Beta
×

Welcome to the Slashdot Beta site -- learn more here. Use the link in the footer or click here to return to the Classic version of Slashdot.

Thank you!

Before you choose to head back to the Classic look of the site, we'd appreciate it if you share your thoughts on the Beta; your feedback is what drives our ongoing development.

Beta is different and we value you taking the time to try it out. Please take a look at the changes we've made in Beta and  learn more about it. Thanks for reading, and for making the site better!

Bitcoin Hits New All-time High of $32

Unknown Lamer posted about a year and a half ago | from the causes-peak-oil dept.

Bitcoin 339

Sabbetus writes "Bitcoin tops its previous all-time high of $31.91 and in doing so it proves to be quite a resilient virtual currency. To the supporters of Bitcoin this does not come as a surprise, since we have seen the likes of WordPress, Reddit and Mega embrace it. Recently Namecheap also confirmed that they will start accepting bitcoins. The new record price was reached on the same day that Mt. Gox, the world's largest Bitcoin exchange, reached an agreement with CoinLab to manage the exchange's operations in the U.S. and Canada." A far cry from the end of 2011.

cancel ×

339 comments

Sorry! There are no comments related to the filter you selected.

A Far Cry From the End of 2012 As Well! (4, Informative)

eldavojohn (898314) | about a year and a half ago | (#43039373)

A far cry from the end of 2011.

And a far cry from the end of 2012 [theverge.com] !

Sorry ... on a more serious note (if such a thing is possible with BTC) everything is proceeding according to plan [slashdot.org] .

Whoops, wrong link (2, Funny)

Anonymous Coward | about a year and a half ago | (#43039393)

Bah, blew that joke! First link should be:

And a far cry from the end of 2012 [wikipedia.org] !

Re:Whoops, wrong link (1)

nitehawk214 (222219) | about a year and a half ago | (#43040181)

Bah, blew that joke! First link should be:

And a far cry from the end of 2012 [wikipedia.org] !

 

How about this?

And a far cry [wikipedia.org] from the end of 2012 [wikipedia.org]

Bitcoins will be the end of the world in the tropics. (disclaimer: I neither played the game, nor saw the movie.)

Re:A Far Cry From the End of 2012 As Well! (5, Interesting)

Anonymous Coward | about a year and a half ago | (#43039615)

You can thank online gambling, where the big news is that some sites are taking BTC so americans can play again.

Surprise, surprise, it continues to show some utility when dealing in illicit goods and services.

Re:A Far Cry From the End of 2012 As Well! (1)

Anonymous Coward | about a year and a half ago | (#43039939)

'illicit' is meaningless when the term is applied by people who are no better than the 'crooks' they lock away.

Re:A Far Cry From the End of 2012 As Well! (-1, Troll)

rmstar (114746) | about a year and a half ago | (#43040263)

'illicit' is meaningless when the term is applied by people who are no better than the 'crooks' they lock away.

As much as you, tantrum throwing AC, may want it, it is not at all meaningless. There is a difference between the rule of law as imposed by a nation, and whatever the crooks and rats that end up in jail are doing.

For example, If you use bitcoins for laundering money you deserve jail and will most likely get it. If BCs get used regularly for money laundering, they will be outlawed. And it will be good that way.

Re:A Far Cry From the End of 2012 As Well! (2)

LordLimecat (1103839) | about a year and a half ago | (#43040313)

illicit /ilisit/
Adjective
Forbidden by law

Im fairly certain it is not meaningless, in any sense of the word.

Re:A Far Cry From the End of 2012 As Well! (3, Interesting)

Archangel Michael (180766) | about a year and a half ago | (#43040245)

No "goods" or "services" should be illegal. Period. Restricted, perhaps. Taxed, open for debate. Controlled, possibly. But never ever made illegal. Even the most toxic/harmful materials have uses that aren't "evil" (tm)*. The moment you make them "illegal", the ones that have the most utility become black markets and crime sprouts up to support those markets. Just ask the US how Prohibition worked out, or .. gasp .. the "war on drugs".

Yes, I am Libertarian, but I don't do drugs, don't care to do drugs. I've seen the harm they do, and quite frankly, not worth it. My point is, you cannot protect people by forcing them into a life of crime. It creates more crimes and solves nothing.

Re:A Far Cry From the End of 2012 As Well! (3, Insightful)

Anonymous Coward | about a year and a half ago | (#43040309)

Are human beings considered goods?

Re:A Far Cry From the End of 2012 As Well! (0)

Anonymous Coward | about a year and a half ago | (#43039725)

What's not serious about all the hookers and blow one can now afford, with a stash of bitcoin that increased 1000% in 15 months? Oh, and I guess you can pay for astroturfing on reddit, illegal downloads on mega, and a spam-ready hostname or two on namecheap.

