dc10lover
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Bitcoin Mining Boom Hits Small Town In Washington State

Sat Jan 13, 2018 9:45 am

A small town in Washington, Wenatchee, is seeing a Bitcoin mining boom due to low power prices and cooler temperatures.

https://bitcoinist.com/bitcoin-mining-b ... ton-state/

This is going to be very interesting to watch.
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Route66
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sat Jan 13, 2018 3:45 pm

I was reading about the same thing in Chinese province last week. The government is clamping down since they heavily subsidize the cheap electricity.
 
tommy1808
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 14, 2018 9:12 am

dc10lover wrote:
This is going to be very interesting to watch.


With any Bitcoin transaction costing around 300kwh, yes, with a k, of power, this is going to end quite soon.

60 or so USD for each payment makes Gold an effective currency.

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Thomas
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Aesma
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 14, 2018 11:55 am

My miners are on the way from China, I have access to electricity that is not the cheapest, but not the most expensive either. Temperatures are OK and I plan to put them in a very large hangar that could house thousands of them instead of the dozen I will.

The real problem for me is to set up the right kind of company to actually earn anything from this. I might end up just selling the miners on eBay and make more profit from that !

2-3 cents electricity is really interesting though. Too bad it's in Trump land.
New Technology is the name we give to stuff that doesn't work yet. Douglas Adams
 
BestWestern
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 14, 2018 12:11 pm

Kodak has stared selling mining devices - they do all the work, and take half the return.
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dc10lover
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Tue Jan 16, 2018 11:54 pm

BestWestern wrote:
Kodak has stared selling mining devices - they do all the work, and take half the return.

Thanks. May look into this.
Why endure the nightmare and congestion of LAX when BUR, LGB, ONT & SNA is so much easier to fly in and out of.
 
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moo
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Wed Jan 17, 2018 12:05 am

dc10lover wrote:
BestWestern wrote:
Kodak has stared selling mining devices - they do all the work, and take half the return.

Thanks. May look into this.


Don't bother mining bitcoin, mine one of the other coins instead - bitcoin mining isn't worth it unless you have a significant mining pool and investment. One or two miners doesn't cut it - the company selling the miners would make more from the sale than the person doing the mining, otherwise the company selling the miners wouldn't be selling them...
 
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einsteinboricua
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Wed Jan 17, 2018 12:34 am

BestWestern wrote:
Kodak has stared selling mining devices - they do all the work, and take half the return.

I bought Kodak shares shortly after the announcement, but I think it's gonna go nowhere. The market will be saturated with cryptocurrencies if other companies do the same. I sold the shares earlier today. And with the cryptocurrency bubble deflating (not popping...yet), it's not gonna go anywhere.
"You haven't seen a tree until you've seen its shadow from the sky."
 
PanzerPowner
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Fri Jan 19, 2018 6:47 pm

3... 2... 1... AMD GPUs and Nvidia GPUs fly off the market as miners scramble for AMD GPUs while gamers make a mad dash for the barely recovering mid range-middle high range GPUs.
Well uh, I obviously decided to refine this but i dont know how.
 
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moo
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Fri Jan 19, 2018 9:40 pm

PanzerPowner wrote:
3... 2... 1... AMD GPUs and Nvidia GPUs fly off the market as miners scramble for AMD GPUs while gamers make a mad dash for the barely recovering mid range-middle high range GPUs.


GPU mining hasn't been profitable for most crypto currency mining for years - for all the ones that matter, you have to get an ASIC miner.
 
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Tugger
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Fri Jan 19, 2018 11:45 pm

The thing most people don't seem to understand is that what is happening right now is making crypto-currency worthless. It is not and cannot be what it is specifically stated and designed to be: a currency.

Currency must be stable day in and day out, year after year, to be of any use. If it is not then no one can use it. They won't use because it is worth too much (might be worth more tomorrow) and on the flip side when the current trend reverse (as it has recently) people and retailers won't accept it because it won't be worth the value needed (and it might be worth less tomorrow).

Right now crypto-currency is just a collectors item that people want hoping it will be worth more tomorrow. (Those that had it more than a year ago, fine they may have value but they need to sell it to get it. Like a valuable baseball card, some got lucky).

