Bitcoin for SP
- Thread starter zpinkz
- Start date
Unless the SP explicitly states she accepts BitCoins, then don't surprise her with it. Cash will always be king.
Bitcoin is too volatile to be useful as a currency at the moment. Two months ago they were around $150 now they are near $1000. This means that if you paid 2 bitcoins for a session 2 months ago those bitcoins would be worth $2000 today. Best to just hoard them.
How on earth are bitcoins "created?" Obviously notes and coins are created by States and are backed by the State, silver and gold have both practical uses and value given by public demand.
Professor John Quiggin of the University of Queensland has noted that since Bitcoin by design has no intrinsic value, it is "perhaps the finest example of a pure bubble" currently known, from what I know I'd say that he is entirely right.
Professor John Quiggin of the University of Queensland has noted that since Bitcoin by design has no intrinsic value, it is "perhaps the finest example of a pure bubble" currently known, from what I know I'd say that he is entirely right.
glad you asked this......
What he said^Bitcoin is too volatile to be useful as a currency at the moment. Two months ago they were around $150 now they are near $1000. This means that if you paid 2 bitcoins for a session 2 months ago those bitcoins would be worth $2000 today. Best to just hoard them.
They are created by solving cryptographic problems, you crunch numbers until you find a coin by being the first to find the next number (coin) in an increasingly hard to calculate sequence. The coin you find (you can install the software to find coins on your pc) then becomes a permanent part of the market. As more are found, the work required to solve for the next coin increases, so that no matter how fast computers get, new coins are created slowly.How on earth are bitcoins "created?" Obviously notes and coins are created by States and are backed by the State, silver and gold have both practical uses and value given by public demand.
Professor John Quiggin of the University of Queensland has noted that since Bitcoin by design has no intrinsic value, it is "perhaps the finest example of a pure bubble" currently known, from what I know I'd say that he is entirely right.
In that sense they are backed by the cost of the electricity required to find the next coin. With very efficient computers, it currently costs hundreds of dollars in electricity to find the next coin. Thus at some level, bitcoins cost energy to produce, via computers. This makes them rare.
The cleverness of the system is that this number crunching to earn the next coin also inherently checks all the posted transactions to prove that they are legitimate, meaning that the "miners" who are trying to find the next coin are also providing a service to everyone else that makes the bitcoin trading markets reliable.
No currency has intrinsic value now that we have abandoned the gold standard. They are backed up by your trust in a system. In the case of bitcoin, that system is believed provably secure using contemporary mathematics.
Bitcoin is a highly speculative investment just like facebook/twitter stocks. It does has value as long as there are continuous demand for it. However, the liquidity is just isn't there compared to the legal tenders, as you can't pay for grocery with price equivalent stocks.
If you want to use bitcoin to pay for something, why not just convert it into cash first? Given how the price of bitcoin has been trending, I doubt you want to liquidate your position just to pay for SP.
If you want to use bitcoin to pay for something, why not just convert it into cash first? Given how the price of bitcoin has been trending, I doubt you want to liquidate your position just to pay for SP.
If Bitcoin is a real threat to the banksters' profits, watch them either destroy it or steal it:
JPMorgan files patent for Bitcoin-style payment system
JPMorgan files patent for Bitcoin-style payment system
Bitcoins are cryptographically protected numbers in a public ledger. They cannot be stolen. What banks could do is start up their own separate bitcoin duplicate network, force merchants to "accept" those and kill the value of the grass roots bitcoin network.If Bitcoin is a real threat to the banksters' profits, watch them either destroy it or steal it:
JPMorgan files patent for Bitcoin-style payment system
If Bitcoin Is So Secure, Why Have There Been Dozens of Bitcoin Bank Robberies And Millions In Losses?Bitcoins are cryptographically protected numbers in a public ledger. They cannot be stolen.
Just to clarify...If Bitcoin becomes a threat to the banksters' profits, watch them squash it like a bug or steal it ( digital currency technology )...BTW Bitcoin is not a real bug.
Some people keep their bitcoins on a public exchange/bank. The networks for these "banks" get hacked,the passwords stolen and the bitcoins emptied out. If you keep bitcoins on your own personal computer that is virus free the bitcoins are far more secure. Even better is generating the public key/private key pair while offline, dumping your bitcoins into this new address. You print out the private key on paper, laminate it and put it in your safe deposit box. Presto digital "gold".If Bitcoin Is So Secure, Why Have There Been Dozens of Bitcoin Bank Robberies And Millions In Losses?
Just to clarify...If Bitcoin becomes a threat to the banksters' profits, watch them squash it like a bug or steal it ( digital currency technology )...BTW Bitcoin is not a real bug.
I would secure your private key but not in a bank's safe deposit box.Some people keep their bitcoins on a public exchange/bank. The networks for these "banks" get hacked,the passwords stolen and the bitcoins emptied out. If you keep bitcoins on your own personal computer that is virus free the bitcoins are far more secure. Even better is generating the public key/private key pair while offline, dumping your bitcoins into this new address. You print out the private key on paper, laminate it and put it in your safe deposit box. Presto digital "gold".
