Bitcoins - the new currency?

I haven't read enough to fully understand this yet, but it looks like something that could take off, a peer to peer currency invented by the users.

If nothing else it'll be interesting to see where it goes - http://launch.is/blog/l019-bitcoin-p2p-currency-the-most-dangerous-project-weve-ev.html

or watch the video:

"Let’s Make Some Predictions

============

We are 100% certain that governments will start banning bitcoins in the next 12 to 18 months. Additionally, we’re certain bitcoins will soar in value and a crush of folks will flood the system and start using them.

Currently there are 6M coins at $6.70 each for a total economy of about $40M. Bitcoin speculation and hoarding will also cause a massive spike in bitcoin value. For example, if 10M people find out about bitcoins in the next year and want to buy $100 worth, $1B will be infused into the bitcoin economy."

Oooh, the tax man won't like this!...

Don't trust them one bit.

Your money is safer in a bank losing 5% of its value a year.

Bitcoins are like paper money, perhaps cheaper to issue, but even more vulnerable to fraud.

Metal coinage is where its at. Metals of value. Not iron like the current issue of sterling.

Tend to agree with the gold thing; however, even there's attaching a value to precious metals seems very arbitary and subject to change (not stable).

Bitcoins are like paper money, perhaps cheaper to issue, but even more vulnerable to fraud.

 

Metal coinage is where its at. Metals of value.

On the internet that isn't possible though. Like any currency, it is worth however much trust that a society has in it. I think it's interesting atleast.

On the internet that isn't possible though. Like any currency, it is worth however much trust that a society has in it. I think it's interesting atleast.

I suppose any currency is valued in the trust of its value and the ease of ability to exchange it, but if metal, it has a base value.

Fraud fast becomes uneconomical when the value of the coin exceeds the currency. (When it involves smelting)

Printing paper, or manipulating computers on the otherhand...

Fraud fast becomes uneconomical when the value of the coin exceeds the currency. (When it involves smelting)

 

Printing paper, or manipulating computers on the otherhand...

I'll agree with that. They'll have to take massive steps to secure it. If there becomes any incentive in it then organised crime will become interested.

I think it is interesting that people are taking steps towards some type of 'global internet currency', but I shall wait a long time until I put any money in personally.

A lot of people seem to be spending loads on computers, specifically to mine these bit coins.

Depending on the cost of buying and running the computer(s) to mine them, compared to the value (in bitcoins) they would generate. Could be a nice little gold-mine.

Just need to do your sums first.

Most money now exists as a string of ones and zeroes on a computer somewhere, so I don't see much difference with Bitcoin. I just wish I had bought them when they were 30 cents each, now they sell for 7 - 8 US Dollars, that's an increase of 2500%.

Interesting video here of how one person made a lot of money potentially. Of course he hasn't made the money till he's sold all his Bitcoins -

http://www.youtube.com/watch?v=BzBCbO8U45w

I just wish I had bought them when they were 30 cents each, now they sell for 7 - 8 US Dollars, that's an increase of 2500%.

Have you bought any yet? They could still go up in value.