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Bitcoin The Almighty Buck

Bitcoin Circulation Hits Record High Of $14 Billion (theguardian.com) 153

Bitcoin, the digital currency that most people have never actually used, has hit a record value of $14 billion after jumping 5 percent on Thursday. From a report on The Guardian: The price of one bitcoin reached $875 on the Europe-based Bitstamp exchange, its strongest level since January 2014, putting the cryptocurrency on track for its best daily performance in six months. That compared with levels around $435 at the start of the year, with many experts linking bitcoin's rise with the steady depreciation of the Chinese yuan, which has slid almost 7% in 2016. Data shows the majority of bitcoin trading is done in China, so any increase in demand from there tends to have a significant impact on the price.
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Bitcoin Circulation Hits Record High Of $14 Billion

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  • or just FROM a Chinese address?
  • I've never used or considered using Bitcoin and I don't know a single person who has. How is it that its value continues to soar? This has got to be the epitome of market speculation.
    • I've never used or considered using Bitcoin and I don't know a single person who has.

      Same here...the risks of owning bitcoins seem to greatly outweigh the benefits, at least to me.

      • by PRMan ( 959735 )
        Yeah, I have the terrible risk of having bought coins for $50 and now having them worth $875. They've never been that low again. Such tremendous risk, making 16× my money in 5 years.
        • Yeah, I have the terrible risk of having bought coins for $50 and now having them worth $875.

          Until some weasel steals them from your wallet or your exchange rips you off or you lose the keys or whatever.

          Do any of these ring a bell? Mt. Gox, Bitstamp, Bter, Mycoin, Gatecoin, Exco.in, Poloniex, Justcoin, Cavirtex, Cryptsy, Bitfinex, Neo & Bee, BIPS, Flexcoin, PicoStocks, Kipcoin, CryptoRush, ShapeShift, Blockchain.info, Moolah, MintPal, bitXoin....that's just a short list of recent scandals, wallets, and exchange frauds where people lost their bitcoins.

          But props to you for making a killing on

          • by grnbrg ( 140964 )

            Yes, computer security is hard. If you don't securely store your keys, you could lose them. If you don't hold your keys at all, and trust an online company to hold them, you could lose them. Neither of which is the fault of Bitcoin.

            And if you add up all the losses due to corporate failures like Gox, et al, you'll get a total that is probably rounding error compared against the frauds committed in dollars for the same period.

            Bitcoin isn't risk free, but nothing is.

            • And if you add up all the losses due to corporate failures like Gox, et al, you'll get a total that is probably rounding error compared against the frauds committed in dollars for the same period.

              And if you add up all the bitcoin usage compared to the usage of non-virtual currencies you'll get a total that is probably rounding error compared against those non-virtual currencies for the same period. (In truth, it probably wouldn't even amount to a rounding error.)

              Here's the thing, though- If my bank get robbed or hacked, I'll still have my money. Woo hoo!

              But if your bitcoin wallet or exchange gets robbed or hacked, that money is gone. (I know, technically it's still out there somewhere, but it's gone

              • What if your bank or government decides to freeze your funds and then sue you? With Bitcoin, your security is in your own hands. With banks, your life is in their hands, which makes you ultimately, their slave.

                • What if your bank or government decides to freeze your funds and then sue you?

                  Lol, like they wouldn't be able to prevent you from fiddling around with your bitcoins?

                  Better yet, can you buy a plane ticket with bitcoins to flee the country or make your house payment? Can you go to the grocery store and buy food with bitcoins? Can you buy a gun or gasoline with bitcoins? Will your lawyer accept bitcoins? No, no, no, no, no, and probably no.

                  -

                  With Bitcoin, your security is in your own hands.

                  As we've seen, with Bitcoin, your security is in anything but your own hands.

                  Mt. Gox, Bitstamp, Bter, Mycoin, Gatecoin, Exco.in, Poloniex, Justcoin,

                  • Lol, like they wouldn't be able to prevent you from fiddling around with your bitcoins?

                    Er, what? Unless they physically capture and restrain you, they can't stop you from "fiddling" with your bitcoins.

                    Better yet, can you buy a plane ticket with bitcoins to flee the country or make your house payment? Can you go to the grocery store and buy food with bitcoins? Can you buy a gun or gasoline with bitcoins? Will your lawyer accept bitcoins? No, no, no, no, no, and probably no.

                    And? You can trade bitcoins for cash and get all of those things.

                    As we've seen, with Bitcoin, your security is in anything but your own hands.

                    Mt. Gox, Bitstamp, Bter, Mycoin, Gatecoin, Exco.in, Poloniex, Justcoin, Cavirtex, Cryptsy, Bitfinex, Neo & Bee, BIPS, Flexcoin, PicoStocks, Kipcoin, CryptoRush, ShapeShift, Blockchain.info, Moolah, MintPal, bitXoin...tell me again how the security was in the hands of the owners of those bitcoins?

