Bitcoin / Bitcoins / Crypto Currency

I've lost and regained one hundred quid in the last twenty mins. This is hilarious.

This little smartphone app telling me how much my BTC is worth is addictive fun to watch: up, down, up, down...

I prefer up. Let's go with up.

Up

Down

What happens if you buy gold in bitcoin?

You own gold?

and then destroy the bitcoin..

What happens if you buy gold in £?

Same as if you buy it with bitcoin.

Where's Bruce Willis?

Its back up.
Looks like the $1000 mark is the new agreed anchor price for bitcoin
The fluctuations are little worrying considering how this was a zero impact news event

Looks like the $1000 mark is the new agreed anchor price for bitcoin

What do you mean? Agreed by whom? Are you suggesting people are buying in an organised way to support the price?

Anyone 'investing' in bitcoin is a mug, as there is no basis to understand movement.

I'm going to make millions!

http://www.businessinsider.com/baml-initiates-coverage-on-bitcoin-2013-12#ixzz2mbfjaSfs

I'm just gutted I spent all mine on drugs when they were $6 a pop
The Bitcoins, not the drugs :)

If a government or a central bank where to rubber stamp a 'virtual currency' which would be the most likely to get approved? btc because it's popular or an alternative like ltc because of the claimed benefits?

You would think that a government backed body would try to force through a new crypto currency that wasn't created by an unknown with possible links to DPR, SR and according to VB the NSA.
Although the ethos of BTC from what I understand is it's lack of government regulation. I don't understand enough about economics. But perhaps the ghost in the machine, the irony is that the US gov did create BTC through the NSA and it is they who hold all the cards as well as over $1000000000 worth at going rates.

http://www.businessinsider.com/baml-initiates-coverage-on-bitcoin-2013-12#ixzz2mbfjaSfs

I would like to see David Woo's note. Assuming it is reasonable key points are Bitcoin could have a value of 1BTC = 1300 USD, but only if it becomes
(1) a major player in both e- commerce and money transfer and
(2) a significant store of value with a reputation close to silver

Strikes me that the current value has those assumptions priced in, so anyone buying at this level is nuts.

^ That probably means that BAML has a BTC player as a corporate client, or has a big client with holdings, and they are doing them a bit of a favour.

Because, you know, Chinese Walls.

Just watched that video with the Winkelvoss twats. shudder

What do you mean? Agreed by whom? Are you suggesting people are buying in an organised way to support the price?

Anyone 'investing' in bitcoin is a mug, as there is no basis to understand movement.

I prefer to use the term gambling on bitcoin. There is money to be made. People are still buying.

Just bought my second gold-plated Lambo. Mike, stay away from it, the finish cost me a bunch of bitcoins.

Technically you can't 'invest' in a currency.

1. To commit (money or capital) in order to gain a financial return:
   

A currency itself has no means to generate income therefore it provides no return.

You are however correct to call it a speculation call on future outcomes.
I dislike the word 'gamble' because it suggests there are some forms of human decision making that do not involve an assessment of risk over reward.
I do this everytime I cross the road (sometimes Ive called it wrong)

But perhaps the ghost in the machine, the irony is that the US gov did create BTC through the NSA and it is they who hold all the cards as well as over $1000000000 worth at going rates.

Wow, so imagine if future coups and assassinations and other dodgy NSA things were paid for by people who hate that conspiracy shit. Bonkers..

Strikes me that the current value has those assumptions priced in, so anyone buying at this level is nuts.

Been thinking about what is a fair valuation with the minimum assumptions.

So what is one of these bitcoin really worth?

Well lets look at a currency which is a good store of value and for transacting with.

The mighty US dollar.
There are currently 1.2 trillion dollars in the M0 supply stream
$1 is worth currently approximately $1
(5714185% more than there are BTU)

Bitcoin
There will only ever be 21 million bitcoins
1BTU is worth currently approximately $1000
(99900% more than a dollar)

By this you could argue that currently bitcoin is currently undervalued by 5614285%

but....

The problem is currencies provide value in two completely diametric ways.
1.) As a store of value for when you don't need to trade
2.) As a transaction technology when you do need to trade

As a store of value bitcoin is a very poor option to the dollar.
It has no history of ongoing stability.
The distribution of Bitcoin is unclear however its suspected a large percentage are in the hands of a few original developers.
https://bitslog.wordpress.com/2013/04/17/the-well-deserved-fortune-of-satoshi-nakamoto/

It can also easily be irreversibly destroyed.
Its only advantage as store of value is its finite rate of supply

As a transactional currency its even worse, few traders accept it and costs are incurred with every transaction.

Cash dollars also provide far greater anonymity.

By this you could argue that bitcoins have no value