What is Bitcoin?

[chellachella]

Can it be converted to cold hard cash? Im not super techy and cant figure this out.

Anyone here use it? Please explain, Im having serious blonde moments on this one

[When You Are Ready]

I don't think I would do a good job of explaining it, but if you will do a Google search, there are several sites that can explain it. Hope this helps.

[HungCurve]

Bitcoin is an internet currency. Also called a crypto-currency. It is not regulated at all, so the price fluctuates.

They way to get Bitcoin is from mining them. Mining means using a specialized computer with specific hardware to automatically figure out algorithms and if you are the first to find the answer to one, you get some number of Bitcoin.

Banks do not house Bitcoins, they are kept on your computer in a "wallet". If someone gets ahold of that "wallet", you're done. Also if your computer dies and you can't recover your "wallet" it's gone. Backups can be made.

When it started Bitcoin was worth about $.03 each. as of this post it is worth $842.80. I've seen it as low as $30 and as high as $1200 in the past year.

There are other internet currencies like Litecoin, Catcoin, that can be converted into Bitcoin.

Yes Bitcoin can be turned into cold hard cash from an exchange. The exchange you choose you need to trust, because they are not federally regulated, they can just up and leave with your Bitcoin.

There's more to it, but this is the gist of it.

[chellachella]

I signed up and to buy 1 bitcoin it costs 825 bucks. Seriously? I still do not understand, and I guess Ill stick to normal stuff like green money lol. I think Im getting old, some of this new tech malarky is really confusing to me. I miss the old days.

[HungCurve]

Think of Bitcoin as an unregulated stock. You can buy and sell as much as you want without the SEC (feds) getting in the way. But like with all stocks, the price goes up and down depending on the market and the gossip about it.

[batonrouge777]

The descriptions of bitcoin are pretty much on point. The problem with Bitcoin is that it is not very easy to transact business with it. You will have to have a so called "wallet" to house your stash. From there, you transfer to someone else's wallet. It seems to me that Bitcoin is just the latest speculative item of the moment.

I don't know that it will go away anytime soon. Some people see it as a way to make a sort of political statement -- avoiding the use of US currency. An issue someone said above is that it is not very well accepted. Anyone that wants to buy some or set up a wallet with it could do far worse than go to https://www.mtgox.com

I do not have any of this stuff and don't plan on getting any. It is somewhat telling that the largest holder of Bitcoin is the Federal Government who got it after shutting down the SilkRoad website. If you are looking for an alternative currency or alternative investment, I'd go with silver at this point -- gold is currently overpriced. Stuff your money in a shoe box if you like, but Bitcoin is too risky and unknown for me.

[ElisabethWhispers]

I know that backpage is making a big deal out of accepting bitcoins but they seem very pricey compared to the way that it was months ago.

If you do a search on Eccie for "bitcoins", you'll see several topics on the subject, including a few that I started in Dallas coed.

I still think that the philosophy of it is very viable. I just don't know how actually practical it is at this time to actually use it for getting paid.

Still ... always an interesting topic to me!

Elisabeth

[HungCurve]

Sadly, Bitcoins have been mined quite a bit already, and the rest will be mined by those with specialized machines from www.butterflylabs.com.

Litecoin is the next best on the list. There are also a TON of others, but like other world currencies that compare themselves to the US Dollar, these other "coins" compare themselves to Bitcoin. So as long as Bitcoin is viable and high priced these others might be worth mining. You can check them out at coinmarketcap.com

Hope this helps. If you get into mining it, make sure you have the right equipment before you start. Wikipedia will have the info you need on the coin you choose.

[Arverni]

Stay away from BITCOIN. It's nice to fantasize about a totally secure imaginary coin that doesn't devalue itself like government paper - but it TGTBT.

[Unique_Carpenter]

Originally Posted by chellachella

Can it be converted to cold hard cash? Im not super techy and cant figure this out.
Anyone here use it? Please explain, Im having serious blonde moments on this one

Originally Posted by ElisabethWhispers

I know that backpage is making a big deal out of accepting bitcoins but they seem very pricey compared to the way that it was months ago.
If you do a search on Eccie for "bitcoins", you'll see several topics on the subject, including a few that I started in Dallas coed.
I still think that the philosophy of it is very viable. I just don't know how actually practical it is at this time to actually use it for getting paid.
Still ... always an interesting topic to me!
Elisabeth

Philosophy is valid. However, there's better ways to deal with transfers.
As mentioned above, Bitcoin’s issue has become one of safety (codes stored in your computer), price fluctuation and acceptability/ease of use.
On the other hand, , Vanilla, and a couple others, are non-traceable (if you do it right) reloadable (prepaid) Visa credit cards. Yes, there are other loadable gift cards, but with these, when you buy the reload, you buy a code card and you can either put the value on your anonymous card, or you can send the code numbers to whomever you wish, perhaps an ATF, so they can add the “value” to their card. Also, an interesting way to not carry around excess cash on trips, as you can send the value to a card you intentionally left behind at home. Or send value to great gandma's card so she can buy pet food while she's petsitting at your house. Simply a lot easier.

