Bitcoin exchange rate reached $100 USD per BTC • Hacker News Board

Re: Bitcoin exchange rate reached $100 USD per BTC

#371

Post by scott_karana » Mon, Apr 01, 2013, 8:28 PM UTC

baddox wrote: post #364

pg_bot wrote: post #279

Earlier quoted context omitted.

Deflation increases the value of holding cash. By definition deflation occurs when the price of a basket of goods decreases. Why invest your money in a basket of goods today when it is going to be cheaper to buy that same basket tomorrow?

Why buy a smartphone when next year's smartphone will be better in every way?

Deflation would refer to the value of the same good. Obviously new smartphones are pitched as "new, improved" goods, and marketing sways consumers to get the latest and greatest.

Not so for staples.

Re: Bitcoin exchange rate reached $100 USD per BTC

#372

Post by cadetzero » Mon, Apr 01, 2013, 8:28 PM UTC

knowaveragejoe wrote: post #192

cadetzero wrote: post #173

Earlier quoted context omitted.

I'm not really sure why you say it's so hard. You install the bitcoin wallet. You sell something for bitcoins, and you give them your private key address in your wallet. You receive bitcoins. You buy something with bitcoins else where, and you just hit send and specify an address. Simple as an account # + routing number. Now funding your wallet with fiat currency is a little harder, but Coinbase has mostly taken care…

Er, wouldn't you give out your public key to receive bitcoins?

Yes, correct. Typo.

Re: Bitcoin exchange rate reached $100 USD per BTC

#373

Post by dubcanada » Mon, Apr 01, 2013, 8:29 PM UTC

Excuse my lack of knowledge, but seeing as how one BTC is now worth $100. Is it possible to send someone half a bitcoin or 1/10th?

Or is it a single unit or nothing?

Re: Bitcoin exchange rate reached $100 USD per BTC

#374

Post by cadetzero » Mon, Apr 01, 2013, 8:29 PM UTC

DanBC wrote: post #338

cadetzero wrote: post #173

Earlier quoted context omitted.

I'm not really sure why you say it's so hard. You install the bitcoin wallet. You sell something for bitcoins, and you give them your private key address in your wallet. You receive bitcoins. You buy something with bitcoins else where, and you just hit send and specify an address. Simple as an account # + routing number. Now funding your wallet with fiat currency is a little harder, but Coinbase has mostly taken care…

That's not anonymous. Anonymity is one of the benefits of bitcoin, but it's tricky to do.

Your current banking transactions aren't anonymous either. It's a nice additional security layer for people that want it, but by no means is it required.

Re: Bitcoin exchange rate reached $100 USD per BTC

#375

Post by dragontamer » Mon, Apr 01, 2013, 8:30 PM UTC

bitcartel wrote: post #366

dragontamer wrote: post #268

Earlier quoted context omitted.

Gold is a piss poor investment. Owning Real Estate (and making money off of it) entails taking care of it. People taking care of their land (so that it can appreciate in value) is a good thing. The typical Real Estate "investor" adds a ton of value to their home, not just through maintenance, but also additions (ie: a new deck). This maintenance is true value added to the economy. True value that wouldn't have been a…

> Gold is a piss poor investment. Do you know something that the Chinese, Germans and Russians don't ? "Central Banks Bought Most Gold in Nearly 50 Years" http://www.cnbc.com/id/100458951 "The Russian central bank will continue to buy gold as it seeks to diversify its foreign reserves away from paper assets it views as risky" http://www.reuters.com/article/2013/01/24/russia-cbank-idUSL... "The startling news that Ger…

Did you read your articles?

Germans are bringing gold back into their own country, as opposed to holding it in other exchanges. They have neither increased nor decreased their supply.

China and India are world-class consumers of gold for jewelry, as expected of the world's most populous countries with a rising middle class. Gold is also used in microelectronic components. Chinese Banks on the other hand, have not increased their holdings according to your link. IE: China is not investing into Gold. They're using it.

As for Russian and Iraqi Central Banks buying up Gold between 2012 and today... well... they've already lost 10% on their investment as Gold has dropped in value between last year and today. I mean, if you wanna follow the example of Russian and Iraqi banks, you're welcome to do so. But I don't think anyone considers them a paragon of the investing world.

