brendan86 Registered User
#1

Heh guys,

I've been doing a bit of research the last week into buying bitcoins.. I want to buy 1k worth, I know it's risky but I have it to spare and might just see how it goes for a year or so..

I have currently registered on mtgox.com and am awaiting approval on my Id verification.. Has anyone dealt with this site have any info for me?

If I put my money on mtgox that means I have to trust them with my bitcoins is this correct? I won't have to have a wallet on my computer?

I'm just basically asking for advice, it's what I want to do but if someone can explain the best way about it that knows more than me I would appreciate it

Thanks

Brendan

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Cavehill Red Registered User
#2

VERY volatile market. Recently spiked and fell back a little in the last week. Looking very bubblicious just presently. Only speculate with money you can afford to lose.

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brendan86 Registered User
#3

Cavehill Red said:
VERY volatile market. Recently spiked and fell back a little in the last week. Looking very bubblicious just presently. Only speculate with money you can afford to lose.


Yeah I understand it is, It can go either way but every investment is a gamble maybe more so this one.. But I have it to spare and don't really mind, if it goes bad so be it.. I'm just wondering the best way to go about doing it..

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Cavehill Red Registered User
#4

It seems to me the only clear positive about bitcoins is their mobility. IE they can be accessed worldwide online. In the scenario you describe, where you merely have an allocated (or unallocated?) account, I don't see the point. If you're going to buy bitcoins, make sure you own them at least.

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brendan86 Registered User
#5

Cavehill Red said:
It seems to me the only clear positive about bitcoins is their mobility. IE they can be accessed worldwide online. In the scenario you describe, where you merely have an allocated (or unallocated?) account, I don't see the point. If you're going to buy bitcoins, make sure you own them at least.


And what's the best way to buy them on your own? What sites recommended?

Thanks
Brendan

Cavehill Red Registered User
#6

brendan86 said:
And what's the best way to buy them on your own? What sites recommended?

Thanks
Brendan


I took a look at them and decided against it. The US is already moving to regulate the trade, basing the decision on the significant anonymised use of bitcoins to trade in illicit substances. No one seems to know who is behind the architecture of the system. It appears to be artificially capped, which implies bubble possibilities. It is hackable.
There are sites I saw that seemed more credible than others, but I'm sorry to say I'm not prepared to recommend any form of this trade for you and suggest you do your due diligence.
If you decide to proceed, as with share ownership, or precious metals ownership, aim to ensure you are the nominal owner and can obtain sole access to your asset.

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#7

I bought some a few weeks ago, bought them through mtgox and moved to my wallet on my PC, then I made a paper wallet and stored it in a safe place.


https://en.bitcoin.it/wiki/Securing_your_wallet#Paper_Wallets

Make sure you're PC is virus/spyware free and also encrypt you're hard drive.


The surge in price is due to recent events, (mtgox moving usa operations over to coinlab in silicone valley to gain credibility ) Started with 5000 customers on the 5th of march, goes live on the 29th of march.

And also the Cyprus saga.

I really don't see how governments can regulate Bitcoin. questions arise : If i store my bitcoin on a piece of paper in spain, would it be under spainish law? If i keep my bitcoins in the cloud hosted in another country are my Bitcoins regulated under that country?

Around the 55 euros at the moment. When was the fall back in the last week? Any time there is a big rally there's a market correction which drops a few dollars, this is to be expected, ive nearly doubled my money in less then a month.

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Cavehill Red Registered User
#8

zonEEE said:
ive nearly doubled my money in less then a month.


And if that doesn't scream bubble (or Ponzi) at you, I don't know what will.

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#9

Cavehill Red said:
And if that doesn't scream bubble (or Ponzi) at you, I don't know what will.


Its due to more and more people finding out about bitcoin. A month ago the 30-day Volume was 42 million USD its now 82 million USD on the mtgox dollar exchange, I cant remember the euro volume, its a lot lower, around 5 million now it was around 2 i think.

It will get a lot harder to mine bitcoins in the coming months with the introduction of ASIC mining (higher difficulty and the block reward has now changed to 25 from 50 which should all add value along with recent events, to the currency.

At the moment bitcoin is still very young, but it is growing and growing and with government decisions all around the world I can only see it growing in the future, sure it may be a rocky road, but as you said only gamble with what you can afford to lose.

