Skip to comments.5 Things to do With Those Christmas Bitcoins
Posted on 12/28/2013 8:16:01 AM PST by Errant
Its the festive season, and if there is a bitcoin fan among your friends and family, then they may have given you some of the virtual currency in your Christmas stocking. If so, what should you do with it?
There are several options for you as a new bitcoin owner. Well tell you about them here, but before you start, please dont do what Bloomberg TV anchor Adam Johnson did. Fellow anchor Matt Miller gave bitcoins to Johnson as a Christmas gift on air. They came in the form of a paper wallet (see below), which Johnson showed to the camera, displaying his private key in the process. Whoops. A reddit user scanned the QR code and beamed the bitcoins to his own address, bragging about it later online. Theres one person who made it onto the naughty list this year.
(Excerpt) Read more at coindesk.com ...
For myself, yeah. Split some of that BTC off into LTC and NVC.
Have a few LTC myself.
Make sure you write down the keycode before you eat ‘em Joe! :)
How hard would it be to counterfeit these? Would it be illegal since they are not legal tender by US standards. I guess copy right infringement would apply.
You could bury them....Wait...
I’m holding LTC for the long haul. I think it has potential. 2014 is going to be pretty wild when the ASIC miners start hitting the ledgers.
You actually could bury a print out of the keys and then delete the wallet info.
Difficulty levels are going out of sight, especially for Bitcoin. Will be interesting to see how this affects its growth/usage/security. It’s a good idea to split any you have between several types, IMO.
Please explain how bitcoins work - thanks.
Did you mine yours? I was just wondering if anybody on here had actually mined any of them.
“Which brings us to the first thing that youre going to want to do with your new bitcoins: keep them safe. If youve never received bitcoins before, the chances are that youve been given them by someone who created a bitcoin address for you, sent some coins to it, and then gave you the address somehow. It may have come as a long number pasted into an email, or potentially on a piece of paper.
How you store the bitcoins will depend on what you want to do with them. If youre going to spend them immediately, then youll want to put them into whats called a hot wallet. This is a wallet either on your smartphone, your desktop computer, or a website, and it allows you to spend your coins straight away.
But you may also be planning on keeping the bitcoins for longer. The currencys price is pretty volatile, and some analysts think that it will bounce far higher than it has already. If you want to keep your bitcoins for a while, then consider putting them in cold storage. This is a bitcoin wallet that doesnt connect to the Internet. No one on the Internet can steal it because it isnt stored on your computer, or on a remote website. The easiest way to do this is with a paper wallet.
If the bitcoin address isnt on a piece of paper, or the gift giver has promised you some coins but hasnt sent them yet, then you can create a paper wallet at various websites. One site that you can use to produce excellent paper wallets is Bitcoin Paper Wallet. Another example is BitAddress.org.
Sites like these will generate a bitcoin address for you. The address has two components: a public key (which you show to everyone else when you want to receive bitcoins to that address), and a private key (which you use to send the coins). The bitcoin address will be printed out onto a paper wallet for you to keep. Show the public key to the person sending the bitcoins. They will scan the address and send the coins along using their own wallet. It is important that you then keep that piece of paper safe because if you lose it or show it to someone malicious (like Johnson did), then your bitcoins will be gone.
When you wish to spend these bitcoins, you can import your private key to a hot wallet of your choice. There are many to choose from, each with their own strengths and weaknesses. Some, like blockchain.info, store your bitcoin private keys both online, and on a mobile app. Others, like Kryptokit, restrict storage to your desktop computer only. The wallet will have a way for you to input or scan your paper wallets private key, transferring it into hot storage so that it is ready to spend. At this point, it effectively has an Internet-connected copy of that paper wallet, meaning that the paper wallet cant be considered as cold storage anymore.”
Wow. Way more complicated than sticking some money under your mattress or burying some money in your backyard.
There are also a number of good videos about Bitcoin available on Youtube.
Hope that helps. If you have a specific question about a certain aspect, I might be able to answer that.
Yes, I have mined both.
Those are bytecoins, not bitcoins.
A wad of $100 bills works just fine for me.
It can be a little complicated. This is all new and it has a learning curve to deal with. Newer technology will simply it some. The easiest way to store them is in a trusted online account. That way means almost instant access and the wallet is updated constantly. Plus you can access from anywhere in the world where you can get to the internet just like you do your online banking.
Try taking over 100 of them to another country, the hood, or arrested with them on ya... lol
This was an interesting recent event.
I’m sure you saw this.
A Bloomberg TV Host Gifted Bitcoin On Air And It Immediately Got Stolen
Yes, I have mined both.So you "created" this phantasm, and then sold it for real money to dupes. An odd way to make a living. It resembles greatly many old fashioned frauds.
