• Current Events & Politics
    Welcome Guest
    Please read before posting:
    Forum Guidelines Bluelight Rules
  • Current Events & Politics Moderators: tryptakid | Foreigner

BITCOIN Discussion v. 8 Coins on an Old Computer

Those who know about the underground try not to talk about the underground. ;)

The biggest problem and weakpoint with BTC FYI are the exchanges.
 
^Yes on both points. On a public board like this, it's only safe to discuss bitcoin management in oblique terms. I think this really hurts the information transfer and makes for a hyper-sensitive market as I imagine what little information is readily available is given more weight than it actually deserves. But that's a normative stance; the market we have is the one we're stuck with and must be manipulated and reacted to accordingly.

My primary concern with getting involved in any bitcoin business is having a reliable hedging system. I think that running any business using bitcoins is very similar to having to make huge money management decisions for a large company because only n that situation will you be so sensitive to currency fluctuations on a daily basis. You don't even have to get into large quantities with bitcoins before you can see your profit eroded.

There are two jobs that go with any business reliant on bitcoins: the first is buying and selling the product in question. The second is having a disciplined currency exchange schedule. The second one is pretty involved, I've come to realize, and almost requires the help and trust of another employee. Son't get me wrong, I believe it's possible for one person to be in charge of both, but there is an inherent conflict of interest thanks to bitcon's wildly fluctuating values. The purpose of the two duties being split is so that there is accountability and sometimes disagreement between the two. The person in charge of acquiring the new inventory and selling it can't have the specter of the items he just shipped dropping in value 35% by the time the bitcoins are translated into cash. It's a psychological thing. This person should be placed on strategic growth duty and stay focused. The money guy has the arduous task of maintaining a strict currency exchange schedule to cover weekly inventory purchases (give or take) based on a budget. Only the deepest pockets and/or the slickest money management will keep business open 24/7 without any shortages if the primary mode of exchange s bitcoin. There are some exchanges I have discovered that are pretty reliable for imitating short-selling and other manner of hedging, but with those you also have transaction and time costs. I'm always working on better solutions for keeping it clean and fast.
 
captainballs said:
^Yes on both points. On a public board like this, it's only safe to discuss bitcoin management in oblique terms. I think this really hurts the information transfer and makes for a hyper-sensitive market as I imagine what little information is readily available is given more weight than it actually deserves. But that's a normative stance; the market we have is the one we're stuck with and must be manipulated and reacted to accordingly.

My primary concern with getting involved in any bitcoin business is having a reliable hedging system. I think that running any business using bitcoins is very similar to having to make huge money management decisions for a large company because only n that situation will you be so sensitive to currency fluctuations on a daily basis. You don't even have to get into large quantities with bitcoins before you can see your profit eroded.

There are two jobs that go with any business reliant on bitcoins: the first is buying and selling the product in question. The second is having a disciplined currency exchange schedule. The second one is pretty involved, I've come to realize, and almost requires the help and trust of another employee. Son't get me wrong, I believe it's possible for one person to be in charge of both, but there is an inherent conflict of interest thanks to bitcon's wildly fluctuating values. The purpose of the two duties being split is so that there is accountability and sometimes disagreement between the two. The person in charge of acquiring the new inventory and selling it can't have the specter of the items he just shipped dropping in value 35% by the time the bitcoins are translated into cash. It's a psychological thing. This person should be placed on strategic growth duty and stay focused. The money guy has the arduous task of maintaining a strict currency exchange schedule to cover weekly inventory purchases (give or take) based on a budget. Only the deepest pockets and/or the slickest money management will keep business open 24/7 without any shortages if the primary mode of exchange s bitcoin. There are some exchanges I have discovered that are pretty reliable for imitating short-selling and other manner of hedging, but with those you also have transaction and time costs. I'm always working on better solutions for keeping it clean and fast.
Click to expand...

I hereby nominate you for Bitcoin finance minister.
 
captainballs said:
hey, what are some of you guys' turn around times for bitcoin into usable cash?
Click to expand...

I've never actually used it, it's all in the realm of theory for me atm.

I don't trust the exchanges, I currently have no need for Bitcoin products (i.e. mostly illegal stuff), and it's pretty much useless now for speculatory purposes after the last bubble burst.
 
I don't think it's tooootally useless for speculation. There still is the matter of different exchanges offering bitcoin at different rates. With enough capital, it would be worth raping the spread every couple days. There are a few exchanges that are in the United States and pretty well organized. I'm running the numbers right now on the fastest way to move money from one exchange to the other and then back around again for another ride on the profit train. So far I'm running into processing time problems with the major cashout services, such as Liberty Dollar. These guys all like to roll manual. But I've got a couple bank accounts ready to go and even an exchange that will accept relatively fast same day deposits via cash through either wells fargo or bank of america. That may have to be part of the equation.
 
The real world equivalent of bitcoin is diamonds.

Did you know that you can walk through international borders freely with a pocket full of diamonds?