So I don't see the current batch of crypto's going anywhere, whatever may come next may have a chance if they are stable (but they won't be "investments" for most people).

Tugg
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Aesma
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sat Jan 20, 2018 3:01 pm

I've lived through several Bitcoin crashes, this one is very mild so far.

Kodak has bought 80 miners, ah ah, I have bought 15 by myself (from my crypto stash, not fiat money).

I'm not sure talking about coins that "matter" means much, when you see how Dogecoin, an avowed joke, has done. People who bet on new coins, usually simply by mining them, often yes with GPU rigs, have been very successful. The reward is much higher than the risk.
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Tugger
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sat Jan 20, 2018 10:31 pm

Aesma wrote:
I've lived through several Bitcoin crashes, this one is very mild so far.

Kodak has bought 80 miners, ah ah, I have bought 15 by myself (from my crypto stash, not fiat money).

I'm not sure talking about coins that "matter" means much, when you see how Dogecoin, an avowed joke, has done. People who bet on new coins, usually simply by mining them, often yes with GPU rigs, have been very successful. The reward is much higher than the risk.

So you make money by selling the coins, correct?

Tugg
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Aesma
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sat Jan 20, 2018 11:30 pm

If by money you mean fiat money, yes. Of course for some people holding crypto is actually better, and they might sell on a day to day basis to cover costs and nothing else.
New Technology is the name we give to stuff that doesn't work yet. Douglas Adams
 
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Tugger
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 21, 2018 1:14 am

Aesma wrote:
If by money you mean fiat money, yes. Of course for some people holding crypto is actually better, and they might sell on a day to day basis to cover costs and nothing else.

You do know that crypto is a fiat currency, yes?

To me you are like a snake oil salesman. Selling something of no real value, that has at best placebo value, to people that don't know better and in turn will at best sell it to others and somewhere someone will lose it all.

Seriously how will this ever be a real currency? I think this is a ponzi scheme type investment that you are deluding yourself is OK only because it makes you money and that is all you care about.

Tugg
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Aesma
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 21, 2018 2:06 am

I'm not selling any face to face to anybody, I don't recommend it to friends, family or colleagues, I use exchange websites. A very small amount of searching will lead anyone to realize that this is quite risky. Just looking at the charts on the exchange will do that.
New Technology is the name we give to stuff that doesn't work yet. Douglas Adams
 
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Tugger
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 21, 2018 3:12 am

Aesma wrote:
I'm not selling any face to face to anybody, I don't recommend it to friends, family or colleagues, I use exchange websites. A very small amount of searching will lead anyone to realize that this is quite risky. Just looking at the charts on the exchange will do that.

So... snake oil.

But having read so many of your posts where social responsibility and being socially responsible is highly important I am just surprised. OK I do understand that making money is the important thing. They aren't people you know (https://www.youtube.com/watch?v=PLsMgho ... u.be&t=366). I can't deny that I would probably do it too. Seriously I wish I had bought when I was looking at it in 2015 (for just around $250... but it was $250 for...?).

Tugg
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DLFREEBIRD
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 21, 2018 3:56 am

Tugger wrote:
The thing most people don't seem to understand is that what is happening right now is making crypto-currency worthless. It is not and cannot be what it is specifically stated and designed to be: a currency.

Currency must be stable day in and day out, year after year, to be of any use. If it is not then no one can use it. They won't use because it is worth too much (might be worth more tomorrow) and on the flip side when the current trend reverse (as it has recently) people and retailers won't accept it because it won't be worth the value needed (and it might be worth less tomorrow).

Right now crypto-currency is just a collectors item that people want hoping it will be worth more tomorrow. (Those that had it more than a year ago, fine they may have value but they need to sell it to get it. Like a valuable baseball card, some got lucky).

So I don't see the current batch of crypto's going anywhere, whatever may come next may have a chance if they are stable (but they won't be "investments" for most people).

Tugg


what you wrote could be said about Gold, it's certainly not stable.
 
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Francoflier
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 21, 2018 4:13 am

DLFREEBIRD wrote:
what you wrote could be said about Gold, it's certainly not stable.


Gold is tangible, and there is only one gold atom.

