 91.4 Bitcoins on Tuesday, the day of the sale, said Cedric Davy, marketing director at the dealership.

The sale came about after the man contacted the dealership on Monday asking if he could use Bitcoin to pay for the Tesla, explaining that he had been turned down by other sellers, Davy said.

"We had heard about it before, but we weren't extremely familiar, so we basically did our homework and looked for ways for us to convert it into dollars," he said.

After checking into any legal issues and other research, the dealership worked with Bitcoin payment processor BitPay to handle the transaction.

Timing was on the buyer's side. The digital currency, known for its wide price swings, dropped sharply in value on Friday, just days after the purchase.

But the dealer didn't need to worry about the risks associated with the volatile currency. BitPay locked in Tuesday's Bitcoin price for both the buyer and the dealership, Davy said.

"We're not in the business of speculating so at the end of the day we want to sell the car as priced," he said.

After news broke of the sale, the dealer fielded about 10 phone calls from more car shoppers interested in purchasing a car using the digital currency, Davy said.

"All these people have Bitcoins," he said. "I think some people are trying to spend it."

Most Teslas are sold online directly to customers by the company. Even in Tesla-owned and -run stores, the transaction is conducted online. Tesla has been fighting in several states in order to sell its cars directly to consumers from coast to coast.

In fact, Tesla head Elon Musk came to fame (and riches) as a co-founder of PayPal, a leading digital payment service.

Tesla declined to comment on whether or not the company plans to accept Bitcoin as payment anytime soon.

[suehoward]

I'm still in awe of Bitcoin’s virtual royalty. If you’re into virtual business, I suggest you do some research about Bitcoins -including emerging digital currencies. Who knows, this might benefit you. Not to mention that it's trading is quiet surprising. Take a look at the exchange rate: 1BTC is equal to almost $1000, which can surge or plummet anytime.

[badger]

I am reminded of Beanies and every other bubble that burst due to overhype and greed.

[SoonerStormchaser]

When the Winklevii are two of the primary investors in this, you know it's a good idea to stay away...cause they'll probably sue your *** eventually.

[Bourbon St Sooner]

Don't blow your inheritance on Bitcoin (http://np.reddit.com/r/Bitcoin/comments/1r88vl/need_advice_on_inheritance_arbitrage_family_etc/).

People that trade and don't know what the hell they're trading are morans! Unfortunately, this included a lot of banks in the housing bubble days.

[ouleaf]

I'd say it's pretty risky at this point as there are some concerns about using them as a way to purchase illegal drugs and other contraband or fund terrorist activity since the "currency" doesn't flow through the traditional financial networks. But I do see some merits to the concept of a digital currency. I know some people just acquire them purely for speculative reasons and don't really do any transactions with them.

[8timechamps]

I'd say it's pretty risky at this point as there are some concerns about using them as a way to purchase illegal drugs and other contraband or fund terrorist activity since the "currency" doesn't flow through the traditional financial networks. But I do see some merits to the concept of a digital currency. I know some people just acquire them purely for speculative reasons and don't really do any transactions with them.

Just read that story. There are way too many "unknowns" about BitCoin for me to consider it a legitimate investment. One thing I have to know about any investment is the level of risk associated. With BitCoin, there is no way to qualify that.

[Killerbees]

I would like for something backed by a government to come along and displace it. Thats something I could get involved in.

I mined a few bitcoins back when they were worthless. Still have them somewhere.

There are pros and cons. Its way too volatile and unregulated for any serious investment. Its us as an anonymous way to purchase illegal items and fund illegal acts are greatly overblown. By the very way its designed every transaction is recorded with a unique identifier. They have proven how easy it is for that identifier to be tied to a real person.

[olevetonahill]

So whats going on?

http://news.yahoo.com/tokyo-bitcoin-exchange-files-bankruptcy-102841684--finance.html

[jkjsooner]

So whats going on?

http://news.yahoo.com/tokyo-bitcoin-exchange-files-bankruptcy-102841684--finance.html

Crazy isn't it?

I wonder if it was an inside job or if outside hackers really did steal the bitcoins...

[badger]

I wonder if it was an inside job or if outside hackers really did steal the bitcoins...

To the Bitcoin owners, it really doesn't matter, does it? The money is gone regardless of whether they had it stolen by those they trusted, or stolen because those they trusted were incompetent at preventing thievery.

I fortunately have avoided this fad, but to those that lost out from this security issue, my condolences.

[hawaii 5-0]

Something I never touched.


5-0

[olevetonahill]

Something I never touched.


5-0

No one has either, Its all make believe shat. Unlike good ole American green backs that are backed by Nothing at least their Paper and you can feel em.

[Dallasbabe]

jk gave me a coin and i gave him a bit