Can Bitcoin replace Forex?

[remix919]

Instead of explaining it myself, I think this article does a better job:

https://en.bitcoin.it/wiki/How_bitcoin_works

but basically you mine blocks of data and it's completely random who might find the bitcoin in a certain block. Also, there is a limited amount of "blocks", which are just data string, and at the current rate, they expect mining will stop around 2050. Even now, mining is starting to get harder and harder as more bitcoins are found, since each time a block is exhaust, it's gone forever, there are no replacements. Bitcoin can't just "print money" like the governments

When I was doing the mining I had joined a mining "pool", where we all combine the power of our machines together and whenever any of us got a bitcoin, we would share the profit. If your interested, this is probably the better way to go.

[garyfritz]

I understand the process pretty well. I just don't understand WHY the blocks are valuable. Why is someone willing to pay a number of bitcoins (which have real-world value) for a new block? As far as I can tell, the only inherent value they have is as a building block in the Bitcoin cryptographic structure. But that just enables the production of new Bitcoins. It seems a bit circular.

[Dozer]

Gary,

I see what you are asking. No one is paying a number of Bitcoins for the blocks. When the block is solved the Bitcoins are created and awarded to the "miner". It's like mining for gold. The gold (Bitcoins) are allocated to those who find them (solve the current block).

It's kind of like a continuous raffle draw The mining nodes on the network are awarded bitcoins each time they find the solution to a certain mathematical problem (and thereby create a new block) while they are also supporting the overall Bitcoin infrastructure. Creating a block is a proof of work with a difficulty that varies with the overall strength of the network. The reward for solving a block is shiny new Bitcoins.

If you are trying to find some intrinsic value (numismaticly speaking) in Bitcoins there isn't any. But then there really isn't any intrinsic value in the US Dollar or Euro either.....

Dozer

[Ingot54]

Appears to be something everyone is going to need to understand quickly...

2013 values
The USD value of a bitcoin increased ten-fold in early 2013 from $13/BTC on January 1 to $190/BTC on April 9th, three months later. Suggested reasons for the rise in price included the European sovereign-debt crisis - particularly the 2012–2013 Cypriot financial crisis - statements by FinCEN improving the currency's legal standing and rising media and Internet interest.[48][49][50][51]
As the market value of the total bitcoin supply approached $1 billion USD, financial commentators described bitcoin prices as a bubble.[52][53][54] On 10 April 2013, Bitcoin dropped from a price of $266 to $105 before returning to a value of $160 within six hours.

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

If it is so volatile ... leave me out of it - I'll stick to sweet potatoes and fish.

If I buy Bitcoins for $266 and they drop to $105, then poor sucker me!

Nope - I wouldn't touch it with a forty-foot pole!

Almost as bad as trying to trade the NZDJPY

EDIT: Clearly I don't understand the concept ... nor do I wish to.

Is it true that if you don't have a Bitcoin, then you can't do any transactions?
If you can't "mine" for them, how do you get them, or how can you perform a transaction with them?

Ok, ok ... I know ... read the link!

[Chris]

When you mine for gold, you have something you can use, jewelry, conductors ect. What can you use the bitcoin block of code for? And how is it that there could not be two people mining the same block? Would this not create an unlimited supply? Find me the bitcoin block of code that can solve these market moves and I would be willing to pay for that one.

[niepce]

What can you use the bitcoin block of code for?

To buy illegal drugs on Silkroad TOR network. That's all about it, really.

I am going to create my own currency. Shitcoins. Won't be backed by any central bank, or by any government. With Shitcoins (c), start trading turds today !

[KevinT]

It ain't gonna happen

GOVMTS wan't allow an offshore subprime currency to evade IRS, bubble & colapse

[Chris]

What can you use the bitcoin block of code for?

To buy illegal drugs on Silkroad TOR network. That's all about it, really.

I am going to create my own currency. Shitcoins. Won't be backed by any central bank, or by any government. With Shitcoins (c), start trading turds today !

Oh I got a get in on this while the price is still low, how much for a shitcoin?

[Ingot54]

It ain't gonna happen

GOVMTS wan't allow an offshore subprime currency to evade IRS, bubble & colapse

Maybe when the governments can work out how to control it/tax it/confiscate it/print it/profit from it then it will assume some mainstream status.

It seems there is a way to go yet. Here is Chris Gaffney's take on it. Gaffney is Senior Vice President, Sales and marketing, Everbank World Markets.

He is writing in the weekend edition of The daily Pfennig, called "Pfennig and Pfriends":

http://www.dailypfennig.com/2013/04/28/ ... it-player/

Enjoy ... and thanks to Chuck Butler and Chris Gaffney from the Daily Pfennig, for the article.

[McNish]

What can you use the bitcoin block of code for?

To buy illegal drugs on Silkroad TOR network. That's all about it, really.

Fix like NZT's? It'll we worth the investment in that case.