But mostly the hookers and blow.

I prefer BUTTCOIN ...apk (-1)

Anonymous Coward | about a year and a half ago | (#43039425)

If any 1 wants to make a "deposit" in my buttcoin vault, u can find me on MtCocks :)

APK

Pump (-1)

Anonymous Coward | about a year and a half ago | (#43039429)

Dump
Profit!

Sell! (0, Redundant)

Anonymous Coward | about a year and a half ago | (#43039439)

Sell! Dump it all now and get what you can

New high (0, Redundant)

Anonymous Coward | about a year and a half ago | (#43039451)

A new high? That can mean only one thing.

SELL SELL SELL SELL!!

Duh (1, Insightful)

Anonymous Coward | about a year and a half ago | (#43039461)

What did you expect from a currency that has a fixed supply and thus inevitable deflation?

Re:Duh (0)

NatasRevol (731260) | about a year and a half ago | (#43039881)

I don't think that last word means what you think it means.

Re:Duh (2, Informative)

Anonymous Coward | about a year and a half ago | (#43040135)

I don't think that last word means what you think it means.

Deflation? When bitcoins cost more dollars, that's deflation, because bitcoin now buys more than before. Inflation is when the bitcoin buys less. What do you think those words mean? You probably got confused, because deflation of bitcoins is inflation of dollars.

Re:Duh (1)

rgbscan (321794) | about a year and a half ago | (#43039885)

You mean like gold? :-P

This always seems lost on those people that hate the fed....

Re:Duh (0)

Reverand Dave (1959652) | about a year and a half ago | (#43039967)

Be wary of the wrath of those that worship St. Ron Paul, they might ask the U.N. to intervene on their behalf and seize you!

Re:Duh (2)

Githaron (2462596) | about a year and a half ago | (#43039917)

I thought Bitcoin supply slowly increase overtime at a predefined rate. Isn't that the whole point of Bitcoin mining?

Re:Duh (2)

Lunix Nutcase (1092239) | about a year and a half ago | (#43039987)

You thought wrong. There is a hard cap O
On how much can be mined. It has not hit this yet.

Re:Duh (2)

alexander_686 (957440) | about a year and a half ago | (#43040235)

Think Zeno’s Arrow. There is a hard limit on the number of bit coins but it become progressively harder to mine them so the supply will always be increase – but a slowing rate until only a infinitesimal amount are created.

For those of us in the deflation is inevitable (and horrible) with bitcoin this slight increase means nothing. If you believe in monetary economic theory, a GNP increase by 1% would need a 1% increase in the money supply to keep inflation at zero. With Bitcoin's hard limit - well....

Re:Duh (1)

IamTheRealMike (537420) | about a year and a half ago | (#43040347)

Except right now it inflates at the rate of 25 coins every 10 minutes. So your statement seems to be wrong.

Volatile (5, Insightful)

ak3ldama (554026) | about a year and a half ago | (#43039503)

The only thing Bitcoin has proven to be is incredibly volatile. Great job? I am suprised these exchanges don't advertise on Glenn Beck.

Re:Volatile (1)

Anonymous Coward | about a year and a half ago | (#43039597)

Its volatile because it is a new currency and people are still weary of it. If people continue to use it and the government doesn't crash it it should stablize over the next decade.

Re:Volatile (3, Funny)

Anonymous Coward | about a year and a half ago | (#43039707)

I think most people are weary of being wary.

Re:Volatile (1, Funny)

Attila Dimedici (1036002) | about a year and a half ago | (#43039737)

You're right. Well, I'm not so much weary of Bitcoins as I am of stories about them.

Re:Volatile (0)

Anonymous Coward | about a year and a half ago | (#43039765)

Its volatile because it is a new currency and people are still weary of it. If people continue to use it and the government doesn't crash it it should stablize over the next decade.

You got that right they are weary. I can't even imagine another decade of fucking bitcoin stories on slashdot. The value of articles on here is deflating almost as fast as bitcoin.

Re:Volatile (4, Funny)

sg_oneill (159032) | about a year and a half ago | (#43040211)

It has been said that comedy on the internet is tragedy followed by the words "....and then I lost my bitcoins".

This price spike is just a set up for one hell of a punchline.

So? (3, Insightful)

magic maverick (2615475) | about a year and a half ago | (#43039505)

I'll be using my Bitcoins as currency as usual. Trading for services or donating to good causes. I'll continue to accept Bitcoin in exchange for services rendered (only 10 Bitcoin for a handjob!).

Sure, for speculators that matters. For people who just want to use a decentralized non-government/non-corporate currency, it continues to just work.

