BitCoin

PalmerTech

PalmerTech

Founder of Modretro
Staff member
Imagine a virtual, p2p currency that is backed not by gold, but by a mathematical algorithm that makes it impossible for more than 21 million Bitcoins to exist.

http://en.wikipedia.org/wiki/Bitcoin

I just added an advertising agency that pays in BitCoin to our footer, going to play around with it. In theory, it would be PERFECT for, say, inter-member payments, considering it has no fees.
 
Gold actually has intrinsic value, though. I'm not sure I'd use a digital currency that's only valuable because its creator says it is...
 
https://mtgox.com/

In case anyone is interested in how much they are currently worth or investing in them.

I really wish I would have known about this months ago.

Twilight Wolf said:
Gold actually has intrinsic value, though. I'm not sure I'd use a digital currency that's only valuable because its creator says it is...
Click to expand...

You already do... USD isn't backed by anything other than the government's word. And bitcoins are P2P, so the value is set by your peers, not some "creator" or company.
 
Zero said:
https://mtgox.com/

In case anyone is interested in how much they are currently worth or investing in them.

I really wish I would have known about this months ago.

Twilight Wolf said:
Gold actually has intrinsic value, though. I'm not sure I'd use a digital currency that's only valuable because its creator says it is...
Click to expand...

You already do... USD isn't backed by anything other than the government's word. And bitcoins are P2P, so the value is set by your peers, not some "creator" or company.
Click to expand...

Zero is completely right. Not to get off topic, but money is basically digital today. Govt is so far in debt that if money weren't digital, we would all be screwed. Your paypal/bank account is a bunch of numbers - backed by paper bills - backed by the actual gold worth that is ever decreasing.
 
Tchay said:
Zero is completely right. Not to get off topic, but money is basically digital today. Govt is so far in debt that if money weren't digital, we would all be screwed. Your paypal/bank account is a bunch of numbers - backed by paper bills - backed by the actual gold worth that is ever decreasing.
Click to expand...
We've been off the gold standard for a while. Since 1971. It's all fiat money.
 
I'm not talking about the US Dollar, I'm talking specifically about gold and why the comparison isn't all that accurate. :p
 
Twilight Wolf said:
Gold actually has intrinsic value, though. I'm not sure I'd use a digital currency that's only valuable because its creator says it is...
Click to expand...

Gold does have intrinsic value, sure, but not much. We have other metals with the same properties as gold in modern times, the only reason we use gold plating on things like electrical contacts is because it is cheaper. :p

The reason Gold is worth something is because it is a scarce, hard to obtain material, with a limited amount of it available. If we found a mountain made of gold tomorrow, the price of gold would crash, but we know it will not happen. Bitcoin, on the other hand, has rarity in that only 21 million can ever be generated, ever.
 
Twilight Wolf said:
I'm not talking about the US Dollar, I'm talking specifically about gold and why the comparison isn't all that accurate. :p
Click to expand...

I was just commenting about the fact you wouldn't use a currency that isn't backed by anything, when you already do. :p
 
Isn't the currency still backed by the nation that issued it, though? I'm not an economics person, though. If someone could explain it to me that would be great.
 
Its backed by the government's word, and that's all. It only has value because they say it does, and we accept that. Bitcoins have value because regular people have given it value.
 
Still... Wow. I have around 20 on Deepbit, and I've been going for 2 hours now. @ 25.6 M/Hash/s
 
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