I get your point that gold's value as an investment tool is mostly based on global faith that it does indeed hold value, but at least it does have real world applications and is a physical object. In a way, since many countries hold gold reserves and because it actually exists as an object, some could argue that it holds more value than a fiat currency which value is only based on the assurance that the government or entity backing them will guarantee its value...

But the problem with crypto is that not only is there nothing backing them, but you can also create an infinite amount of crypto currencies. Anybody can create their own, in fact.
What exactly, then, makes one more valuable than the other, other than fame and speculation?
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Kiwirob
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 21, 2018 9:13 am

I’m looking forward to crypto currencies being made illegal, it’s nothing more than a Ponzi scheme.
 
Draken21fx
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 21, 2018 2:56 pm

Francoflier wrote:
DLFREEBIRD wrote:
....

But the problem with fiat money is that not only is there nothing backing them, but you can also create an infinite amount of USD/Euro/GBP. Any country can create their own, in fact.
What exactly, then, makes one more valuable than the other, other than fame and speculation?


Just used your sentence and amended the bold parts :D Hope you dont mind...


Kiwirob wrote:
I’m looking forward to crypto currencies being made illegal, it’s nothing more than a Ponzi scheme.


As anything in our current financial system...futures, swaps, loans etc etc

In regards to anything getting banned listen to the short video below

https://www.youtube.com/watch?v=LIQkuF_I5Xo

We are lucky enough to be living in a modern society where fiat money still has some value... It would be very interesting asking ppl residing in places like Zimbabwe or Venezuela if they prefer cryptos to their own fiat money. And in reality we do not need to go too far... Greeks can only withdraw 840 Euro, of their own money, every two weeks as an example... For some ppl cryptos might be survival instead of an investment.
 
dc10lover
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 21, 2018 3:35 pm

The other day the IRS was in Wenatchee Washington. But the news never mentioned about the Bitcoin Mining Operations. The Feds don't like "competition" to their Fiat currency. What came to mind is the Feds really want them shut down or to actually own the Bitcoin Mining Operations in Wenatchee.
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Tugger
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 21, 2018 5:31 pm

DLFREEBIRD wrote:
Tugger wrote:
The thing most people don't seem to understand is that what is happening right now is making crypto-currency worthless. It is not and cannot be what it is specifically stated and designed to be: a currency.

Currency must be stable day in and day out, year after year, to be of any use. If it is not then no one can use it. They won't use because it is worth too much (might be worth more tomorrow) and on the flip side when the current trend reverse (as it has recently) people and retailers won't accept it because it won't be worth the value needed (and it might be worth less tomorrow).

Right now crypto-currency is just a collectors item that people want hoping it will be worth more tomorrow. (Those that had it more than a year ago, fine they may have value but they need to sell it to get it. Like a valuable baseball card, some got lucky).

So I don't see the current batch of crypto's going anywhere, whatever may come next may have a chance if they are stable (but they won't be "investments" for most people).

Tugg


what you wrote could be said about Gold, it's certainly not stable.

Because gold is an investment currency now. The value depends on how other people feel their currency is doing, the buy gold as a guard and will sell it based on that, in addition to selling if the value starts dropping too much. That creates a lot of flux as people jump in and dump out of gold.

With crypto-currencies I still keep coming back to the fact that in their current iteration, right now, they are not money, they are not and cannot function as a currency at all. They are a get rich quick scheme, people "mine" them only to make money, not to use to buy things. As I stated above a currency must be stable to be useful and be used as such. And crypto's now are really, as Kiwi noted, just a ponzi scheme needing others to pile in and buy them so those that have them can sell them for more. And once that stops (because a real cryto-currency comes along - likely backed by a current national currency) all the current batch will crash and those left holding them will lose it all.

Tugg
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dtw2hyd
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 21, 2018 8:34 pm

Draken21fx wrote:
As anything in our current financial system...futures, swaps, loans etc etc.


Correct, but currency doesn't grow by itself. It has to be invested to produce something (or) loaned to someone to get an yield, correct?

Right now everyone hoarding their cryptocurrencies, yet it is growing. That doesn't happen to money under the mattress.

What am I missing? If this is speculation about imaginary currency futures, Enron was an imaginary stock exchange about a real commodity. Didn't go really well, did it?
 