Oh, and it's not an "anonymous currency", it's a "pseudo-anonymous currency". In the future there will be real laundries that operate with a decent reserve. At that point it becomes more anonymous. I'm looking forward to that future.

Re:So? (2)

h4rr4r (612664) | about a year and a half ago | (#43039685)

Too bad that as the currency gets more valuable your services get more expensive compared to your competitors.

Re:So? (0)

Anonymous Coward | about a year and a half ago | (#43040349)

Are you being sarcastic? He could just adjust his prices, or charge "X dollars worth of Bitcoins".

Besides, 10 BTC for a handjob is highway robbery.

Re:So? (2)

Rude Turnip (49495) | about a year and a half ago | (#43039857)

Question 1: Who does squeezies for 10 bitcoin (or any bitcoin for that matter)? Question 2: At current exchange rates, that's over $300, which is way over market. Since you mentioned that you also donate to good causes, does the volatility in the exchange rate have any effect on how you spend your bitcoins?

Anonymous currency (1)

PPH (736903) | about a year and a half ago | (#43039871)

Once Bitcoin reaches some level of critical mass, it will attract the attention of the entrenched banking system and their lap dog regulators. If it takes outlawing the possession of graphics cards to stop mining, they'll get that law passed.

If your hard drive will serve as a bank or credit card, you are a serious threat to the banking industry.

Re:Anonymous currency (0)

Anonymous Coward | about a year and a half ago | (#43039991)

Once Bitcoin reaches some level of critical mass

Also, be careful of stepping on a Leprechaun because it is equally likely to happen.

Re:Anonymous currency (0)

Anonymous Coward | about a year and a half ago | (#43040023)

"Serious" miners have moved past graphics cards into custom designed FPGA and ASIC hardware.

Re:Anonymous currency (1)

Lunix Nutcase (1092239) | about a year and a half ago | (#43040029)

GPUs are crap at mining bitcoin anymore compared to the ASICs.

Re:Anonymous currency (1)

osu-neko (2604) | about a year and a half ago | (#43040081)

Once Bitcoin reaches some level of critical mass, it will attract the attention of the entrenched banking system and their lap dog regulators. If it takes outlawing the possession of graphics cards to stop mining, they'll get that law passed.

If your hard drive will serve as a bank or credit card, you are a serious threat to the banking industry.

Your suggestion is preposterous, but I'm not sure where your confusion lies. You either don't understand what a bank is/does, don't understand what a credit card is/does, or you think Bitcoin is something it definitely isn't.

"Next they'll be coming for your lawnmower" would seem a good followup along the same vein... equally nonsensical while still showing a good paranoid streak.

Will crash again (5, Insightful)

Anonymous Coward | about a year and a half ago | (#43039517)

The "old money" is still sitting on most of the coins and will crash the value again by cashing in even a small percentage. The Bitcoin economy is just too small compared to the wealth of the early adopters.

Re:Will crash again (1)

Anonymous Coward | about a year and a half ago | (#43040293)

If you restrict the monetary velocity of bitcoin to just the amount traded for currency, the old money could totally liquidate into new hands over the course of a year without moving the price. I don't think they would, because I think bitcoins are still severely undervalued, but they could. If you are worried about the unfairness to early adopters in bitcoin, I encourage you to study and understand your currency of choice's 'early adopter' situation.

Short it (0)

Spy Handler (822350) | about a year and a half ago | (#43039527)

1. Short it
2. ???
3. Profit!

Re:Short it (1)

bn-7bc (909819) | about a year and a half ago | (#43040033)

Correct me if I'm wrong, but shorting anything on the way up is a bad idea right? So you lhave a loss on step one, no idea about step 2 and have a profit at 3, if step 2 is just hidden to irritate us, pleace contact me and we might agree on a price for step 12 ...... oh wait step 2 is fore someone to bite and pay you for "a fast way ta make money" nicely played and of corse the profit is all yours . Have a nice day and thanks for puting a smile on my face

2X HPQ ! (0)

Anonymous Coward | about a year and a half ago | (#43039535)

whoa, the trolls are really out on the last few stories.


Better than HP's stock price.

long term (3, Interesting)

WillgasM (1646719) | about a year and a half ago | (#43039539)

I'm curious to see how bitcoin holds up. If it sticks around, it would be neat to see a long-term comparison between bitcoin, various fiat currencies, and hard commodities.

Hurry up and die please (0, Troll)

AmiMoJo (196126) | about a year and a half ago | (#43039545)

The sooner BitCoin dies the better, so I can make sure I get in early on the replacement and use my graphics card to get rich.

Seriously, what incentive is there for me to support BTC now the rush is over?

