patrick.net

I'm a little confused over all the hype. Yaaaay, they "doubled" in value in ten days. Fuck frn's/usd's!!

So ditch the current currency for the new bitcoins,,,,only to trade the bitcoins back for the old currency?

I like the idea of using them as a loophole for us american gamblers, who have been screwed by stupid laws that don't so much ban sports wagering, as they do the transferring of funds to the shops, but we all know that won't last.

I'm not certain that the USD can or will be replaced, so long as the USD power structure is in place,,,,I think a new currency would have to rise from the ashes of the aftermath of the current usd power structures' collapse

Wow I sold too early as they have doubled again. This really won't end well for some people.

I bought 425 back in Feb for around 8k and sold them all when they were 114/coin figuring they were in a bubble. I still think they are massively overbought but if I sold today instead of two weeks ago I would have made an extra 50k.

On a side note are these taxed the same as gold?

I love the concept.

Fuck the central banker and Wall street scumbags. It's basically like open source money.

The problem is, once Uncle Sam shuts down the internets, you're fucked. Thus, it doesn't have the fungibility of PMs.

Also, I don't understand enough about computer security/algorithms/etc to wrap my mind around how safe they are. One of the main websites was down a few days ago according to the folks on ZH. Not sure if it was infiltrated/hacked/etc etc.

BTW they BTC took a huge shitter today.

The Great Bitcoin Bubble of ought-13, followed by the Great Bitcoin Crash of ought-13. lulz

If I was 20 years younger I would buy acid on the Silk Road - but what would I do with bitcoins today?

Buy some "I love Linux" T-shirt?

Lol.

hahaha I knew it was coming.

In Rome 3rd century - Nero also had challenges when other nations stopped accepting Roman Currency:

http://www.mariamilani.com/ancient_rome/Ancient_Roman_Currency_Economy.htm

Bitcoin are a true derivative. They are derived from a base of a computer algorithm, the rate of change is the first derivative - hence this is first derived from of a currency.

Also, not sure if a term exists such as "Digital Ponzi Scheme", or "Cyber Derivative". Perhaps "Digital Snake Oil" may capture the spirit of such a currency.

There are alot of good things about Bitcoins, but alot of bad as well. I think the fact that it cannot be devalued is a con and not a pro, devaluation is a necessary evil. The fact that people can hoard these without being punished is a major concern. It seems the price has stabilized around $60, but I think a double dip is in order.

"bitcoin exchange halts trade"

"Don't get bitten by Bitcoins"

You mean Bitcon lost it's Mojo, color me shocked!

Entitlemented says

Bitcoin are a true derivative. They are derived from a base of a computer algorithm, the rate of change is the first derivative - hence this is first derived from of a currency.

Semantics - the word 'derivative,' as in differential calculus, is completely different than the meaning when used to mean "derived from." There is an overlap, since the derivative function tells you about the r.o.c. of the function it's derived from, but I believe you may be confusing the two.

Derivatives in finance are simply derived from another security or securities, as bit coins are in some way tied to all currencies.

Some derivatives such as options do have a "delta" relative to the underlying, and so there is this overlap in some cases. I don't see how this might be the case with bitcoins.

Although the concept of Bitcoins was an interesting idea, the reality is that Bitcoins are another Ponzi scheme and people are ok with that because they think they are on the beginning side, which always makes out good.

Today, every business model is make up a term "fudgle" that refers to a non-existent product, some abstract idea. Sell shares of fudgle, but make them "scarce". Let the speculators bid up the price of fudgle shares and then sell like crazy. Time it right, and you make out like a bandit. Of course, by mathematical definition, most people must time it wrong.

Making real products and services is for chumps.

https://en.wikipedia.org/wiki/Derivative

In Calculus it describes a function which changes in one parameter have relationship to the change of a different (dependant or independant) parameter.

Thus Bitcoin has a dependency upon a said computer algorithm, a said set of currencies to purchase or exchange. More important is the "hidden variables" which is why I prefer Physics and Engineering because you can find out all the variables.

To me the very big issues are we do not understand what its derived from, so its more like gambling.

Entitlemented says

In Calculus it describes a function which changes in one parameter have relationship to the change of a different (dependant or independant) parameter.

Correction:

In Calculus, the term derivative describes the instantaneous change in the value of a function as each of its parameters changes. If the function has more than one parameter, then a "partial derivative" describes the instantaneous change of the function as one parameter changes.

For example, z = 2x + y^2 has partial derivatives
dz/dx = 2
dz/dy = 2y

Usually the d is written in script to indicate a partial derivative.

Also, you can read the derivatives as "the derivative of z with respect to x" or "with respect to y".

Bought today. :)