Bitcoin cracks US$100

[Critter]

up to 214$ now!

 

[powerrobbie]

Once all 21 million coins are produced each coin will be worth 10's of thousands of dollars if not more. I don't understand how people aren't getting this. There are only going to be 21 coins produced, after that IT IS IMPOSSIBLE TO MAKE OR CREATE "FAKE" COINS The idea of capping the coins at 21 million completely reduces and risk of inflation/deflation. Once all the coins are produced they are going to have to be worth at least 10's of thousands each because so many people will be using them. If you want to buy something that is worth $10 bucks but the coin is worth 10 grand then you simply pay 0.00000000000001 (just an example, not accurate) of a coin If the people here did 30 minutes of research instead of just laughing at people posting facts they would understand. I know 3 people that have literally gotten RICH like real RICH because they bought these coins when they were worth 4 cents, they have been slowly cashing them out but only when the need the money because the know the longer they hold them, the more they will be worth. These people will literally be millionaries from a thousand dollar investment....keep laughing. Investing in gold takes years to make fuck all of a profit, if you want to invest in something that may be risking your money bitcoins is where its at, because even if it crashed IT HAS TO GO BACK UP. Do some reading guys....

 

[foaf]

someone can set up a "BitcoinB" and it can have the same structure as bitcoins but just a different encryption seed or whatever. then what? sure there is a first adopter effect, but that will wane over time.

I think that bitcoins only real value is that they are, and probably always will be, a great tool for making clandestine or mostly untraceable internet transactions. But, if other methods of briefly converting cash to bytes and back become available, then they won't be so unique. BitcoinB Ill call it.

I love bitcoins right now, the 10 coins I left in my silkroad account last year just bought me almost a full sheet of sweet lsd, tried it last weekent and it was well over 100 mics per .

 

[Mt Toker]

foaf, they have em already, litecoin is going to have 4x as many bitcoins, ie. 84 million mined.

Also, architect, you think if there is economic collapse that paper money will be worth anything? unless you are buying REAL money with it, like gold or silver, your paper money will be just as worthless if something like that happens.

 

[c-ray]

I introduced my dad to bitcoins recently, he is a bit of an armchair trader, and he was confused, he asked what are bitcoins backed by? I said like all existing fiat currencies on the surface it is backed by nothing, but in reality it is backed by people..

here's an interesting article:

from http://falkvinge.net/2013/03/06/the...s-not-some-50-or-100-it-is-100000-to-1000000/

The Target Value For Bitcoin Is Not Some $50 or $100. It Is $100,000 to $1,000,000

Bitcoin’s value is at an all-time high again. Following the hype peak and crash in 2011, many seemed to have thought it was just another dotcom fluke. But bitcoin was much more than that, and it has returned with a vengeance – its market cap is now twice what it was in the 2011 peak, and it is nowhere near its potential, which is four orders of magnitude above today’s value.

In this, a lot of people are confused at the fact that bitcoin has climbed 200% since the start of this year alone, and wonder what to make of it. It is currently at $41.50 and climbing fast, and I see a lot of people just looking at the numbers and guessing from charts how things will pan out.

I am seeing guesses of $50, $100, $150, even $1,000. These numbers seem pulled out of thin air from just looking at the charts – nobody seems to have done due diligence from the other direction, from the most fundamental observation of all:

Bitcoin is a transactional currency. As such, it is competing for market share on the transactional currency market.

Talking about bitcoin value is not about happily watching numbers go up and down while having popcorn. This is about identifying a global market, looking at its size and estimating a target market share based on the strengths and weaknesses of the competing product or service under analysis.

When you know the size of the target market, and have an estimate for your projected market share, you can estimate the value of your product or service as a percentage of the value of the total market. I haven’t seen anybody do that for bitcoin.

The total size of the transactional currency market is hard to estimate, but has been pegged at about $60 trillion (the amount of money in circulation worldwide). Seeing how this number is roughly on par with the world’s GDP, it is a reasonable enough number to be in the right ballpark. Based on my four earlier estimates (one, two, three, four), I think it is reasonable that bitcoin captures a 1% to 10% market share of this market.

