Why are bitcoins worth $400+ now ?

Pretty crazy stuff, was about $1150 within the past few days and around $900 now !

If I bought into it it would probably sink to $20 in a day !

 

Log in or Sign up to hide this ad.

Probably dropped because of the holidays... I expect it will pick up next week.

 

Of course this isn't a scam technique , bitcoins being sold among reciprocal owners at high prices to drive up a reported price so they can sell into a rising market before people figure out what is up. No regulatory mechanisms.

 

Yes, heaven forbid there is any correlation between this explosive growth and the Winklevoss twins getting into them and setting up securites against their values. Its just a coincidence.......its the same coincidence when billionaires badmouth pm while acquiring, but when they wish to cash out there position they are on every news media playing up pm's strength. The small investors who go along with such antics are always the ones who get burnt. If you do not believe me, anyone wish to buy some dutch tulip bulbs or dotcom stocks? How about some $48 silver?

 

Not really an answer to my question, but nice idea.

 

Chris? I'm glad you're in my corner.....

 

Did the Emperor buy his new clothes with bitcoins? They would certainly be compatible with the type of material he wore. :>)

 

We will see how all this plays out. Bitcoins could go up to $100,000 or go to zero. It is impossible to value them, so it is all a guess. It seems though, Bitcoins have created enough of a stir that the crazies have come out to play. When this happens, it is my experience that the bubble is about to burst. We will see....

 

Kind of reminds you of another frothy market a couple years ago, huh Mike?

Now that its quieter I am buying some again. Not a lot, but a really pretty Mexican 50 peso at melt was just calling my name today, so I had to take her home. This is when I like buying, when no one is really talking about a market. Just slow acquisition in the shadows.

 

I have tried to understand the concept of bitcoins but I simply don't get it. I get so confused when I read about "mining" for bitcoins. How can you mine for something that is virtual? I see people on ebay paying hundreds of dollars for bitcoin mining machines. And the thing that really confuses me is that if something is virtual, can't you just simply make more? This is why I don't understand how the price of it goes up and down.
The price of precious metals go up and down because there is a limited amount on the earth, and once it's all gone you can't make more. With bitcoins, can't the creators use simple computer programming to make more? It just seems so risky to invest in something that's virtual.

 

IT professionals could answer better than I sir, but my understanding is its a diminishing return algorithm you solve. Basically, everytime one is found, the next becomes harder to find, with a mathematically finite number possible. In many ways similar to pm. However, I still not convinced the sheep are once again getting fleeced.

 

And how exactly do these algorithms get found? I just watched a 25 minute video on youtube explaining bitcoins and I still have no idea how it works. lol

 

Things I could tell you

 

I recently read an article about bit coins. Basic premise is that it takes computing power to mine them. Some are saying the $$$ spent for computing power is higher than the value of the bit coin it mines. Laws of diminishing returns.

I find it interesting that people are selling virtual money for real money.

 

Just like many here who find it odd people would sell "real money" pm for paper money?

Kind of boils down to your definition of "real money" at that point. Just like Britain had a wise policy in their day of dealing with whomever was in power, (rather than worrying who "rightfull" is like the US does), I never worry about what "real money" is. I use whatever money is in use to purchase ASSETS. Never "invest" in money, money was never meant to be an investment asset, only a medium of exchange. Invest in assets.

 

Down over 20% today. China central bank banned banks from handling bitcoins transactions.

If you were a business that accepted one of these for payment on Wednesday you just lost 20% of your income. This is one reason I would never accept these. I know other currency move up and down but not that much in one day.

 

bit coins is crazy to me. i don't really understand what is driving it.