• The above Banner is a Sponsored Banner.

    Upgrade to Premium Membership to remove this Banner & All Google Ads. For full list of Premium Member benefits Click HERE.

  • Join The Silver Forum

    The Silver Forum is one of the largest and best loved silver and gold precious metals forums in the world. Join today for FREE! Browse the sponsors topics (hidden to guests) for deals and offers, check out the bargains in the members trade section and join in with our community reacting and commenting on topic posts. If you have any questions whatsoever about precious metals collecting and investing please join and start a topic and we will be here to help with our knowledge :) happy stacking. 

silversword

Bitcoin (and other crypto currencies)

Recommended Posts

My thoughts on bitcoins are very simple. It is all going to end in tears for the majority. Yes I know there is supposed to be a limit on the number of them, but you cannot tell me that there are not any gangs of computer hackers and wizzkids finding out ways to create new bit coins. In reality "fake" bitcoins. When this is eventually confirmed, then the price will collapse like the famous Dutch Tulip crash in the 1600's

An understandable concern but a quick look at how the confirmations work and it's easy to see that there is only one way of 'faking' bitcoins and that involves building by far the biggest computer network the world has seen -which would be expensive for mere hackers and would require governments to chip in billions of dollars each to create it

Sent from my iPad using Tapatalk

Share this post


Link to post
Share on other sites
Maybe it's worth buying a single coin just incase the price reaches £100,000 - £1m

Remember they are not real 'coins' so you don't have to have a whole one :). I'd recommend for anybody to buy a few millibits for £5 or £10 and play with them because until you actually use them and play with them and move them around it can all seem a bit ethereal. I found that after using them it's no more ethereal than using bank transfer to move numbers that represent bits of paper from one account to another.

Sent from my iPad using Tapatalk

Share this post


Link to post
Share on other sites

IF they wanted to they could go to to localbitcoins.com where you can get £10 worth. They would need somewhere to send the bitcoins - I would recommend blockchain.info for computer or android phone. For iPhones use Pheva but I wouldn't put too much on there as it is not as proven (no more than $100). For larger amounts I would use paper wallets with or without multi-signature

Sent from my iPad using Tapatalk

Share this post


Link to post
Share on other sites

Can't you just write down the code and put it in the safe so nobody could ever hack it, or does it have to be with a 3rd party to get that code?

What I'm asking is, can I eliminate the chance of my BTC being stolen?

Is fractional BTC more expensive than a whole or the same? So if I put £20 a month into millibits, then after 25 months (assuming £500 BTC) I'd have a whole one?

Cheers

Share this post


Link to post
Share on other sites

If anyone wants to try it out I'm more than happy to send anybody who posts their public QR code here a few millibits

Assume a millibit is 1000th BTC?

I'd love a couple to start me off if you could guide me through it Dr?

I only use my iphone if it's possible to do from there?

D

Share this post


Link to post
Share on other sites

Hi Danny. Yes no problem. This is a workaround because apple barred proper app wallets: Go to pheeva.com and sign up (takes 1min) then install the app from the email they send you (it bypasses the App Store). When you have it post a screenshot of your public QR code (touch the wallet icon in the app then touch the qr code to make it bigger -it will be red)

Sent from my iPad using Tapatalk

Share this post


Link to post
Share on other sites

Can't you just write down the code and put it in the safe so nobody could ever hack it, or does it have to be with a 3rd party to get that code?

What I'm asking is, can I eliminate the chance of my BTC being stolen?

Is fractional BTC more expensive than a whole or the same? So if I put £20 a month into millibits, then after 25 months (assuming £500 BTC) I'd have a whole one?

Cheers

1) Yes if you want to be super safe there are ways to do it. You can write the private key on paper or whatever and put it in a safe. You can create multi key wallets so you have 3 seperate keys on 3 seperate bits of paper in 3 seperate locations and you can set it to only open with 2 of those 3 (in case one gets lost) or all 3. It's a bit complicated but I'm happy to explain if anyone is interested

2) yes, in the sense of more secure than your most precious silver coin

3) The beauty of bitcoin is that it's truly fully fungible. It's the same to the network if you send a millionth of a penny or a million pounds -it's jut numbers. You may find that someone will give you a better price if you buy a large amount but it's not the same as gold or silver - it's more like currency exchange at the M&S (percentage fee of whatever)

4) the price is very volatile so no guarantees of £20 x 25 will get you 1btc but in principle yes you can buy parts of a bitcoin over time and put them in the same wallet. This magically melts them in to one single lump. It's a popular tactic to just buy a small amount every week or month - the same as dollar cost averaging on silver bullion

Sent from my iPad using Tapatalk

Share this post


Link to post
Share on other sites

Dr Dime you've argued your point well and I hope one day I don't look back at this day and think I wish I'd have listened to that guy.