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Aesma
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sun Jan 21, 2018 10:50 pm

Dollars are being printed, Euros are being printed, yet their value relative to each other moves, with no relationship to that printing. Instead people see more value in holding Euros than Dollars, so the Euro goes up.

About social responsibility, well capital gain taxes here are 30% and should apply to crypto (it's not decided yet). 30% is down from a lot more, as before it was double taxed (specific taxes, and income tax), up to 75%.

I have not yet paid any taxes but I will soon, as I realized some gains last year.

You can buy some stuff with crypto, maybe I wasn't clear upthread but I bought miners directly in crypto, without converting. Crypto I hadn't bought, as it was BCH I got free when BTC forked.

When I started things were much smaller, it wasn't about getting rich for me, I didn't imagine it or I would actually be rich now, I found the concept interesting, I had used my computers to the SETI@home program for more than a decade, I was a computer geek, it was only natural to install some software and mine crypto.

I agree that people who can't afford to lose money shouldn't invest in crypto or should get out when they can, however that's somewhat true for the stock market too, yet many people are heavily invested in it, sometimes without even a choice, and will suffer when it crashes. If companies or individuals have pushed them to these risky investments, I'm all for investigations and prosecutions, but at the end of the day personal responsibility has to play a role. My views on social responsibility don't clash with this, on the contrary, I believe the state should take care of people who need help, through things like free health care, but I also believe the state should let us try and fail. That's why I'm a big fan of our current president Emmanuel Macron.
New Technology is the name we give to stuff that doesn't work yet. Douglas Adams
 
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Tugger
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Mon Jan 22, 2018 12:17 am

Aesma wrote:
people who can't afford to lose money shouldn't invest in crypto

This to me is my entire issue with it in a nutshell.

This isn't an "investment" or at least it is not supposed to be. It's supposed to be a currency. Anyone should be able to buy it and not worry. That is not the case right now. So that makes them useless. And the idea that any state of significance... lets just say ... China, will allow crypto to run in their economy unchecked and uncontrolled is just a... well it's not even a a fantasy: It won't happen, it will not be allowed. Controls will be required, guarantees will be made by world States for their own crypto and then it will move from there. There is no way China will allow a currency that is not under their supervision to have any significance in their economy. And on the flip side, the EU will not allow a currency that can cause injury and damage to their citizens, their consumers, to operate. They will both apply controls that will regulate and control crypto. And whatever is out there now will either adapt and die (fade into irrelevance) or just outright die.

Hell a universal money market fund that you spend to and from would be a better and smarter and more stable currency platform.

As to what some say about the money they made and are making on this. I get the idea that fluke can occur and make one wealthy, that happens often enough. But then the other things that happens often enough is once someone has wealth they want more and how they made it fades from relevance. That one is now investing more to make more crypto and enrich themselves shows they are now on normal side of wealth. They have it and any harm caused isn't their fault.

And I am thinking about investing in some miners (need to see where it will be most effective) but I realize that someone after me is going to get hurt if it is based on what is currently out there. But as they say: there is a sucker born every minute (hence why I am evaluating of this can be done such that I am not that sucker.)


Tugg
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Francoflier
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Mon Jan 22, 2018 3:42 am

Draken21fx wrote:
Just used your sentence and amended the bold parts Hope you dont mind...


Well, I do, because that's not true.

Any country can and generally does create its own currency system, but first of all, there is generally only one currency in said country, and there is not an infinity of countries.
Secondly, each of these countries represents an economic system which encompasses the lives of millions of people doing trades on a daily basis using that currency.

The examples of Zimbabwe, Venezuela and Greece that you gave are actually excellent points toward the fact that fiat currencies are indeed based on something measurable, i.e. the economic health of the system they are used in. Venezuela and Zimbabwe's respective 'governments' went ahead and decided to destroy their country's economies through methodical application of senseless policies and vast amounts of corruption and embezzlement. The result was the collapse of their currencies.
Countries which enjoy more stable economies do not suffer from the same issue. I can't really see the Euro or the USD suddenly losing all of their value for as long as the European and US economies stay reasonably healthy. So indeed you have proved that there is something very concrete buoying and maintaining these currencies, as opposed to cryptochains.

