Online Cash Bitcoin Could Challenge Governments, Banks

Namecheap now accepts Bitcoin.

-- Tom

 

Bitcoin rises from $14 to $40 in two months.

-- Tom

 

Yeah, and it just spiked another 5 USD!

Anyone know what's going on?

Is it just adoption pressure?

Edit: There's a major sell-off under way.

 

The rise of Bitcoins teaches a tremendous lesson about global economics.

To mirimir:

I would guess that the current speculation by Bitcoin holders is that it can't go much higher, and they want to hedge their bets - just like stock exchanges with stock holders.

-- Tom

 

I get that, but most people aren't trying to do business using stocks as money!

Such volatility is problematic for currencies (or rather, for the people using them). It's hard for both providers and customers, people who aren't speculating, but just doing business.

Many customers probably made substantial purchases over the last couple days, seeing how fast prices were spiking. Now their providers are probably not very happy. Some providers hedge by using historical-average prices, but that makes them less attractive when prices are increasing.

Volatility is also problematic for gold, silver, etc. But there, it's arguably the value of fiat currencies that are changing. I don't think that applies to Bitcoins. Maybe it will?

 

Can BitcoinStore Convince Online Retailers To Accept the Controversial Currency?.

-- Tom

 

Hackers Pull Off $12,000 Bitcoin Heist.

-- Tom

 

My post inferred nothing whatsoever about using stocks as money - only that the Bitcoin exchanges worked like the stock market exchanges (regarding human behavior).

Bitcoin (as an anonymous form of currency) has not yet reached a universal acceptance as a de facto equivalent of recognized currencies around the world in which most people do business. Obviously, some people think that the value of Bitcoins is changing.

-- Tom

 

I apologize if I was being too argumentative. But Bitcoins do behave more like stocks than money. Forex markets, except during crises, aren't as volatile.

Once that happens, their value will stabilize. Is that the expectation?

 

Well, once a currency is recognized is no guarantee that it will survive even if it does stabilize. Look at the Euro - it is essentially over with IMHO. The only country holding it up is Germany, and when Germany chooses to get out of the Euro, then other countries in the EU will follow suit and go back to their own currencies.

We will just have to wait and see how the BitCoin story unfolds.

 

First Bitcoin Hedge Fund Launches From Malta.

Reference article: How the First Bitcoin Hedge Fund Approaches Security.

-- Tom

 

Shop Anywhere, Pay With Bitcoins..

-- Tom

 

I wonder what "anything" means for them.

Would they ship naked-ankle pr0n (aka shoe catalogs) to Saudi Arabia?

 

Major glitch in Bitcoin network sparks sell-off; price temporarily falls 23%.

Related: Anatomy of a problem - Bitcoin loses 25% in value due to a long-missed bug.

-- Tom

 

Yes, forks are bad. Maybe Iran will fork, at least partially. Could get crazy.

Edit: Less than two days later, the Mt Gox price is back at ~48 USD. That's impressive!

 

Bitcoin add-on makes your virtual purchases private.

-- Tom

 

That sounds very cool, except for this red flag:

Now if a fully open-source version were forked, with no back doors, that would be very cool!

 

Man offers to sell house for bitcoins.

-- Tom

 

Someone's paying attention! Bitcoins had been stable at 47-48 USD for a few days, and since Monday evening have increased to 73-74 USD.

 

The Big Book of Bitcoin, An Introduction.

-- Tom

 

Facing Financial Crises, Spain Turns to Bitcoin.

-- Tom

 

What Is Bitcoin and What Can I Do With It?.

-- Tom

 

US to regulate Bitcoin currency at its all-time high.

-- Tom

 

Bitcoin miners hit back at cyber-thieves.

-- Tom