 

It's true if bitcoin catches on and everyone around the world starts using it the original holders will end up very wealthy, and like I said it is worth a punt, but I could have bought at $200 and didn't so I have to stick to my guns, it's a subject that definitely divides opinions.

Share this post


Link to post
Share on other sites

An understandable concern but a quick look at how the confirmations work and it's easy to see that there is only one way of 'faking' bitcoins and that involves building by far the biggest computer network the world has seen -which would be expensive for mere hackers and would require governments to chip in billions of dollars each to create it

Sent from my iPad using Tapatalk

And if you believe that...........................................

 

70 years ago you would need a large building to hold a computer. There was more computing power in an 80's calculator than the computers that put a man on the moon in 1969. I've got more computing power in my £100 phone today than the £2.5k computer I bought on HP from Tiny in the mid nineties. Given the rate of progress in computing, I bet anything that within a few years this computer network you speak of will be created for tuppence happenny by a snotty nosed geek in his bedroom

Share this post


Link to post
Share on other sites

@highland tiger. The 'fake' coin creation I was talking about is called a 51% attack. That means that the 'attacking' computers power (hashrate) has to be slightly higher than the whole of the bitcoin networks hashrate put together so your concern about increasing computer power is misplaced as the hashrate of the ASICS used by the nodes will also increase. In fact it increases at an exponentially higher rate than normal computing power increase as defined by Moore's law as the processors are being engineered specifically for hashing the bitcoin protocol and nothing else - they are very highly specialised chips.

It's worth noting that the current power of the bitcoin network is currently 70,000 terahashes a second which is much greater than every supercomputer in the world plus all government computer networks plus SETI plus all university computer put together and is continuing to increase

http://blockchain.info/charts/hash-rate

Sent from my iPhone using Tapatalk

Share this post


Link to post
Share on other sites

Just looking at that 2 years chart you put up, a gain of 11743.60% seriously that is just crazy, if that was a stock I wouldn't go near it, can it really go higher??

Yes, I know it looks crazy but it is normal growth for novel technology - it's just that we never normally see this period of growth as it is usually private. The way I see it is buying bitcoins is the equivalent of buying 'shares' in the internet in the late 90s or in Facebook long before the IPO

There is an excellent video on this I'd recommend watching:

http://youtu.be/qHUPPYzzZrI

Sent from my iPhone using Tapatalk

Share this post


Link to post
Share on other sites

You certainly know your stuff Dr, hats off to you buddy.

And thanks very much for helping me to set up a wallet, all I need to do now is get my head round the whole thing and work out how to put small amounts of fiat into my bitcoin wallet.

Share this post


Link to post
Share on other sites

I've had to speed read of this as we are on page three already so I may be repeating other folks.

Where to spend?

You can spend your cryptos on bullion at bitgild.com I used them last week for the first time and will use again. Their Brits and Noahs Arc are around the same price as STG but if you have cryptos to spend then it's better to spend direct than selling them for cash and then using the cash for bullion.

Are cryptos a big con?

Well email has impacted the post, mp3s killed cds etc. Should bitcoin and other cryptos kill the likes of Western Union etc who charge massive fees then I'm all for that.

One thing to consider is that new coins come out all the time and some are just pumped and dumped. Bitcoin's transaction speed is slow compared to newer coins so will the others impact bitcoin when they gain wider use? Maybe.

What's the bigger picture?

Some sort of crypto (whether bitcoin or another) maybe the only way to impact the power of bank controlled money creation and the seigniorage they profit from . People can choose what to use as money and what would happen if we had an e-pound not issued by banks which the public adopted and businesses accepted.

Oh and what happens when bitgild accept bitcoin?

They use bitpay as a payment system which instantly converts bitcoin to their local currency (so there's no risk of price moves).

I was going to suggest putting bitgild in the merchants thread btw.

Share this post


Link to post
Share on other sites

You certainly know your stuff Dr, hats off to you buddy.

And thanks very much for helping me to set up a wallet, all I need to do now is get my head round the whole thing and work out how to put small amounts of fiat into my bitcoin wallet.

Bittylicious.co.uk and bitbargain.co.uk are the easiest way to buy bitcoins.

For alt-coins it's price wise to buy bitcoin then trade them on exchanges yourself.

P.S. each coin has their own wallet. For example don't send litecoin to bitcoin wallets.

Edited by Helping Hands

Share this post


Link to post
Share on other sites