Thanks for proving my point, I guess. :wink2:
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tommy1808
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Mon Jan 22, 2018 10:27 am

Kiwirob wrote:
I’m looking forward to crypto currencies being made illegal, it’s nothing more than a Ponzi scheme.


just as much as any other currency....

best regards
Thomas
This Singature is a safe space......
 
dtw2hyd
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Mon Jan 22, 2018 12:19 pm

tommy1808 wrote:
Kiwirob wrote:
I’m looking forward to crypto currencies being made illegal, it’s nothing more than a Ponzi scheme.


just as much as any other currency....

best regards
Thomas


Except paper currency schemes are run by governments. Now anyone attended Blockchain 101 is a currency creator.
 
dc10lover
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Thu Jan 25, 2018 7:30 am

All Fiat Currencies collapse - all of them. Interesting though, several years ago in The Economist Magazine, it mentions "2018 a new Currency". The Federal Reserve even knows it's a Fiat Currency. If it was backed by the Gold standard, then we wouldn't be in this mess. But then we still would be $21 Trillion+ in debt.
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tommy1808
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Thu Jan 25, 2018 7:48 am

dc10lover wrote:
If it was backed by the Gold standard, then we wouldn't be in this mess. But then we still would be $21 Trillion+ in debt.


In the process you´d ruin much of the Economy since gold prices would be orders of magnitudes higher and Gold is not just pretty, it is also a resource.

A gold Standard wouldn´t be practical these days ....

And historically a room full of cigarettes gives you much better return on investment than gold, that in a real crisis may not buy you much more than paper money.

best regards
Thomas
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Aesma
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Thu Jan 25, 2018 8:06 am

Tugger wrote:
This isn't an "investment" or at least it is not supposed to be. It's supposed to be a currency. Anyone should be able to buy it and not worry.


What it's supposed to be is one thing, what it is currently has a reason for being that way : people don't trust governments. If governments attack cryptos, like China is indeed doing, it's only reinforcing that POV. Bitcoin is not ideal to circumvent such ban, but cryptos like Monero, untraceable, or newer ones based on the Tor network, will prove difficult to control.

I took my fiat out so I'm not worrying about the value of my crypto.

All that fiat on my bank accounts is something else.
New Technology is the name we give to stuff that doesn't work yet. Douglas Adams
 
PPVRA
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Thu Jan 25, 2018 1:52 pm

Francoflier wrote:
DLFREEBIRD wrote:
what you wrote could be said about Gold, it's certainly not stable.

But the problem with crypto is that not only is there nothing backing them, but you can also create an infinite amount of crypto currencies. Anybody can create their own, in fact.
What exactly, then, makes one more valuable than the other, other than fame and speculation?


The reason bitcoin has value is because people trust the coded policies and security. This isn’t any different than people’s trust of the Dollar and the Euro versus the total lack of trust on Venezuela and Zimbabwe policies.

And while there is a limited number of countries, there isn’t a limited number of fiat while places like Venezuela and Zimbabwe are still around. Yet, this fact has no bearing on the price and stability of the Euro or Dollar or the myriad of other currencies.

Additionally, cryptocurrncies have numerous uses beyond merely currency. So it’s not correct to say ‘at least gold has some other uses’ and bitcoin does not.

Cryptocurrencies are still highly experimental. People don’t fully trust them yet, and for good reason. This makes them unstable and not yet suitable as currencies for most of the planet, particularly Europeans and Americans who enjoy a stable monetary and banking system.

As to those who think this is a Ponzi scheme.... burden of proof is on you to prove it. Bitcoin is open source meaning its code is available for all to review. If it was fraud, people would know about it and the whole experiment would disappear overnight.
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
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Tugger
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Thu Jan 25, 2018 2:43 pm

Aesma wrote:
Tugger wrote:
This isn't an "investment" or at least it is not supposed to be. It's supposed to be a currency. Anyone should be able to buy it and not worry.


What it's supposed to be is one thing, what it is currently has a reason for being that way : people don't trust governments. If governments attack cryptos, like China is indeed doing, it's only reinforcing that POV. Bitcoin is not ideal to circumvent such ban, but cryptos like Monero, untraceable, or newer ones based on the Tor network, will prove difficult to control.