Unlike bitcoin, the price of natural diamonds is relatively stable with an upward trend. Also, you can get them without reporting value to the U.S. Then you can sell them without paying a capital gains tax on the increase in value.
 
I have lots of bitcoins for sale/trade if anyone is looking for an easy way to buy some anonymously.
 
^Good idea.

I don't want to put your business on blast, but do you have a pricing structure per bitcoin that you go by, or is it negotiable depending on quantity?

Also, not trying to spam, but if anyone needs to carry a cash substitute, I can help with diamond acquisition. Any questions about the actual movement of cash into diamonds can be directed to me, and I can let you know how the market is doing (what the different forces at hand are) and how to move them around the world, the kinds of taxes that aren't obligatory.
 
I sell bitcoins at current market rate, if someone is willing to pay via bank transfer or Western Union or cash in mail.
 
^In the most idealistic vision you can conjure of how the information society should function economically, what should be free, what should be shared, it is impossible to escape the eventual development of a monetary system. It can be called by many different names, but the fact is that there needs to be a common denominator between goods to facilitate trade. Criticizing bitcoin for not being the perfect compromise between fairy-tale ideas of a world that looks like the inside of a computer from the film "Hackers" and the real world where goods need to be manufactured, exported, and distributed is similar to criticizing Einstein for not just skipping relativity and going straight to string theory.
 
i believe that information and ideas should be entirely free. i believe in open source everything. but i can't behave in the world as if that's the way everything works... apparently people aren't ready. but i support change however i can.
 
Last edited:
Anything could happen, but I honestly believe that there is value in Bitcoin and I also think that the market being developed underground will support its use regardless of how it fluctuates during its immature phase.

I have a personal price target for Bitcoin at a little less than a dollar. How long will it take to get there? 6 months. I could be short, but I think that is about right given Bitcoin's tendency to bounce in the direction its going to go fairly quickly.

The reason I put the price at a little less than a dollar (but not much less) is that i assume that if Bitcoin will be around at all, then it will become safer and more reliable thanks to consolidation of money among a few powerful exchanges. When people feel safe enough to keep large amounts of money in Bitcoins and even run businesses month in-month out without major problems, then the fundamental problem with Bitcoin will reveal itself: quick, clean conversion to cash. Lets be honest: Bitcoin exists for the purpose of circumventing a handful of laws. For a small fee, third parties will offer to buy bitcoins. The cost of running a consistent business with Bitcoin will be decided by this market for conversion, and it will not be free although it will be cheap.

The value of Bitcoin's anonymity would normally cause the Bitcoin to be worth more than a dollar, as it does currently, but consider this: customers are the ones buying INTO anonymity when they transfer cash into bitcoins. Vendors are the ones buying OUT when they need to convert in order to buy more inventory with cash. Which party is doing more transactions consistently and with larger volume? the vendors, of course. These are the guys whose cost of doing business will decide the price of bitcoins. Customers' concerns will not affect the price as much, as they are discrete units with limited funds, similar to the random guy who has an online brokerage account and whose individual trades have zero effect on stock prices. Vendors are collecting all the Bitcoins and consistently looking for ways to cash out, and unless they are buying inventory with Bitcoin on a regular basis then the scale will always tip in that direction. So, it follows that compared to any other business they could be in, the cost of doing business with Bitcoins will always be slightly more due to the need to hire a third party to consistently deliver cash. In an efficient market with reliable cash people, the fees will be low. So I think it's fair to price the Bitcoin at about a dollar but less exactly how much it costs to convert them to dollars. Maybe the balance will be tipped by the size of European transactions, but I think the best market for Bitcoin-related goods is here in the U.S.

So yeah, I'll go ahead and put my good name n the line and say that by the end of April 2012, expect for Bitcoins to be worth between 90 and 95 cents.
 
Hi all, I've got an old computer sitting at home doing nothing but has a bitcoin wallet with 8coins on it I brought about a few years ago. I looked at duck duck go and says 1coin is over 3000pounds? Wtf? Is this crypto currency for real? Why would anyone buy bitcoin for that price? Could I sell them? Step 1 how do I get back into my wallet as I think I've forgotten password, can it be reset?? 2. How do I exchange these bitcoin for real cash? Why is bitcoin important? Is there a coming clapse of fiat currency? Is bitcoin the future currency?
 
1 bitcoin is currently worth 4628.92 U.S. dollars. If you have eight whole bitcoins, you've got quite a chunk of change. The reason people will still buy them at that high of a price is you can buy fractions o a coin for example .016 bitcoin right now equals 74 dollars, so if somone was charging 74 dollars for something, I would pay them .016 bitcoin.
 
Last edited:
If you have forgotten the password it cannot be reset, that a security feature by design on most wallets.

You can sell your BTC on an online exchange or sell it directly one to one. Many if not all online exchanges require ID's to sell and charge fees.
 
You must log in or register to reply here.
Top