Bitcoin - online fad or the future?

[ffsear]

Anyone involved with bitcoin? Could this be the future of currency.? I have been looking at the prices on www.mtgox.com. They have gone from £20 to £40 in the last 30 days.

 

[Hoggums]

All it takes is a security scare whether real or not, but the threat of being able to steal or make bit coins out of thin air will destroy the currency's value.

 

[ffsear]

That what i was think. I guess for it to really take off it would require someone like amazon to accept them.

 

[Lord Flasheart]

can someone explain in layman terms how it works,thanks

 

[ffsear]

Bitcoin

Bitcoin - Wikipedia, the free encyclopedia

 

[Shakone]

can someone explain in layman terms how it works,thanks

It seems from what i've read that you get bitcoins by 'mining' which essentially means you put software on your computer and run calculations to solve very complicated numerical problems. Once the software has solved a particular problem, you receive a bitcoin (or a fraction of a bitcoin).

At first I thought that there was some practical use in solving these functions, i.e. perhaps companies needed these things solved and were eseentially paying for computing power, but it seems they don't. They're just created and solved for the purpose of bitcoins.

There are groups that link up to solve these complicated numeric problems, called 'blocks'. The bitcoin, or fraction of it then goes in your personalised wallet, and you can either buy things with it or trade it for dollars. I've read that people in charge of IT departments are running this software on dozens, perhaps hundreds of computers making extra money, so it would be hard to compete with that.

 

[BeginnerJoe]

Sounds a bit like a pyramid scheme. If you get in early, maybe you will get something.

 

[the hare]

I've read that people in charge of IT departments are running this software on dozens, perhaps hundreds of computers making extra money, so it would be hard to compete with that.

There's something mildly amusing about company employees paid to ensure the security and efficiency of their employers IT infrastructure using it to pop up a pyramid scheme for a few bob.

It gives me a feeling of enormous well being.

 

[wackypete2]

so bitcoins are just created out of thin air if your computer solves a problem? Sounds like someone took a page out of Bernanke's book on banking.

Peter

 

[pboyles]

Sounds almost as dodgy as carbon credits.

 

[BeginnerJoe]

Sounds almost as dodgy as carbon credits.

Curiously enough Al Gore is a fan for both.

 

[Hoggums]

If you make a profit using bit-coins - do you have to pay tax?

 

[ffsear]

There seems to be a bit of volume bitcoins on the USD exchange., Bitcoin Charts / Markets

 

[wackypete2]

If you make a profit using bit-coins - do you have to pay tax?

You only pay a little bit tax.

Peter

 

[tar]

Bitcoin Denominated MT4 Trading at Bit4X | Forex Magnates

 

[TheLastBear]

I am not sure about it. There have been plenty of e-currencies which have failed terribly. While I understand that it is different than Zeek Rewards which was a big scam I don't get why people are so interested in using a fake currency.

I am sure it will continue to increase in popularity until the day it will blow up.

 

[6am]

IG Index joined in and allows to place binary bets on the last price at https://mtgox.com/

I am wondering how easy is to manipulate the market. One could take a huge position at IG Index and then try to move the price at mtgox. The size of the market at mtgox is relatively small.

 

[NVP]

If you make a profit using bit-coins - do you have to pay tax?

and can you pay it in bit-coins ?

N

 

[tar]

IG Index joined in and allows to place binary bets on the last price at https://mtgox.com/

I am wondering how easy is to manipulate the market. One could take a huge position at IG Index and then try to move the price at mtgox. The size of the market at mtgox is relatively small.

Interesting , daily binaries or monthly ?

Just noticed it already took a big hit !

 

[Purple Brain]

If you make a profit using bit-coins - do you have to pay tax?

As they are currently not and are unlikely ever to be recognised as currency from a regulatory viewpoint, no tax is payable on profit through indirect appreciation.