                    A lot of those exchanges haven't lost their clients' money, so I don't exactly understand what you are trying to say. If you are talking about coins lost at an exchange, however, then it wasn't in the hands of those owners, because those owners gave up control of them by storing them there. If you use a shady exchange (or worse, st

                    • Er, what? Unless they physically capture and restrain you, they can't stop you from "fiddling" with your bitcoins.

                      You're right, the government that would freeze your funds and sue you would never do that. Except that's often exactly what they do when they freeze your funds and sue you- they incarcerate you to prevent you from fleeing.

                      -

                      And? You can trade bitcoins for cash and get all of those things.

                      Well fuck me, why wouldn't I just use some of the cash or gold I've stashed in various secure locations to do those things? Then I wouldn't have to convert my bitcoins (assuming my bitcoins weren't also legally subject to seizure, which they almost certainly would be).

                      -

                      A lot of those exchanges haven't lost their clients' money,

                      Really? So all that

        • by lgw ( 121541 )

          If you make a bet at a casino and win, that doesn't mean it was a good bet.

    • by Anonymous Coward

      On any topic, that phrase automatically marks you as an idiot.

      • On any topic, that phrase automatically marks you as an idiot.

        He also does not know anyone that has had sex with a real girl, so it probably never actually happens... :)

      • by vvaduva ( 859950 )

        I don't know anyone who invested in gold, therefore gold is a useless metal. WTF kind of logic do these people use?

        I've paid for my entire vacation this summer with my Coinbase SHIFT card and bought several trips and hotel rooms through Expedia. I win and come on top every time. All these idiots talking about how useless Bitcoin is makes my head hurt....

    • Re: (Score:3, Insightful)

      by Baron_Yam ( 643147 )

      Con artists and marks (of various varieties).

      The exchanges fake transactions, fake liquidity, then claim to have been hacked while they take off with your real money. (SFYL)

      The middlemen pretend to use Bitcoin but are actually more like unregulated online payment processors (these exist mostly because Bitcoin itself doesn't work well and most users are clueless enough that pretending to use Bitcoin is good enough for them)

      The 'whales' who actually have enough Bitcoin they can move the market around. They d

      • by JBMcB ( 73720 )

        Any evidence for any of this?

        I've seen spikes in bitcoin prices, mainly, when a large country starts playing around with it's currency. There was a pop earlier this year when Venezuela started cracking down on currency leaving the country, then again when India started dropping certain denominations of currency. Other than that, no rapid moves upwards or downwards other than the odd spike every few months or so.

      • I buy and sell BTC, dogecoin, cure, tek and other coins. Transactions go through in seconds. It's not much different than selling an equity on Ameritrade.

        Many coins have enough transactions that the time involved in buying and selling is minimal. Now, if you mine, or purchase experimental coins then you're gambling. With BTC. Hell no. Put a buy or sell order at market and it's fulfilled immediately.
        • by ThePyro ( 645161 )
          That might be true for transactions that stay within an exchange. But if you want actual confirmation of your transaction on the blockchain then that can take several minutes, or close to an hour depending on how many blocks of confirmation you need.
          • Oh. Very. very true.

            It will take on average 10 minutes to post and an hour to verify.

            Is this an issue? It depends on the purchase.

            I personally feel that BTC will become more of a clearinghouse (end of day transmission of funds) and other coins with faster block times will be used for other transactions. The "cup-of-coffee" transaction is less important than the blockchain: where you have a cryptographically secure proof of identity and transmission. (Wallet A sent this fund to Wallet B - identity
            • by cfalcon ( 779563 )

              > Say I want to pay my plumber or handyman, someone I have a relationship with. How can I pay?

              Well, I've just written checks.

              > I can pay by check. Except I don't have physical checks anymore.

              Hey buddy, I got a tip for you. Ask your bank for some fucking checks.

              Here's your procedure:

              1- Get some checks. This may cost you up to 20 bucks, or may be free.
              2- Write the amount, the recipient, and sign the check.
              3- Done.

              Alternatively, if you don't have bitcoins:
              1- Make an account on some bitcoin transfer pla

              • No. today it's quite unlikely that one would pay a plumber in BTC. I couldn't get mine to set up an account to do a quick pay.



                Today, 2016, you're 100% correct.

                But what about tomorrow? 2018 :-)

                When one can easily send transactions from a phone? When Google Pay and other services are considered normal?

                Now if banks drop their transfer costs to zero; and if it's easy to send payments then BTC most likely will not be used for these transactions.

                BTC is considered (by some) to be spendable gold. Yo
    • by hodet ( 620484 )

      Just because it does not pass the Lucas123 comprehension test does not equal the epitome of market speculation. Sheesh.

    • I've never used or considered using Gold and I don't know a single person who has. How is it that its value continues to soar? This has got to be the epitome of market speculation.

    • by PRMan ( 959735 )
      Not everyone is you.
    • by JeffSh ( 71237 )

      i believe one of the major mistakes people are making with bitcoin is thinking that bitcoins are only useful if they can be used to buy something.