Re: Bitcoin exchange rate reached $100 USD per BTC

#376

Post by AdmiralBeotch » Mon, Apr 01, 2013, 8:31 PM UTC

TylerE wrote: post #15

oleganza wrote: post #13

Earlier quoted context omitted.

So who and when is going to get out? And out where? To fiat currency that is controlled, inspected, can be frozen, taxed and stolen? Bitcoin grows like crazy because it is a money proved to work. It survived exchange hacks, stolen wallets, viruses, user mistakes, network-affecting software bugs and government seizures of bank deposits. It allows you to hold something in your pocket that nobody knows about and you can…

It'll be proven to work when you can pay taxes and buy groceries with it.

Pay taxes and other government debts here: http://www2.egovlink.com/press-release-bitcoin.cfm

You can already buy food at a couple places in Vegas where I live.

Re: Bitcoin exchange rate reached $100 USD per BTC

#377

Post by leishulang » Mon, Apr 01, 2013, 8:33 PM UTC

lolcraft wrote: post #176

Some people here seem to think that this is temporary, that sometime in the future Bitcoin will stabilize into a glorious future global currency -- never mind the new class of cryptobarons it will have created from its inner circle, through shameless hoarding. My question is, what then will happen when Bitcoin stabilizes, that is, when the time to new coin mined approaches practically infinity? Let's assume the globa…

while Bitcoin is deflationary due to monopoly, crypto-currency is inflationary.

Bitcoin's value is not held by how hard it is to mine them. It's held by how bad people want to use crypto-currency for trading behaviours.

When bitcoin's value become too high to be used for normal trading, it's value will decrease, simply because people will invent new types of crypto-currency(i.e litecoin, namecoin) to replace its function. When less people using bitcoins, no matter how 'hard' its mining algorithm gets, its price will drop.

Therefore crypto-currency is inflationary, and that's why Bitcoin will become inflationary eventually.

Re: Bitcoin exchange rate reached $100 USD per BTC

#378

Post by millstone » Mon, Apr 01, 2013, 8:36 PM UTC

adventured wrote: post #327

pg_bot wrote: post #279

Earlier quoted context omitted.

Deflation increases the value of holding cash. By definition deflation occurs when the price of a basket of goods decreases. Why invest your money in a basket of goods today when it is going to be cheaper to buy that same basket tomorrow?

Nope, by definition deflation occurs when the authority controlling the money supply (eg the Fed) contracts said money supply. Prices going down is merely a symptom of deflation, but it is not deflation.

Why is this definition good? I mean, why should I or anyone care about changes in the money supply, except in how they affect prices?

Re: Bitcoin exchange rate reached $100 USD per BTC

#379

Post by adrianwaj » Mon, Apr 01, 2013, 8:37 PM UTC

dobbsbob wrote: post #234

dia80 wrote: post #211

Earlier quoted context omitted.

> cryptobarons it will have created from its inner circle, through shameless hoarding. This isn't 1941 England and bitcoins aren't sugar. Early adopters in the right thing often make money. Usually on HN they are called investors and congratulated. Sour grapes on missing out? (I did too)

I bought 30,000 bitcoins when they were worth less than a penny and sold them all when the value went up to $0.80. Lol, oops. If you don't want to miss out again, buy Litecoins and Namecoins. Litecoin will never be worth as much as BTC (because there will be 80million of them as opposed to 20something million BTC) but it will slowly gain in value as it has some impressive features especially suited for online gaming…

"Lol, oops."

I'm sure there are a lot of other "oops" and "fuck" moments in many bitcoin watchers' moments. If you can laugh about it, then more power to you. From what I've read, when they first came out, they were very hard to obtain and people were actually excluded from it (is this true?), so someone must have seen the value. I first came across it on github in late 2009 when searching for project ideas but skipped over it as some type of scam. Others only saw value in building bitcoin apps, rather than simply holding the coins.

What are you looking at now?

Re: Bitcoin exchange rate reached $100 USD per BTC

#380

Post by fsckin » Mon, Apr 01, 2013, 8:37 PM UTC

dubcanada wrote: post #373

Excuse my lack of knowledge, but seeing as how one BTC is now worth $100. Is it possible to send someone half a bitcoin or 1/10th? Or is it a single unit or nothing?

https://en.bitcoin.it/wiki/Units

BTC can be sent in any amount, all the way down to Satoshis at 0.00000001 BTC.