Re:Hurry up and die please (2, Insightful)

h4rr4r (612664) | about a year and a half ago | (#43039663)

That is a huge problem with this currency. It is a pyramid scheme and now with its rising value it is going to have a nice deflationary spiral.

Re:Hurry up and die please (0)

Anonymous Coward | about a year and a half ago | (#43039689)

Generate your own genesis block and start the new bitcoin. With blackjack and hookers.

Re:Hurry up and die please (3, Insightful)

TeknoHog (164938) | about a year and a half ago | (#43039717)

Seriously, what incentive is there for me to support BTC now the rush is over?

What good is an anonymous virtual currency?

What incentive is there for me to support Euro/USD etc. now that I can't just print it willy-nilly?

Your post is as bad as those who equate Bitcoin with Ponzi schemes. According to their logic, any profitable business would be a Ponzi. OK, so you didn't invest in a hugely succesful company back in its garage days. That doesn't mean the company is useless today. Quite the contrary.

Re:Hurry up and die please (-1, Flamebait)

h4rr4r (612664) | about a year and a half ago | (#43039791)

A profitable company can issue more stock. I can use that stock to change the company or own it if I wish. I can resell it on any number of exchanges and lots of it changes hands daily.

Bitcoin is literally a ponzi scheme. It takes in dollars either in cash or in electricity to generate tokens that increase in value as more suckers enter into the scam. The folks who bought in early can make money by selling to suckers down the line, until they run out of suckers and the whole thing crashes.

The value of the Euro and USD are that you have to pay taxes in them, and can use them to buy stuff locally or internationally.

Re:Hurry up and die please (1)

Githaron (2462596) | about a year and a half ago | (#43040025)

I don't think you understand what gives money value. It has nothing to do with taxes.

Re:Hurry up and die please (1)

h4rr4r (612664) | about a year and a half ago | (#43040119)

I think you are mistaken.

Money has value because it can be spent. Since I have to spend some USD on taxes, they have value to me. I must have $X/year no matter what to pay my taxes. I can also spend them at the grocery store and everywhere else.

Re:Hurry up and die please (4, Funny)

camperdave (969942) | about a year and a half ago | (#43040123)

Bitcoin is literally a ponzi scheme. It takes in dollars either in cash or in electricity to generate tokens that increase in value as more suckers enter into the scam. The folks who bought in early can make money by selling to suckers down the line, until they run out of suckers and the whole thing crashes.

All they have to do is keep the sale rate below one per minute to match the birth rate of suckers, and they should be fine.

Re:Hurry up and die please (5, Insightful)

pla (258480) | about a year and a half ago | (#43040271)

Bitcoin is literally a ponzi scheme.

I dread each and every story on Bitcoin, because inevitably, someone rolls this particular turd out.

A Ponzi scheme pays its yield on an investment (possibly bogus, but not necessarily) out of capital. Bitcoin functions as a currency, not an investment. The exchange rate rises and falls based on supply and demand, "Bitcoin" itself has no expected yield. It doesn't pay dividends, it doesn't go to harvest, you can't eat it or burn it.

Yes, you have people speculating on it - Just as you do with the USD:GBP exchange rate, on the price of gold, on corn futures, on who will win the next big game. Speculation in a market doesn't make the underlying asset a Ponzi scheme, no matter how many times you claim it.

Re:Hurry up and die please (1)

nedlohs (1335013) | about a year and a half ago | (#43039731)

Without the ability to print currency what incentive is there for me to use US dollars?

Re:Hurry up and die please (2)

h4rr4r (612664) | about a year and a half ago | (#43039811)

Their value is that everyone accepts them and you can pay your taxes with them.

Bitcoins like the currency of some backwater nation can be traded in for currency of immediate use, but is of limited utility itself.

Re:Hurry up and die please (0)

Anonymous Coward | about a year and a half ago | (#43039849)

Without the ability to print currency what incentive is there for me to use US dollars?

Because my job pays me in them. And I can use them to buy nearly all the things I want. Neither of those are true for bitcoins.

Re:Hurry up and die please (1)

Lunix Nutcase (1092239) | about a year and a half ago | (#43040057)

US dollars are accepted by many magnitude more businesses, banks, etc. than Bitcoin.

Re:Hurry up and die please (1)

nedlohs (1335013) | about a year and a half ago | (#43040299)

Sure that's an incentive to favor US dollars over bitcoins, but it's got nothing to do with the fact that the ability to mint bitcoins (or print dollars) isn't supposed to be the main incentive to use them.

Re:Hurry up and die please (5, Insightful)

pla (258480) | about a year and a half ago | (#43039835)

Seriously, what incentive is there for me to support BTC now the rush is over?

Do you ever send (or receive) money outside your home country?
Do you want a bank account no government can freeze if they decide you voted the "wrong" way last election?
Do you believe you have every right to spend your hard-earned money playing online poker if you damned well want to?

