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Cryptocurrency and bitcoins

Old 04-03-13, 10:13 PM
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Cryptocurrency and bitcoins

https://www.google.com/search?q=bitc...w=1600&bih=796

Amazing amount of news on bitcoins recently. Essentially a dude came up with a virtual currency. They are "mined" and there can only be 21 million ever, the last to be mined will effectively be 100 years from now.

But they have gone wild. Use to be sold for pennies, then in 2011 they reached $30, only to plummet. But then they started coming back. A month ago, they were back to $30, and now they trade for around $135. Decentralized, which seems to be the appeal. Supposedly a lot of the buying has been from Cyprus and Spain. Anyway, it is incredibly interesting.

I started following it when the premise was part of a The Good Wife episode. Bought a few at $30 around a month ago, just to mess around. And surprisingly there seem to be a lot more places accepting the currency now, though it apparently got its start in drugs and gambling.

Anyone else following this?
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Old 04-03-13, 10:43 PM
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Re: Cryptocurrency and bitcoins

Originally Posted by kvrdave View Post
https://www.google.com/search?q=bitc...w=1600&bih=796

Amazing amount of news on bitcoins recently. Essentially a dude came up with a virtual currency. They are "mined" and there can only be 21 million ever, the last to be mined will effectively be 100 years from now.

But they have gone wild. Use to be sold for pennies, then in 2011 they reached $30, only to plummet. But then they started coming back. A month ago, they were back to $30, and now they trade for around $135. Decentralized, which seems to be the appeal. Supposedly a lot of the buying has been from Cyprus and Spain. Anyway, it is incredibly interesting.

I started following it when the premise was part of a The Good Wife episode. Bought a few at $30 around a month ago, just to mess around. And surprisingly there seem to be a lot more places accepting the currency now, though it apparently got its start in drugs and gambling.

Anyone else following this?
A few weeks ago this came on my radar and I fell down the rabbit hole and spent a few hours reading up on it. It's very interesting stuff and I think I'm just barely scraping the surface in terms of being able to conceptualize what this really is and where it might be headed. It seems pretty risky right now to invest any significant amount of money in it. I can't help but think there are some very smart people out there working very hard at trying to find a way to game the system in some way.
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Old 04-03-13, 11:03 PM
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Re: Cryptocurrency and bitcoins

100% agree, and there are a lot of scams. Reddit is filled with them. Once your bitcoin is gone, there is no way to get it back. Can't be traced, and no recourse.

But there are some true believers who think this will absolutely save the world.
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Old 04-03-13, 11:14 PM
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Re: Cryptocurrency and bitcoins

I've been following this as well, and it's nuts. It's the next iteration of money, now wholly conceptual.
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Old 04-04-13, 12:12 AM
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Re: Cryptocurrency and bitcoins

So can anyone with a computer generate bitcoins? I have a winodws 7 64 bit i7 2600 cpu @ 3.40 GHZ (8 CPUs) , ~ 3.4 Ghz 8 gb ram.

Can my computer run it?
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Old 04-04-13, 11:09 AM
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Re: Cryptocurrency and bitcoins

Originally Posted by mhg83 View Post
So can anyone with a computer generate bitcoins? I have a winodws 7 64 bit i7 2600 cpu @ 3.40 GHZ (8 CPUs) , ~ 3.4 Ghz 8 gb ram.

Can my computer run it?
Anyone can, but you won't get anything with that computer. The equations to be solved get tougher and tougher, and if they are solved quicker, they get tougher yet. The typical computer could mine them years ago with some success. Now most are mining as part of pools. Basically their computers are being used with a bunch of others and they get their share of any bitcoins mined. Even at todays prices, if you joined a pool, you might earn just a few bucks a month. And (according to most) you wouldn't even pay for your electricity. The big computers that do this seem to run about $15,000 and most say they aren't worth it. Just too many miners currently.
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Old 04-04-13, 12:47 PM
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Re: Cryptocurrency and bitcoins

I'm not sure I'd depend on them to hold their value...

Bitcoin Hacked: Price Stumbles After Buying Frenzy

Online currency bitcoin had 20 percent knocked off its price overnight on Thursday as one of its major exchanges became the victim of a hacking attack leading to a sell-off in the virtual currency after reaching an all-time high.

Uncertainty over other currencies, turmoil in Cyprus and media interest are just some of the reasons commentators are citing for the 360 percent rise in bitcoin prices over the last month. The frenzied interest in bitcoins piled over onto the social media site Twitter and led to a spike in Google searches on the topic.

But by Thursday morning bitcoin prices had fallen to $132 from Wednesday's record price of $147.

The most popular bitcoin exchange, Tokyo-based Mt.Gox announced overnight that it had been the victim of a hacking attack after experiencing a severe lag with its systems. The complications meant the price quickly sank to below $115 before regaining ground to $130 by 6.00 a.m. London time on Thursday, according to Bitcoincharts.com.

"There are many who will try to take advantage of the system. The past few days were a reminder of this sad truth," it said in a press release on its Facebook site.

The exchange blamed a type of hacking attack called a distributed denial-of-service attack (DDoS).

More than 80 percent of all bitcoin-USD trades and more than 70 percent of all bitcoin currency trades are done on Mt.Gox's servers, according to the company, making it is a major target for anyone wanting to take down bitcoin trading.

"Attackers wait until the price of bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit," Mt.Gox said.

"There is pretty much nothing that can be done. Large companies are frequently victims of these kinds of attacks. Even though we are using one of the best companies to help us fight against these DDoS attacks, we are still being affected."

