Digital currency Bitcoin hits new high before losing S$200 in value in one day

Bitcoin breaks $1,000 barrier for first time.

http://www.cnbc.com/id/101230884

I merged the new Bitcoin thread into the old one. It will allow those interested an easy access to its history. Thanks for the contribution.

Regards
Moderator

(27-11-2013, 11:36 PM)BestPrice Wrote: Bitcoin breaks $1,000 barrier for first time.

http://www.cnbc.com/id/101230884

Currently most Bitcoin owners who bought them are hoarding it. Eventually, enough participants will look around the room, see that nobody is spending anything, and head for the exit, seeking to cash out. This will crash the price.

No prizes for guessing how it will all turn out when the music stops.

it is really interesting it can spike up to 5X in 1 month but i really question if bitcoin will become a fad or hype or a bubble.

through comments on forums and feedbacks on newspapers and online, it seems that some of the western population recognize and understand that the central banks are printing money like crazy and devaluing the currency.
so bitcoin thus seems a "valid and reliable" alternative as a store of value.

would welcome any contrary opinion as to why bitcoin will not work out, it will help me make sense of this whole issue haha.

(not vested)

I don't know how bitcoins really works here is my two-cent thought.

I see it no difference as any other currencies. But it will only have "values" if it can be used to purchase product that one needs/desire. I can't eat bitcoin to live for a starter. If I take US$10 to Fairprice, I doubt I can buy anything (anyone tries before?). Same with bitcoins. If I take that US$10 to an money changer and change it for SGD then go to Fairprice, it will work as the money changer accept the values printed on the USD notes and Fair price will accept the values print on those SGD notes. Same with bitcoins. So it is just another currencies, albeit a virtual one.

At the end of the day the values of the currencies is still down to demand/supply. Difference in this case I see is demand for a country currency is affected by the world and its economy performances. For bitcoins, it seems to me that for now its demand is more down to its participants and their anticipation of its values. I recall some merchants seems to be accepting bitcoins as payment and there are talk about legalising and regulating it. It might be a different story to me in the future.

How does bitcoin determine its quantity in circulation? Surely with more interest and demand, it needs to create more bitcoins. Sounded to me just like printing more money but for a different reason.

Two-cent thought.

The Bitcoin bungler - a salutary tale

You could lose your entire investment in a moment of carelessness.

http://www.bbc.co.uk/news/technology-25120902

(28-11-2013, 12:09 PM)financiallyfree Wrote: it is really interesting it can spike up to 5X in 1 month but i really question if bitcoin will become a fad or hype or a bubble.

through comments on forums and feedbacks on newspapers and online, it seems that some of the western population recognize and understand that the central banks are printing money like crazy and devaluing the currency.
so bitcoin thus seems a "valid and reliable" alternative as a store of value.

would welcome any contrary opinion as to why bitcoin will not work out, it will help me make sense of this whole issue haha.

(not vested)

i have imagined one day the world can devise a system of virtual electronic money. All the world fiat money converted to electronic money. So if it happens, does it make any difference? Don't the central government treasuries of the world still can "print" money? This time it is even worse. It so much easier to print "virtual electronic money.
A monetary system will only work (at least for sometime) if the governments of the world sanction it.
How can "Boh Cheng Hu"?

i feel when i use Giro payment or credit card payment or any payment by "electronic means", it's already like "Bitcoin" payment. The only difference is it is sanction by governments.
Anyway can Man really discovers or invents a "PERFECT SYSTEM"?
No! i don't think so.

Bitcoin's fate could rest with China.

http://www.cnbc.com/id/101233864

An interesting story on Bitcoins...

Treasure hunt in UK for S$8m worth of Bitcoins

Buried somewhere under more than a metre of mud and rubbish, in the Docks Way landfill site near Newport, Wales, in a space about the size of a football field is a computer hard drive worth more than S$8 million.

It had been rescued from a defunct Dell desktop and belonged to Mr James Howells. Upon discovering it in a drawer while cleaning up his desk earlier this year, Mr Howells threw it away.

And then last Friday he remembered that it held a digital wallet with 7,500 Bitcoins created for almost nothing in 2009 — and then worth about the same.

Since then, the worth of Bitcoins has skyrocketed.

“I’ve searched high and low. I’ve tried to retrieve files from all of my USB sticks, from all of my hard drives. I’ve tried everything just in case I had a backup file, or had copied it by accident. And … nothing,” said Mr Howells.

He was told that he would need “a team of 15 guys, two diggers and all the personal protection equipment” to stand a chance of finding the hard drive at the landfill. “So for me to fund that, it’s not possible without the guarantee of money at the end,” he added. THE GUARDIAN
http://www.todayonline.com/tech/treasure...h-bitcoins

Bit coin is a mockery on the fiat system where it is based on faith. Buts that's where the similarity ends.

A country produces something that the sovereign taxing power and money creation instills certain rational faith

Faith in bitcoin is misguided faith. Bitcoin is tulip. Every rational person knows it's going to burst but everyone don't think they will be holding the ball when the music stops. Nothing new under the sun, from Bre-X to Madoff to the recent Blumont.

Just that no one knows when, which is the fuel of speculation