Yeah, you can use physical cash for an awfully lot of things. But when you need to get funds halfway around the world, or store more of it than will fit comfortably under your mattress - We finally have a semi-viable alternative. Let the haters hate - In the meantime, I'll just keep using Bitcoin for its intended purpose - As a semi-anonymous digital currency.

Re:Hurry up and die please (1)

h4rr4r (612664) | about a year and a half ago | (#43039879)

1. Lots of legal ways to do that
2. No, I would rather keep my country from being corrupt.
3. No, nor can I spend it on drugs, hookers or the blood of innocent children

How much money do you have that you cannot store it? Ever held $10k? I have, it is just one little bundle of $100s about the same thickness as a deck of cards.

You don't have a semi-viable alternative you have a currency that is going into a deflationary spiral.

Re:Hurry up and die please (1)

pla (258480) | about a year and a half ago | (#43040139)

You don't have a semi-viable alternative you have a currency that is going into a deflationary spiral.

Would you care to explain that, given that we have another 130 years before the last BTC-generating block issues?

Yes, at some point the BitCoin community will need to figure out how to avoid exactly that deflationary spiral. You can't, however, use that argument to explain the current exchange rate.

Re:Hurry up and die please (2)

khallow (566160) | about a year and a half ago | (#43040269)

you have a currency that is going into a deflationary spiral

What exactly is wrong with that? Eventually people start spending money again because ultimately, a currency doesn't have any value to you, if you don't spend it. You'll want to buy stuff as well since the whole point of holding on to bitcoins is to eventually buy something with them.

BitCoins and Leagl Pot (2)

Frosty Piss (770223) | about a year and a half ago | (#43040089)

BitCoins might be a GREAT idea for Pot Businesses in Washington State and Colorado.

As we know, Pot Business is now legal in these two states. The folks gearing up to participate seem to just be tooling along not really thinking about the Feds because thus far, the Feds have not gotten nasty over this.

But they almost certainly will. How? Itâ(TM)s not going to involve DEA raids or Black Helicopters. Itâ(TM)s the money.

These business will need banking, and the Feds will simply shut that down, seizing accounts and preventing banks from doing business with Pot Farmers and Retailers.

BitCoins may offer a solution.

Re:Hurry up and die please (1)

AmiMoJo (196126) | about a year and a half ago | (#43040157)

Sure, but I could just wait for the next one to come along (alternatives are already available) and get in early, making lots of money for little effort.

I like the concept of BitCoin, just not the fact that lots of people got piles of cash for free and then the tap was turned off.

Re:Hurry up and die please (2, Interesting)

Tom (822) | about a year and a half ago | (#43040255)

Do you ever send (or receive) money outside your home country?

Constantly, and there's a dozen established ways of doing it.

Do you want a bank account no government can freeze if they decide you voted the "wrong" way last election?

I have that. It's called "living in a civilized country".

Do you believe you have every right to spend your hard-earned money playing online poker if you damned well want to?

Got that as well, it's called "not living in the USA".

Don't get me wrong, I'm a big fan of electronic cash. I'm not convinced that Bitcoin is it, but that's besides the point. The reasons you give are weak and alarmist reasons that only appeal to a small minority of people.

Why would I want electronic cash (anonymous, untraceable, etc.)? Because it's nobodys business what I spend my money on, and not leaving a trail is the best precaution against everyone and his dog finding out because someone somewhere in the chain of payment providers has crappy security.

Try $33.70 (0)

Anonymous Coward | about a year and a half ago | (#43039563)

Geez, get with the times, man.

This is a leading indicator of Bernank's $85Bil/mo and all other commodities because BC is one market the manipulators can't figure out.

Re:Try $33.70 (3, Insightful)

NoNonAlphaCharsHere (2201864) | about a year and a half ago | (#43039741)

... because BC is one market the manipulators can't be bothered to figure out.

Re:Try $33.70 (0)

Anonymous Coward | about a year and a half ago | (#43040183)

Geez, get with the times, man.

This is a leading indicator of Bernank's $85Bil/mo and all other commodities because BC is one market the manipulators can't figure out.

Yet.

Why anyone would think this is a good thing (1)

h4rr4r (612664) | about a year and a half ago | (#43039571)

Why would anyone consider this a good thing?

It means these coins are being hoarded. If it was real money this would be damaging the economy.

Re:Why anyone would think this is a good thing (1)

Paradise Pete (33184) | about a year and a half ago | (#43039699)

It means these coins are being hoarded. If it was real money this would be damaging the economy.

The government would like nothing more than for "real" money to be hoarded. That would mean they could simply print it again. That's one of the big reasons they like all this corporate profit trapped offshore. It's like free money to them.

