Bitcoins woth $92 each

[highnote]

I smell a bubble:

http://spectrum.ieee.org/tech-talk/computing/networks/bitcoin-hits-1-billion

Know of any good strategies for shorting Bitcoins?

[HUSKER55]

BITCOIN IS a fiat economy just like the USA.

Which bubble do you smell?

you watch. everyone will start their own bank. this otta be good.

[TJDave]

BITCOIN IS a fiat economy just like the USA.


It ain't. The U.S. is a real country with real wealth and power.

[highnote]

It ain't. The U.S. is a real country with real wealth and power.

I can't remember the exact quote Keynes had about fiat money, but its something to the effect that if a country wants to be powerful then it must create fiat money. It is only when the country goes into decline and loses its power that its fiat money loses value.

Right now, the U.S. is still the most powerful economy in the world. Therefore, the U.S. dollar is still the world's dominant currency. Almost anywhere you go people will accept U.S. dollars. If you go to Germany, for example, you can pay in dollars. But if Germans tried to pay for something in the U.S. with Euros no one would take them.

[JustRalph]

The Feds indicted and seized the website of a group making guns with 3d printers this weekend.

They tacked on "money laundering" charges because these guys were trading bit coin. Going to be interesting case

[TJDave]

The Feds indicted and seized the website of a group making guns with 3d printers this weekend.

You can do that...and they work?

[johnhannibalsmith]

You can do that...and they work?

Sorta...

http://www.nbcnews.com/technology/futureoftech/3-d-printed-gun-fires-6-shots-then-falls-apart-1C7404226

[JustRalph]

http://marketdailynews.com/2013/04/01/feds-seize-a-3-d-printed-gun-website/

Story above

Website seized below



http://defensedistributed.com/

[JustRalph]

Sorta...

http://www.nbcnews.com/technology/futureoftech/3-d-printed-gun-fires-6-shots-then-falls-apart-1C7404226

They have the system down now. Fired 600 rounds thru one reportedly.

[johnhannibalsmith]

They have the system down now. Fired 600 rounds thru one reportedly.

I watched a few videos on YouTube that were pretty cool a while back, but I got the feeling that it was sort of a promotional deal so I tried to find something that was objective. It's pretty amazing what they can do. Well really amazing. It's weird to think that even just ten years ago we'd find it comical if someone claimed they could print a functional tool. I watched the old Total Recall on cable the other day and remember thinking how hi-tech the flat television screen seemed. :D

[serp]

The only real way to short them is to take out a loan in bitcoins, convert to usd, then pay back in bitcoins at a later date. It may be a bubble and it may bust at some point but I'd consider it pretty risky to short it (especially with a set in stone payback date).

They've been very fun and very profitable for me. I wouldn't advise anyone to invest money in them they couldn't stand to lose though.

Personally, I expect there to be multiple large dips from time to time but for the price to rise well above where it currently stands (just over $100 per bitcoin now).

[highnote]

I thought this story was pretty interesting until about 1/2 way through. I found it in a link from the story Ralph posted.

http://marketdailynews.com/2012/08/23/mystery-surrounding-1-2-billion-rounds-of-ammo-solved/

In a nutshell it says that the U.S. bought 1.2 billion rounds of ammo to give to Russians who are going to invade the U.S. Supposedly, 20,000 Russians have entered the U.S. through Canada.

The problem is, behind every rock is going to be a U.S. citizen defending their country. No way can 20,000 Russians take over the country. And even if they disrupt the country they will never win. Hell, the U.S. can't win in Afganistan or Vietnam or Korea. So how the hell is Russia going to win here.

[so.cal.fan]

Won't the governments get involved with this bitcoin?
How can they tax it?

[JustRalph]

Bit coin is having some problems this week with hacking from what I read. Higher profile, more likely target.

The Justice Dept here in the states won't let it live if it gets in the way

[highnote]

Won't the governments get involved with this bitcoin?
How can they tax it?


About a year ago the CIA invited one of the principle individuals behind bitcoins to Washington D.C. to discuss bitcoins.

I have not heard what came out of those talks.

Very interesting phenomena.

Also, bitcoins are not taxable. It is the items that are purchased with bitcoins that are taxable. Many states have a "Sales and Use" tax. Citizens of one state who buy products from other states, but do not pay sales tax are supposed to report the purchase to their state tax authority and pay sales and use tax on the purchases.

So when you buy something online and think you do not owe sales tax because you weren't charged sales tax, you probably do owe sales tax.

[JustRalph]

Man Buys 2007 Porsche Cayman S for 300… Digital Bitcoins, Which Initially Cost $1,200!


http://www.carscoops.com/2013/04/man-buys-2007-porsche-cayman-s-for-300.html

[JJMartin]

now trading at $163, expected to hit $300 before backing off again

[JJMartin]

I smell a bubble:

http://spectrum.ieee.org/tech-talk/computing/networks/bitcoin-hits-1-billion

Know of any good strategies for shorting Bitcoins?