      The bitcoin has been relatively stable for a pretty long time. Trade volume is stable and growing, so the market works really well to transfer value over borders. Think like western union on steroids.

      Due to the long term stability, the bitcoin market is beginning to be trusted as an alternate and easy to access method of storing or transferring value, not necessar

    • "I've never used or considered using Bitcoin and I don't know a single person who has. "

      When BTC first went live, my big concern was that someone would crack the algorithm for generating it and it would all either disappear in a flash or infinite amounts of it would be created, demolishing its value like the Zimbabwean dollar. It has now been around long enough that there is little possibility of that happening.

      But store it anywhere, in one of those online exchanges or on your own computer, and the hackers

  • quit saying it is a currency, it is not

    game points that currently can be converted to currency, value of which might drop to zero by various state actions suddenly, yes

    • Re:not a currency (Score:5, Insightful)

      by Anonymous Coward on Thursday December 22, 2016 @01:37PM (#53538717)

      game points that currently can be converted to currency, value of which might drop to zero by various state actions suddenly, yes
      Kinda like anything other currency. Like the Deutchmark in the 30s, or currently the Venezuelan Bolivar?

      All currency (including gold) is an agreement between people that something has value. Bitcoin is no different. You're under the illusion that money is real, which it isn't. It's all a collective, convenient illusion.
       

      • It's said that coins and currency have intrinsic value, trade value, and collectable value.

        Book-entry money, including bank accounts and e-coins, typically has only trade value.

        A typical, non-collectable $1 bill will have an intrinsic value of a few cents or less - it can be used as wallpaper if nothing else. It has a trade value of exactly $1. Unless and until it becomes collectable, it's collectable value is less than its face value and can be ignored.

        A de-monetized bank note from the Confederate States

      • "All currency (including gold) is an agreement between people that something has value. Bitcoin is no different. You're under the illusion that money is real, which it isn't. It's all a collective, convenient illusion."

        But gold at least is broadly accepted as a standard of value across most cultures, and is easy to validate because of its density. The value of BTC is purely in its limited supply.

      • No, not like a sovereign power's currency that has legal standing, nor is it like a world currency.

    • Perhaps you need a dictionary...
      noun, plural currencies. 1. something that is used as a medium of exchange; money.
      • You need to learn how to read a dictionary.

        bitcoin is not accepted as medium of exchange as money is; it is not money.

  • I'm still waiting for a government or national-bank to issue blockchain-based currency that is backed by a familiar, tangible asset such as gold, silver, or the local fiat currency.

    Unlike bitcoin, this would be a "captive" coin and it would not have many of the benefits of bitcoin and the like.

    But here is what it would have:

    * Stable value: Like currency or metal, a "bit-buck" is worth $1 and it always will be and a "bit-troy-ounce of gold" is worth 1 troy ounce of gold and it always will be.
    * Built-in: In

    • Once governments feel the pinch and start to regulate it, it's game over! I'd expect the EU and the US are already planning just that!

      • Hmm.

        And yet Trump just included a big BTC proponent into his cabinet:Mick Mulvaney, a Republican congressman and a long-time bitcoin supporter was picked to run the Office of Management and Budget.

        This seems to run against your position. Although you're correct. Governments can certainly kill bitcoin by making ownership and transmission of BTC a crime under penalty of death
    • I'm still waiting for a government or national-bank to issue blockchain-based currency that is backed by a familiar, tangible asset such as gold, silver, or the local fiat currency....

      I was following you right up to the last item.

      • by xvan ( 2935999 )
        If it's government backed, why do you need the blockchain? Wasn't the point of the blockchain the decentralization? of is it possible to implement p2p transactions with blockchains?
    • by Anonymous Coward

      The fiat currency of any government relies entirely on magical manipulation to achieve "stability".
      And it very frequently FAILS resulting in collapse of said economy and government.

      Everything you said and or described is either debunked or handled better by bitcoin.

      - stable - BTC has been steady up time on time since inception, after leveling out the big irrational exuberance spikes as any prudent investor would.
      - builtin - already runs on every computer and smartphone.
      - trading - NO, you cannot trade a ban

    • Much more than just one disadvantage. The big one is that governments and banks prefer to create their money in the dark and out of sight. They gain nearly nothing from this idea, and by making that stuff public, they lose a LOT.

  • Its useless to calculate a dollar price. Tell us the number of bitcoin. Because if you try to sell these amount of bitcoin, the price will drop so you will NOT get $14 billion. So it's just bullshit to quantify it in dollar.

    • Its useless to calculate a dollar price. Tell us the number of bitcoin. Because if you try to sell these amount of bitcoin, the price will drop so you will NOT get $14 billion. So it's just bullshit to quantify it in dollar.

      That is not how market cap works. If you try to sell all of the Apple Stock at once it will go down as well.

  • Was hearing from my son yesterday that the "inflation" in bitcoin is causing it to be less profitable to mine.

    Ahh, well.

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