The low end of 1% would be if it captures international and internet trade. The 10% would be if bitcoin also manages to capture some brick-and-mortar retail trade, which we are already seeing strong signs that it might – operations provide a 3% to 5% extra profit margin on sales when you can cut out the credit card processors, so the incentive to switch is immense: those 3% to 5% cost savings translate to 50% to 100% increased profits, as margins are typically very slim in retail.

Furthermore, some people will undoubtedly invest in bitcoin and keep their portion of bitcoin away from the transactional pool, like all people tend to hoard money if they are able. This decreases the amount of bitcoin that must fulfill the market share, further driving up value for each individual bitcoin. As a rough estimate, let’s assume that only one in four bitcoins is actually used in transactions, and the rest are in some kind of savings or investment plans.

This leads us to a target market cap of 600 billion to 6 trillion USD, to be fulfilled by about 6 million bitcoin, which makes for easy calculations. That means that each bitcoin would be worth $100,000 at the low market cap and $1,000,000 at the high market cap.

In the light of this, present-day projections of $100 that present themselves as “daring and optimistic” actually come across as rather shortsighted and almost dealing with peanuts.

So is the projected market share realistic? Bitcoin certainly has hurdles to overcome – scalability and usability being two of them – but it has done remarkably well in maturing in the two years since I started looking at it. My prediction of a mainstream breakthrough around the year 2019 remains, and it still depends on getting mainstream usability; a target market cap may be reached about a decade after that happens, as a technology typically takes ten years from mainstream breakthrough to maturity.

Now, there are definitely uncertainties in this projection and its assumptions – but it does indicate what kind of ballpark we are talking about.

 

[Mt Toker]

Cray, how credible is that site? I've never heard of it.

 

[FlowerFarmer]

Nothing is written in stone. Nothing is guaranteed to stay. Bitcoin hasn't even shown to be a solid alternative currency due to all of the recent speculation.. making it act much like a high priced commodity rather then a currency.

"Making" fake bitcoins is a simple as a new digital currency making ground and people gaining confidence in that currency (call it "digicash" or what have you), rather then bitcoin.


Who is to say there will not be competing decentralized digital currency that pops up and becomes the leading P2P payment network. Maybe another decentralized currency which appeals more to the non-savy masses. If bitcoin is capped, and deflation is built in.... who's to say that once/if we reach ridiculously bitcoin levels there wont be a sell-off as new alternatives become available and people hop on that move to speculate in a ground floor decentralized digital currency that hasn't reached such magnitude.

There are lots of "new money experiments" which could just as easily take the place of bitcoin.

That is essentially what bitcoin is opening the doors for. Changing people's idea of what money really is, or what money can be. The government knows this.. and they are watching. Don't kid yourself.. they do have the power to crash bitcoin if they choose to go to such extreme.


The US gov. could just as easily cause a major correction in bitcoin's value by banning the conversion of USD to bitcoin or vice versus, or making such transactions illegal. How will you get your bitcoins back into spendable USD if such exchanges are outlawed by the world's reserve currency money makers. This is entirely plausible, but at the moment I think they are just rather watching and collecting the sediment of the masses. As stated before.. this is a massive test in there eye's in people's ideology of currency/money. If at whatever point they feel that it is a major threat to their paper ponzi scheme you'll see restrictive forces put forth effort to make bitcoin very unappealing.


Competing currencies is good. The future might have a whole slew of decentralized digital currencies that people can transact in. Bitcoin may be a leading player, or it may fall to the wayside.


NOBODY KNOWS

 

[TheArchitect]

Also, architect, you think if there is economic collapse that paper money will be worth anything? unless you are buying REAL money with it, like gold or silver, your paper money will be just as worthless if something like that happens.

It absolutely will be. It will be scarcity, coupled with decades of conditioning to accept paper dollars as real money that makes that so.

Paper, at least in America, will be more valuable than gold in most situations. In third world countries and eastern/Asian countries gold and metals will be far more popular.

Think of it like this, to control inflation and bank runs, capital controls will be put in place. Due to the electronic nature of most peoples wealth, it's not really that hard for the gov to lock accounts and impose a withdrawal limit or give your account a haircut or both(see Cyprus).

