Re: Buying Bitcoins in China

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Avatar photoCharlie
I decided to research the BTC markets over the weekend. I plan to continue to speculate.

Welcome to the club!

It’s still wide open though, not to mention that it’s chief valuation is benched against the DOLLAR!!! Bitcoin is a blip.

I think it was the Cyprus event which originally drew investment, press, and then notoriety which led to a cycle of more press and investment. BTC is valued against every currency but I think dollar is the main one because that is the reserve currency that most things are valued against.

Incidentally all transactions are traceable, and not anonymous as has been suggested. This begs the question of security, and possible large scale manipulation or interruption of the network.

Where have you heard that transactions are traceable? I believe they are quite secure. Despite information about each transaction being public, you cannot see who sent or received those transactions, thus they are anonymous.

Those of you interested in mining might want to take a look at the LTC (Litecoin) market. The hash generation operates at four times the speed using the same technology, and the exchange itself although much smaller in volume has a considerably more stable valuation. I haven’t done the math on hash generation scaled to productive value mind you, so that’s a consideration.

That was mentioned by Hakim at the Bitcoin meeting at Bookworm on Saturday, how Litecoin could be more practical for everyday transactions. You’re right about the limitation of Bitcoin being able to replace traditional currency because of some of its peculiar design features, like the very limited amount of bitcoins in circulation.

We already know it has finite volume, inherently limiting it’s capacity as a workable means of payment in the real world. It’s current cap is 21 million coins, so although the current 11+ million coins is creating the demand, it will theoretically stagnate. Will the cap be increased at this point? Likely. Will an increase immediately devalue the bitcoin? Almost definitely.

An increase in volume would necessarily lead to inflation, thus my understanding is that no new bitcoins will be added to the system. The future limit of 21 million coins is set to be reached in 2140.

Meanwhile who remembers these Beenz!?

Never heard of that! 1998, that is like ancient internet history.