What are your thoughts on BitCoin?

[Phrossack]

I think Dachs called them Dunning-Krugerrand once, which is still one of the smartest ways to mock anything I know.

Definitely one of the best put-downs I've ever heard!

 

[Zelig]

It seems Zelig is the only one that has *actually* used the bit coins so maybe we should listen to what he has to say.

Oh I don't use bit coins.

For me, CAD > USD > bitcoins > everything else, but CAD and USD already cover everything I need.

Talked about it a lot in HERE with Integral.

Money as a medium of transaction is different. The standard money equation is MV*PQ. The amount of money, the rate at which money moves through the economy, the price level, and the quantity of what is sold in the economy. All 4 variables are usually on the move. The only one that is under government control is M (and not even always that). In order to keep the price level more or less constant and allow the economy to grow, the amount of M in the system has to balance V*PQ. If it fails to do so, it forces V*PQ to change. And in doing so it disrupts the economy.

What do you mean by "disrupts the economy"? I'm still not seeing how this leads to real problems. Just let P fluctuate as needed - the general economy, and pricing of goods and services in USD doesn't depend on bitcoins, so P for bitcoins can go up arbitrarily.

Volatility at that level means that your job, your savings, and your assets are wiped out every decade.

So don't keep your savings and assets in bitcoins.

 

[Souron]

I saw something online about a software developer accepting BitCoins for their software. I don't really know all that much about it. So I thought, instead of doing the logical thing and Googling it or something, posting it here.

What are your thoughts on BitCoin? Does it seem viable, or just seem like another fad? Have you used BitCoins?

There are three ways to use bitcoins, and the merits are very different.

1)Bitcoins can be an investment. You can buy bitcoins and hold them, hoping that they go up in value. This also allows you to spend bitcoins on the few services that use them. This is the first thing anyone thinks of when talking about bitcoins, so you're bound to get a lot of replies, mostly about why this is not a good idea.

2)Bitcoins can be mined, which is a way to convert electricity into money. The details of how this works are complex, but all it takes is a computer with a good GPU, or several, and you can turn electricity into Bitcoins, and bitcoins into dollars. This is a very different kind of investment than buying bitcoins outright, since your proffit does not depend on the growth of the bitcoin market as much.

3) Bitcoins can be used by merchants as an alternate payment system. Providing many ways to pay is a convenience for customers, and a hassle for merchants. But other than the technical know-how to make it work, there is no cost to the business.

 

[ace99]

2)Bitcoins can be mined, which is a way to convert electricity into money. The details of how this works are complex, but all it takes is a computer with a good GPU, or several, and you can turn electricity into Bitcoins, and bitcoins into dollars. This is a very different kind of investment than buying bitcoins outright, since your proffit does not depend on the growth of the bitcoin market as much.

It costs more electricity to make them then their value. On top of that it'll get you raided by by cops who think you're growing an indoor pot growing op because of all the bills and heat you're generating. Then when they raid you, they laugh at you. And stick you with the $5,000+ fine for being an idiot.

 

[bhsup]

Sorry, I've never seen any "bitcoin" ore sticking out of the ground whilst traversing Skyrim, and I am quite diligent about that sort of thing. Pickaxe always at the ready to mine that ore.

 

[useless]

Bitcoins are still relevant? What?

 

[Crezth]

Strawman.

Uh, no. Listen, buddy, the dumbest currency idea ever could be a "viable" currency if people have faith in it and use it as a medium of exchange. Bottle-caps, Coke tokens, gold dubloons, fiat dollars - you name it. As has been stated multiple times in this thread, the problem with BitCoins isn't inherent in the currency per se, it's in the way that currency has developed within the social context that it inhabits. And that is as a refuge for cheats, smugglers, and Randroids. Yes, there are exceptions; but that doesn't change the way BitCoins are perceived, and it doesn't change the fact that BitCoin's history is a spotted mess of one big failure after another.

 

[Leoreth]

Volatility doesn't preclude coming out ahead as often as losing out - extreme volatility does nothing to affect the long run expectation.

If you don't mind turning every transaction into a game of chance?

I thought the purpose was to facilitate transactions, not gambling. If you wanted to create a cryptographically secure, transaction-cost free medium of exchange, you wouldn't need the bitcoin economy underpinning. Or decentralized currency at all.

It seems Zelig is the only one that has *actually* used the bit coins so maybe we should listen to what he has to say.

I don't have to ask the people who wear their underwear over their pants to find out that this is a stupid idea.

It costs more electricity to make them then their value. On top of that it'll get you raided by by cops who think you're growing an indoor pot growing op because of all the bills and heat you're generating. Then when they raid you, they laugh at you. And stick you with the $5,000+ fine for being an idiot.

Moral of the story: cut out the libertarian economics nonsense and just settle for growing weed instead.

 

[bhsup]

I don't have to ask the people who wear their underwear over their pants to find out that this is a stupid idea.

It makes far more sense to just not wear pants! Wonder if this guy does fun box! (yes, he's my profile pic)



EDIT: @Hobbs below: Naw man. Bitcoins while wearing a storm trooper mask.

 

[hobbsyoyo]

I thought cash offered the best anonymous purchasing power available?

 

[Leoreth]

It makes far more sense to just not wear pants! Wonder if this guy does fun box! (yes, he's my profile pic)

This picture is hilarious on so many different levels.

 

[Zelig]

Uh, no.

Yes, you're arguing against something I never claimed.

 

[ace99]

Moral of the story: cut out the libertarian economics nonsense and just settle for growing weed instead.

You'll make more money AND get greater respect.

The best part is the only people really making money is the guy selling the bitcoin "miners" their equipment. Like these guys:

http://www.theverge.com/2013/2/1/3941768/new-chips-mine-bitcoins-50-times-faster

There's an entire industry of Bitcoin miners out there, people that set up specialized computer rigs to run 24 hours a day to mine the digital currency. Thanks to a 23-year-old kid from Brooklyn, this cottage industry is about to change. Yifu Guo, a digital media student on hiatus from NYU-Poly, has released the first batch of ASICs, which are chips custom-built to do one thing: mine Bitcoins.

The initial round of pre-orders is being delivered throughout the month, and Guo hopes to have the next round available to ship shortly after March 5th. The second batch of Avalon V1s is available to order now for $1,499, and the company has also made a $499 upgrade module available that adds around 25 percent more mining power to existing units.

A fool and their money shall soon be parted!

lolololololol

 

[Quackers]

it is an exceptional trolling device

 

[Leoreth]

it is an exceptional trolling device

How so?

 

[Quackers]

isnt it obvious? (seriously)

 

[Leoreth]

Maybe I just suck at trolling?

 

[Crezth]

Yes, you're arguing against something I never claimed.

Hahaha, whatever, man. You're the one whiteknighting the stupid failed libertard currency.

 

[Zelig]

Hahaha, whatever, man.

Excellent point.

 

[caketastydelish]

Excellent point.

He often literally replies to people's post with nothing but 'hahahahahahaha'. I've seen it many times. I wouldn't tell him 'excellent point' because he probably doesn't realize you're being sarcastic.