/ Bitcoin

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jolivague - on 10 Apr 2013
Does anybody have any? Intrigued by the idea but not sure how it works in terms of eventually getting your money back out of it.
woolsack - on 10 Apr 2013
In reply to jolivague: About the same as the US Dollar I imagine. No, I don't. I'd rather have some Sovereigns under the mattress
dissonance - on 10 Apr 2013
In reply to jolivague:
> Does anybody have any? Intrigued by the idea but not sure how it works in terms of eventually getting your money back out of it.

there are various exchanges which allow you to convert it back to real cash.
As for the exchange rate, well currently it is good but then it seems to be acting like a digital gold bubble (making it fairly useless as a currency).
highclimber - on 10 Apr 2013
In reply to dissonance: Isn't it used extensively for nefarious activities such as gun trading and the like?
dissonance - on 10 Apr 2013
In reply to highclimber:
> (In reply to dissonance) Isn't it used extensively for nefarious activities such as gun trading and the like?

its apparently used on Silk Road and the like. However considering the massive variances in price recently not sure how well that would hold up. Question as to whether it is an effective currency or not at the moment will probably amuse economists for weeks (would you spend your 50 of bitcoins suspecting tomorrow it will be worth 100).
jolivague - on 10 Apr 2013
In reply to dissonance:
(would you spend your 50 of bitcoins suspecting tomorrow it will be worth 100).

That's what I'm wondering!
dissonance - on 11 Apr 2013
In reply to jolivague:

> That's what I'm wondering!

if you have money you can afford to lose might be worth a punt (bearing in mind the drop yesterday dunno what happened today). Then again I think it meets the Kennedy quote of "when even shoeshine boys are giving you stock tips, it's time to sell".
Some will be making money but some will be losing it.
Shame really since it could have been an interesting currency but now seems a speculators dream.
Bjartur i Sumarhus on 11 Apr 2013
In reply to dissonance: You can trade bitcoin options on IG Markets.You can spread bet on it too. Although taking on leverage on a currency that dropped 60% then rebounded 40% in 24hr period will take a strong stomach and some serious margin.

I would personally stay away
Angrypenguin - on 11 Apr 2013
In reply to jolivague: can't remember where it was but I read a good book about investing a couple of years ago which said the first rule is don't invest in things with no intrinsic value.

Bit coins by definition have no value, they are only worth what people will pay for them which means that if people go off them overnight then they can drop 99% of their value. Same was true of the dot com bubble, the companies had little intrinsic value, just hype.

Gold on the other hand is a useful thing, you can make electronics out of it and it has an established history of value, it won't suddenly drop 90% in a day. On the other hand it won't rise 90% in a day either.

The higher the risk the greater the potential reward but also the greater the potential loss. By all means speculate with Bitcoins for a laugh but only do it with money you can afford to lose.
Kemics - on 11 Apr 2013
In reply to Angrypenguin:

What about the futures/derivitive markets? They have no actual substance but account for 90% of the stock market :p
remus - on 11 Apr 2013
In reply to Angrypenguin: The intrinsic value of gold is far lower than the market price of gold.
I like climbing - on 12 Apr 2013
In reply to jolivague:
This already has legs and I'm hoping to have some soon. If it flys great but it's worth a punt to me and we will see what happens
Boogs on 12 Apr 2013
Kipper - on 12 Apr 2013
Postmanpat on 12 Apr 2013
In reply to Kemics:
> (In reply to Angrypenguin)
>
> What about the futures/derivitive markets? They have no actual substance but account for 90% of the stock market :p

You're confusing intrinsic value with substance. They have an I intrinsic value based on the value of the underlying asset.
Bjartur i Sumarhus on 12 Apr 2013
In reply to Postmanpat: Whilst this is true, there is a growing worry and realisation that commodities that are primarily traded as derivatives (gold being the main worry) are rehypothecated to infinity.

Do you think if everyone who held paper gold tried to redeem for physical there would be anywhere near enough? if not then gold should probably be priced somewhere very north of $1558.

<i will take my tin hat off now> ;-)
elsewhere on 12 Apr 2013
In reply to Angrypenguin:
I've just looked at a RBS fiver from my pocket - it's backed by a signature I can't decipher under a promise to pay "FIVE POUNDS" if I go to the Edinburgh HQ. I'm pretty sure Greggs will believe in it that promise enough for me to buy lunch, if Greggs no longer have that faith I'll go hungry.

All* currencies have no intrinsic value, they are only worth something if people believe and have faith they're worth something.

* some currencies may be pegged to USD or euro but I've not heard of anybody using a gold standard
Lew13 - on 12 Apr 2013
In reply to dissonance:

They are indeed used on Silk Road.
ads.ukclimbing.com
I like climbing - on 12 Apr 2013
In reply to Boogs:
Thanks ! I'm still getting some:)

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