Bitcoin is a virtual currency allowing users to exchange online credits for goods and services. There are currently nearly 11 million bitcoins in circulation but the currency is capped at 21 million coins. While there is no central bank that issues them, new bitcoins can be created online by using a computer to complete difficult tasks, a process known as mining.

The total value of all bitcoins has now surpassed $1.4 billion. But these latest revelations may go some way to reinforce criticisms of its instability and price volatility. Mt. Gox had to temporarily suspend deposits on March 12 as a newly mined block of bitcoin went unrecognized by the system which caused a short sell-off.

Another bitcoin associated company Instawallet - an online storage service - was hacked earlier this week and its service was suspended indefinitely.

"Our database was fraudulently accessed, due to the very nature of Instawallet it is impossible to reopen the service as-is," it said on its website.

http://www.cnbc.com/id/100615508
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Old 04-04-13, 01:09 PM
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Re: Cryptocurrency and bitcoins

So have you decided to collect rent with bitcoins yet? Could be interesting when it comes to taxes.
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Old 04-04-13, 01:22 PM
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Re: Cryptocurrency and bitcoins

Originally Posted by mhg83 View Post
So can anyone with a computer generate bitcoins? I have a winodws 7 64 bit i7 2600 cpu @ 3.40 GHZ (8 CPUs) , ~ 3.4 Ghz 8 gb ram.

Can my computer run it?
I thought the i7-2600 was 4 CPUs, not 8?

Isn't this just a bit more extreme form of SSL-like encryption for logins and log arhcives?
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Old 04-04-13, 01:27 PM
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Re: Cryptocurrency and bitcoins

Two threads per core.
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Old 04-04-13, 01:41 PM
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Re: Cryptocurrency and bitcoins

Once this concept ever becomes big enough to notice, the largest countries will collude to ban bitcoin. Anything that threatens the financial hegemony of the world's biggest governments will be almost immediately outlawed.
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Old 04-04-13, 04:18 PM
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Re: Cryptocurrency and bitcoins

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I'm not sure I'd depend on them to hold their value...
That has happened before. Definitely a problem. They need to bigger and the exchanges more secure. many of the original adopters still consider it just an "experiment" which is probably how it should be viewed. My guess is that if it really takes off, it will be the next generation of cryptocurrency.
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Old 04-04-13, 04:20 PM
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Re: Cryptocurrency and bitcoins

Originally Posted by PhantomStranger View Post
Once this concept ever becomes big enough to notice, the largest countries will collude to ban bitcoin. Anything that threatens the financial hegemony of the world's biggest governments will be almost immediately outlawed.
Lots of papers written about that which are incredibly interesting. If one country still takes them, and they are still traded based on what individuals pay, it is pretty hard to truly ban.
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Old 04-04-13, 08:17 PM
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Re: Cryptocurrency and bitcoins

The whole thing sounds like bullshit.
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Old 04-04-13, 11:04 PM
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Re: Cryptocurrency and bitcoins

Originally Posted by kvrdave View Post
Lots of papers written about that which are incredibly interesting. If one country still takes them, and they are still traded based on what individuals pay, it is pretty hard to truly ban.
I don't know how you can say that. As we've learned from torrents, drugs, and many other things, once a government decides to make something illegal, it immediately goes away.
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Old 04-04-13, 11:23 PM
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Re: Cryptocurrency and bitcoins

Originally Posted by Josh-da-man View Post
The whole thing sounds like bullshit.
No more than any other kind of money. Why would someone exchange goods and services for a few pieces of paper? So long as enough people agree that it's a fair exchange, it works.

And like any other sort of money, if people no longer think it's a fair exchange, the currency breaks.

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Old 04-05-13, 05:52 PM
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Re: Cryptocurrency and bitcoins

Originally Posted by Supermallet View Post
I don't know how you can say that. As we've learned from torrents, drugs, and many other things, once a government decides to make something illegal, it immediately goes away.
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Old 04-07-13, 08:05 PM
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Re: Cryptocurrency and bitcoins

Hitting about $167 now.
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Old 04-09-13, 06:02 AM
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Re: Cryptocurrency and bitcoins

$201. Up about $10 per day for the last week.
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Old 04-09-13, 01:50 PM
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Re: Cryptocurrency and bitcoins

$236
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Old 04-09-13, 02:56 PM
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Re: Cryptocurrency and bitcoins

Come on, big money! Daddy needs a new pair of assault rifles purchased off the Tor network!
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Old 04-09-13, 03:11 PM
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Re: Cryptocurrency and bitcoins



Get back in there and sell! SELL!!!
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Old 04-09-13, 05:18 PM
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Re: Cryptocurrency and bitcoins

Originally Posted by Dr Mabuse View Post


Get back in there and sell! SELL!!!
"Fuck him!"
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Old 04-10-13, 04:38 PM
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Re: Cryptocurrency and bitcoins

Before you know it we'll all be using Swatch Internet Time.
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Old 04-10-13, 05:09 PM
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Re: Cryptocurrency and bitcoins

DDOS attack on some exchangers today, or maybe a bubble burst, who knows. But it started this morning around $268, dropped down to about $105 at some point (lots of lag in the exchanges, which fucks people up), back to $198, and now at $133. It has happened before, freaks people out, and this happens. The big theory is that some group pumps it up and sells, coordinates a DDOS attack, people freak, and they buy again low.

Pretty wild.
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