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Cavehill Red Registered User
#10

That volume issue could well be a product of both bubble mentality and a Ponzi structure.
The government decisions that would concern me about impacting on bitcoin would be the overtly stated desire by both US and UK politicians to introduce regulation. Anyone who thinks they won't be able to is being foolish, I believe.
If it's a Ponzi, getting in early will permit profit if you remember to get out before it pops. If it's a bubble, likewise, but you might have a little further to run.
Fundamentally, it's meaningless to talk about value in relation to bitcoin, as they are even more notional than fiat currency. Their primary value currently is that they facilitate anonymous purchase of illicit drugs via the internet.
Article from yesterday's Guardian makes some good points: http://www.guardian.co.uk/world/2013/mar/22/silk-road-online-drug-marketplace

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moneymad Registered User
#11

Cavehill Red said:
That volume issue could well be a product of both bubble mentality and a Ponzi structure.
The government decisions that would concern me about impacting on bitcoin would be the overtly stated desire by both US and UK politicians to introduce regulation. Anyone who thinks they won't be able to is being foolish, I believe.
If it's a Ponzi, getting in early will permit profit if you remember to get out before it pops. If it's a bubble, likewise, but you might have a little further to run.
Fundamentally, it's meaningless to talk about value in relation to bitcoin, as they are even more notional than fiat currency. Their primary value currently is that they facilitate anonymous purchase of illicit drugs via the internet.
Article from yesterday's Guardian makes some good points: http://www.guardian.co.uk/world/2013/mar/22/silk-road-online-drug-marketplace

it won't be long till you see a ticker on cnbc.

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#12

Cavehill Red said:
That volume issue could well be a product of both bubble mentality and a Ponzi structure.
The government decisions that would concern me about impacting on bitcoin would be the overtly stated desire by both US and UK politicians to introduce regulation. Anyone who thinks they won't be able to is being foolish, I believe.
If it's a Ponzi, getting in early will permit profit if you remember to get out before it pops. If it's a bubble, likewise, but you might have a little further to run.
Fundamentally, it's meaningless to talk about value in relation to bitcoin, as they are even more notional than fiat currency. Their primary value currently is that they facilitate anonymous purchase of illicit drugs via the internet.
Article from yesterday's Guardian makes some good points: http://www.guardian.co.uk/world/2013/mar/22/silk-road-online-drug-marketplace


There primary value at the moment is not for drugs, its been exaggerated by the media as is every other issue to do with drugs. Its the rarity of them, there will only ever be 21 million bitcoin. Around Half of them have been mined now. And mining has started to get more difficult.

Many online retailers have started to accept bitcoin.

If it didn't come back from the crash in 2011 I would have said bubble, however there was only one exchange back then now there's is many. http://bitcoincharts.com/markets/.

It has come back and doubled in value since the 2011 crash. It was purely a security issue which banks have the exact same issue. 2 years on and its growing growing growing.

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Cavehill Red Registered User
#13

zonEEE said:

It has come back and doubled in value since the 2011 crash. It was purely a security issue which banks have the exact same issue. 2 years on and its growing growing growing.


Classic bubble talk there: "Look at it's notional value increasing! Ignore the underlying problems in the market! Keep looking at it's notional value increasing!"

Whether bitcoin is primarily used to buy and sell drugs or not (and it has no other USP that I can detect), that will be the reason used by law enforcement to shut it down, presuming that it neither collapses under its own weight and that it is not actually a Ponzi. (Do YOU know who created and manages its architecture?)

#14

Cavehill Red said:
Classic bubble talk there: "Look at it's notional value increasing! Ignore the underlying problems in the market! Keep looking at it's notional value increasing!"

Whether bitcoin is primarily used to buy and sell drugs or not (and it has no other USP that I can detect), that will be the reason used by law enforcement to shut it down, presuming that it neither collapses under its own weight and that it is not actually a Ponzi. (Do YOU know who created and manages its architecture?)


What underlying issues?

No other USP are you mad? People all around the world have lost confidence in the banking system and governments management of money. Bitcoin is being seen as the way forward. No government control, no bank, no printing of money like the Americans are doing right now which is the biggest bubble that's going to burst.

Creator - https://en.bitcoin.it/wiki/Satoshi_Nakamoto

Bitcoin is open source software, the code is there for everyone to see and anyone can submit coding towards the software. This is what the Internets all about.

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Cavehill Red Registered User
#15

zonEEE said:
What underlying issues?


Security and credibility primarily.

zonEEE said:
No other USP are you mad? People all around the world have lost confidence in the banking system and governments management of money. Bitcoin is being seen as the way forward.


By you and a small fringe perhaps. But it has no other USP. There are plenty of alternatives to the banking system when it comes to wealth preservation, and even when it comes to currency (remember the barbarous relics?)

zonEEE said:
No government control


YET.

zonEEE said:
no bank, no printing of money like the Americans are doing right now which is the biggest bubble that's going to burst.


No bank required to store wealth in property or shares. No bank required to conduct transactions in currencies with 5 millennia of credibility behind them either.



Where is he again?

zonEEE said:
Bitcoin is open source software, the code is there for everyone to see and anyone can submit coding towards the software. This is what the Internets all about.


But not necessarily what wealth retention is about though. Recall the dot bomb?

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