Yeah, lol, he flashed his private key for all to see. Reminded me of that time Beck picked up his “Red Phone” for O to call him directly. The number to the phone was taped to the bottom and Beck inadvertently allowed it to be seen. Wasn’t no time until someone called him on it on live TV and he sheepishly answered it. lol
Bitcoin became unprofitable to mine with GPUs months ago. I enjoy tech and it's fun for the knowledge alone. Knowledge is worth something - right? Besides that, the excess heat I use to heat my little greenhouse.
ASIC miners are the only ones now that are profitable. Not sure how long that will last if the price of Bitcoins doesn't rise or something more efficient or faster is in the development pipeline.
But I have mined a few of both BTC and LTC... :-)
The Beck thing was really funny !!!
BTW, if one Bitcoin is worth $1,000, and I only want to spend, say $20, can they be broken down ?
If so, by how many decimal points ?
Eight Decimal points or 1/8ths ?
BTW, what do you call what the federal reserve has been doing for many months now pumping money into the stock market? If you have a retirement, it's probably hooked into stocks and bonds. The fed is creating something out of nothing and all that is backing the greenback these days is faith that our nation will pay its bills on time (not that it actually can).
Being divisible by eight digits leaves plenty of room for growth!
You’ll get it one day, you’re going to miss a very big boat. Don’t take my word for it , here is a man with extensive tech startup experience.
It’s a paradigm shift so it’s difficult to get your head around it.
The earth is round BTW.
Especially when it comes to "pushing" payments as opposed to "pulling" payments the way CCs do. It eliminates much of the headaches such as fraud, pull backs, and customer record keeping that the CC companies and vendors have to deal with.
BTW, if one Bitcoin is worth $1,000,
They're $764 each, at this instant.
and I only want to spend, say $20, can they be broken down ?
If so, by how many decimal points ?
to 8 decimal places.
Is there a market, leveraged or otherwise that allows trading eight decimal points out ?
I ran an Equity “Daytrading” firm back in the day, and when the exchanges went from fractions to decimals it destroyed the market. They reverted back to trading in “pennies” as a minimum for individuals but institutions could still trade in tenths of pennies. There have been efforts to make the “Minimum increment” 0.05.
By having trading increments 8 points out, it may create “Near term or Spot liquidity” that can be dominated by deep pocketed trading programs, but that liquidity or depth of market generally disappears when “Market Events” happen.
IMO, in order for Bitcoin to succeed, they need a market in which each increment of trading represents sufficient risk by both sides of the trade.
This is a link to one of the bigger trading sites: https://btc-e.com/exchange/btc_usd
I don't know of any that allow you to leverage but it seems to allow you to go out to 5 digits.
I'm pretty much an "investor" now. There are better and less stressful ways to make a living besides trading. lol
You can't compare oranges to apples at this early stage with your stupid chart.
I'm considering the viability of Bitcoins and what is likely necessary.
Number one, Price discovery. (a transparent market)
Number two, Liquidity. (enough "size/$'s" at each level)
Since this is in effect, a currency, I can compare it to how other currencies trade.
I can also, relate my experience trading equities and currencies and how trading programs create a false sense of both No. 1 & 2.
At the end of the day, trading is about RISK and Human nature.
Don't get me wrong, I'd love to see bitcoin succeed.
IMHO, if Bitcoins are open to electronic trading 8 points out, it will become dominated by deep pocketed programs. It will likely trade in very very narrow ranges for days on end, which may seem beneficial, but will exploded in either direction as there is no liquidity outside the narrow range.
A person has to buy bitcoins with regular money using a credit card on the web just like the gifting person has to buy the gift card with regular money.
Isn't the only way to get bitcoins is to pay regular money for them and it's done on line?
See post #42.
That being said.
If say Wal-Mart or Amazon begin accepting Bitcoins then they will NEED to Hedge that risk, much like they hedge the risk with any other currency.
Most of these Companies hedge their currency risk by hiring Banks/brokers.
This reminds me of a very funny story.
This really happened, BTW.
Back in the very early 1990’s Dell Computer set up a currency hedging dept. internally. They reported their quarterly earnings and actually made more money trading currencies than selling computers. Their stock got hammered as a result.
Thanks for the pings.
I’m still ambivalent but find the subject interesting.
You compare bitfrauds to money, right?
You are promoting a self serving fraud here. Every post is another effort to sell your self created and fraudulent scam.
Only people who don't belong there think that stock value is money until it's sold. It's a fake price created with bogus money, and it evaporates if people start cashing out.
You can offer goods or services for Bitcoin.
I have used coinbase https://coinbase.com
You can also purchase them from individuals locally .
I'm having to deal with bitcoins for an estate that I'm the administrator of. When I first started looking (late summer), they were just under $100. I watched them slowly climb to the mid $200s, then swiftly to over $1200. Now it's back to $750-ish.
Not a very stable fraud then, right?
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