Re:Why anyone would think this is a good thing (0)

Anonymous Coward | about a year and a half ago | (#43039827)

Hoarding money pulls it out of circulation, which contracts the economy. Inflation has its problems but it's nothing compared to deflation. There's no reason any government would want to create deflation. And they don't. Because it would be crazy.

Re:Why anyone would think this is a good thing (2)

alexander_686 (957440) | about a year and a half ago | (#43040085)

I believe the OP was referring to seigniorage.
http://en.wikipedia.org/wiki/Seigniorage [wikipedia.org]
Quick example: The US Mint releases commemorative state quarters. People “buy” these coins and throw them in their sock drawer - effectively giving the US a zero percent loan. In this case it a win for everybody – an odd way to spend money but I don’t collect coins.

If people where hoarding currency as a hedge against deflation – well – that would be a different story.

Re:Why anyone would think this is a good thing (0)

Anonymous Coward | about a year and a half ago | (#43039757)

I believe the logic is something like this:

1. Hyperinflation in a cash-based economy is bad.
2. Therefore all inflation is bad. 3. Therefore inflation is bad in even in a developed society where cash is only used for temporary transactions, loans, and small savings.
4. Therefore deflation is good because it's, like, the opposite of inflation.

Honestly, I still don't think the BC people have really figured out this whole "money" thing beyond a simplistic view that doesn't fit any real world models. Sure, they'd have von Mises on their side, probably, but that, to me, is not a blessing.

Re:Why anyone would think this is a good thing (1)

timholman (71886) | about a year and a half ago | (#43039773)

Why would anyone consider this a good thing?

It means these coins are being hoarded. If it was real money this would be damaging the economy.

It is worth pointing out that the current upward trend in BTC prices began right after the difficulty of mining doubled last December. Mining has ceased to be profitable except for the most sophisticated custom hardware, so the supply of new BTC has dried up for the average person using a graphics card.

No new supply = rising prices. The deflationary spiral has definitely begun. The speculators and hoarders are just waiting to cash in, and it won't be pretty when it happens.

Re:Why anyone would think this is a good thing (1)

Anonymous Coward | about a year and a half ago | (#43039911)

Why would anyone consider this a good thing?

It means these coins are being hoarded. If it was real money this would be damaging the economy.

It is worth pointing out that the current upward trend in BTC prices began right after the difficulty of mining doubled last December. Mining has ceased to be profitable except for the most sophisticated custom hardware, so the supply of new BTC has dried up for the average person using a graphics card.

No new supply = rising prices. The deflationary spiral has definitely begun. The speculators and hoarders are just waiting to cash in, and it won't be pretty when it happens.

Mining hasn't been profitable in a long time. It's only 'profitable' because bitcoiners steal their electricity - seriously, one guy was bragging about sticking his roommate with the electric bill - and don't count setup costs or capital depreciation. Their setups kill hardware - we're talking things wire tired together with tons of box fans pointing at them. Then again, they also brag about how they warranty return video cards after they kill them. Nobody with an iota of understanding of finance, business or economics should go anywhere near bitcoin....and from what I can tell, they don't.

Re:Why anyone would think this is a good thing (5, Interesting)

wvmarle (1070040) | about a year and a half ago | (#43039889)

Of course they're being hoarded.

One of the key issues with bitcoin is the ultimately limited supply.There are about 10.5 mln into existence, mining continues, and over the upcoming century or so it's going to grow to 21 mln. So that means the first half is there already.

Normal money (USD, EUR, whatever) can be created by banks through lending. This keeps the value of currencies in check, and actually over time decreases the value of a currency, as seen by inflation. The good thing of inflation is that it keeps people from hoarding cash, as hoarding cash means you're losing value.

Assuming uptake of use of bitcoin continues to increase, there is more and more demand for the coins, and there is limited new supply. Supply goes down over time (by design), and more uptake will naturally cause more loss: people keeping bitcoins on their computer, not properly keeping backups, computer breaks down, bitcoins lost. Not sure if there is any way to recover them. And people may take bitcoins and forget about them, another cause of loss. So more and more people want bitcoins, but there is only a limited number available - and that number may indeed decrease over time - causing the price to go up.

Now there are two problems this almost guaranteed increase in value of the bitcoins.

First: people start hoarding them, as speculative investment. This takes more bitcoins out of the payments market, pushing up the value.

Second: it is going to cause deflation in the value of services that charge bitcoin. Imagine a web site sells accounts for 1 bitcoin. That is currently $32 in real money. So people will have to buy bitcoin at $32 each, and the web site can sell those bitcoins at $32. But next year the bitcoin is at maybe $64. That would double the price of the account, which is probably not good for business, so the website compensates for this by changing their price to 0,5 bitcoin. Especially if such a site gives an option of paying in bitcoin or paying in USD, they must adjust prices to keep them equivalent.