I took my fiat out so I'm not worrying about the value of my crypto.

All that fiat on my bank accounts is something else.

Crypto has one reason that I believe it will ultimately succeed (someday), and that is: Crime and illegal activities need a way to transact that can't be traced or can be anonymous.

Tugg
I don’t know that I am unafraid to be myself, but it is hard to be somebody else. -W. Shatner
 
PPVRA
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Thu Jan 25, 2018 4:12 pm

Tugger wrote:
Aesma wrote:
Tugger wrote:
This isn't an "investment" or at least it is not supposed to be. It's supposed to be a currency. Anyone should be able to buy it and not worry.


What it's supposed to be is one thing, what it is currently has a reason for being that way : people don't trust governments. If governments attack cryptos, like China is indeed doing, it's only reinforcing that POV. Bitcoin is not ideal to circumvent such ban, but cryptos like Monero, untraceable, or newer ones based on the Tor network, will prove difficult to control.

I took my fiat out so I'm not worrying about the value of my crypto.

All that fiat on my bank accounts is something else.

Crypto has one reason that I believe it will ultimately succeed (someday), and that is: Crime and illegal activities need a way to transact that can't be traced or can be anonymous.

Tugg


Bitcoin isn’t anonymous. All transactions are recorded in a public ledger, viewable by all including law enforcement. It is highly traceable.

Bitcoin is pseudonimous.
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
dtw2hyd
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Thu Jan 25, 2018 4:26 pm

PPVRA wrote:
The reason bitcoin has value is because people trust the coded policies and security. This isn’t any different than people’s trust of the Dollar and the Euro versus the total lack of trust on Venezuela and Zimbabwe policies.
.....
As to those who think this is a Ponzi scheme.... burden of proof is on you to prove it. Bitcoin is open source meaning its code is available for all to review. If it was fraud, people would know about it and the whole experiment would disappear overnight.


I concur with you about its virtues as a highly secured public ledger, eliminate middlemen like banks or even central banks.

I don't believe it is safe to have a currency without cross-border restrictions.

The suspicion of Ponzi scheme originates from pure speculation dependent exponential growth.
 
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Tugger
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Thu Jan 25, 2018 6:47 pm

PPVRA wrote:
Bitcoin isn’t anonymous. All transactions are recorded in a public ledger, viewable by all including law enforcement. It is highly traceable.

Bitcoin is pseudonimous.

Nitpick, but an accurate nitpick I guess. So criminals then use it why exactly? The key issue is, as you note, the anonymity of the actor behind the transaction. Tracing tracing the transaction is one thing, not being able to trace the person is what is important. I do actually understand the blockchain process and the exceedingly public aspect of it.

Tugg
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PPVRA
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Fri Jan 26, 2018 9:16 pm

Tugger wrote:
PPVRA wrote:
Bitcoin isn’t anonymous. All transactions are recorded in a public ledger, viewable by all including law enforcement. It is highly traceable.

Bitcoin is pseudonimous.

Nitpick, but an accurate nitpick I guess. So criminals then use it why exactly? The key issue is, as you note, the anonymity of the actor behind the transaction. Tracing tracing the transaction is one thing, not being able to trace the person is what is important. I do actually understand the blockchain process and the exceedingly public aspect of it.

Tugg


Because it’s new and a lot of law enforcement just doesn’t understand the Blockchain—yet. Criminals have been caught aready. Meta data analysis can narrow down inidividuals, known criminal wallets can be flagged and tracked where the money is spent/acquired.

There are a number of companies that provide blockchain analysis as services, including to law enforcement. I would expect law enforcement to build its own capabilities up overtime.

Edit: checkout blockchainalliance.org
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
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Aesma
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Re: Bitcoin Mining Boom Hits Small Town In Washington State

Sat Jan 27, 2018 3:29 pm

There are other coins more suited for criminal use right now.

Well depending on what you mean by "criminal" exactly, for example one major use of Bitcoin is for Chinese citizens to get money out of the country, or to shield themselves from the manipulation of the RMB by the government, I'm sure the latter consider them criminals.
New Technology is the name we give to stuff that doesn't work yet. Douglas Adams

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