Now, how do you operate on a day to day basis if you have no or limited access to your money(not really yours. You loaned it to the bank)?

Because of the scarcity of cash, the in place infrastructure that facilitates the use of cash, and the ingrained faith in the paper bill, at least for a while initially, cash will be king.


I absolutely advocate a healthy investment/collapse hedge in gold and silver, also in physical form. Lead too.

 

[chefboy6969]

If you guys want to know what will be worth lots of money, WE ARE ALL involved in the right industry...Cannabis...IF there is a collapse and paper money becomes worthless..and stocks fall and you can't eat GOLD BARS, guess what

MARIJUANA IS A COMMODITY and IT WILL BE WORTH A LOT..MORE THAN IT IS NOW..A LOT MORE..

When there is despair and low morale and suffering, humans like to escape reality...Marijuana mark my words will be a very very valuable commodity...that's why i collect seeds..So I am prepared
This Bitcoin stuff is funny, like gold, like Apple stock, like Google stock, it's all a GAMBLE

peace
Chefboy

 

[irishdude5186]

This is crazy, I put 100e in it a year ago when I was going to purchase something special, but then I couldnt anymore so I left it there... I dont even want to tell you how much it is worth RIGHT NOW :O Jaw dropped

 

[irishdude5186]

If you guys want to know what will be worth lots of money, WE ARE ALL involved in the right industry...Cannabis...IF there is a collapse and paper money becomes worthless..and stocks fall and you can't eat GOLD BARS, guess what

MARIJUANA IS A COMMODITY and IT WILL BE WORTH A LOT..MORE THAN IT IS NOW..A LOT MORE..

When there is despair and low morale and suffering, humans like to escape reality...Marijuana mark my words will be a very very valuable commodity...that's why i collect seeds..So I am prepared
This Bitcoin stuff is funny, like gold, like Apple stock, like Google stock, it's all a GAMBLE

peace
Chefboy

Its all about timing it right and getting in to a good upward rising stock, like apple and google were great investments at a time.

 

[chefboy6969]

if someone NOT me lol( i wish) bought 100 bitcoins at 9 dollars an initial invest of $900.00
that if you sold today would be worth approx $24,000....WOW

that's big money for a small investment

Crazy

peace
Chefboy

 

[chefboy6969]

Green Supreme, that was directed at you because you said you bought in at $9.00..and i am assuming you didn't just buy 1 Bitcoin, LOL

I would be watching very closely if i owned any bitcoins, because you could go to sleep thinking your a rich man and then poof, you're not

Not saying i would be selling YET, but soon

gotta watch it close

Honestly i am just very interested in something as a concept of an online currency..Today boy HACKERS are working hard LOL


peace
Chefboy

 

[chefboy6969]

a very cool vid that explains it all...and how it's not the new Gold but the concept is the new way of looking at how currency is used..

http://www.theatlantic.com/business/archive/2013/04/this-trippy-video-explains-bitcoin-in-under-4-minutes/274814/


peace
Chefboy

 

[FlowerFarmer]

I'm not familiar with the bitcoin exchanges, but are there accounts/exchanges which allow you to set stop losses?

If the value of bitcoins starts to tank it'd be automatically liquidated so that you don't wake up and find all of your new found bitcoin wealth drastically slashed.

 

[c-ray]

a bitcoin not spent is worthless

(future chinese proverb)

 

[SpasticGramps]

BitCrash?

Down 50% and dumping on heavy volume.

Everybody who got to the party late just got their faces ripped off.

Definitely more of a trade than a currency at this point.

 

[FlowerFarmer]

...and.... POP!

BTC dropped from 266 to ~140 and still falling.

From what I'm reading on trading websites is that people are having a hard time selling their coins because the confirmation for transactions havent gone through yet, some delayed as much as 6 hours.

Kinda hard to bail from a sinking ship when you gotta give 6 hours notice.

This is still a lesson to many, and a phenomena that will be read and talked about for decades. Very interesting.. been following this like a hawk.

 

[FlowerFarmer]

..and don't anyone go buying the dead cat bounce. Best to leave that falling knife alone.

 

[Critter]

The bitcoin market has done this many times although never at this high of price. Things will level off and continue to make slow gains imo. And then it will happen again with a higher high