Goldtent TA Paradise

Bit Coin

1. Highroller says:

   April 28, 2017 - 12:22 am at 12:22 am

   I think it is worth more than gold lately. The Chinese have been using it to get money offshore lately and gov’t getting a whiff of it and accepting a possible etf thingy for it. Smells like a gov’t tax trap to me. I’m a bit fuzzy with the whole thing on how and what it is as well. Just yesterday I went to our local country gas station to fill up with gas and they would only take cash as the system was down for debit stuff. Luckily us old farts still carry the stuff or I’d be hitchhiking that day.

2. Tbone says:

   April 28, 2017 - 12:23 am at 12:23 am

   Bitcoin is like a pyramid scheme. The greater fool gets left holding the collection of 0’s and 1’s with the intrinsic value of nothing. Bitcoins can be mined also. You might find a cool little tool on ebay for $300: https://www.bitcoinmining.com/ I think if you are a good software engineer you can write a algorithm that can search. The risk is the ultra high electricity bills required to search to really find anything as you need lots of computing power. This is what makes it “real money”. All the bitcoins (except for the ones newly mined)are already in existence. This is also what makes gold so precious.. you know all of the gold ever mined can be put in a swimming pool. Although they have the intrinsic value of nothing bitcoins have scarcity! To explain this to the old old timers, its kind of like limiting of number of pacman guys you can get in one pacman video game. That makes that game oh so precious does it not?! And that’s just like gold (except bitcoin is a bunch of ones and zeros in binary form with the intrinsic worth of 0). Can you imagine he great cultures of the world instead of having great temples built of gold and silver and jewels have massive virtual machines with racks of petabytes of 0’s and 1’s in binary form representing bitcoins instead (with the intrinsic worth of 0??!! Wouldn’t that be incredible?! People would travel across oceans and desserts to see these racks and look upon in wonder and awe.

   What makes bitcoin so wonderful that you can launder money with them: dollars to bitcoin to dinars, I bet they are used in terrorism. Not a trace.

   A couple of other glitches is sometimes the holding house isn’t ethical and may decide to walk away with them. There is also the worry that someone has or will crack the algorithm.

   There are a couple of things that are interesting though, electronic money like bitcoin or a debit card backed by gold, ie goldmoney.com. A bitcoin etf like the one in Canada.. I might even consider trading it if we had in the states. Wouldn’t use the pink sheets version because you can’t set a stop.

   Anyway, I hope you enjoyed my sarcastic and honest view of bitcoin… the currency of the greater fool.

3. dadoc1 says:

   April 28, 2017 - 2:07 am at 2:07 am

   Bitcoin, Ether and other cryptocurrencies are just that a currency.

   The key is the limit on how many can be produced. For bitcoin only a maximum of 21 million can ever be produced. The miners not only mine, but also form a worldwide network where transactions are taking place. The Miners get rewarded with bitcoin for “mining” which is essentially solving more and more complex equations. They provide computing power for transactions without any other additional fee. Bitcoin can be divided into however small pieces you desire.

   Now, practically it isn’t that great as it can take up to 20 minutes after a transaction is completed to get confirmed. IT will therefore never replace a credit/debit card. That may happen with ether which has much more rapid completion times AND the ability to send specific information with each transaction. Ether is supported by the big banks and a proposal has been given to the SEC.

   I own some bitcoin…really for diversification purposes. I don’t own Ether because other cryptocurrencies have come and gone, but bitcoin remains.

4. PalmKeyPlayer says:

   April 28, 2017 - 2:52 am at 2:52 am

   From a non 17 year old as best as I understand it . . . .

   The key to Crypto-currencies are a digital record called a “Blockchain”.

   *** From Wikipedia – “A blockchain is a distributed database that maintains a continuously growing list of ordered records called blocks. Each block contains a timestamp and a link to a previous block. By design, blockchains are inherently resistant to modification of the data — once recorded, the data in a block cannot be altered retroactively . . .”

   “The first blockchain was conceptualized by Satoshi Nakamoto in 2008 and implemented the following year as a core component of the digital currency bitcoin, where it serves as the public ledger for all transactions.” ***

   Thus a blockchain being a digital ledger that can never be altered from its creation, only added to, and provides authentication of the ledger record as being legit and not a forgery. So far it can not be hacked.

   The blockchain can be used to record any permanent record – a value exchange, real estate, construction project , contracts, R&D, etc. It can be added to and built upon, and also branched, but every previous block is locked to the branch and never lost.

   Think of a 100 acre piece of property that is sold – Blockchain Creation – 1st block
   Mortgage – 2nd block
   Farm House built – 3rd block
   Barn built – 4th block
   etc, etc, – 5-10 blocks

   50 years later – Farm sold to Developer – 11th block
   Subdivided – Homes, retail, school, etc. – 1000+ added blocks

   Each transaction block building upon the other. The branches (Subdivided above) are all tied to the record of all previous blocks to verify the authenticity of each new block. The branches may go in separate directions and add new blocks exclusive to the new branch. Think getting coin change for a larger denominated paper note.

   The Crypto part of the Blockchain is the second key. A single blockchain could be recorded on computers around the world, could always be updated and constantly be compared for verification. Each added block is unique and cannot be altered or forged. It can also be anonymous.

   Thus the blockchain called Bitcoin – with new blocks constantly added.

   A new digital “bitcoin” block is created by digital “mining”(not very profitable so far). The coin is recorded as a digital record in the blockchain on a primary server (the Bank). Someone can chose to purchase the newly minted digital coin by making a “value exchange” with the issuer(miner). The block is added to the chain with the purchase through the bank. Mining is a difficult process so coins issued are limited. There is also the issue of supply and demand – think financial crises – Greece, Russia, Chinese capital controls, etc. The encrypted digital bitcoin block is provided to the new purchaser. Only one person can hold that bitcoin block at a time. Lose your thumb drive with the bitcoin and its lost forever.

   You are exchanging “value” for a secure bits stored digitally . No names required – totally anonymous. Great way to transfer money across boarders, etc.

   ***

   What concerns me is no US or European agencies have tried to shut it down, make it illegal, or arrest anyone for trying to destabilize a national currency, or some other charges. I think the Central Banks are eyeing the concept as the future of a cashless system, but with the caveat of them holding an unalterable tracking ID for each bitcoin – thus all valid (and of course taxable” transactions could only be carried out on their official servers. No more hidden cash, money laundering, etc. Illegal transactions would use barter or some other value item. Just my opinion.

5. Northstar says:

   April 28, 2017 - 3:15 am at 3:15 am

   I’ve been wondering for a while if bitcoin etc have been sucking investors money that would otherwise be in gold.

6. Odd Job says:

   April 28, 2017 - 6:20 am at 6:20 am

   Japan have just passed a law legalising its use so it looks like it is here to stay. I am sure that governments will be looking to adopt a similar system that they can control when the worlds currencies break down!

7. Russian says:

   April 28, 2017 - 7:26 am at 7:26 am

   You don’t have to know how internet works to use it. Do you?
   Just buy a couple trow some ether in pile just in case, and forget it for few years.

8. dadoc1 says:

   April 28, 2017 - 11:17 am at 11:17 am

   Whatever you think about Bitcoin the chart is ludicrously bullish.