Bitcoins

[Herr Tubthumper]

http://blockchain.info/

https://www.mtgox.com/

https://localbitcoins.com/

http://bitcoinkiez.wordpress.com/

 

[Hamilton]

There are number of businesses which accept them here, so I am going to buy some and see how it all works. I have been given some email address of sites where I can buy them, and also details of somewhere I can go and buy them in person plus a website of businesses willing to take them. I am clueless as well though.

I'll hold your coat. Keep us posted.

 

[Herr Tubthumper]

http://www.theguardian.com/technology/2013/aug/19/bitcoin-unit-of-account-germany

The Bitcoin is now recognised by the German authorities as a unit of account.

 

[AZ Gull]

New York banking regulators are trying to figure out whether new regulations might be required for operators in the bitcoin "industry":-

Lawmakers, Banking Regulators Take on Bitcoin

New York subpoenas Bitcoin firms while weighing regulations

 

[jgmcdee]

Personally, I think it's all a load of cobblers.

I've tried to understand it and keep coming up with questions. If it seems like hogwash, it is hogwash.

Not understanding it and it being hogwash are slightly different things. Any particular questions you have on it?

 

[Colossal Squid]

I thought it was just used to buy illegal drugs online through Silk Road.

http://www.theguardian.com/world/2013/mar/22/silk-road-online-drug-marketplace

I had no idea it was exploding in popularity for other transactions

 

[Herr Tubthumper]

I thought it was just used to buy illegal drugs online through Silk Road.

http://www.theguardian.com/world/2013/mar/22/silk-road-online-drug-marketplace

I had no idea it was exploding in popularity for other transactions

It seems to be growing quite rapidly. I did try and buy some but I found the website too difficult to understand. There is a face-2-face place here in Berlin which I'm going to visit when I have some time and buy some over the counter so to speak.

 

[Colossal Squid]

It seems to be growing quite rapidly. I did try and buy some but I found the website too difficult to understand. There is a face-2-face place here in Berlin which I'm going to visit when I have some time and buy some over the counter so to speak.

If you buy over a counter, what do you actually get in return?

 

[jgmcdee]

If you buy over a counter, what do you actually get in return?

Although it doesn't hold up totally, think of Bitcoin as virtual gold. Worthless in terms of intrinsic value but having a current market value (about £75 at the moment). Your bitcoins are nothing more than an entry in a ledger, stating that person a passed b bitcoins to person c. You also hold (somewhere safe) a key related to that entry in the ledger which allows you to prove that you are indeed the person to whom the bitcoins were transferred.

At some stage in the future you want to spend the bitcoins: you write a new entry in the ledger stating that you are passing d bitcoins to person e. Because this, and every, entry in the ledger, is public you cannot then spend the same bitcoins again. And so it goes.

As to what you obtain for your bitcoins: that's totally down to you and whomever you're trading with. Just the same as real gold, or indeed money.

 

[Titanic]

Not understanding it and it being hogwash are slightly different things. Any particular questions you have on it?

I can use plenty of other acceptable currencies and means of payment both online and in traditional transactions. So what is the point of it?

 

[Herr Tubthumper]

Although it doesn't hold up totally, think of Bitcoin as virtual gold. Worthless in terms of intrinsic value but having a current market value (about £75 at the moment). Your bitcoins are nothing more than an entry in a ledger, stating that person a passed b bitcoins to person c. You also hold (somewhere safe) a key related to that entry in the ledger which allows you to prove that you are indeed the person to whom the bitcoins were transferred.

At some stage in the future you want to spend the bitcoins: you write a new entry in the ledger stating that you are passing d bitcoins to person e. Because this, and every, entry in the ledger, is public you cannot then spend the same bitcoins again. And so it goes.

As to what you obtain for your bitcoins: that's totally down to you and whomever you're trading with. Just the same as real gold, or indeed money.

See, told you it's difficult to understand

 

[Herr Tubthumper]

I can use plenty of other acceptable currencies and means of payment both online and in traditional transactions. So what is the point of it?

The point is, you now have one more currency you can use.

 

[Titanic]

The point is, you now have one more currency you can use.

Thank you. Not sure why I would bother. Is there any advantage for me in using it?

 

[Herr Tubthumper]

I can use plenty of other acceptable currencies and means of payment both online and in traditional transactions. So what is the point of it?

One of the attractions for me is the peer-2-peer nature of it ie it does away with banks. I've started using peer-2-peer for currency conversion and I get a much better rate than the banks and ForEx places.

 

[jgmcdee]

Thank you. Not sure why I would bother. Is there any advantage for me in using it?

Global currency - no conversion fees going from one local currency to another.
Distributed - no single entity able to control it and decide if you are allowed to spend/receive your funds.
Fixed amount - no ability for anyone to go out there and print more.
Irrevocable - once a transaction is confirmed it cannot be rescinded

There are more, but those are the ones which are most useful to people out there.

 

[Herr Tubthumper]

Thank you. Not sure why I would bother. Is there any advantage for me in using it?

I'm not totally sure of the benefits for the public just yet to be honest. As it gets more wide spread I presume products will become cheaper as banks won't be involved as much. Time will tell. I will report back when I have got some and used them.

 

[Titanic]

Global currency - no conversion fees going from one local currency to another.
Distributed - no single entity able to control it and decide if you are allowed to spend/receive your funds.
Fixed amount - no ability for anyone to go out there and print more.
Irrevocable - once a transaction is confirmed it cannot be rescinded

There are more, but those are the ones which are most useful to people out there.

I can only see the first of those as an advantage to me - the other three seem totally irrelevant.

And even for the 'global' currency, I will need to convert GBP into Bitcoins (or how else will I accumulate them?) and that exchange rate will dictate whether it is worthwhile or not.

 

[Herr Tubthumper]

I can only see the first of those as an advantage to me - the other three seem totally irrelevant.

And even for the 'global' currency, I will need to convert GBP into Bitcoins (or how else will I accumulate them?) and that exchange rate will dictate whether it is worthwhile or not.

But you will get a better/more pure exchange rate as there will not be a banking fee... similar to what I get with peer-2-peer.

 

[Justice]

you can now trade bitcoin as yoou would any other commodity.

 

[Herr Tubthumper]

I can only see the first of those as an advantage to me - the other three seem totally irrelevant.

And even for the 'global' currency, I will need to convert GBP into Bitcoins (or how else will I accumulate them?) and that exchange rate will dictate whether it is worthwhile or not.

A number of businesses here are now using Bitcoins. I will ask them what's in it for them if I get a chance.