bitcoin's going up

Perhaps reading this article will enlighten some people to the woes of imaginary currencies:
http://nerdr.com/bitcoin-exchange-scam-bitcoins-are-worthless/

It may also be worth looking at this chart with Bollinger Band overlays:
http://bitcoincharts.com/charts/mtgoxUSD#rg90ztgSzbgBza1gSMAzm1g20za2gSMAzm2g200zi1gVolzi2gBBWzv

A Bollinger Band in a traded item shows the volatility of it. When a stable security nears the top band, it corrects itself towards the bottom band, and vice versa.

As seen in the chart, the price of BTC has been riding the top band for months now. You can see that while the price increase exponentially, so does the volatility. While the top band curves to accommodate the price, the bottom band has stayed relatively stable. The wider the bands, the more volatile and susceptible to correction.

Naturally, expansion and growth in any traded item causes the bands to fluctuate with the pricing and the bands themselves are corrected. However, the kind of growth BTC has seen in a period of 1-2 months is something a stable security would experience in 1-2 years.

Continuously breaking the top band or riding it for months with only minuscule corrections is not mathematically sound or sustainable.

Given the aforementioned article as well, you'd be a fool to think the BTC won't eventually start heading toward that bottom band at $35.
 
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The superficial volatility of BTC over the short term is not an reasonable indicator of the value of Butcoin. I have suggested people look at it from the point of view of YEARS, not weeks or months, to get a true understanding of its potential. Compare April 2011 BTC to April 2013, and get back to me.

Besides, the internal dynamics of Bitcoin's progress has been absolutely stable, it only looks volatile from the outside to the short-termers and those not following the mining rate for bew BTCs built into the software program. As this blogger explains it:

"There is a curve that asymptotes to 21 million -- the maximum # of coins that can ever be 'found'. In an effort to produce more coins initially, they have a sliding scale built into the algorithm. The reward is 'halved' for every 210,000 blocks solved. We just hit that a couple months ago. The mining reward is now 25 instead of 50. So the same amount of work produces half as many coins now, through mining. And in a couple years, it will halve again -- and again....like 9 or 10 times.

This allowed many more coins to be produced at the onset -- to help spur more interest, and get 'coins' into circulation.

Nobody threw a switch to cause this to happen. It's built into the algorithm. After the next 210,000 blocks, it will adjust itself again -- and give only 12.5 coins for each solved block. Then 6.25, 3.125, etc., etc. The new coins will barely be trickling out as it gets close to the max 21,000,000th 'coin'.

I mine these things constantly. When I first started -- late in the game, for sure -- my video card was mining 0.12 or thereabouts per day. That's through proportional pool mining -- where everyone works together, and shares the profits. Now, that same video card can only produce 0.02 per day. And that's due primarily to a SECOND aspect to the bitcoin system -- the difficulty. The algorithm has a built-in difficulty level that adjusts itself automatically. As more and more people mine for bitcoins, bitcoins become more difficult to find. This is to keep the system producing a solved block about every 10 minutes, regardless of the # of people mining. From my point of view as a miner, I am making the same $'s as before. At $100ish/bitcoin today, I am making about $2 per day. And that's what I was making year or so ago when I was getting 0.12/day. And mining them hasn't made my electric bill go up $60/month, so I am making SOME profit from them. I doubt it can go too much lower than $2/day, or else the cost of the electricity would be more than the return on the coins.

And that's the counter-intuitive part of bitcoins -- more computer power doesn't exactly mean more reward -- it does at the micro level, but not on the macro. The system will always set the difficulty such that it solves a single block every 10 minutes on average -- no matter if 100x as many people start mining tomorrow. If the raw hashing power was to double between today and tomorrow, the difficulty will be adjusted to twice as difficult.

So the value of any particular bitcoin is based on multiple factors -- the current hash difficulty, the # of coins rewarded every 10 mins on average as a block is solved, and the # of bitcoins in circulation thus far. To ignore any one of these elements is to really not understand bitcoins."

http://whatreallyhappened.com/conte...-?aggressive-bubble?-behavior-socgen#comments
 
xmoreno said:
What bitcoin exchange for paypal?
Click to expand...

None, too easy to scam. The only place you can find people selling BTC for PayPal is eBay, and even then you need good feedback or they won't do business.
 
xmoreno said:
What bitcoin exchange for paypal?
Click to expand...
Only if you do it one-on-one with a person via Skype or such. Online bitcoins marketplaces like MTGox will not allow PayPal, Alertpay etc. They do allow Bank Transfer, WU, LR etc.

Luka
 
xmoreno said:
What bitcoin exchange for paypal?
Click to expand...

None, but you can exchange in two parts. Exchange PP for moneypak, then buy BTC with it. Or, buy LR through PP, and use the LR to buy BTC. Either way, you should swap PP for something non-reversible in order to then buy Bitcoin.
 
For all the haters saying BT bubble will burst at $100, current BT:USD price is hovering around $150. So, even if you invested in BT at the start of this message thread, you are definitely sitting pretty right now.

***EDIT*** If you guys are looking for a BT miner, check this one out:

http://item.taobao.com/item.htm?spm=2013.1.1000774.8.o3OWVA&id=21616280250

It would ship from China, so deal with it at your own risk. Just putting this out there for y'all to see.

Using a site I use to calculate stuff, running this machine 24 hours a day will earn you $31.08 per day. This rig uses 78W of power, which is nothing compared to some of the other rigs out there. The $ per day is calculated with the stats below:

Current Difficulty: 7672999.9201641

Hashrate: 1.6G (This rig's rate)

Current BT Price: $148 per 1 BT

Have fun. ;)
 
Last edited:
omg now 180 FUCK MAN

when it was 30$ i was saying, well i wont buy it because it will drop.

NOTE: The richest bitcoin wallet has 400k+ bitcoins so multiply that by 185 and you see that this guy is lucky.
 
Guys, don't waste your time with Butterfly labs. Most people in the BT chat forums say they are borderline scam at the moment. They have missed quite a few deadlines in the past, so, yeah, not a good investment option at all, regardless what their site says.

If you want to get into mining, and want to get a rig that is currently selling, check out the link that I posted earlier to see if it's something you can use.
 
these damn things jumped up $30 in the last 24hr :D
 
7672999.9201641 current difficulty

1600 Mhash/s via the rig I posted earlier

192.20USD per 1 BT (current value at the moment)

$40.36 per day earned, minus whatever power you use for running 78 watts for 24 hours per day
 
Well then. I did not realize how EASY it was to mine bitcoins even on a single gaming pc. YAY!~~~~

Question: How/where do I sell bitcoins? is it just paypal to coin address?
 
$180 today, last week at around the $100 mark, will the bubble burst soon?
 
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