People owning bitcoin see the value of the bitcoin in USD (money they can actually spend) go up, while at the same time for everything they could use bitcoin for, the prices go down. Where a donation of 1 bitcoin now would be worth $32, the equivalent donation next year would be only 0,5 bitcoin. Buy a bitcoin now, and the web site account next year would effectively cost you only $16. And the other half bitcoin you could sell at $32, making the account free.

And this is how I call bitcoin an interesting concept, but terribly defective by design.

Thank you! (1)

sirwired (27582) | about a year and a half ago | (#43040207)

I've been saying this ever since Slashdot started carrying every last bit of news about BitCoins. I get flamed every time. Without fail. (Apparently, I "enjoy" inflation, am a crude fighter against innovation, and any understanding of economics I have is not relevant because apparently the entire discipline is invalid. (Unless, of course, it agrees with whatever said BitCoin fanboy is saying.))

Re:Why anyone would think this is a good thing (1)

pla (258480) | about a year and a half ago | (#43040061)

It means these coins are being hoarded. If it was real money this would be damaging the economy.

Hoarding does count as a type of scarcity. Not the only one, however. A perfectly liquid commodity can still rise and fall in price based solely on good ol' Supply and Demand.

When more people want to use Bitcoin, they need to first obtain BTC before they can spend it. As the easiest way to get Bitcoins, they "buy" some with their local currency. This transaction demonstrates increased demand for BTC, and decreased demand for USD - So the exchange rate goes up.

Now, we have a LOT more USD in circulation than we do BTC, so the decreased demand on the USD doesn't actually show up anywhere. Similarly, a larger proportion of the entire BTC economy has changed hands, so the price shows drastically more volatility. But they very much have an equal and opposite effect on each other, adjusted for scale. Every asteroid Earth pulls closer, also pulls the Earth toward the asteroid.

Loose change (5, Interesting)

BennyB2k4 (799512) | about a year and a half ago | (#43039655)

In the bitcoin equivalent of losing loose change in your couch, one of my old hard drives has 4 mined bitcoins on it somewhere. They are rapildly approaching a value high enough for me to stop being lazy and ressurect the machine.

Re:Loose change (2)

h4rr4r (612664) | about a year and a half ago | (#43039829)

Better do it soon if you don't everyone else in the same position will. Since you can't mine new bitcoins profitably anymore without ASICs anyway, the value will shoot up until enough folks cash out and it crashes.

Re:Loose change (1)

Teppy (105859) | about a year and a half ago | (#43039899)

"That place is so popular that nobody goes there anymore."

Re:Loose change (0)

Anonymous Coward | about a year and a half ago | (#43039907)

Why not profitably? All the wasted CPU power turns into heat. My house is electricity-heated and I live in Finland. If I have a load of old networked 386 machines playing tic tac against each others even it is not wasted. The more there is heat from other sources, the less the radiators have to keep heating.

Re:Loose change (1)

h4rr4r (612664) | about a year and a half ago | (#43039949)

Because that is the most expensive way to heat anything. Pretty much all other methods are cheaper and a normal heating system can heat where you want thus using less energy to keep you warm.

Have you considered selling those old machines and buying a ground source heat pump?

Re:Loose change (1)

compro01 (777531) | about a year and a half ago | (#43040295)

Because that is the most expensive way to heat anything. Pretty much all other methods are cheaper and a normal heating system can heat where you want thus using less energy to keep you warm.

Not really. At current prices around here, Electrical heating is cheaper than oil. And that's without the power doing anything else useful.

Natural gas and pumped head obviously come out way ahead of both, but if you don't have the equipment already in place for either, that doesn't mean a whole lot.

Re:Loose change (1)

Lunix Nutcase (1092239) | about a year and a half ago | (#43040113)

Why not profitably?

Because electricity is not free. Those costs are eclipsing the value of what is being mined.

Get a heat pump (0)

Anonymous Coward | about a year and a half ago | (#43040387)

Electricity is a higher form of energy that should not be wasted by conversion to room temperature heat. A heat pump can produce double or triple the heat of resistive heating.

Can't stop going up (2, Funny)

Anonymous Coward | about a year and a half ago | (#43039675)

Can't stop going up, guys! I've got plenty to sell. Please buy, as I guarantee this is nowhere near the top. I'm offering mine for $32, and it's a bargain. I'm a fucking moron, so that is why I want you to have mine at this low price.

Fuck me, the captcha is economy.

