What do you know about Bitcoins?

Ah, ok. I get it now. Thanks for that.

Did you read this? An interesting tidbit, if you intend to try and sell your bitcoins for real money.

https://en.bitcoin.it/wiki/Myths#Bitcoins_are_illegal_because_they.27re_not_legal_tender

Scott

 

Yup I've read over that, there are a number is Bitcoin exchanges that you can exchange it for other Altcoins or Fiat.

 

Interesting stuff. The only issue I see currently is the fluctuation of the "value" of a Bitcoin. Too much fluctuation is bad for any currency or rather bad for the people who use it. One day they may have a lot of "value" for their Bitcoins and the next they don't. It is very hard to run a business with such fluctuation, because basically a devaluation of the Bitcoin means a devaluation of your products or services. And in the other direction, a value hike means, your services and products are all of the sudden much more expensive, even though you've changed nothing. If the fluctuation mellows out, then there will be a better chance for it to get more wide spread use and adoption, especially among businesses. When you see pricing for products and services on the Internet showing also the Bitcoin value, then you know it is here to stay.

Scott

 

If items are sold for Bitcoins though it kind of takes the fiat value out of it. Like the miner I got above, it was .99 BTC. It doesn't matter what the exchange rate is it would always cost .99 BTC.

Here is a good site to see trades and BTC - USD live exchange rates if you're interested.
http://bitcoinity.org/markets/btce/USD

There are Bitcoin directories out there that list off places that support Bitcoins, I don't have one handy but here is an ugly site that list off several.
https://www.spendbitcoins.com/places/

One of the many great things about Bitcoins is that if you want to you can completely hide the fact that you have any Bitcoins and never leave a purchasing trail like you would would credit cards, checks and dollar bills to an extent.

 

It matters what the exchange rate is, because people will constantly compare the rate to the Bitcoin value of the product to give it a perceived "real life" value.

For instance, if you had gone shopping for the miner on June 16th, the miner would have cost approximately $99, because the trading value of the Bitcoin was around $100. If you had bought the miner on July 17th, then the value would only be around $64, which is a "perceived" better deal.

The same goes for the value of what your mining costs you and it's relativity to real world costs of mining. For instance, your electricity bill for the computer power you need to mine the coins can't be paid in Bitcoins, can it? And how did you earn the bit coin you bought the miner with? Did you ever think of its value under a fiat currency? You probably did at least once, right?

So, the higher the value of a bitcoin goes compared to any fiat currency, the better you are at "making" money. The same goes for gold or any other commodity with a "limit" to it. There will always be the comparison and making real money from it will always depend on the exchange rate, so it is always important and why I say, fluctuations are detrimental to Bitcoins success as a currency model. As a commodity, it could be great and looks like it is flourishing as just that.

Scott

 

Your server logs would not show any trading you are doing online?

 

There is no "server", and no, everything could be completely hidden if you wanted.

 

So I'm up to mining at 2Gh/s which these days isn't much but I'm done buying asic's for now.
I've also been investing in stock at www.btct.co but I don't think I'll be adding anymore Bitcoins to that market, the stocks are very low right now and I'm just going to let the trades I have in place now ride for the rest of the year to see if it makes any money or not.
I have about 1.5 Bitcoins in that market right now. I'll just let my wallet hold my coins from now on.
I'm also using www.middlecoin.com to mine script coins with my video card and I'm making about the same amount as my asic's which really sucks with the difficulty but it's better then nothing at this point.

I'm going to mine enough to get 1 or 2 Bitcoins then I'll print each one off into a paper wallet and put it in the safe. Hopefully it'll be worth more in 5 years or so..lol

 

Bitcoin broke $500 today

 

You got me a little confused with this. if a request via a court order for example was made to your ISP then they would release the logs that contain ALL your activities on the internet through them. is this incorrect?

As I understand it all your transactions that go through your ISP are logged and stored.

 

Not necessarily, I could send or buy Bitcoins with my phone. I could print off a piece of paper loaded with my coins and send that to someone.

 

AHH. Thanks for the explanation.

 

Over $600!!

http://mashable.com/2013/11/18/bitcoin-600/

 

Be careful with your bitcoin security folks.

http://www.bbc.co.uk/news/technology-24871444


8 November 2013

Major Bitcoin theft from website, claims owner

A man who ran an online "wallet service" for storing Bitcoins has claimed hackers stole virtual currency from his site worth more than one million Australian dollars.

The Australian man said 4,100 Bitcoins (US$1.04m, £650,000) were taken in two separate attacks.

He said he would not report the theft to police as Bitcoin transactions are virtually impossible to trace.

This has led some users to speculate whether it was an "inside job".

In a radio interview with ABC News the man, who only used his online name TradeFortress, denied being involved.

The Bitcoin virtual currency is increasingly used to pay for things online.

According to the Sydney Morning Herald, the theft occurred on 26 October but users were only alerted this week via a message he posted on the wallet service's website.

"I know this doesn't mean much, but I'm sorry, and saying that I'm very sad that this has happened is an understatement.

"Please don't store Bitcoins on an internet-connected device, regardless if it is your own or a service's."

Bitcoin is the most well known of a handful of virtual currencies. The currencies are developed through a computer process called "mining" and can be traded on exchanges or privately between users.

 

Its over $800 now

Crazy times..

Also Al..
The US says its "legit" so...
http://www.dailydot.com/news/bitcoin-department-of-justice-securities-exchange-commission/

 

Does this now mean they can come under the US tax system?

 

It was always taxed if you cashed it out in USD..

 

Quite so. I am asking if now that it is classed as a "legitimate financial instrument," if the trading 0f it as bitcoins will be taxed, will you have to declare it on your tax return as you do with other financial instruments?
And will the tax office take bitcoins in payment. In this case.

If you made a Bitcoin profit in a tax year will you now have to pay tax on it ? There several interviews on video with those in the know who say yes.

 

If you withdraw it to usd, yes.

I don't claim to be a cpa though

 

Malware up, hackers bypass security safeguards. Bitcoins also mentioned.

http://au.news.yahoo.com/technology/a/19939615/malware-up-hackers-bypass-security-safeguards/


November 21, 2013, 7:17 am
Washington (AFP) - Malicious software is on the rise both on computers and mobile devices, fueled in part by hackers' ability to bypass a key security measure, researchers said Wednesday.

McAfee Labs said in its third quarter survey that it is seeing a rise in malware which circumvents the so-called digital signature validation meant to ensure software can be trusted.

McAfee said it saw a 30 percent jump in the quarter of mobile malware that allows an attacker to bypass the digital signature validation of apps on Android devices, along with a 50 percent increase in traditional malware signed with digital signatures.

"The efforts to bypass code validation on mobile devices, and commandeer it altogether on PCs, both represent attempts to circumvent trust mechanisms upon which our digital ecosystems rely," said Vincent Weafer, senior vice president of McAfee Labs.

"The industry must work harder to ensure the integrity of these technologies given they are becoming more pervasive in every aspect of our daily lives."

McAfee's quarterly report on threats in cyberspace also cited a rise in the use of Bitcoin for illicit activities such as the purchase of drugs, weapons, and other illegal goods on websites such as Silk Road.

"As these currencies become further integrated into our global financial system, their stability and safety will require both financial monetary controls and oversight, and the security measures our industry provide," he said.

McAfee also saw cybercriminals develop Bitcoin-mining malware to infect systems, and produce Bitcoins for commercial transactions.

Bitcoins allow the creation of new currency through a process known as mining, according to McAfee. While initially people used their own computing resources for mining, certain kinds of malware allow attackers to employ infected computers to produce Bitcoins, often without their knowledge.