Posted on 01/19/2014 8:06:19 AM PST by Errant
When it comes to figuring out the main reason why every brick and mortar store in your local town is not accepting bitcoin as payment, you dont need to look much further than price volatility. There are plenty of people who like the idea of a decentralized currency not controlled by any government, but the reality is that these same people only want to accept currencies that are relatively stable. After all, a store cannot plan for the future or pay for supplies, employees, and other costs when they dont know what the value of each sale will be after only a few hours have gone by.
How Can Bitcoin Price Stability Happen?
Sure, there are more companies accepting bitcoins on a daily basis, but most of these businesses are instantly converting their bitcoins back to dollars with a service like Bitpay or Coinbase. For the bitcoin currency to takeover the world, more people are going to need to be able to rely on it as a proper store of value. The most obvious way for that to happen is to see the bitcoin market cap rise to much greater heights. This way, it would take much more money to move the price one way or another on the exchanges. There are three main reasons we could see this phenomena take place in the near future, so lets take a closer look at the future of Bitcoin price stability.
(Excerpt) Read more at mensnewsdaily.com ...
Other news:
The Bitcoin revolution exposes the government for what it can't do [John Stossel]
Are bitcoin's chances of acceptance getting better?
Petitioning Amazon.com 2 To Accept Bitcoin
Who Owns the Worlds Biggest Bitcoin Wallet? The FBI
Bitcoin is not yet real money because only speculators are willing to hold it and there’s still no reason to believe that it will remain convertible to REAL money.
Very many (if any at all) retailers actually WANT Bitcoins in the sense that they actually want to KEEP any and that they instantly convert them to some real currency.
Bitcoins are extraordinarily volatile and retailers are not in the business of speculation: theyre in the business of buying wholesale and selling retail. This means there must be a reservoir of people or groups who in fact are primarily in the business of holding Bitcoins for the purpose of speculation.
So right now, at least two conditions must continue to exist for Bitcoins to work as a retail currency: 1.) Processors willing (and legally able) to convert Bitcoins to real currencies, and 2.) Entities willing to own Bitcoins.
The second either of these two conditions evaporates, so does all “value” of bitcoins.
(A third problem, btw, is that any “money” that requires a degree in computer science to understand is probably not going to gain wide acceptance. Not to mention you can’t put it in your pocket.)
Are the any FReeper who attempt to mine bitcoins? Or are the system specs required as ridiculously huge as it seems?
A computer science degree isn't required, nor do you even have to understand the concept to use it. You simply have to be able to use a simple application or website to receive and send Bitcoins. It's simpler than using email or texting. Do those require a CS degree to use? Of course not...
You can store bitcoins on your smart phone, a thumbdrive, or access them via any device connected to an online wallet. You can indeed print them out and carry them in your pocket if you wish.
Alt coins:
Ping on #4
I agree with your analysis that bitcoin technology may prove to be a paradigm shift in the medium of exchange.
I let my Norton lapse on my laptop for a year. When I re-upped Norton recently it found a bitcoin miner. lol I don't know if it was me that put it in it because I was looking into it when bitcoin was less than a dollar, or someone else was using my equipment to mine, but it was there.
I’m afraid the train has left the station with regards to mining Bitcoin for a profit because of a number of reasons to extensive to list here.
However, I mine what are called alt coins. Alt coins are primarily built on top of the Bitcoin protocol. I mine large amounts of coins that show promise and are newly introduced. I don’t know who the winners and losers are going to be ( you have to weigh the pros and cons of each)
If a developer comes up with an amazing innovation ( killer app ) coins associated with the project could become valuable. If you have 10.000.00 of them stashed away , well you could realize a nice windfall.
Get on the forums and soak up as much information as you can, there is a lot to learn. I had help with my mining rig and if I can help you I will. One problem is that video cards have become scarce because of all the builds people are putting together. GPU mining ( what I do with video cards) may go the way of the Do Do bird if ACIS is adopted for script mining.
Like I said there is a lot to learn and I have been hard at it for months with a long way to go. Very exciting times!
Yea Errant,
I saw Reggie on Max’s show yesterday, thats what I’m talking about right there. Do you know if the coin is SHA or script?
I have to perform due diligence on Ultra Coin but it looks very promising!
This will set up complete transparency in financial markets.
AWESOME!
“You can indeed print them out and carry them in your pocket if you wish. “
Try spending it after you print it out.
Could you please add me to your ping list.
Many thanks
Are the any FReeper who attempt to mine bitcoins? Or are the system specs required as ridiculously huge as it seems?
I have a miner running. It's a specialized piece of hardware, good for nothing else.
Everything I see says we're way past the point where it makes sense to mine on anything else.
Merci beaucoup
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