Why so many articles... (-1, Troll)

Anonymous Coward | about a year and a half ago | (#43039753)

Who's the d-bag who keeps approving bitcoin related stories?

Re:Why so many articles... (1)

Anonymous Coward | about a year and a half ago | (#43039997)

Somebody who's trying to pump up the price so they dump all their delicious sperggold?

Not true... (1, Interesting)

Anonymous Coward | about a year and a half ago | (#43039795)

Wordpress, Mega and Reddit do not take bitcoin. They accept payments through a third-party exchange called BitPay, which converts them into dollars. Why? Because bitcoins are, in fact, worthless and their value depends almost entirely on the liquidity provided by Silk Road and the desire of internet libertarians to get them some Dunning-Krugerands. Until paychecks are issued in bitcoin and you can pay your rent in bitcoin, it's not a currency - it's at best a toy.

Why ever spend a deflationary currency? (2)

Teppy (105859) | about a year and a half ago | (#43040017)

Because human lifetimes are limited, and the value-to-you goes to zero when you die.

And I'm going to buy a house with my tulips (5, Funny)

Anonymous Coward | about a year and a half ago | (#43040069)

Tulip Speculator
-- January 1637

One thing bugs me (1)

CaseyJParker (2853813) | about a year and a half ago | (#43040075)

Right now, bitcoin has a huge presence in the news and other outlets to the masses ... I think a lot of the reason for the current increase in value has much to do with the very same folks that destroy basically all monetary systems. We've got prospectors jumping ship from the dollar to the bitcoin, increasing the difference between the two artificially.

Re:One thing bugs me (1)

liamevo (1358257) | about a year and a half ago | (#43040087)

The guy who looks at the analytics and sees controversial stories always have higher page views. People love to bitch about things a lot more than praise or rationally discuss topics.

wtf (0)

Anonymous Coward | about a year and a half ago | (#43040095)

Seriously, wtf is a bitcoin?

Price Is Not Relevant - You're missing the point (5, Interesting)

Anonymous Coward | about a year and a half ago | (#43040133)

Valuation of bitcoin, or BTC, in other sovereign currencies isn't the point here - neither is 'cashing out' or any of that nonsense. The end-game here is to supplant and possibly replace sovereign currencies entirely. It may seem overly ambitious, but from all the financial scandals and other daily scams that are perpetuated by the banking and financial industry - people are getting *sick* of how the current system operates.

Edge exchanges will dominate for a while, but as things change, and end-to-end supply chains form that are BTC denominated, the conversion demand will change and people will be able to keep their entire activity within the BTC realm. This is important, because then true monetary freedom has been achieved. Nobody telling you what you can spend your money on, or stipulations as minimum balances or hours of operation.

This is the biggest revolution in finance taking place right in front of you, and most commenters here dismiss it out-of-hand.

FFS, this isn't a good thing (5, Insightful)

sirwired (27582) | about a year and a half ago | (#43040155)

For a currency to be useful as a medium of exchange, you want it to be STABLE in regards to the value of whatever it is you want to purchase. (And if it can't be stable, it should at least be predictable.) High volatility, with and edge towards deflation (due to irreplaceable currency loss and any increases in the size of the BitCoin "economy"), makes for a rather poor currency. (You'd have to be completely, utterly, nuts to ever even THINK about taking out a loan in the things)

It's deflated by about 100% in the last month, and as I type this, the current bid/ask spread is 66 basis points. It's what you would expect with a thinly-traded stock; not a serious currency.

An increase in the value vs. the USD is only useful if you are using BtC's as an investment.

Re:FFS, this isn't a good thing (0)

Anonymous Coward | about a year and a half ago | (#43040337)

I buy bitcoins that I intend to sell in future months, essentially giving myself interest from a loan to bitcoin-land, and keeping that interest in bitcoins. Why should the time-value of my money be negative? Why should we only look to loans rather than personal savings as means for bootstrapping economic activity? I agree taking a BTC denominated loan is crazy, but perhaps we rely on leverage too much in modern society, and perhaps it is precisely our leverage that causes asset bubbles (see dot com bust, subprime mortgage crisis, etc.).

Its a bubble (0)

Anonymous Coward | about a year and a half ago | (#43040191)

The top end of what is likely a wide and volatile trading range

Now... How do I short Bitcoins
Load More Comments
Slashdot Login

Need an Account?

Forgot your password?

Submission Text Formatting Tips

We support a small subset of HTML, namely these tags:

  • b
  • i
  • p
  • br
  • a
  • ol
  • ul
  • li
  • dl
  • dt
  • dd
  • em
  • strong
  • tt
  • blockquote
  • div
  • quote
  • ecode

"ecode" can be used for code snippets, for example:

<ecode>    while(1) { do_something(); } </ecode>