With arbitrage - buy low, sell high by exploiting inefficiency across multiple markets, this is occurring right now from the figures displayed. Not sure how fast you can make a trade or how easy it is to shuffle funds around. This is not shorting per se, its called arbitrage.

http://bitcoincharts.com/markets/

[highnote]

I've known about bitcoins for over a year now and maybe I should have bought $100 worth last year? They'd probalby be worth around $1,000 now.

Problem is, I didn't know back them if they'd ever be useful. I knew that the CIA was investigating them. That alone, could be an endorsement or reason to be cautious.

If they were bought for $100 cash and then traded in for $1,000 cash would taxes be owed?

What if they were bought for $100 cash and then used to buy $1,000 worth of business supplies -- would the supplies equal a $100 business expense or a $1,000 expense?

My gut feeling is that owning 1/10 of an ounce of gold would be more desirable than owning 1 bitcoin.

[HUSKER55]

why would it matter? you put up $100 and get $1000 in exchange. That difference is called profit. of course you tell the irs you paid $1000 for it. what???? they going to audit you for 300 reams of typing paper?

[highnote]

why would it matter? you put up $100 and get $1000 in exchange. That difference is called profit. of course you tell the irs you paid $1000 for it. what???? they going to audit you for 300 reams of typing paper?


If bitcoins get to the point where billions of transactions are taking place what will governments do?

Maybe there are already billions of transactions taking place?

[HUSKER55]

how is bitcoin any different from any other currency. They are all backed by faith. willing seller willing buyer.

if the government wants involved then you will pay a sales tax. otherwise how is it any of their business?

[johnhannibalsmith]

Maybe you will enjoy reading this:

Are bitcoins commodities? In a previous article I showed that, under U.S. law, bitcoins are neither securities nor currency. So, what are bitcoins? Furthermore, what regulations, if any, apply to bitcoins designated as a commodity?

It's basically opinion and the comments are almost as interesting as the article and the other articles linked within.

http://blog.bitcointitan.com/post/17789738826/what-u-s-regulations-apply-to-bitcoins-as-commodities

[classhandicapper]

I don't know anything about bitcoins, but I think this is worth a read.

http://lewrockwell.com/rosenberg/rosenberg-p14.1.html

[highnote]

Called it:

http://investmentwatchblog.com/bitcrash-down-50-in-massive-sell-off-over-1-billion-vaporized-in-a-few-hours/

I've heard they've bounced back, though. I would think that eventually the price will stablize and then bitcoins could be quite useful. For now, there is too much volatility for my liking.


I smell a bubble:

http://spectrum.ieee.org/tech-talk/computing/networks/bitcoin-hits-1-billion

Know of any good strategies for shorting Bitcoins?

[highnote]

http://money.cnn.com/2013/04/12/investing/bitcoin-bubble/index.html

Bitcoins were down to $77.56 as of 3 p.m. ET Friday.

[JustRalph]

http://allthingsd.com/20131122/some-flight-attendant-just-paid-richard-branson-350-bitcoins-to-become-an-astronaut/

"The post goes on to say that “a female flight attendant from Hawaii” is the first Galactic customer to pay for a flight into space using bitcoins.
A spokeswoman said she couldn’t disclose whether the flight attendant works for Virgin America. But she did say that the woman paid the full $250,000 fare in bitcoins — 350 of them in total. (Right now, that amounts to about $253,000 in bitcoins according to the bitcoin price index operated by the trade publication CoinDesk.)"

253,000 divided by 350 is $714 bucks a coin......... way up.........

[FantasticDan]

Bitcoin worth $9M buried in garbage dump

http://money.cnn.com/2013/11/29/news/bitcoin-haul-landfill/index.html?iid=HP_LN

[DJofSD]

Can't do this (http://minnesota.cbslocal.com/2013/11/30/man-cited-after-tossing-1000-into-moa-rotunda/) with bitcoin.

[BetHorses!]

Can u short this thing..?

[DJofSD]

If you can find an exchange, and, find a way to borrow shares.

P.S. http://finance.yahoo.com/news/short-bitcoins-really-must-060011082.html

[tucker6]

http://online.wsj.com/news/articles/SB10001424052702304096104579240213383697076


"the bitcoin has soared about 9,500% this year"

"The bitcoin is a mania like tulip bulbs in the 1600s and Beanie Babies in the 1990s. Manias spread like communicable diseases. The more people talk, the more they spew nonsense on each other."


Started the year at $13 each and now at $1,240. Anyone buying into that hot mess needs their head examined.

[Valuist]

Bitcoin value fell 20% on Friday alone. When bubbles burst, it gets ugly quickly. Tulipmania and dot.com mania all over again?