Bitcoins

Fulvio · April 08, 2013, 11:53:12 AM

http://www.geek.com/news/casascius-gorgeous-physical-bitcoins-that-have-real-value-1550847/

I can't help but wonder what the numismatic implications are of physical representations of virtual currency. Will these be like phonecards, where the value is related to the balance embedded in them? Once spent, will they still be worth anything? Or will everyone just ignore them because they weren't issued by a government? If so, what happens if some government climbs aboard the bandwagon?

Long term, I feel we're heading towards a global virtual currency. Bitcoins may not be it, but something like them are definitely the future of money. And where does that leave collectors?

Ozcoins · April 17, 2013, 07:32:29 AM

The concept of "bitcoins" as a virtual currency is quite interesting.
I am somewhat amazed that they have managed to get any traction at all, but now that they seem to have some traction, what will happen next?
I think there is a very high chance that it all falls in a heap, but if it does not and you have some of the virtual bitcoins you could do very well out of them.
I think the physical representation you have shown is a "produced for collectors" item - they will never end up getting used as a way to pay for things.
It is just a way for someone to flog a product they have made and promote the virtual bitcoins.

Splock · April 17, 2013, 08:10:41 AM

I've been looking at getting a physical Bitcoin for the last couple of week. Three weeks ago 1 Bitcoin cost $173. Last week it was $120. This week $65! Seems very linked to the price of Gold :-)

Ozcoins · April 17, 2013, 08:20:21 AM

I don't think there is any reason for bitcoin price to be linked to the price of gold.
I think the price is just very volatile.

Splock · April 18, 2013, 02:55:48 PM

Quote from: 'Ozcoins' pid='12223' dateline='1366152621'I don't think there is any reason for bitcoin price to be linked to the price of gold.
I think the price is just very volatile.

You're right that they're not linked but both offer alternatives to fiat as this interesting article from Alan Kohler points out.

Fulvio · April 28, 2013, 06:50:25 PM

The volatility all comes down to the attacks on some of the Bitcoin exchanges. There have been ongoing DDoS attacks which have taken them down repeatedly and made people nervous. At the end of the day money is all about trust, and if people get spooked, any currency is toast.

BTW, those physical coins have embedded currency in them, so they're sort of like metal phonecards.

trout · April 28, 2013, 08:04:47 PM

I collect some "out there" stuff , But these are even to weird for Me :angel:

JeffH · March 15, 2014, 04:02:20 AM

Gold is king, but there may be a better way to store wealth

Fulvio · March 15, 2014, 12:08:22 PM

Quote from: 'JeffH' pid='43850' dateline='1394818340'Gold is king, but there may be a better way to store wealth

Good article. As he says, volatility is the problem. The only way to fix that is for it to become more widespread.

runway · April 13, 2014, 09:35:07 PM

Bitcoin...a virtual currency that's irrevevant to normal people

JeffH · April 29, 2014, 07:47:28 AM

Sydney Bitcoin ATM opens
GIZMO GUY
ADAM TURNER
Australia's first Bitcoin automatic teller machine has appeared in a Westfield shopping centre as the virtual currency fights for mainstream legitimacy.
Bitcoin is a cryptocurrency that exists only in a digital format, not physical coins or notes. The difficulty in tracing bitcoin transactions has made it popular for shady online deals, but a growing number of legitimate businesses – online and in the real world – have started accepting payments in Bitcoin.
Australia's first Bitcoin ATM, at Westfield on Pitt Street, in Sydney's CBD, lets users trade the virtual currency for Australian dollars. It also lets people buy Bitcoins and transfer them to their digital ''wallet''. One Bitcoin is now worth about $550 but the exchange rate fluctuates wildly – it was $1350 last November and $280 in February. Bitcoins can be broken down to eight decimal places for small transactions.
The world's first Bitcoin ATM appeared in a Vancouver cafe in October. The backer of Australia's first machine, ABA Technology, plans to install ATMs in other Australian capital cities soon, and aims to have 100 machines around the country by 2015 and more than 500 globally by 2016.
Controversy still surrounds the creation of Bitcoin almost six years ago and the cryptocurrency has met with a mixed reception from financial institutions and regulators around the world. Former United States Federal Reserve chairman Alan Greenspan described Bitcoin as a bubble with no intrinsic value. Meanwhile, Australia's Reserve Bank governor, Glenn Stevens, expressed cautious optimism about the potential of cryptocurrencies.
The past year has seen a spate of thefts, with the virtual heists claiming Bitcoins worth millions of dollars.
The bankruptcy of major Bitcoin exchange Mt Gox has also cast a shadow over the currency's future. The National Australia Bank recently announced plans to cut ties with business customers who primarily traded in cryptocurrencies.

A good sign: The ATM in Vancouver.

JeffH · February 06, 2015, 07:24:02 PM

Webjet starts accepting Bitcoins for holiday packages

Australian coin · April 10, 2015, 10:12:50 AM

telstra thinking of accepting them as payment, in the newspaper

Fulvio · April 10, 2015, 10:31:48 AM

Quote from: 'Australian coin' pid='70371' dateline='1428626570'telstra thinking of accepting them as payment, in the newspaper

That would be huge. So far, crypto acceptance has been either at the niche, 'micro' end of the scale, or the mega end, for things like cars, houses, travel. What we really need is normal, everyday uses.

It will come, and once the floodgates open, things will change overnight.

But Bitcoin is still remarkably poorly suited to say shopping at Coles. That 10 minute block time means you're waiting for an hour for confirmations, and that's just unacceptable at the checkout.

Which is where Dogecoin shines, of course.

BTW, I'm thinking of holding a little competition, with a coin as the prize, using Dogecoins for entry. Might be a good idea to head over to my webpage at fulvio55.altervista.org and pick up the dogecoin survival guide and a paper wallet generator, and visit some of the linked faucets to earn a small stash of coins in readiness.

Fulvio · June 04, 2015, 10:10:47 PM

http://www.nasdaq.com/article/is-a-blockchain-without-bitcoin-possible-or-practical-cm482964

So, NASDAQ appear to have thought about the blockchain enough to realise that it needs value behind it. IE: A cryptocurrency. Which naturally they assume to be Bitcoin (something I don't quite agree with, but meh).

I have been wondering where IBM's IoT blockchain was going to get its computing power, and this was, at least to me, the elephant in the room. I just wouldn't trust IBM, Apple, MS, or any other big company to control a network that reached in and touched every electronic device I possessed, right down to smart lightbulbs and door locks. And I can't see people throwing their own hardware and electricity at it for no reward.

Still, all this discussion, and announcements by banks like CBA that they're wading in, bode well. Just like every other great leap forward, we're approaching the pivot point where all the people scoffing will get blown aside, and probably become fervent adopters.