[chellachella]

To get a card or any prepaid card with a name imprint you have to supply your SS# so it is very traceable. Not sure what you mean by "do it right" so please pm me to let me know how to do so. Ive never used them because it is very traceable. Maybe not the reload number, but the account isnt anonymous as far as I have seen.

And Im not really worried about being anonymous, I file my taxes and claim what I make to match what I spend, etc. I was just curious about bitcoin, I still am not completely clear, but I know I sure as hell am not investing in it.

[Zoey Zacquery]

Don't keep your money in bitcoin if you don't want to risk losing it. However, it is a great anonymous transaction method for electronic fund transfers. Guys can buy fractions of bitcoins at market rate before a session, then you can both use your virtual wallets to transfer payment at the beginning of a session, have a drink while you wait 10 minutes for the payment confirmation, and it is completely anonymous for both of you, instant, and irreversible. Then after the session, the provider can "sell" the bitcoins electronically to turn them into cash or a bank deposit. It does take a bit of reading to understand the whole process so it is a time investment, but for truly anonymous transactions, there can be nothing better. It may be more relevant as banks exert more control over where money can be spent (for example many banks and prepaid cards now block payments to backpage.com and who knows if that will be taken steps further to extend to other adult websites in the future). Bitcoin is a little more neutral and unregulated than federal currency. I think of it as more of a transaction tool than a place to store my resources.

[HungCurve]

If you want to mine coin for personal gain without buying special equipment or paying for electricity. Do what I do.

Mine other coins like Novacoin with a CPU miner like minerd and do it on a work computer at work. In one 8 hour mining session on friday I made .05 Novacoin, and left it going all weekend.

In a month I should have about $50 in Bitcoin at the current rate on friday. I'm not going to put any money into it, so for me it's just fun.

[JAdams]

I'm going to try and clear up some of the misinformation here.

Originally Posted by HungCurve

They way to get Bitcoin is from mining them.

The easiest way to "get" Bitcoins is to just exchange your dollars directly for Bitcoin. Just as you would any other currency. There are businesses, ATMs, online exchanges and even a world wide network of local people willing to exchange your currency for Bitcoin.

Originally Posted by HungCurve

Sadly, Bitcoins have been mined quite a bit already, and the rest will be mined by those with specialized machines from www.butterflylabs.com

Bitcoin by design is "mined" at a predictable rate. Several other companies sell similar, and in most cases faster mining machines.

Originally Posted by batonrouge777

The descriptions of bitcoin are pretty much on point. The problem with Bitcoin is that it is not very easy to transact business with it.

That would be like saying it's hard to transact business with a store that doesn't accept credit cards because you do not have cash on you. It's actually very easy to transact business with Bitcoin if a business accepts it. One of the easiest ways for a business to get setup to take Bitcoin as payment is to use a payment processor such as BitPay. A flat rate and 0 transaction fees.

Originally Posted by batonrouge777

You will have to have a so called "wallet" to house your stash. From there, you transfer to someone else's wallet.

Yes, just like the cash in your pocket.

Originally Posted by batonrouge777

It is somewhat telling that the largest holder of Bitcoin is the Federal Government who got it after shutting down the SilkRoad website.

As of this post there are precisely 12,290,650 Bitcoins in existence. The government seized 29,655 Bitcoins from the Silk Road website or 0.24% of all Bitcoins. The seized Bitcoins are currently scheduled to be auctioned off.

Originally Posted by Arverni

Stay away from BITCOIN. It's nice to fantasize about a totally secure imaginary coin that doesn't devalue itself like government paper - but it TGTBT.

The German government recently announced it recognizes Bitcoin as a legal alternate currency. Over 20,000 businesses transact business with it world wide with the payment processor BitPay. Overstock.com now accepts it and you could walk down to David's Antiques on Royal St. today and pickup something for your home. Then pickup lunch at Booty's Street Food on Louisa St. The Louisiana Dept of Revenue is familiar with Bitcoin as well saying "At the end of the day, Bitcoin is no different than other currencies".

Originally Posted by spicyzoey

...it is a great anonymous transaction method for electronic fund transfers.

It's very close to being anonymous.

[TeddyRuxpin225]

I had an opportunity to get in on bit coins a few years ago for ridiculously cheap. Should have pulled the trigger :-(